Regulatory press 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