Finnair Fleet Renewal Update and Annual General Meeting: key takeaways
Finnair is proceeding with the renewal of its narrowbody fleet
On Monday this week, we hosted a Fleet Renewal Update for investors and analysts following the announcement of one of the largest investments in Finnair’s history. The event featured presentations by CEO Turkka Kuusisto and CFO Pia Aaltonen-Forsell, followed by an extensive Q&A session with management, including Chief Revenue Officer Christine Rovelli.
The update was followed by Finnair’s Annual General Meeting, held on Tuesday, where the company’s performance, strategy and governance matters were discussed.
Below we summarise the key messages from the Fleet Renewal Update and address the main topics raised during the Q&A, followed by a brief overview of the AGM outcomes.
Fleet renewal: supporting strategy, growth and profitability
Finnair has signed a purchase agreement with Embraer for 18 firm orders of E195-E2 aircraft, with 16 options and 12 purchase rights. In addition, Finnair plans to acquire up to 12 Airbus A320 and A321ceo aircraft from the used aircraft market to replace retiring A319 and A320 aircraft.
Deliveries of the Embraer E195-E2 aircraft are scheduled to begin in the second half of 2027. The potential used Airbus aircraft would serve as a bridge solution, ensuring continuity and flexibility as older aircraft are phased out.
The combination of new and used aircraft supports Finnair’s strategy and financial targets for 2026–2029, providing an optimal balance between growth, profitability and capital efficiency.
Key questions from the Q&A session
Is this primarily a replacement investment or also a growth investment?
The firm orders are primarily intended to replace ageing aircraft in Finnair’s fleet. At the same time, the options and purchase rights provide flexibility to support growth if market conditions and demand development allow. Decisions on exercising options will be made later, reflecting market visibility and fleet needs.
Why combine new Embraer aircraft with used Airbus aircraft?
The combination reflects availability, timing and cost efficiency. New-generation narrowbody aircraft are not available in delivery windows that would align with the planned retirement of Finnair’s oldest A319 and A320 aircraft. Used A320/A321ceo aircraft therefore offer an effective bridge solution during the transition period.
How does the fleet renewal support Finnair’s network strategy?
The Embraer E195-E2 aircraft, to be operated by our partner Norra, are well suited for regional and feeder traffic, supporting a stronger regional network and improving connectivity to Finnair’s long-haul routes to Asia and North America. The aircraft size and range enable Finnair to better match capacity with demand across its core markets, which is essential for profitable network operations.
How does the fleet renewal support Finnair’s climate targets?
Compared with the current generation Embraer E190-E1 aircraft, the E195-E2 delivers over 30% lower CO₂ emissions per seat, alongside lower NOx emissions and a significantly reduced noise footprint. These improvements support Finnair’s climate targets while also enhancing customer comfort.
Can Finnair source used aircraft at attractive terms?
Finnair has actively monitored the secondary aircraft market and sees improving availability and pricing. This improved market visibility was a key factor supporting the decision to proceed with the fleet renewal according to this plan.
How will the investment be financed?
Finnair is well prepared financially for the investment, supported by a strong balance sheet, solid operating cash flow generation and no significant near-term refinancing needs. Total investments remain within the previously communicated EUR 2.0–2.5 billion range for the strategy period.
Decisions on ownership versus leasing will be taken closer to delivery, based on funding availability and market conditions.
Annual General Meeting 2026 – key highlights
Finnair held its Annual General Meeting on Tuesday, where shareholders adopted the financial statements for 2025 and resolved on matters related to Board composition, remuneration and Board authorisations, in line with the proposals published ahead of the meeting.
The AGM also provided an opportunity for shareholders to engage with management on Finnair’s strategy, financial position and operating environment. The resolutions of the AGM and the subsequent Board decisions have been published in stock exchange releases and are available on Finnair’s website.
Looking ahead
The Fleet Renewal Update and the messaging at the Annual General Meeting together underline Finnair’s focus on disciplined execution of its strategy: investing in a modern and efficient fleet, strengthening the network and customer experience, and maintaining a strong financial foundation.
Presentation materials and a replay of the Fleet Renewal Update are available on our investor website.