GROUP INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2004 Third quarter profit; full-year result forecast still a loss

Third quarter key figures - Scheduled Passenger Traffic demand (revenue passenger kilometres) grew 21.7% - Turnover rose 9.8% to 422.8 million euros (2003: 385.2 million) - Operating profit excluding depreciation and aircraft leasing payments (EBITDAR) 56.5 million euros (56.3 million) - Operating profit, excluding capital gains, 10.1 million euros (5.3 million) - Profit after financial items was 8.7 million euros (6.8 million) - Unit costs for flight operations –9.5%, unit revenues for flight operations –10.8% - Net debt at end September was 27 million euros - Equity ratio 44.3% (44.6%), liquid assets 240.9 million euros - Equity per share 7.28 euros (7.32) - Earnings per share 0.06 euros (0.07)

Embraer E170 aircraft to meet domestic and Euro- General Review pean scheduled passenger traffic needs. Growth in Finnair’s demand in the early part of Finnair’s operational result doubled from the the year was clearly stronger than the European av- previous year. The record high fuel price has had an erage. In January-September, Finnair’s overall traffic adverse impact on air transport profitability during demand grew 22.1 per cent and passenger load fac- the summer and autumn. The weakening profitabil- tor improved 2.6 percentage points to 71.6 per ity arising from higher costs was alleviated by price cent. The increase in demand was due to the price increases implemented in May and August. At the reform implemented in September 2003 and to same time, the profitability improvement pro- strong growth in Asian traffic as well as to the op- gramme initiated last year has been strictly imple- erations in of the (for- mented. merly Nordic Airlink), acquired at the end of 2003. The whole year has still been characterized by Growth in demand will level off towards the end tight price competition in the Nordic market. During of the year. Due to the collapse in price that oc- the last eighteen months, eight new competitors ha- curred at the beginning of the year as well as the ve entered the market, of whom four have already sharply increased fuel costs, the operational result ceased operating. The appearance and disappear- for the full year will be a loss. ance of new entrepreneurs has created conditions of unstable price development. Financial Result, In September, the procurement programme through which 29 Airbus A320 series aircraft were July 1- September 30, 2004 acquired was completed. In June the company made the decision to place an order for twelve 76-seat The Group’s result after financial items was 8.7 million euros. The corresponding figure for

