Finnair Oyj

Good day, ladies and gentlemen. I'm Erkka Salonen from Finner Investor Relations, and it's my pleasure to welcome you to this Q4 2025 earnings call. I'm joined by our CEO, Turku Kuusisto, and our CFO, Pia Aaltonen-Forsell. After the presentation, we have a Q&A session, and you may present your questions either by dialing in or using the chat function of the webcast. But with these words, I hand it over to you, Turku.

Thank you, Erkka. And very good afternoon to all of you joining us today. And today we have shared, in my opinion, very good news earlier when we published our Q4 report that indicated a very strong profitability development, especially driven by the continued strong demand and solid execution. Pia will discuss in short the result in in detail, but I would characterize it as a sum of multiple factors. Of course, we benefited from the lower fuel price, but at the same time when we added into the equation the increased cost from the environmental compliance other regulatory charges, I would say that the cost management and effectiveness was extremely well executed among the Finner team. At the same time, we still saw and will see a strong demand, especially in the Japanese and European markets, that performed, in my opinion, relatively well. That led into a close to a 1% revenue growth, but above all, or more importantly, our comparable operating result increased almost by 29% versus the compare that already was actually significant improvement from 2023. As you recall, some months back, mid-November, we announced our long-term financial targets and also the updated strategy. And therefore, I'm also very happy that already now we start to see pieces of evidence that the strategy execution or implementation has started with good velocity. As a concrete example of regaining the trust after the, let's say, more difficult or disruption shadowed first half, we restored the confidence of our customers and also discussed about the employees, but also the external stakeholders that we have as a concrete example being that with PS Lead, we did successfully issue a 300 million euro bond just before the year closing. If and when we will take the regional perspective, as mentioned, our investment in further strengthening the Japanese foothold after the double crisis is paying off. All in all, the Asian markets continue double-digit growth, both in terms of capacity and revenue. And then if I take a deep dive into our foothold or market presence in Japan in the summer season of 2025, we flew 25 weekly frequencies between Helsinki and multiple destinations in Japan. And we are going to actually further strengthen that for the next summer season when we are adding three additional weekly frequencies from Helsinki to Osaka. Also, as already mentioned, Europe as a traffic region performed relatively well during Q4, whereas the domestic bar was a bit more soft in terms of load factor development. And then Middle East, when we kind of characterize the profile of the business performance, we need to continue to keep in mind or bear in mind that we didn't fly anymore from Copenhagen or Stockholm to Doha under the Qatar Airways collaboration or umbrella. So, therefore, the revenue development and the ASK development is extremely negative. Big question, of course, still related to how will the North Atlantic traffic develop during the forthcoming quarters. It is still in Q4. We saw some softness in terms of RSK development and also load factors, but here we need to continuously also bear in mind that our ASK's 9% is allocated to the North Atlantic traffic, and we, of course, continue to monitor the development extra carefully. Then speaking of customers, obviously when the first half of 25 was overshadowed by complex CLA negotiations that led into severe disruptions, we faced, of course, declining NPS. But I'm extremely happy when I started to see already in September that the NPS is recovering very rapidly after we are capable of stabilizing the operation and continue to fly with the kind of recognized finner quality and safety and punctuality. So therefore, in Q4, which is the most demanding winter season, the NPS among the total customer population of ours graded 33, which is a good result in network carriers global benchmark. And if and when I'll take the core customer perspective, that is the core of our new strategy, among the top tiers of Finner Plus frequent flyer program, we are actually currently trending above 40. And as you can see from the chart on the right-hand side, the number of passengers continue to grow by 2% year over year. Then also maybe related to the disruptions that we faced during the first half of 25, it's important to address that we haven't witnessed significant changes in the capacity market share in our core markets. So these two charts, in my opinion, provides a lot of information that our stronghold in Helsinki and our stronghold in the Europe-Asia traffic is holding extremely well and we will continue to develop our market presence accordingly. And then with this slide, try to capture the highlights of 2025. So basically the year was split into two. Difficult first half because of the industrial action and associated disruptions that caused directly more approximately 70 million euros of negative EBIT impact and then of course we were not capable of flying the ASK plan that we had planned for the first half but ever since we got the CLA disruption behind us early July we were capable of stabilizing the operation very quickly and actually then started to implement our profitability improvement actions and then towards through Q3 towards Q4, we improved the momentum and velocity and therefore very happy to report a full year result of 60 million euros in form of comparable EBIT. Unfloat ticket liability also grew by some 7%, which is a good forward-looking indicator of how the ticket sales did develop during the fourth quarter. Pia will discuss this in more detail. And then on the right-hand side, or the bottom right-hand side, you can see that the board of directors yesterday decided to propose a €0.09 offer. capital return to be decided in the AGM held later in this quarter. But maybe with these words, I would leave it for Pia to discuss the finance also in more detail.

