English

Finnair updates its financial targets, aims for sustainable profitable growth

Report this content

Finnair Plc          Stock Exchange Release          7 November 2019 at 15:00 CET

Following a period of accelerated growth, Finnair is now moving into a new phase. The company seeks to grow in line with the market, targeting sustainable and profitable growth.

Finnair’s Board of Directors has defined the following targets for the 2020-2025 strategy period:

  • Comparable EBIT of over 7.5% over the cycle (at constant fuel and currency), after a 12-18 month build-up period
  • ROCE of over 10% over the cycle (at constant fuel and currency), after a 12-18 month build-up period
  • On-time-performance of over 85%
  • Improved Net Promoter Score and improved employee Net promoter score

Finnair aims to deliver these targets through a focused strategy that leverages the geographical advantage of Finnair’s hub in connecting Europe and Asia.

During its Capital Markets Day on 12 November 2019, Finnair will elaborate on network and fleet optimization, operational excellence, retailing strategy and sustainability. Finnair’s management will also discuss its estimated investments for the strategy period and their potential financial implications.

Additional guidance for the 2020-2025 strategy period includes the following indicative items:

  • Capacity growth, measured in Available Seat Kilometres (ASK) of 3-5% CAGR
  • Optimize liquidity, yet keeping cash to sales ratio above 15% (34% as per 30 September 2019)
  • Gearing ratio 175% at maximum (74% as per 30 September 2019)
  • Assess renewal and downsizing of the hybrid bond
  • Increase the share of owned aircraft vs. leased aircraft
  • Keep the dividend policy unchanged

The agenda for Finnair’s Capital Markets Day is available at https://investors.finnair.com/en/capital-markets-day

RISKS AND FORWARD-LOOKING STATEMENTS

Certain statements in this release that are not historical facts are forward-looking statements, and as such, involve risks and uncertainties regarding Finnair’s activities, performance, materialisation of the strategies, and their intended effect on Finnair’s business. Risks and uncertainties can be both external, such as general economic and industry conditions, as well as internal operating factors. These are presented in more detail on page 36 in the annual report of 2018 and in the interim reports of 2019 as well as on Finnair’s website. Risks and uncertainties and other currently unknown factors, changes in underlying assumptions or actions or non-actions by Finnair, could cause actual results to differ materially from those purported in the forward-looking statements. Except as required by law or stock exchange rules, Finnair does not undertake any obligation to publicly update or revise its forward-looking statements.

FINNAIR PLC

Board of Directors

Further information:
Finnair communications, tel. +358 9 818 4020, comms(a)finnair.com

Distribution:
Nasdaq Helsinki
Principal media

Finnair is a network airline specialising in passenger and cargo traffic between Asia and Europe. Helsinki’s geographical location gives Finnair a competitive advantage, since the fastest connections between many European destinations and Asian megacities fly over Finland. Finnair flies to 19 destinations in Asia, 8 in North America and over 100 destinations in Europe. Finnair is the only Nordic network carrier with a 4-star Skytrax ranking and a member of the oneworld alliance. In 2018, Finnair’s revenues amounted to EUR 2.850 million and it carried over 13 million passengers. Finnair Plc’s shares are quoted on Nasdaq Helsinki.

Subscribe