1 2003 was 6.8 million euros. Operating profit (31.7 million loss). The Group’s result after finan- excluding depreciation, aircraft leasing payments cial items was a profit of 5.6 million euros and capital gains (EBITDAR) was 56.5 million euros (13.6 million loss). (56.3 million) The EBITDAR margin was Operating costs rose during the period by 13.4 per cent, compared with 14.6 per cent the pre- 5.4 per cent, but unit costs for flight operations fell vious year. The Group’s operating profit, excluding by 13.0 per cent. capital gains (EBIT), improved from the previous Capital gains totalled 9.8 million euros year and was 10.1 million euros (5.3 million). (20.4 million euros). Turnover rose by 9.8 per cent to Earnings per share for the first nine months of 422.8 million euros. Increased overall passenger the financial year came to 0.13 euros, whereas a numbers and the operations of the budget airline year before the figure was -0.11 euros. flynordic (formerly Nordic Airlink), acquired at the end of 2003, contributed to turnover growth. Unit revenues for passenger traffic declined by Investment, Financing and 8.7 per cent from the previous year. This was due to Risk Management a fall in price levels, a decline in the number of busi- In January-September, capital investments ex- ness class passengers and growth in the relative cluding advance payments totalled 100.5 million eu- share of long-haul traffic. In the corresponding pe- ros (33.7 million). Investments include the purchase riod in 2003, Asian traffic was significantly lower of two new Airbus A320 series aircraft in February due to the SARS epidemic. Unit revenues for cargo and September 2004. Two new Airbus A320 series traffic declined by 13.3 per cent. Unit revenues for aircraft and one Boeing MD11 aircraft were ac- traffic overall declined by 10.8 per cent. quired on long-term operational lease agreements at Operating costs rose by 9.0 per cent, but unit the beginning of the year. No significant investments costs for flight operations fell by 9.5 per cent. Over- will be made in the final quarter of the year. all, the Group’s cost-cutting and operational effi- In June the company made the decision to place ciency programme, which was initiated in spring an order for twelve 76–seat Embraer E170 aircraft, 2003 and aims to save 160 million euros by the end to be delivered between autumn 2005 and spring of 2005, has proceeded according to plan. Around 2007, to meet domestic and European traffic needs. two thirds of the cost savings are expected to be re- In addition, the company has options for eight alized during 2004. other Embraer aircraft. The new aircraft will gradu- Personnel, marketing and aircraft leasing costs ally replace the remaining Boeing MD-80 and ATR- in particular contributed to a lowering of unit costs. 72 aircraft. The aircraft acquisition programme will The unit cost of fuel grew in the third quarter by reduce the number of aircraft types in Finnair’s fleet. more than 20 per cent. Overall, fuel costs increased Operational cash flow, excluding capital gains, by 50 per cent during the period. Unit costs fell was 50.8 million euros, compared with 12 per cent, when the increase in the price of fuel is 37.2 million euros a year earlier. At the end of Sep- eliminated. tember, the Group’s liquid cash reserves stood at Personnel costs fell by 3.0 per cent. The propor- 240.9 million euros and interest-bearing net debt tion of the Group’s total operating costs accounted was 27 million euros. In May the company arranged for by personnel costs declined to 29.3 per cent, with an international bank syndicate a new five-year compared to 33.0 per cent in 2003. unsecured credit facility of 200 million euros, which In the third quarter a non-recurring write-down at the end of September had not been used at all. was entered in respect of Finnair’s ownership in the At the end of September, the gearing ratio was travel portal Opodo. The negative impact on the re- 4.4 per cent (1.8%), the gearing ratio adjusted by sult is 3.6 million euros. Finnair’s ownership in the fleet leasing obligations was 105.9 per cent (99.5%) international travel portal Opodo is 1.7 per cent of and the equity ratio was 44.3 per cent (44.6%). The the share capital. figures are clearly better than the targets set by the Return on capital employed for a rolling Board of Directors. 12-month period was 7.5 per cent (1.9%) and re- Finnair Board of Directors has approved a new turn on equity 3.9 per cent (-0.5%). Earnings per risk management policy for financing. According to share were 0.06 euros, compared with a figure of this policy, the company’s objective is to hedge 0.07 euros the previous year. Equity per share at the more than half of scheduled passenger traffic fuel end of September stood at 7.28 euros (7.32). purchases during the first six months of 2005. On the basis of historic price fluctuations, the price risk Financial Result, for the unhedged proportion of scheduled passen- January 1- September 30, ger traffic fuel is, with a 95 per cent probability, ±35 million euros annually compared with the pre- 2004 sent price level of fuel. The weakening of the dollar further predisposes In January-September 2004, turnover rose by the Group’s fleet to a write-down in book value. The 8.3 per cent to 1,247.3 million euros. Unit revenues potential write-down will not affect cash flow nor for passenger traffic fell by 12.9 per cent and, taking will it have any substantial impact on the Group’s cargo revenue into account, unit revenues for traffic financial expenses. overall fell by 13.9 per cent. The Group’s operating loss, excluding capital gains, was 0.4 million euros