Thank you, Turcka, and good afternoon, ladies and gentlemen. I just want to say a big thanks to our team, to our customers, and to our partners. It's a great privilege to be able to present so strong quarterly figures, as Turcka said, on the back of a start of the year that was still very challenging on many fronts. I think we have ended the year on a very strong note. And therefore, I wanted to offer you a few sort of quarterly time series here with some comparisons on some of the key figures just to sort of have that perspective. I'll start a bit with the top line and the revenue. As Turka explained, we are in a market momentum in our key markets that's already a bit more positive. So we have seen some growth in the demand. We have seen some growth in our top line of about sort of 1% on the full year basis, which is pretty much equal to also, if you count in the wet leases, how much we added to the capacity sort of holistically during the year. Please still keep in mind that due to the earlier strike situation, we did have cancellations, we have paid compensations, et cetera. Those all, of course, impact the top line as well. If I look at the quarter itself, and especially if I think about sort of the different parts of our business, maybe there's a few words still worth sort of mentioning. We have seen growth sort of through our different partners. through our different categories. So the ticket revenues, we've also seen this increase on the ancillary side. Ancillary is very important from our strategic perspective. The growth was not that fast during the quarter, The competition period a year ago had a very strong campaign towards that end of the Q4 in 24. So that sort of impacts a little bit the competition here, but we are still continuing on a good path. That is really important for us. I mean, already reaching over 50 million impact per the quarter. And finally, cargo was sort of fairly stable in the period. Maybe those words are enough on the revenue side. Then let's turn our attention to the middle of the page, which is the graph on the operating profit, so the comparable operating profit to be exact. And you see our result was a stellar 62 million for a fourth quarter. This is the strongest fourth quarter on record that we could find using the current accounting methods. And when you compare it to a year ago where we made 48 million euros, we actually had a bit of strike impact, although it was 5 million a year ago in the figures and none in this period. But from a cost perspective, there were a few external factors that are worth mentioning. I'll say first that we were supported year on year in the development by fuel prices and also a weaker dollar. That did bring us on a quarter-on-quarter comparison maybe 15 million of benefit. On the other hand, we also had higher sustainability regulation related costs that added more than 10 million per quarter, as well as higher navigation and landing costs that also added about 10 million per quarter. So the headwinds of these external factors were actually bigger than the tailwinds. We still had a 50 million uptick, and this came very much from somewhat higher sales, so we were growing, and we were able to do that in a good way, also then sort of being able to use the scale benefits, have a good operational performance, and that helped us then to improve the result year on year. Finally, Turku already talked about the unflown ticket liability. I think that's a good sign of the momentum that we have right now that keeps on a stronger side, 7% increase sort of year on year. Of course, our business has a lot of seasonality, so you do see the quarterly variance here, but we are on a very good path. I have one more slide really from the profitability perspective. And I wanted to talk to you about revenue, RASC, and CASC, and just give still some perspectives into that development. I'll start on the revenue per available seat kilometer, the RASC key figure here. And many of the things that I mentioned before on the revenues obviously play in here. I think if you look at the sort of year-on-year development, we can say it's a bit of a sort of hanging in there, you know, sort of making the best of the situation in a challenging year with the strikes, et cetera, during the first half. So clearly, you know, there's been an impact out of that holistically. If we look at yields, I think it's worth still picking up on what Turka also said, showing the geographical areas before. Though we see a positive development holistically year on year throughout Asia, particularly Japan has been a very important market for us, as Turka said, we also see a good development in Europe. if you look at the full year, but the North Atlantic traffic that has been also from a yield perspective under pressure. And that's due to the sort of holistic situation that we face in that market. And I think that puts a little bit of a lid or a little bit of a pressure here on our yield development. So kind of keeping all of that in mind, I still think we have a decent development through the year. On the cost side, the lower fuel costs are helping us, but those other higher regulatory costs, as well as landing navigation costs, et cetera, they all come through here. So you can still see that we've done a good job in mitigating some of the impacts. And I think, you know, just looking from everything, there's also some seasonal variants. I take one example, maintenance costs. I think we managed that really good in the fourth quarter. And obviously, sort of between the quarters, there could be a little bit of changes. I think we have also structurally made some changes as we are through 23, through 24, and a little bit in 25 also done some lease buyouts that are to some extent then shifting between the lines, the cost of maintenance. that does give me a nice bridge now to my final page, which is more on cash flow and balance sheet. So let's have a look there. Our cash flow was robust, obviously cash flow very much built on the operative performance, the result as well in itself. I think there's only one thing that I wanted to pick up from the cash flow side page here that you can see on the slide that you see on the left hand side. And that is to explain that If you are keen on details, you know, look sort of from our reporting a year ago. We had a bit of a reclass there on the credit card holdback that sort of boosted from a reporting perspective the figure in the year-on-year comparison. But I think sort of operationally a good performance in this quarter. Let's talk a little bit about CapEx going forward. We do expect CapEx amounts, you know, 400 to 500 million per year. We are also guiding sort of about that midpoint for 2026. You can see that in 2025, we were coming towards a little bit lower figure. Actually, the gross capex was less than 200 million. There was quite a lot of buyouts still in this. It was a bit north of 100 million, so lease buyouts. And there was also 64 million of sort of more maintenance-related capex and then some investments, for example, into digital, etc., So that was really what we were working with in 25. Looking into 26, this will increase a bit, aligned with the communication that we had on our CMD in November. And finally, it's good to end the year with a robust cash position and still with a good leverage, 1.8, and a good cash-to-sales ratio, as you can see in the chart to the right. So I think we have a good setup for starting to work into 2026. And on that note, Turka, please, over to you.

