Finnair Oyj - Interim report (Q1 and Q3)

Finnair Group Interim Report 1 January - 31 March 2024

Finnair Plc                  Interim Report                 23 April 2024 at
9.00 a.m. EEST

Yields and operating cash flow remained at a good level. Strikes had a negative
impact on revenue and result

January - March 2024

  · Revenue decreased by 1.9% to 681.5 million euros (694.7*).
  · Unit cost (CASK) decreased by 4.3 per cent and totalled 7.77 cents (8.11).
  · Comparable operating result was -11.6 million euros (0.9) and operating
result was -17.2 million euros (8.3).
  · Earnings per share were -0.15 euros (-0.09**).
  · Cash funds were 981.0 million euros (31 Dec 2023: 922.0). The equity ratio
was 15.3 per cent (31 Dec 2023: 15.6).
  · Net cash flow from operating activities was 138.9 million euros (206.8), and
net cash flow from investing activities was -25.9 million euros (-143.7).***
Gross capital expenditure totalled 43.4 million euros (80.0).
  · Number of passengers decreased by 1.9 per cent to 2.5 million (2.6).
  · Available seat kilometres (ASK) increased by 4.4 per cent to 8,922.9 million
kilometres (8,550.2).  When wet leases are included, ASKs increased by 3.5 per
cent.
  · Passenger load factor (PLF) decreased to 72.1 per cent (75.1).

*     Unless otherwise stated, comparisons and figures in parentheses refer to
the comparison period, i.e., the same period last year.

**   A rights issue was implemented in November 2023 and, thus, the comparison
period figure has been restated accordingly. On 20 March 2024, Finnair executed
a reverse split, i.e. the reduction of the number of shares where every 100 old
shares in the company corresponds to one new share.

*** In Q1, net cash flow from investing activities included 6.5 million euros of
redemptions (63.8 million euros on investments) in money market funds or other
financial assets (maturity over three months). They are a part of the Group's
liquidity management.

Outlook

GUIDANCE issued ON 14 february 2024:

Global air traffic is expected to continue growing in 2024. However, risks
related to the impact of inflation and higher interest rates on demand and costs
remain elevated, causing uncertainty in the operating environment. International
conflicts and global political instability also cause uncertainty in the
operating environment. These factors may affect the demand for air travel and
cargo.

Finnair plans to increase its total capacity by more than 10 per cent in 2024.
The capacity estimate includes the agreed wet leases. This growth will mainly
focus on Asia and Europe. Finnair's revenue is expected to grow at a somewhat
slower pace than capacity in 2024.

In accordance with its disclosure policy, Finnair provides full-year comparable
EBIT estimate in connection with the half-year report in July.

Finnair will update its outlook and guidance in connection with the Q1 2024
interim report.

NEW GUIDANCE ON 23 April 2024:

Global air traffic is expected to continue growing in 2024. However, risks
related to the impact of inflation and higher interest rates on demand and costs
remain elevated, causing uncertainty in the operating environment. International
conflicts and global political instability also cause uncertainty in the
operating environment. These factors may affect the demand for air travel and
cargo.

Finnair updates its guidance and now plans to increase its total capacity,
measured by ASKs, by c. 10 per cent in 2024. The capacity estimate includes the
agreed wet leases. This growth will mainly focus on Asia and Europe. Finnair's
revenue is now expected to grow at a slower pace than capacity in 2024. In its
previous guidance, Finnair planned to increase its capacity by more than 10 per
cent and its revenue was expected to grow at a somewhat slower pace than
capacity in 2024.

In accordance with its disclosure policy, Finnair provides full-year comparable
EBIT estimate in connection with the half-year report in July.

Finnair will update its outlook and guidance in connection with the 2024 half
-year report.

Interim CE­O Jaakko Schildt:

Finnair carried 2.5 million passengers in January-March and revenue for the
period totalled 681.5 million euros (694.7). The revenue decrease was driven by
the political strikes in Finland, normalised revenue recognition related to
expired tickets and lower cargo yields, despite higher ancillary and travel
services revenue. On the other hand, operating expenses remained unchanged year
-on-year due to a strict cost control and a lower fuel price even though
capacity increased. Comparable operating result in the seasonally weakest
quarter was -11.6 million euros (0.9).