2 However, the weakening of the US dollar by one labour unions. The agreement with the Finnish Air per cent against the euro has a positive impact on Transport Union, which represents mainly Aviation Finnair’s operational result, because the company Services and cargo personnel, is valid until March has more dollar-linked costs than revenue. 31, 2006. Shares and Share Capital Performance of the During the period January-September 2004, the Divisions highest rate for the Finnair Plc share on the Helsinki Exchanges was 6.57 euros, while the lowest rate was From the beginning of 2004 Finnair has adopted 4.46 euros and the average rate 5.51 euros. The a system of four divisional reports in external report- market value of the company’s shares was ing. The reporting divisions are Scheduled Passenger 423.8 million euros on September 30, 2004. At the Traffic, Leisure Traffic, Aviation Services and Travel beginning of the financial year the market value was Services. In financial year 2003 the Cargo and Sup- 449.1 million euros. During the first nine months, port Services business areas were also reported on some 15.9 million (12.7 million) of the company’s separately in addition to the above. shares were traded on the Helsinki Exchanges. At Finnair Cargo Oy is now included in the Sched- the end of the period under review, the government uled Passenger Traffic division. Finnair Facilities of Finland owned 58.4 per cent of the company’s Management Oy, which provides support services, shares, while 16.1 per cent were held by foreign in- is included in the Aviation Services division. vestors or in the name of a nominee. Scheduled Passenger Traffic On April 7, 2004 the Annual General Meeting authorized the Board of Directors for a period of This division is responsible for sales of sched- one year to purchase and dispose of the company’s uled passenger traffic and cargo, service concepts, own shares up to a maximum of 4,100,000 shares. flight operations and the procurement and financing The authorization applies to shares amounting to of aircraft. Scheduled Passenger Traffic leases to the less than 5 per cent of the company’s share capital. Leisure Traffic division the crews and aircraft it re- Board of Directors decided on June 18, 2004 to quires for its operations. The division consists of the start purchasing the company’s own shares. Pur- following units and companies: Finnair Scheduled chasing began on July 1, 2004 and by September Passenger Traffic, Aero , flynordic (formerly 30, 2004 a total of 422,800 shares had been Nordic Airlink), Finnair Cargo Oy and Finnair Air- bought for 2.3 million euros. At the end of the pe- craft Finance Oy. riod, therefore, 0.5 per cent of shares and voting In the third quarter, the division’s turnover grew rights were held by the company. by 11.3 per cent to 318.0 million euros. The operat- Trading in Finnair Plc 2000 B stock options ing profit, excluding capital gains, was (a total of 2,000,000 units) commenced on the 5.5 million euros, compared to a loss of 2.4 million Main List of the Helsinki Exchanges on euros in the corresponding period last year. The re- May 3, 2004. sult for the current year will be burdened by a de- If all the option certificates in circulation on Sep- cline in price levels as well as the operational start- tember 30, 2004 were exchanged for Finnair Plc up and operational expansion of flynordic (formerly shares, the Finnish government’s holding would be Nordic Airlink), which operates in . 55.8 per cent. On the basis of the option certificates The operating practices of the acquired airline in circulation on September 30, 2004, the com- Nordic Airlink have been changed to conform with pany’s share capital could rise by not more than Finnair’s principles and values. The company’s busi- 3,397,875 euros, corresponding to 3,997,500 sha- ness was transferred at the beginning of October res. 2004 into Finnair’s fully owned new subsidiary com- Finnair Plc issued a 230 million Finnish mark pany Nordic Holding. The new flynordic brand was (38.7 million euro) debenture loan in 1994. On introduced at the same time. The change aims to September 2, 2004 the company paid back to de- emphasise the company’s new, open way of working benture holders under the terms of the loan in relation to customers, staff, officials and its 5.6 million euros of debenture loan capital which operating environment. had not been exchanged. A rise in the relative share of lower price-level long-haul traffic, a more competitive market cli- mate, a fall in business class travel and the price re- Personnel form implemented in September 2003 contributed In the period January-September, the average to a fall in unit revenues for Finnair’s scheduled pas- number of staff employed by the Finnair Group was senger traffic of 10.5 per cent. 9,566, 5.1 per cent fewer than a year earlier. At the Finnair’s scheduled passenger traffic demand end of September, the Group employed 9,645 peo- grew by 31.2 per cent in January-September, while ple, which was 311 fewer than the previous year. capacity grew by 22.6 per cent, leading to a rise in The decline in personnel numbers is due to imple- passenger load factor by 4.3 percentage points to mented cost cuts and productivity improvement 65.6 per cent. measures. flynordic’s passenger volumes have developed The company has collective labour agreements positively and the company continues to grow its valid at least until the beginning of 2005 with all the market share in the Scandinavian market. The com-