Thank you, Pia. To some extent, recapping what we said in connection with the capital markets update we held in the middle of November, the strategy is pretty much now centered around the customers and more specifically core customers because the network setup that we have, have of course changed because of obvious reasons. But now after three fiscal years since the Russian airspace was closed, Finner has now demonstrated that we can operate a profitable network carrier even though the Russian airspace is and most likely will remain closed for the time being. So therefore we have highlighted the focus on traveling to and from Finland while continuously keeping in mind that we are still extremely important transfer carrier for international passengers who connect from Helsinki to European destinations, for instance. This Japanese example that I provided you with earlier is a concrete piece of evidence that we are very strong in Europe-Asia traffic even though the Russian airspace is closed. So the strategic priorities that we shared also with you a few months back pretty much now focus on further optimizing this rebalanced or re-pivoted network of hours and continuously searching for new route openings, for instance. At the same time, of course, taking good care of the safety, reliability, and reliability convenience and punctuality of the operation that we run, which enables us to monetize on our commercial strategy that is built on Mojira product portfolio and providing more choice through modern retailing. And as you can see from our numbers that the revenue received or collected from the ancillary sales was more than 50 million euros again during the fourth quarter. There was a bit of a halt or pause in the growth rate, but there is an item affecting the comparability because last year around we did have a very extensive obvious points sale campaign. But what we continue to forecast is a very solid growth on the ancillary side. And then, of course, when we get a more intimate relationship with our customers, we can then extract the full benefit out of the Finner Plus Frequent Flyer program. Then taking from the kind of this 30,000 feet more grassroot level concrete examples, we are opening 12 new European destinations for the summer season 2026. And very exciting news published a few weeks ago, then we communicated that we will be opening a route from Helsinki via Bangkok to Melbourne, and while at the same time adding this third daily flight from Helsinki to Bangkok, again to kind of strengthen our presence in the Far East Asia market. Of course, we continue to invest in addition to aircraft and the new fleet scheme into other areas as well. AI digitalization and other technologies will influence significantly that how an airline like Finnair will be run, operated and led in the future. And we do have a lot of initiatives ongoing where we can utilize the next generation technology, be it fuel efficiency, route optimization, back-end processes and such. And speaking of digitalization, we will also continue to invest in the, let's say, digital footprint or digital experience of Finnair in form of new mobile applications, for instance, that will be launched later this year. And then as a maybe final remark from my side related to strategy and on the journey ahead, of course, given the double crises, maybe even the longer legacy when it comes to an organization undergoing a significant transformation. And then, of course, the CLA spring that we faced. We want to now invest with extra care when it comes to further developing the engagement, cultural development, leadership, and also employee well-being at Finneiranta. I was extremely positively impressed Maybe even surprised at how much our engagement score increased when we measured it last time in the midpoint of November and December. So, it again gives us a lot of confidence that we have selected the right path, we are on the right journey with our colleagues that represent 5,800 kind of professionals across the entire organization. Kind of to finalize the presentation phase outlook and guidance provided today, we expect that the global air traffic will continue to grow 2026. We estimate that our total capacity measured by ASKs will grow approximately by 5% during 2026. And then of course, when giving outlook and forward looking statements, we continuously Need to keep in mind the macro volatility, geopolitical tensions, and also the fuel price volatility. But given all this, we are today estimating that our revenue for full year 2026 will be within a range of 3.3 to 3.4 billion euros, and the comparable operating result to be within a range from 120 up to 190 million euros. So I guess that with these words, we will be close to presentation and open for Q&A.

