Q3 pre-silent call on 28 September 2026
Resilient Market - Focus on passenger volumes, fuel prices, and hedging
In July and August, Finnair’s traffic performance continued to show positive momentum. Passenger volumes increased by 9.3% in July and 2.3% in August year-on-year, a lower comparison base in July, from last year’s industrial action as well as supported by improved demand in Europe.
Finnair’s direct exposure to the Middle East is limited, representing a low single-digit share of its capacity and passenger traffic. However, the conflict affects the entire industry through safety, capacity, passenger flows, and fuel markets.
The passenger load factor was 85.0% in July, and it improved in all traffic areas operated by Finnair. In August, the passenger load factor remained high, at 80.3%, and improved in European and North American traffic.
Unit revenue development has remained clearly positive, with RASK increasing by 8.9% in July and 12.3% in August, supported by improved load factors and higher yields. We have actively optimised our network, capacity allocation, and pricing to capture demand and take advantage of the reduced market capacity caused by the war in the Middle East.
Cargo performance has supported the business, with yields benefiting especially from market disruptions and the geopolitical environment.
Finnair had no flight cancellations during July-August due to fuel availability.
The jet fuel market has remained constrained, as expected, due to limited supply from the Middle East, and fuel prices have continued to stay at an elevated level.
Jet fuel supply across Finnair’s network is expected to remain stable (in Q4), supported by continued close cooperation with our fuel suppliers.
Supply in South-East Asia and the United States remains relatively good, while Europe is more constrained but stable. Europe is partly supplied by overseas products from the United States, Africa and South-East Asia. Winter typically reduces jet fuel demand, which should support overall availability.
We continue to monitor market developments closely and work with suppliers to secure reliable fuel availability for Finnair’s operations.
Hedging
At the end of Q2 2026, Finnair had hedged 81% and 71% of its fuel consumption for Q3 and Q4 2026 respectively. Relatively high hedging ratios gives Finnair good protection against the high fuel prices for the remainder of the year 2026.
Looking ahead, market conditions are currently looking extremely volatile with no immediate easing in sight given the continued hostilities in the Middle East and the lack of visibility on a clear diplomatic off ramp to de-escalate the current conflict. Finnair is constantly following the developments in the Middle East and plans to act accordingly.