3 pany is estimated to carry around 600,000 passen- Aviation Services’ turnover rose by 2.4 per cent gers this year, so the earlier annual target of to 103.8 million euros. Demand in the division 500,000 passengers will be clearly exceeded. grew, but the price level of services offered was Finnair’s market share in traffic between Asia lower than in the previous year. Owing to the cost- and has grown further as a result of in- cutting programme and implemented adjustment creased capacity and new destinations. In the mar- measures, the division’s operating profit, excluding kets of Beijing, Shanghai, Osaka and Bangkok, Fin- capital gains, remained at its previous level of 6.8 nair is one of the major airlines operating to Europe. million euros (7.5 million euros). In European traffic, no significant changes have oc- Finnair’s ground handling operations were in- curred in Finnair’s market share. In domestic traffic, corporated into a new company, Northport Oy, a market share has declined slightly due to increased wholly owned subsidiary of Finnair, as of May 1, competition. 2004. The Finnair Plc subsidiary FinnHandling AB, Measured by the arrival punctuality of flights, which has operated under the Finnair Ground Han- Finnair is still the most punctual airline in Europe dling business unit at Arlanda since June and is also among those companies which cancel 2003, became at the same time a subsidiary of the fewest flights. The arrival punctuality of scheduled new company. passenger traffic was 90.5 per cent in January- September, compared with 91.8 per cent the previ- Travel Services ous year. The division consists of the Group’s domestic The number of cargo kilos carried grew by and foreign travel agency operations as well as the 21.0 per cent in January-September. Growth is still operations of the reservations systems supplier strongest in Asian traffic, where the volume of cargo Amadeus Finland Oy. kilos carried grew by 46.3 per cent. Unit revenues Turnover for the Travel Services division rose in for cargo traffic declined by 13.3 per cent in the the third quarter by 7.1 per cent to 22.5 million eu- third quarter. The decline was mainly due to growth ros. Turnover has grown despite the fact that, like in the relative share of lower unit revenue long-haul Finnair, several other airlines abandoned the pay- traffic. ment of commission at the end of 2003. Owing to The company has already begun to prepare for adaptation measures and higher demand, the divi- the start–up of operations by the new Embraer E170 sion’s operating profit improved to 1.2 million euros aircraft in autumn 2005. The 76-seat jet will gradu- (0.7 million). ally replace both Boeing MD-80 and ATR-72 air- The division’s earnings logic has changed con- craft, which will clearly reduce operating costs, siderably. During the latter part of 2003, after streamline the fleet structure and improve passenger commission fees were discontinued, the charging of comfort. service and transaction fees from customers became Leisure Traffic established in line with general international prac- tice. At the same time the travel agencies have de- This division consists of Finnair Leisure Flights as veloped new additional services and have invested in well as the Aurinkomatkat-Suntours package tour centralized service centre operations. company, which is the biggest in its field in Finland with a market share of more than 35 per cent. Fin- Services and Products nair Leisure Flights is a clear market leader in leisure travel flights, even though more competition has en- The Finnair route network consists of a compre- tered the market. hensive domestic network as well as an international The division’s turnover grew by 6.9 per cent to network that includes more than 40 destinations, of 80.9 million euros in July-September. Lower sales of which ten are on long-haul routes. Finnair’s success cheap, last-minute leisure flights and a more rainy in European scheduled passenger traffic is based on summer than average in Finland contributed to the the morning-evening concept favoured by business growth in turnover. Unit revenues for leisure traffic passengers. declined by 4.8 per cent compared with the previous Long-haul strategy exploits Helsinki’s ideal posi- year. Operating profit for the division was tion on flight routes between Asian and Europe. 7.7 million euros (6.6 million euros). Finnair has nearly doubled its number of Asian Demand for leisure traffic grew by 5.5 per cent flights during the last two years. Due to higher pas- in January-September, while capacity grew by senger volumes, an expanded Asian Terminal was 4.6 per cent. Passenger load factor improved by opened at Helsinki-Vantaa Airport at the end of Au- 0.8 percentage points to 90.4 per cent. gust. To increase passenger comfort, bed seats will be installed in business class of long-haul route Boe- Aviation Services ing MD11 wide-bodied aircraft during 2005. An integral part of Finnair’s European route net- This division comprises aircraft maintenance ser- work is made up of partner routes to Central and vices, ground handling and the Group’s catering Southern Europe, providing customers with efficient operations. In addition, the Group’s property hold- connections to all significant destinations in Euro- ings and the management and maintenance of pe. Bilateral cooperation with existing partners has properties relating to the Group’s operational activi- been deepened. ties, as well as office services, are functions of the In a new opening, Finnair began code-share co- Aviation Services division. operation with the Russian airline Aeroflot in the