Yes, indeed. Thank you, Turku. So now would be a convenient time for any questions you may have. Please follow the operator's instructions or use the chat function.

If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Jocko Tervainen from SEB. Please go ahead.

Thank you for having my questions. Sorry, I didn't hear the early part of the presentation, so if I'm repeating here. But could you give some color where you are about to play the capacity increase in 2026? Is it right that it will be mainly Europe and Asia? Yes.

Hi, Jakko. And I think maybe some of that was mentioned, but I think it's very well worth repeating. So, of course, looking into Asia, we are further strengthening Japan with three more weekly routes during – or weekly – during the summer season. And as well, we have launched the Melbourne route from winter season of 26. And that will then also mean that we fly to Bangkok three times per day. So that's sort of the Asia part of it. And then when it comes to Europe, I think for the summer season, we have launched quite a few sort of interesting destinations if you are interested in Stavanger or Umeå or Luxembourg and there's plenty more there's all in all 12 of them so I think we have you know a plan that has already raised some attention and some interest and that's what we are up to now.

Great, thanks. Then what about the competitive environment at the Helsinki airport, now that given that all the players should have kind of a public route plans for 26, how are you looking at the upcoming competition for the third year?

Of course, competition is something that we will face on a daily basis. This is a globally competitive business and sector. When it comes to Helsinki airport specifically, we kind of... knew that there might be an opening from Middle East to Helsinki, and therefore we already actually were one step ahead by introducing this third daily connection from Helsinki to Bangkok to mitigate the impact. And then at the same time, it's extremely important to put this into context today. Our traffic area, Middle East, represents some 3% of our ASKs and revenues, and this specific route from Helsinki to Dubai, we fly it only during the winter season. So I wouldn't like to underestimate the impact, but I would kind of position it for the time being rather insignificant, especially given the connectivity beyond Helsinki. So should one kind of arrive at Helsinki, 70% of the passengers will continue to somewhere else with our aircraft.

Excellent, thank you. Then if we think about the guidance and the EBIT version of it, if we exclude the industrial reluctance impact in 2025, which factors are you seeing being the kind of the most important profit growth drivers for 2026? Is it volume? pricing perhaps or all products.

Thanks, Jaakko. I think the volume part, the growth part here is an important driver. I mean, we are seeing ASKs growing approximately 5% and you also see that in the top line guidance there, the 3.3 to 3.4 billion that we are expecting on the revenue side. So clearly that's a big driver because that then also helps us to keep kind of spread the costs in many cases over sort of a bigger spectrum. But of course, we will need to keep the cost control and we will also need to deliver on other parts of the strategy that includes, for example, the ancillary sales and that as well includes certain efforts that we are making in digitalization and AI that will also help us on the cost side. But it's more the growth and the revenue sort of in that context.

Good, thanks. And then the final one from my side. Did I get it right in your presentation that there will be further and material inflation when it comes to traffic charges in 2026?

At least in my presentation, Jaakko, the point I tried to make was to really describe the impact in 25, which even in a quarter was 10 million per quarter. And I think there was a big sort of pressure sort of following COVID and the losses, of course, of many of these, let's say, national countries. very regulated, you know, agencies. So at least sort of as far as I can see right now, many of those really step changes that were needed to sort of cover for history probably occurred during 25, but that doesn't mean that this is without inflation, but probably the big step change has occurred.

Yes. Okay, very good. That's all from my side. Thank you.

Thank you. The next question comes from Jonas Ilvenen from Evli. Please go ahead.

