Finnair Q2 2026 results and Q&A

Finnair’s second quarter was exceptionally strong. Revenue increased by 16.4% to 916.7 million euros, and comparable operating result rose to a record level of 78.4 million euros. Passenger numbers also increased by 7.6%, passenger load factor improved to 79.9%, and operating cash flow was strong.

The strong result reflected both our successful execution and a supportive market environment. Travel demand remained at a good level throughout the quarter, and changes in market capacity in Asian traffic supported unit revenue development. At the same time, the cargo market also remained strong, and growth in ancillary sales continued.

The first half of the year was strong overall. In January–June, revenue increased by 14.4% to 1.7 billion euros, and comparable operating result improved to 77.8 million euros from a loss-making level in the comparison period. The comparison period was affected by industrial action.

We continued to execute our strategy as planned during the quarter. Customer satisfaction improved further, employee engagement strengthened, and we continued to develop our network. We decided to resume flights to Turku and Tampere and prepared for the introduction of the new Embraer E195-E2 aircraft. In addition, we signed letters of intent to lease six used Airbus A320ceo aircraft as part of our fleet renewal.

Following the strong first half of the year, we revised our revenue guidance for 2026. We now expect revenue to be 3.4–3.5 billion euros and comparable operating result to be 120–190 million euros in 2026. The guidance is based on the assumption that there will be no significant disruptions in fuel availability.

At the same time, it is important to remember that the operating environment remains subject to considerable uncertainty. Geopolitical tensions, the situation in the Middle East, fuel price development and the gradual normalisation of the market may affect demand, pricing and profitability during the rest of the year.

Q&A highlights

What was driving ancillary revenue growth?

Growth was driven by new ancillary products, as well as improvements in the purchasing flow and personalisation.

Can you elaborate on the CASK growth in Q2?

CASK increased mainly due to higher activity levels in the peak season as passenger volumes grew. Much of the year-on-year cost increase relates to volume growth and seasonal resourcing. The remainder was driven by inflation, including collective labour agreements, as well as higher training costs linked to upcoming projects and higher short-term incentive accruals following the improved result.

How do you expect fuel costs to develop in the second half of the year?

We have hedged around 76% of our fuel costs in the second half. Taking hedges into account, a 10% change in fuel prices would have an estimated EUR 18 million impact on our result.

Are your fuel hedges based on delivery prices to Helsinki-Vantaa or wholesale market prices?

Our hedging is based on market-available indices.

How does jet fuel availability look for Finnair and the wider market in the second half of the year?

Based on our current understanding and close dialogue with long-term partners, we do not foresee fuel restrictions or availability issues at Helsinki Airport. In Europe, we can serve more than 80% of our destinations through fuel tankering from Helsinki if needed. Globally, we have no indication of fuel shortages or restrictions from local operators or authorities, and our visibility remains good.

Was passenger growth on European routes driven by transit or Finnish passengers?

Growth was driven by both Finnish demand and transfer traffic. Finnish customers have shown strong demand for international travel, while the positive development in Asian long-haul traffic has also supported flows through our European network. The addition of 12 new European destinations has further contributed to passenger volume growth in Europe.

How are the new European routes performing?

The new routes have performed well overall. As expected, booking pace varies across the 12 new destinations, but so far the route choices appear successful and commercially attractive.

Have there been any changes in bookings in your Asian traffic?

The most visible upside was seen towards the end of March. Bookings have not really slowed even as peace negotiations have progressed, and the Middle East situation has not been having a significant impact on bookings lately.

Are the Middle Eastern hubs fully operational?

The situation remains mixed. Local carriers have generally continued operating, although many flights are being cancelled tactically at short notice as they assess the situation day by day. By contrast, European carriers have suspended flights to destinations such as Dubai and Doha following the European Aviation Safety Agency’s highest-level safety recommendation for the region.

How does the autumn booking outlook look?

Bookings have accumulated at a good pace. Unflown ticket liability increased by 13% year-on-year, and according to a survey by Aurinkomatkat, consumers’ willingness to travel abroad is at its second-highest level since the Covid-19 pandemic.

Was the growth in unflown ticket liability driven by higher ticket prices or volumes?

The increase reflects both higher volumes and ticket prices, with volumes accounting much of the growth.

What factors, besides the Middle East, are affecting the lower capacity growth estimate?

There are no other major specific drivers. Some additional factors are continuous network optimisation efforts and that one A350 aircraft was grounded for a few months longer than expected at the beginning of the year.

What do the revenue and capacity guidance imply for unit revenue expectations in second half of the year?

Our own capacity is expected to increase by around 5% in 2026, which is a useful measure of the volume development in our own flying and its connection to revenue growth.  

Why did you not upgrade your EBIT guidance when you raised revenue guidance?

Fuel costs are the main individual uncertainty, as market prices can change rapidly. Taking hedges into account, a 10% change in fuel prices during the second half of the year would have an estimated EUR 18 million impact on the result, and recent forward price movements illustrate this volatility. In addition, a prolonged conflict could eventually weigh on consumer sentiment, although we have not seen such an impact so far. These uncertainties support maintaining the current EBIT guidance range.

Do the six used A320ceo aircraft represent fleet growth or replacement of older aircraft?

The aircraft will partly replace older fleet, but some will be deployed on routes that have so far been operated by our partners on our behalf. As a result, our own operated fleet will increase.

What are the age and pricing of the A320ceo aircraft?

If we proceed with the letters of intent, we believe the terms are attractive. The aircraft are less than 10 years old and are expected to be delivered in 2027.

Will the used A320/321ceo leasing project continue, or are these six aircraft sufficient?

We will continue the project with the aim of reaching the previously communicated total of 12 aircraft.

What annual average capacity increase could result from the EUR 2–2.5 billion investment programme during the strategy period?

This will depend partly on the timing of new aircraft deliveries and the extent to which we use wet lease capacity during the transition period. Our aim is to optimise both owned and leased capacity to support our 4% passenger growth ambition.