Demand remained good in the quarter and customers booked trips especially for
the upcoming summer season. As a result of the successful pricing, our yields
remained strong despite a slight decrease year-on-year. Also our operating cash
flow was at a good level.

The strikes in Finland and in Europe negatively affected our on-time performance
during the quarter. Our on-time performance was also burdened by winter weather
conditions, landing at 75 per cent (82).

A new era started in our Finnair Plus loyalty programme when it became spend
-based and we adopted Avios as our loyalty currency. The ticket type changes
carried out last summer have yielded results that are visible in our customer
satisfaction, on-time performance and ancillary revenue figures. Our Net
Promoter Score (NPS) measuring customer satisfaction remained at a good level at
34.

During the first quarter, our contribution to solving the climate challenge of
aviation took an important step forward as we submitted our new climate target
for validation to Science Based Targets initiative (SBTi).  Finnair's target is
to reduce the emissions intensity from the aircraft we fly by 34.5 per cent
through 2033 compared to 2023 baseline.

Finnair's Annual General Meeting resolved on a reverse split in March. After the
reverse split, every 100 old shares corresponds to one new share. The aim of the
reverse split was to facilitate trading conditions and improve the price
formation of the shares.

At the end of March, four A320 aircraft returned from wet lease outs to British
Airways. At the same time, one of our A330 aircraft moved to operate Qantas
flights between Bangkok and Sydney, based on a wet lease agreement.

The entire Finnair personnel is preparing for the seasonally busiest travelling
period ahead. We have recruited summer workers especially in Finnair Kitchen and
in airport customer service operations. The pilot and cabin crew recruitments
done in 2023 also support operations in the summer. Our network includes 15 long
-haul and almost 70 European destinations, with Wroclaw in Poland as the latest
addition. I believe our strong offering matches well to the needs of our
customers. Our committed personnel together with our partners takes care of a
safe, smooth and pleasant customer experience.

Financial reporting in 2024

The publication dates of Finnair's financial reports in 2024 are the following:

  · Half-year Report for January-June 2024 on Friday 19 July 2024
  · Interim Report for January-September 2024 on Tuesday 29 October 2024

This text is a summary of Finnair's Interim Report January - March 2024. The
full report is available as an attachment to this report.

FINNAIR PLC
Board of Directors

Briefings

Finnair will hold a results press conference (in Finnish) on 23 April 2024 at
11:00 a.m. at its office at Tietotie 9 in Vantaa. It is also possible to
participate in the press conference via a live webcast at
https://finnairgroup.videosync.fi/2024-04-23-media.

An English-language telephone conference and webcast will begin on 23 April 2024
at 1:00 p.m. Finnish time. To access the conference, kindly first register at
https://palvelu.flik.fi/teleconference/?id=50048501. After the registration, you
will be provided with phone numbers and a conference ID. To join the live
webcast, please register at https://finnairgroup.videosync.fi/q1-2024.

For further information, please contact:

Chief Financial Officer Kristian Pullola, tel. +358 9 818 4960,
kristian.pullola@finnair.com

Head of Investor Relations Erkka Salonen, tel. +358 9 818 5101,
erkka.salonen@finnair.com

FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms@finnair.com

Distribution:
NASDAQ OMX Helsinki
Principal media

Finnair is a network airline, specialising in connecting passenger and cargo
traffic between Asia, the Middle East, North America and Europe. Finnair is the
only airline with year-round direct flights to Lapland. Sustainability is at the
heart of everything we do - Finnair intends to reach carbon neutrality latest by
the end of 2045. Customers have chosen Finnair as the Best Airline in Northern
Europe in the Skytrax Awards for 13 times in a row. Finnair is a member of
the oneworld alliance. Finnair Plc's shares are quoted on the Nasdaq Helsinki
stock exchange.

Attachments:

04225710.pdf