Hi, it's Jonas from Evli. Congrats on very strong earnings. You already talked about the cost side of Q4. But could you elaborate a little bit? I mean, when I look at your cost line items, is there anything to highlight there? I mean, lines like passenger and marketing as well as aircraft materials and overhaul, I think they were all like slightly lower than estimated. So would you say that this kind of so-called associated solid operational execution, is it repeatable? throughout 2026 as well because in my opinion if you were able to be as successful in terms of course over 2026 then you would have basically no trouble reaching the upper end of your EBIT guidance so is there anything to like highlight or do you think how repeatable this kind of cost of

Thank you, Jonas. I think 2025 saw many sort of particular challenges also when it comes to sort of maintaining the customer satisfaction when we had cancellations earlier and also, you know, kind of handling those situations. So I think we sort of came into a more normal environment then during Q4. So maybe there is room to say, yes, there is a bit of a sort of better situation that we have reached. I would, however, point out that when it comes to maintenance, so I see there is a little bit of sort of just timing topics, you know, whether they occur in one quarter or in another. So I don't see that we structurally would have achieved a situation where we have lower maintenance costs overall. We are, of course, at the moment still having an aging fleet. So that is one that I just think there were maybe more a bit of sort of quarterly variations. There is a structural change, but it only goes kind of in between lines because when we have bought more of the leasebacks, it means that some of the costs that were previously shown separately under sort of maintenance costs could now go into the depreciation line because some of the bigger overhauls would be treated as capex when they are to our own equipment. So there is a slight change, but that, of course, you know, is not impacting the EBIT line as such.

All right, that's clear. And then about your revenue guidance, you already talked about this a bit, and you say you expect your capacity to grow 5% this year. But overall, I think your revenue guidance is, I mean, you expect quite robust growth. So to what extent beyond higher capacity do you expect essential load factors and ticket prices to contribute to growth?

There is definitely, you know, just looking at the market environment and the capacity growth in combination with our guidance, I think, you know, we are seeing some improvements in the load factor throughout the yield. And I don't want to comment on the yields. In, you know, particularly, I just I think it's just good to sort of look at the full network that we have and the ability that we still have to boost Asia to some extent. So, you know, this sort of a mix thing is a good one to consider.

So you're basically still following the development of North Atlantic demand closely, but you're quite confident on Asia and Europe going to develop well also in 2026?

I think we have seen North Atlantic sort of continue kind of on the same path that we have seen before. But, you know, long term, we are still having capacity on those lines. And, you know, let's see when that time for the change is.

All right. That's all from me. Thanks.

The next question comes from Pasi Verzenin from Nordea. Please go ahead.

Thanks. This is Pasi from Nordea. If I may start with this new route opening. So these new connections you have announced, are they supporting or kind of declining your efforts I would assume that there are no easy wins available anymore. So how are you making calculations for these new routes in terms of your kind of economical reasoning of the opening?

Thanks. I guess time will tell what the yields will be eventually. But there is, of course, very diligent analysis behind when we are opening a new route. But especially the new openings in the Nordic region, we feel that there is currently a bit of a vacuum when it comes to providing regional flying from many of the Nordic destination to a Helsinki hub that then provides connectivity beyond Helsinki. Then when it comes to the Toronto route, that is a kind of a reopening for the summer season 26. And then this Bangkok-Melbourne connection, route that we communicated too early to tell. But of course, it's a combination of optimizing your yields and then also capturing new passengers or passenger flows to your entire network. So that's maybe something that we will revert to when we meet you for the next time.

Yeah, I see. And secondly, when kind of looking at your investment program. So if you're now kind of buying a new kind of used planes in this spring, are these planes already included on your 5% capacity growth guidance on this year or not?

So we have a plan for growing capacity and we have a plan of the capex as well, which is somewhere like around 450 million euros for the year. And, you know, this is like sort of including also then the capacity increases. Of course, these are all plans and estimates at this point in time, but this is sort of how they hook together.

Yes, and it's always a combination of then maybe switching your balance from Webley's operation to your, let's say, new, although secondary acquired or second-hand acquired fleet. So, therefore, again, too early to tell.

Yes, but this investment guidance is in line with the 5% estimated capacity growth guidance for this year.

Yes, that's correct.

And were there any kind of one-offs in last year, let's say coming from the strikes or the accidents, which actually would kind of somehow be uncomfortable for the 5% increase in capacity on this year, or is it uncomfortable excluding those one-offs?

