Positive profit warning: Finnair updates its profit outlook for 2023

Finnair Plc              Inside information               13 June 2023 at 12.00 p.m. EEST

Finnair raises its guidance for comparable operating result for the full year 2023, as it expects the travel demand to continue stronger than previously anticipated, fuel price development has been more favourable than expected and as the company’s strategy implementation has progressed better than anticipated.

Contrary to the previous guidance, the company estimates that the comparable operating result will probably reach or even exceed the 2019 level (162.8 million euros). In terms of 2023 revenue, Finnair still estimates that it will not yet reach the 2019 level (3,097.7 million euros).

As a result of the improved profit outlook, Finnair's strategic comparable operating profit margin target of at least 5 per cent from mid-2024 onwards would be reached 12–18 months earlier than anticipated. However, uncertainty in Finnair’s operating environment continues as the fuel price is still high and also since the end of the closure of Russian airspace is not in sight. In addition, the extent of the impacts of inflation and rising interest rates on demand and costs is uncertain.

Finnair estimated in its guidance published on 27 April 2023 that its 2023 revenue will significantly increase and comparable operating result will significantly improve year-on-year, especially as the first half of 2022 was heavily burdened by both the pandemic and the closed Russian airspace. However, the company estimated that revenue and comparable operating result would not yet reach the level of 2019.

Finnair will update its outlook and guidance for the full year 2023 in connection with its half-year report to be published on 21 July 2023.

FINNAIR PLC

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

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Finnair is a network airline, specialising in connecting passenger and cargo traffic between Asia, North America and Europe. Finnair is one of the oldest operating airlines in the world, celebrating its centenary in 2023. 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 12 times in a row. Finnair is a member of the oneworld alliance. Finnair Plc’s shares are quoted on the Nasdaq Helsinki stock exchange.