Finnair Oyj - Financial Statement Release

­­Finnair Group Financial Statements Release 1 January - 31 December 2024

Finnair Plc               Stock Exchange Release               13 February 2025
at 9:00 a.m. EET

Q4 revenue increased and comparable operating result more than doubled; the
Board proposes a return of capital of 0.11 euros per share

October - December 2024

  · Revenue increased by 7.7 per cent to 782.9 million euros (727.2).
  · Unit revenue (RASK) increased by 4.3 per cent to 8.38 cents (8.04).
  · Unit cost (CASK) increased by 1.0 per cent to 7.87 cents (7.79).
  · Comparable operating result was 47.9 million euros (22.5). Industrial action
in November-December had a negative impact of around 5 million euros on the
comparable operating result.
  · Operating result was 12.1 million euros (27.3). In addition to industrial
action, operating result was negatively impacted by the partial return of
indexation of the obligations of Finnair Pension Fund.
  · Result for the period was -8.4 million euros (60.2). In addition to
industrial action and the partial return of indexation of the obligations of
Finnair Pension Fund, comparability was affected by the deferred tax assets that
supported the result for the comparison period.
  · Earnings per share were -0.04 euros (0.41*).
  · Cash funds were 884.0 million euros (922.0).
  · Equity ratio was 16.9 per cent (15.6).
  · Net cash flow from operating activities was 201.8 million euros (-5.7), and
net cash flow from investing activities was -175.3 million euros (-177.7)**.
Gross capital expenditure totalled 320.8 million euros (268.6).
  · Number of passengers increased by 9.1 per cent to 2.8 million*** (2.6).
  · Available seat kilometres (ASK) increased by 3.3 per cent to 9,341.7 million
kilometres (9,047.5). Including wet leases, ASKs increased by 4.1 per cent.
  · Passenger load factor (PLF) increased by 3.3 percentage points to 76.4 per
cent (73.1).

January - December 2024

  · Revenue increased by 2.0 per cent to 3,048.8 million euros (2,988.5).
  · Unit revenue (RASK) decreased by 3.6 per cent to 7.97 cents (8.27).
  · Unit cost (CASK) decreased by 2.4 per cent to 7.57 cents (7.76).
  · Comparable operating result was 151.4 million euros (184.0).
  · Operating result was 114.2 million euros (191.4). Operating result was
negatively impacted by the partial return of indexation of the obligations of
Finnair Pension Fund.
  · Result for the period was 37.0 million euros (254.3). In addition to the
partial return of indexation of the obligations of Finnair Pension Fund,
comparability was affected by the deferred tax assets that supported the result
for the previous year.
  · Earnings per share were 0.18 euros (2.25*).
  · Net cash flow from operating activities was 612.7 million euros (472.3), and
net cash flow from investing activities was -286.4 million euros (-464.0)**.
Gross capital expenditure totalled 463.8 million euros (484.2).
  · Number of passengers increased by 6.1 per cent to 11.7 million*** (11.0).
  · Available seat kilometres (ASK) increased by 5.8 per cent to 38,259.3
million kilometres (36,154.5). Including wet leases, ASKs increased by 6.8 per
cent.
  · Passenger load factor (PLF) decreased by 0.6 percentage points to 75.8 per
cent (76.4).
  · The Board of Directors proposes to the Annual General Meeting that a return
of capital of 0.11 euros per share be distributed to shareholders.

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

*       On 20 March 2024, Finnair executed a reverse split, i.e. a reduction of
the number of shares where every 100 old shares in the company corresponds to
one new share. The comparison figure has been restated accordingly.

**     In Q4, net cash flow from investing activities included 20.1 million
euros of redemptions (68.0 million euros of redemptions) in money market funds
or other financial assets (maturity over three months). In 2024, redemptions
totalled 4.1 million euros (60.7 million euros of investments). They are a part
of the Group's liquidity management.

***  The number of passengers and cargo tonnes for January-November 2024 were
corrected in December, with a total impact of 59,100 additional passengers and
828.7 additional cargo tonnes for the period.

