Finnair has confirmed its long-term financial targets for 2026 to 2029. The strategy will see the airline focus on ancillary services, retailing capabilities, and its loyalty programmes through growth and investments.
Finnair said it is currently in negotiations with aircraft OEMs and “other relevant parties” regarding a partial renewal of its narrowbody fleet. The airline said “no decision” has been made regarding the renewal aircraft and “did not want to speculate” on delivery times.
The airline is considering adding used, smaller aircraft into its capacity in the near term to capture opportunities it has observed in developing new markets as well as growing existing markets in Europe.
The company is still assessing which aircraft types it will incorporate into its fleet for these routes and did not specify how many aircraft it is targeting to acquire.
The company is aiming for a passenger demand compound annual growth rate (CAGR) of 4% as well as an EBIT margin of 6% to 8% by the end of 2029. This growth will be balanced between Finnish and international passengers, as well as between international and domestic routes.
“Of course, this year, we have faced this softening of North Atlantic traffic because of the tariffs and trade war,” said Finnair CEO Turkka Kuusisto.
“In the medium to longer term, we also see the North Atlantic market as very important for us because that's the largest source of demand for our business.”
Additionally, the airline is targeting a net debt to EBITDA ratio of 1-2 during the period. The airline said it is “committed” to improving profitability by €100 million by the end of the strategy period to drive the EBIT margin improvement.
The company plans to invest €2bn to 2.5bn during the strategy period. Finnair said it will also aim to pay shareholders one-third of earnings per share on average, either in dividends or capital returns.
“Our strategy and long-term financial targets are built so that Finnair can create shareholder value in the current operating environment,” said Kuusisto.
With the new strategy announced, the airline launched 12 new European routes for summer 2026 from its Helsinki hub.
Routes to Alta, Catania, Florence, Kos, and Valencia were announced earlier this year, and Finnair has opened sales for flights to Kuressaare in Estonia, Luxembourg, Stavanger in Norway, Thessaloniki in Greece, Tirana in Albania, Turin in Italy, and Umeå in Sweden.
"We are excited to tap into growth opportunities in the market, further strengthening our broad network of direct connections from our Helsinki hub,” said Finnair chief revenue officer Christine Rovelli.
Additionally, the airline is reintroducing direct flights to Lapland from Brussels, Paris, and Zurich.