April 29, 2020 / 6:18 AM / a month ago

BRIEF-Finnair Q1 Comparable Operating Loss Widens To EUR 91.1 Million

April 29 (Reuters) - Finnair Plc:

* FINNAIR GROUP INTERIM REPORT 1 JANUARY - 31 MARCH 2020

* Q1 REVENUE DECREASED BY 16.0% TO 561.2 MILLION EUROS (668.2)*.

* Q1 PASSENGER LOAD FACTOR (PLF) WAS 72.6% (-5.7 POINTS).

* Q1 COMPARABLE OPERATING RESULT WAS -91.1 MILLION EUROS (-16.2)

* FINNAIR’S CURRENT ASSUMPTION IS THAT IT WILL OPERATE CURRENT MINIMUM NETWORK THROUGHOUT Q2 DUE TO CORONAVIRUS SITUATION.

* ESTIMATES THAT RECOVERY OF AIR TRAFFIC WILL BEGIN IN STAGES FROM BEGINNING OF JULY 2020

* PACE OF RECOVERY CANNOT BE ASSESSED AT THIS STAGE, LEAVING OUTLOOK FOR SECOND HALF OF 2020 UNCLEAR.

* ESTIMATES THAT WITH CURRENT MINIMUM NETWORK, ITS COMPARABLE OPERATING RESULT WILL BE A DAILY LOSS OF APPROXIMATELY 2 MILLION EUROS THROUGHOUT Q2, DESPITE COST ADJUSTMENTS.

* REVENUE WILL DECREASE SIGNIFICANTLY IN 2020 COMPARED TO 2019

* COMPARABLE OPERATING LOSS WILL BE SIGNIFICANT IN FINANCIAL YEAR 2020 AS COMPANY ANNOUNCED IN ITS PROFIT WARNING ON 16 MARCH 2020.

* CAPACITY WILL DECREASE SIGNIFICANTLY THIS YEAR COMPARED TO 2019. DUE TO THESE FACTORS

* FINNAIR WILL ALSO UPDATE ITS FINANCIAL TARGETS FOR STRATEGY PERIOD.

* AT END OF Q1, OUR LIQUID CASH FUNDS WERE 833 MILLION EUROS, INCLUDING A RAISED 175-MILLION-EURO REVOLVING CREDIT FACILITY

* EVEN IF CORONAVIRUS SITUATION CONTINUES, FINNAIR’S CASH POSITION WILL BE SECURED BEYOND FIRST HALF OF 2021.

* DUE TO EXCEPTIONAL CIRCUMSTANCES, NO DIVIDEND WILL BE PAID FOR 2019

* EXPECT AVIATION TO RECOVER SLOWLY FROM JULY ONWARDS, AND PASSENGER NUMBERS TO RETURN TO 2019 LEVELS IN TWO TO THREE YEARS

* IT IS LIKELY THAT WE WILL HAVE TO CONTINUE TEMPORARY LAYOFFS, EVEN AFTER SUMMER, AND ADAPT OUR RESOURCES TO DECREASED TRAFFIC Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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