Finnair’s successful 570 million euro rights issue in November 2023 bolstered its financial standing, enabling the purchase of six Airbus A321 aircraft previously on lease from BOC Aviation. This transaction, valued at over 200 million euros, is projected to add over 20 million euros annually to profit before taxes and cash flow for the next few years.
Additionally, Finnair made an extra repayment of 120 million euros toward its 600-million-euro pension premium loan in December, surpassing the initially planned 100-million-euro instalment. After this payment, the remaining loan stands at 280 million euros, to be settled by May 2025 at the latest. The impact of this extra repayment is estimated to reduce 2024’s pre-tax profit by approximately 3 million euros due to lower net interest costs.
Finnair’s recent financial actions align with its strategy, enhancing the company’s financial targets by the end of 2025. These measures also pave the way for reinstating shareholder distributions, anticipated to commence in spring 2025 based on the 2024 financial results. While Finnair’s cash-to-sales ratio now closely approaches its target of 30 percent, these initiatives support the airline’s strategic goals and financial milestones.
