Runway renovations and weather conditions impact Finnair's second quarter results

Finnair reported its second quarter results with an operating result of €42.5 million, compared to €65.8 million in the same period last year. Its earnings per share was €0.09 for the quarter. ""Runway renovation at Helsinki Airport in April-June impacted negatively our on-time performance and increases costs in the form of re-routing customers to their connecting flights,"" said the carrier's CEO Turkka Kuusisto. He added: ""On-time performance was also affected by challenging weather conditions that delayed flights and increased our costs."" The carrier's unit cost (CASK) was flat at 7.37 cents in the quarter compared to last year's 7.41 cents. Its revenues increased 2.3% to €766.1 million. In addition, its net cash flow from operating activities was €173.1 million and from investing activities was a negative €41.6 million. Gross capital expenditure totalled €49.8 million. In addition, its number of passengers increased to 3 million, up from 2.8 million in the same quarter last year. Passenger load factor decreased from 76.3% in 2023's second quarter to 74.7% in this year's second quarter. The airline expects global air traffic to continue to grow throughout 2024. Though, it highlighted risks related to the impact of inflation and higher interest rates on demand and elevated costs will remain. It added that geopolitical tensions as well as political instability may impact the operating environment. Kuusisto added: ""Systematic work towards our long-term financial targets continues. Our priorities are now to continuously improve competitiveness and profitability, as well as to take care of our cash flow and balance sheet, without forgetting growth."" Finnair now estimates that its revenue in 2024 will be within the range of €3–3.2 billion euros. The company also estimates that its comparable EBIT will be within the range of €110–180 million in 2024. The company will also redeem its outstanding unrated notes due May 19, 2025, with a coupon of 4.250%. The notes had an initial nominal amount of €400 million. The outstanding notes will be redeemed on August 19, 2024.