I think it is on comparable basis. I mean, of course, the strikes impacted holistically the year, including the top line. But I mean, we have reported the full figures and we will continue to flight throughout the year.

Yeah. and then when looking at your guidance for the full year in terms of operating profit so when kind of well that the foil price is already up by 12% year to date on this year so is this peak on the foil costs also included on your full year guidance or have you made the kind of calculation regarding that end of December situation regarding the expected cost for foil?

Yeah, Basi, we are updating a minimum once a week, sort of the full view, you know, relating to kind of what's the current price, what's the forward curve, what's our hedging ratio. This is kind of the, you know, one of very important drivers for our profitability. So my answer is yes. I mean, we are standing here now today with sort of very recent updates of how we view the year. But obviously, we also recognize that, you know, this is, a big reason for fluctuation. That is why we have a range in our EBIT guidance. And that is also why we wanted to sort of even specify that, hey, if we see a 10% change in the fuel price, that would be like approximately 34 million euro delta in the result, sort of from where we stand today.

Yeah, excellent. I hear you. Well, I guess that was all from my side.

Thank you. The next question comes from Andrew Lovenberg from Barclays. Please go ahead.

Oh, hi there. Yeah, congratulations on good results in this quarter. Sorry, just to repeat, just to make sure I understand correctly from your last questioner, the 5% growth, that is on what was actually flown in 2025? Or is it on what was originally planned?

It is what was actually flown. On what was actually flown, yes. Yeah, good. Thank you.

And are you able to tell us what the percentage capacity changes by region, North Atlantic Asia, domestic Europe?

Can you give us that for the year? I don't have the percentages here for you, but based on the route openings and how we have described that, it's clear that there is more focus on Asia and then regionally within Europe.

Is there any reduction on the North Atlantic, or does it go up because you're adding Toronto, or are you pulling down some of those frequencies that came in this year?

I don't think that we have any sort of significant pulldowns. Obviously, we are sort of constantly monitoring the load factors, et cetera. But Toronto is added, as we have informed. But really, if I sort of look at the, you know, kind of the balance picture of the world and where we are, there is then much more emphasis on the growth in Asia and in Europe.

And that grew in Asia. That's three weekly frequencies to Japan. Is that what you were saying? Was it three routes?

Yeah, from weekly frequencies.

Three additional weekly frequencies from Helsinki to Osaka. So after that addition, we have 28 weekly frequencies from Helsinki to Japan.

Yeah, cool. And nothing changes otherwise, China, Korea, India?

No, no big changes, no.

Yep, yep. Okay. Then can I come back to the maintenance cost and the lease buyback? Obviously, I should know this, but can you remind me how many aircraft in the year you bought back and how many were bought back in the fourth quarter?

I think there was... three or four, but none in the fourth quarter. So obviously this is, you know, a cumulative approach from something that we also did already back in 24. Actually, we did most of the lease buybacks already back in 23. So that shouldn't like bring any more sort of a year on year change between 24 and 25. But it's all sort of building into the status that we have.

And so there's no one-time effect from lease buybacks in the fourth quarter?

No, no, no. I wouldn't say so. But it's a structural change. If you look over time, you would see those sort of shifts from the maintenance to the depreciation, those sort of particular sort of maintenance activities.

Yeah, yeah, yeah, yeah, yeah. Yeah, yeah, yeah. Makes sense. But when you did do them, did you have a one-time gain? No. Does other airlines record one-time gains releasing maintenance provisions? You have them, right?

So we have released maintenance provisions accordingly, but I don't think that had any significant impact during 2025.

Despite doing four airplanes?

So these were, you know, if you look sort of across our fleet and the ones that we were doing, then my answer is no, it didn't have a significant impact. Okay. Okay.

Because, like, Norwegian had a really big impact from it, but I guess they were newer, shinier planes.

Must have been shinier.

And then I guess what I'd love is an update, and apologies, I also missed the top of the call, and also perhaps I'm just forgetting from the capital markets day. Can you just remind us of what the status is of the fleet renewal on the mid-haul or short haul?