Outlook

Guidance issued on 29 october 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, particularly in the form of fuel price volatility.

Finnair reiterates its previous guidance and 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 reiterates that its revenue in 2024 will be within the range of 3.0-3.2
billion euros. The company specifies its previous estimate and now expects its
comparable EBIT will be within the range of 120-170 million euros in 2024.

Finnair will update its outlook and guidance in connection with the financial
statements bulletin for 2024.

New guidance on 13 February 2025:

Global air traffic is expected to continue growing in 2025. However,
international conflicts, global political instability and a tense labour market
situation in Finland cause uncertainty in the operating environment.

Finnair plans to increase its total capacity, measured by ASKs, by c. 10 per
cent in 2025. The capacity estimate includes the agreed wet leases. Finnair
expects its revenue to be within the range of 3.3-3.4 billion euros and its
comparable operating result to be within the range of 100-200 million euros in
2025. In 2025, profitability is burdened particularly by additional costs caused
by the sustainable aviation fuel distribution obligation introduced in the EU,
as well as rising navigation and landing charges, which will weigh on the
comparable operating result especially for the seasonally low first quarter. In
addition, the first quarter's comparable operating result will be negatively
impacted by the timing of Easter.

The estimates regarding capacity, revenue and comparable operating result do not
include impacts of industrial action. In January 2025, the estimated negative
impact of industrial action on comparable operating result was around 5 million
euros.

Finnair will update its outlook and guidance in connection with the 2025 first
quarter interim report.

CEO Turkka Kuusisto:

For Finnair, the fourth quarter of 2024 was strong: the number of passengers
increased by 9.1 per cent and our revenue by 7.7 per cent, while our comparable
operating result more than doubled from the comparison period. In addition to
higher revenue, an improved passenger load factor and a lower fuel price
contributed to the increase in comparable operating result. Our capacity
increased by 3.3 per cent during the quarter, and by 4.1 per cent when taking
wet lease outs into account. The improved passenger load factor supported an
increase in unit revenue, while the decline in average ticket fares stabilised.

However, the result for the quarter was negatively impacted by weather-related
disruptions and industrial action by the Finnish Air Line Pilots' Association
related to the pilots' collective bargaining, which led to a cancellation of
approximately 300 flights during two days in December and more than 200 flights
outside those two days in November and December. The pilots' industrial action
had a negative impact on the regularity of Finnair flights and affected more
than 60,000 customers in total. Their impact was also reflected in our customer
satisfaction, which, measured by Net Promoter Score, declined to 33 in the
fourth quarter.

The market dynamics shifted during 2024. Demand weakened from the record strong
comparison year, capacity in the market increased, and average ticket fares
declined. Finnair's passenger revenue remained at the level of 2023. Ancillary
revenue increased by 23 per cent, driven by the ticket reforms introduced in mid
-2023. Our cargo business grew by 7 per cent and travel services by 2 per cent.

During 2024, we flew a successfully balanced route network. Our foothold is
still strong in Asia, while the role of North Atlantic and European traffic in
our business has grown. Measured in available seat kilometres and taking wet
lease outs into account, our capacity increased by 6.8 per cent during the year,
which was less than we predicted due to industrial action and aircraft
maintenance needs, among other things. In December, we received the 18[th]
Airbus A350, which immediately began operating on our long-haul flights and
supports the growth of our business.

Our net cash flow from operating activities was strong both in the fourth
quarter and for the full year, and we systematically implemented measures to
further strengthen the balance sheet during the year. Our balance sheet is now
in a good shape to support the implementation of Finnair's strategy. Continuous
improvement and cost efficiency are essential in securing and developing
Finnair's competitiveness in a highly competitive market.

Customer satisfaction, measured by Net Promoter Score, was 37 for the full year.
It was negatively impacted by industrial action by pilots and other traffic
disruptions in the fourth quarter. We continue to invest in the management of
disruptions so that we can minimise their impact on our customers and provide
them with high-quality and timely service even in exceptional situations. A
deeper understanding of customer needs and meeting those play a key role in the
development of Finnair's offering and customer service.