4 summer. As a result of this arrangement, capacity the rise in fuel costs will be focused on the final and connecting services on the Helsinki and Mos- quarter of the year. cow route will improve. The companies will each The operational efficiency programme will pro- continue to fly one return flight per day between the ceed in line with earlier plans. The number of Group cities, but the agreement provides both companies employees will fall further during the financial year with a morning and evening connection. Both Fin- and is expected to be around 9,500 at the end of nair and Aeroflot operate with Airbus aircraft. this year, compared with 9,850 at the end of 2003. Cooperation within the alliance gener- The operational result for financial year 2004 is ates both savings and revenue for Finnair. Finnair expected to improve clearly from last year’s result, supplements the other oneworld airlines’ capacity in but due to a sharp rise fuel costs the result will be a flights between Europe and the Far East. loss. Finnair’s electronic services have been developed for both ticket sales and travel-related service needs. FINNAIR PLC On the Internet, Finnair’s website is the Finnish tra- Board of Directors vel industry’s most popular e-commerce site. The website’s services, which received a makeover in February, cover both leisure and business travel. The new services also offer companies the opportunity to manage and report on their travelling electroni- President and CEO Keijo Suila cally. Internet ticket sales account for 20 per cent of all tickets sold. on the interim financial result: The electronic ticket, or e-ticket, is in use on all of Finnair’s domestic routes, on several European routes and on New York flights. Early this year, Fin- Constant external difficulties and fierce competi- nair also introduced the e-ticket on to its Bangkok, tion between players have badly eaten into the prof- Singapore and Hong Kong routes. E-tickets account itability of the industry. Some conclusions can be for more 80 per cent of domestic tickets. Over half drawn from the fact that the combined result of of all flight tickets are now sold as e-tickets. European airlines was last profitable in 1998. Many airlines have cut their in-flight services or Competition is particularly heated in the Nordic have started to charge for them. Based on feedback skies where continuing overcapacity is keeping prices from customers, the business class catering service and load factors far below the profitability level. Du- on Finnair flights was renewed and diversified. In ring the past 18 months, we have met with eight new contrast with competitors, a hot meal is also served airlines in our home market, four of which are in economy class on all flights of more than two already inactive. Only a few of these companies fill hours. the requirements for sustainable business. The aim of the changes is to boost competitive- Our operational environment has not offered us ness. Finnair’s goal is to provide Europe’s best cabin any free rides. Even though our own development in service in 2005. During the autumn this year, Fin- these circumstances has been reasonable, we cannot nair’s business class service has already been rated be satisfied with our current profitability level. We Europe’s best in a competitor survey. External have successfully worked to improve our productivity evaluations also reveal Finnair’s general image to be while maintaining a high quality of service. Finnair is among the very best in Europe. still the most punctual airline in Europe and our ser- Cargo services have been developed by adding vice has received top marks from our customers. cargo links to Central Europe and the Middle East, Our Asian strategy continues to work extremely enabling Finnair to offer efficient logistics chains in well for us and next year we will continue to expand intercontinental traffic. The emphasis is on traffic our traffic in China. Focusing on our Asian strategy between Europe and Asia. In November Finnair will has alone provided work for a thousand personnel open a weekly cargo route between Helsinki and members in Finnair Group. Hong Kong. Expensive fuel will take the last quarter and the whole year into the red. I believe that we have what it takes for a profitable result in 2005, keeping in Short Term Outlook mind that the development of fuel prices will remain Growth in Finnair’s demand will level off to- a great uncertainty factor. wards the end of the year. Overcapacity in the Nor- dic market will continue to keep load factors at a low level, as a result of which the price war will re- main intense. Prices in the fourth quarter are ex- pected to remain at the same level as during quarter Finnair Plc four last year. Communications The rise in the world market price of oil is in- Christer Haglund creasing airlines’ costs significantly. Fuel costs of SVP, Communications Finnair for the whole of the current year are esti- mated to exceed 210 million euros, which is around 55 million euros more than in 2003. Nearly half of

