Finnair Q1 2026 results and Q&A
Despite being seasonally the weakest quarter, the first quarter of 2026 was stronger than usual for Finnair. Revenue increased by 12.1% to 778 million euros, and comparable operating result improved significantly from -62.6 million euros to -0.6 million euros.
The result was supported by successful cost management and strong demand, particularly in Asian traffic, which from March onwards helped to offset the impact of the sharp increase in jet fuel prices.
Q1/2026 at a glance
- Revenue: 778.1 million euros (+12.1%)
- Comparable operating result: -0.6 million euros (Q1/2025: -62.6)
- Operating cash flow: 273.9 million euros (+42.5%)
- Passengers: 2.8 million (+7.3%)
- Passenger load factor: 78.0% (+4.3 percentage points)
Demand outpaced capacity growth
Demand developed positively across all our main markets and exceeded capacity growth. In particular, demand in Asian traffic grew clearly faster than capacity, as market capacity between Europe and Asia declined due to the war that began in the Middle East.
- In Asian traffic, the passenger load factor increased to 86.8%
- In European traffic, solid leisure demand was observed
- In North American traffic, demand remained stable
The war in the Middle East led to temporary suspensions of Dubai and Doha flights, but the direct impact on Finnair’s overall traffic remained limited. However, reduced traffic at two major hubs increased demand on alternative routes, which was reflected in Finnair’s Asian flights, especially in March.
Fuel – price pressure and preparedness
The conflict in the Middle East significantly increased jet fuel prices from early March onwards. Fuel prices were approximately 24% higher in euros and around 38% higher in US dollars compared with the same period in 2025.
Finnair hedges its fuel purchases at a high ratio, which means that changes in market prices are reflected in costs with a delay.
- Q1: hedging ratio 86%
- Q2: hedging ratio 82%
- April–December: hedging ratio 69%
Fuel availability at Helsinki Airport has remained stable. We are monitoring the situation closely and preparing for different scenarios. For example, most European flights can, if necessary, be operated with fuel tankering.
Strong cash flow supports investments
Operating cash flow amounted to 273.9 million euros and was significantly stronger than in the comparison period. Cash flow development was supported by improved financial performance and strong ticket sales.
Strong liquidity provides a solid foundation to proceed with the renewal of the narrow-body fleet, which we announced in March:
- 18 Embraer E195-E2 aircraft (deliveries starting in 2027)
- Plan to acquire up to 12 Airbus A320/321ceo aircraft from the second-hand market
Guidance for 2026 unchanged
Finnair’s guidance for 2026 remains unchanged:
- Revenue: 3.3–3.4 billion euros
- Comparable operating result: 120–190 million euros
The guidance is based on the assumption that there will be no significant disruptions in fuel availability. We are closely monitoring the operating environment due to geopolitical uncertainty and cost pressures.
Q&A highlights
Where is the additional traffic coming from now that Middle East hubs are closed?
There can be up to 2,000 different origin-destination combinations on Finnair's network. Transfer passengers include, for example, Indian travellers connecting to the US, Japanese travellers connecting via Helsinki to around 90 European destinations, and various nationalities using Helsinki as an alternative hub to the constrained Middle East.
Unflown ticket liability was up 10% year-over-year — how much of this growth reflects continued good demand on Asian flights in Q2?
The booking curve extends across the full summer period, not just Q2. Demand is well spread across geographies, e.g. Europe has around 90 destinations with new ones attracting interest, and there were also positive signals from the North Atlantic.
How have ticket prices developed, and what does the outlook look like going forward?
Ticket prices are determined by market supply and demand. During the first quarter, price increases were seen in Asian and North Atlantic traffic. Flight operations need to remain profitable going forward, despite higher fuel prices.
Are there plans to cancel flights during the summer season, as some competitors have done?
We do not have plans for flight cancellations. The summer season is planned to be operated as scheduled.
Is there any sign of uncertainty in consumer behaviour ahead of the summer season?
We do not see signs of uncertainty in demand. The increase in unflown ticket liability points to strong and continued demand.
What scenarios exist for jet fuel availability being limited by area?
Helsinki Airport has confirmed fuel availability through the end of the summer season, with capacity to acquire more. About 80% of our European destinations are feasible for fuel tankering from Helsinki. The US is the safest region in terms of fuel supply. In Asia, partners and suppliers have not communicated severe challenges for the coming weeks or months. No significant issues have been identified at any currently operated destination.
Does Finland have better kerosene availability than most European countries this year?
It is difficult to evaluate as we don’t have visibility into national fuel reserves across Europe. However, Finland's position is strong thanks to the Neste Porvoo Refinery.
Is Finnair in a better position regarding fuel than its competitors?
We are in a relatively good position in terms of changes in fuel prices thanks to our hedging policy. Since December, we have had a 24-month hedging horizon. The changing market situation may also present new business opportunities. The company has become more agile in recent years as a result of various crises.
When will new aircraft be introduced?
The first Embraer E195-E2 aircraft is scheduled for delivery in the third quarter of 2027, and the aim is to have three aircraft in operation by the end of 2027. In addition, we plan to acquire Airbus A320/321ceo aircraft from the used aircraft market starting in 2027.