Our planned capacity growth for 2025 focuses on North Atlantic traffic and
supports revenue growth. Cost pressures are brought by rising salaries,
navigation and landing charges, aircraft maintenance costs, and costs related to
emissions trading and sustainable aviation fuel. We are currently finalising a
strategy update with a particular focus on Finnair's core customers' needs,
operational development and cost competitiveness to maintain and strengthen our
position as a safe and high-quality airline and a trusted partner for our
customers. As part of this, we are also preparing a partial renewal of our
narrow-body fleet.

Thanks to the positive result and our strong financial position, we have the
opportunity to reward our shareholders after a long time with a return of
capital of 0.11 euros per share, as proposed by the Board of Directors. The
amount exceeds the target of one third of earnings per share set in our
shareholder return policy, as the reported earnings per share were impacted by a
one-off item. Our shareholders have supported us through the difficult crisis
years, and we are happy to now redeem the value creation target we set in
connection with the rights issue.

Finally, I would like to thank our customers for their trust in Finnair and all
Finnair employees for their committed work in serving customers, both during the
operational challenges in the last quarter and throughout the year.

Shareholder return policy and the Board's proposal for the distribution of
profit

The aim of Finnair's shareholder return policy is to pay, on average, one-third
of earnings per share as dividend or capital distribution during an economic
cycle. When deciding on such distribution, Finnair intends to take into account
its earnings trend and outlook, financial situation, as well as capital and
investment needs for any given period. Any future distributions may be made in
two annual payments.

In connection with the 570-million-euro rights issue implemented in November
2023, Finnair announced that it is targeting to reinstate its ability for
shareholder distributions from 2025 onwards based on the 2024 financial
statements.

In 2024, earnings per share were 0.18 euros (2.25). Finnair Plc's distributable
equity amounted to 634,622,303.69 euros on 31 December 2024. The Board of
Directors proposes to the Annual General Meeting that a return of capital of
0.11 euros per share be distributed to shareholders. The return of capital shall
be paid in two instalments. The first instalment of 0.06 euros per share shall
be paid to a shareholder who is registered in the shareholder register of the
company maintained by Euroclear Finland Oy on the record date of 31 March 2025.
The payment date proposed by the Board of Directors for this instalment is 7
April 2025. The second instalment of 0.05 euros per share shall be paid in
November. It shall be paid to a shareholder who is registered in the shareholder
register of the company maintained by Euroclear Finland Oy on the record date,
which, together with the payment date, shall be decided by the Board of
Directors in its meeting scheduled for 28 October 2025.

Financial reporting in 2025

The publication dates of Finnair's financial reports in 2025 are the following:

  · Interim Report for January-March 2025 on Tuesday 29 April 2025
  · Half-year Report for January-June 2025 on Wednesday 16 July 2025
  · Interim Report for January-September 2025 on Thursday 30 October 2025

This text is a summary of Finnair's Financial Statements Release 1 January-31
December 2024. The full report is available as an attachment to this release.

FINNAIR PLC
Board of Directors

Briefings

Finnair will hold a results press conference (in Finnish) on 13 February 2025 at
11:00 a.m. Finnish time at its office at Tietotie 9 in Vantaa, Finland. It is
also possible to participate in the press conference via a live webcast at
https://finnairgroup.videosync.fi/2025-02-13-media.

An English-language telephone conference and webcast will begin on 13 February
2025 at 1:00 p.m. Finnish time. To access the conference, kindly register at
https://palvelu.flik.fi/teleconference/?id=5007331. 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/q4-2024.

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

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. Customers have chosen
Finnair as the Best Airline in Northern Europe in the Skytrax Awards for 14
times in a row. Finnair is a member of the oneworld alliance. Finnair Plc's
shares are quoted on Nasdaq Helsinki.

Attachments:

02136471.pdf