So if you are referring to the partial renewal of the narrowbody fleet. Exactly, yes. Yes, thank you. So we're still working with the project or program. And as I said, in connection with the CMU event, that we want to run a very thorough and diligent process. And therefore, unfortunately, today, we are not yet in the position of – in this closing news but i would expect that during the weeks to come we should be over the finish line so i kindly ask for extra patience right um and is anything associated with that in your capex guide for this year in terms of deposit payments i think uh

Within that sort of 400 to 500 or 450 million range that we have, I don't also have any sort of significant items relating to that. There could be something, but it's really more on this sort of shorter term, you know, buying used or arranging so that we can use used aircraft, et cetera, that we also spoke about in the CMU. There are sort of more. That is kind of closer in time. Therefore, it's also including in our plans for this year as well as then the capacity increase for this year.

Okay, cool. All right, that's lovely. Thank you so much. Thank you, Andrew. Thank you.

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Kurt Hoffman from Air Transport World. Please go ahead.

Hello, good afternoon. Thanks that I have the possibility to ask you a few questions. Regarding Australia, it's quite an interesting move you do, and with such rules it's quite an, I can imagine, quite an investment. What are your expectations on this Australia route? And on the North Atlantic, do you see, and many of your colleagues see some uncertainty on the North Atlantic market. Do you see some overcapacity this coming summer and you have to adjust maybe the North Atlantic network?

So if I start with the North Atlantic traffic, of course, we follow the booking curve very diligently. And then if we need to react, I think that we are well positioned to react. fine-tune or optimize the weekly schedule to North America. So let's see. But too early to draw conclusions because we are still in the, let's say, the hot season of selling tickets to the summer season 26. When it comes to the Melbourne route, that is, of course, a new opening for Finnair, and it has a received quite a lot of interest too early to tell how the ticket sales or the booking curve will develop. I'm personally actually visiting Melbourne next week to strengthen the relationship and it's also about the kind of a tactics or activity that we wanted to do that we added this third daily connection from Helsinki to Bangkok. So it opens us an opportunity to, with rather low risk level, to test this avenue. And we are, of course, doing it with our One World partners to also attract kind of a shared interest. So let's see how it develops. But I find it as a fascinating opening.

Yeah, I fully agree. And you're one of only a few carriers which are doing Australia from Europe. Regarding fleet, the Qantas researches, I remember from our last call, they will return in the future. What's your plans on the ACS30? You need all of them, or you maybe phase them out, some of them, because on the route network, the range is not enough to do more non-stops with them?

I guess that's, again, a... kind of a multi-factor optimization exercise, how the booking curve development will kind of developed towards the summer season. Then, of course, 3.30s, as you know, are very good workhorses, and the spare part availability is rather limited for the time being. So we might consider a hot spare. But then if the passenger volumes are developing according to our plan, then we will utilize it on our own flying. So we have multiple avenues to get benefits from the assets that will be returned from Qantas.

Yeah. Okay. And one topic, as now you received your last A350, do you think for a new order on white-body aircraft for a future fleet, maybe, let's say, A330 Neos in the future or A350, you have to think about this as well? And when you need new narrow-bodies, how many new narrow-body aircrafts you would need, actually, in the future?

Time will tell. We will now want to finalize this discussion. campaign that we are running when it comes to partial renewal of the neuroparty fleet and as we've communicated we have 15 aircraft 5 390s and 10 320s that are approaching the end of their life cycle so that is the most urgent need but then of course we need to take into consideration the projected market and passenger volume growth. So that will be kind of the equation by which we will then eventually decide that what's the size of the narrow body fleet investment also quantity wise. Then when it comes to wide bodies, too early because we still have one incoming 350, which is a fantastic aircraft, especially in the current geopolitical situation. And as you mentioned by yourself, those two 330s that will be returned from Qantas to us, I think that we are well off now when it comes to wide body capacity.

Okay. Final question. The airspace one day via Russia will open again, and we have no signs at the moment. How fast you can react to restore flights again via Russia?

That's, of course, a very complex question. So if I take the easiest part, when it comes to day-to-day operations, that is, I guess, the most difficult. the quickest activity when you could get back to those 24-hour rotations, but then there are other big questions related to overflight rights, insurances and such. So quite a lot needs to happen first in the political field and then the system level before we can go into the operational level and then landing slots and what have you. But then from the operations standpoint, we are very we can move very quickly but quite a few steps must must happen before running into the operational questions on the implementation plan thank you very much that's from my side and i think i will meet you soon in helsinki in about two weeks thank you seems that there are no further questions so we can conclude the call many thanks for joining and have a nice day thank you have a nice afternoon thank you