The following is a summary of the Finnair Oyj (FNNNF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Finnair's Q2 revenue increased by 2% year-over-year, primarily driven by growth in cargo business and successful implementation of ancillary sales.
Declining unit revenue and yields by 4% led to a decreased comparable EBIT, amounting to close to EUR44 million versus EUR66 million a year ago.
Operating cash flow remained strong at EUR173 million, supporting a robust balance sheet.
Business Progress:
Increased capacity by 6% due to reintegrating four narrowbody aircraft previously on wet leases.
Finalized a EUR200 million investment project for widebody fleet cabin renewal.
Opened a new Schengen lounge at Helsinki Airport, enhancing launch capacity and customer experience.
Repaid the pension premium loan in advance, concluding pandemic-era financing instruments.
Opportunities:
Continuation of global air traffic growth expected in 2024.
Finnair to increase capacity by approximately 10% during 2024, including through wet lease arrangements.
Risks:
Normalization of the market could impact yields and load factors, particularly in European and domestic traffic.
Protracted high fuel prices and uncertainty from geopolitical conflicts pose financial risks.
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