5 For further information, please contact:

SVP Communications, Christer Haglund tel. +358 9 818 4007 or +358 40 555 1007 [email protected]

Chief Financial Officer Lasse Heinonen tel. +358 9 818 4950 or +358 40 393 4950 [email protected]

Communications Officer, IR Taneli Hassinen tel. +358 9 818 4976 or +358 40 504 3321 [email protected]

http://www.finnairgroup.com

6 KEY FIGURES Mill.EUR 2004 2003 Change 2004 2003 Change 2003 1 July 1 July- 1 Jan- 1 Jan- 1 Jan- 30 Sept 30 Sept % 30 Sept 30 Sept % 31 Dec Turnover 422,8 385,2 9,8 1 247,3 1 151,6 8,3 1 557,6 EBITDAR * 56,5 56,3 0,4 138,9 113,4 22,5 155,9 Lease payments for aircraft 21,3 24,0 -11,3 65,5 68,7 -4,7 92,7 EBITDA * 35,2 32,4 8,6 73,4 44,8 63,8 63,2 EBIT* 10,1 5,3 90,6 -0,4 -31,7 98,7-41,0 Profit from the disposal of capital assets 0,5 2,1 -76,2 9,8 20,4 -52,0 22,1 Profit for financial year 5,4 5,6 11,3 -9,3

Operating profit, EBIT in relation to turnover % * 2,4 1,4 0,0 -2,8 -2,6 EBITDAR in relation to turnover % * 13,4 14,6 11,1 9,9 10,0 Unit revenues of flight operations c / RTK 71,5 80,0 -10,8 71,6 83,0 -13,9 80,1 Unit costs of flight operations c / ATK 51,3 56,7 -9,5 52,1 59,9 -13,0 58,7 Earnings/share EUR 0,06 0,07 0,13 -0,11 -0,19 Equity/share EUR 7,28 7,32 7,24 Gross investment (Mill. EUR) 41,4 9,9 100,5 33,7 82,3 Gross investment, % of turnover 9,8 2,6 8,1 2,9 5,3 Equity ratio % 44,3 44,6 44,4 Gearing % 4,4 1,8 -2,9 Adjusted Gearing % 105,9 99,5 102,7 Rolling 12 month ROCE % 7,5 1,9 0,0 *Profit from the disposal of capital assets excluded

Unit costs of flight operations c / ATK = Operating costs of Group - external operating costs of Travel Services / ATK of Group.

CONSOLIDATED FINANCIAL STATEMENT INCOME STATEMENT (Mill. EUR) 2004 2003 Change 2004 2003 Change 2003 1 July 1 July- 1 Jan- 1 Jan- 1 Jan- 30 Sept 30 Sept % 30 Sept 30 Sept % 31 Dec Turnover 422,8 385,2 9,8 1 247,3 1 151,6 8,3 1557,6 Work used for own purposes and capitalized 0,1 0,7 -85,7 1,0 2,5 -60,0 3,5 Other operating income 6,8 5,6 21,4 25,2 33,8 -25,4 40,0 Share of profits less losses of particip. interests 0,0 0,2 0,50,6 -16,7 0,8 Operating income 429,7 391,7 9,7 1 274,0 1 188,5 7,2 1 601,9 Operating expenses Staff costs 122,8 126,6 -3,0 360,0 374,9 -4,0 496,8 Fuel 53,4 36,1 47,9 148,4 118,1 25,7158,1 Lease payments for aircraft and other rents 35,2 38,0 -7,4 116,7 117,3 -0,5 157,2 Materials and overhaul for aircraft 14,7 12,3 19,5 50,6 48,7 3,964,2 Traffic charges 35,5 25,2 40,9 109,9 92,6 18,7 121,5 Ground handling and catering charges 25,2 26,6 -5,3 79,4 76,2 4,2 97,3 Expenses for tour operations 20,3 17,8 14,0 67,4 61,4 9,8 85,1 Sales and marketing expenses 24,7 27,1 -8,9 73,1 75,9 -3,7 107,0 Depreciation 25,1 27,1 -7,4 73,8 76,5 -3,5104,2 Other expenses 62,2 47,6 30,7 185,3 158,2 17,1 229,4 Total 419,1 384,4 9,0 1 264,6 1 199,8 5,4 1 620,8 Operating profit 10,6 7,3 45,2 9,4 -11,3 -18,9 Financial income and expenses -1,9 -0,5 280,0 -3,8 -2,3 65,2 -2,8 Profit before taxes 8,7 6,8 27,9 5,6 -13,6 -21,7 Direct taxes -3,7 -1,3 6,1 4,4 5,7 Minority share 0,4 0,1 -0,4 -0,1 -0,3 Profit for financial year 5,4 5,6 11,3 -9,3 -16,3

CONSOLIDATED BALANCE SHEET (Mill. EUR) 30 Sept 2004 30 Sept 2003 31 Dec 2003 Fixed assets Intangible assets 36,7 17,8 28,3 Tangible assets 877,8 853,2 860,2 Financial assets 12,1 19,1 15,3 Total 926,6 890,1 903,8 Current assets Inventories 47,5 49,1 49,2 Long-term receivables 18,5 15,3 20,9 Short-term receivables 197,4 183,6 146,9 Investments 209,8 267,0 276,1 Cash and bank equivalents 31,0 17,3 18,2 Total 504,2 532,3 511,3 Assets total 1 430,8 1 422,4 1 415,1

Shareholders equity 616,6 626,3 619,5 Minority interests 1,4 0,7 1,2 Deferred tax liabilities 85,0 106,8 109,8 Long-term liabilities 223,4 258,1 232,5 Short-term liabilities 504,4 430,5 452,1 Total liabilities 1 430,8 1 422,4 1 415,1

CONSOLIDATED CASH FLOW STATEMENT Mill.EUR 2004 2003 2003 1 Jan- 1 Jan- 1 Jan- 30 Sept 30 Sept 31 Dec Business operations Operating profit 9,4 -11,3 -18,9 Depreciation 73,8 76,5 104,2 Change in working capital (net) 2,3 -27,7 13,2 Financial income and expenses (net) -3,8 -2,3 -2,8 Taxes 6,1 4,4 5,7 Cash flow from operations 87,8 39,6 101,4

Investments Investments total -98,7 -42,9 -79,7 Sales of fixed assets 1,5 34,0 36,8 Cash flow from investments -97,2 -8,9 -42,9

Financing Change of long-term debts -34,0 -30,9 -53,4 Change of long-term receivables 3,3 0,4 -1,6 Change of short-term debts 0,8 -4,9 1,8 Change in shareholder´s equity -5,6 0,0 0,0 Dividends -8,5 -12,7 -12,7 Cash flow from financing -44,0 -48,1 -65,9

Change in liquid funds -53,4 -17,4 -7,4

Liquid funds, at the beginning 294,3 301,7 301,7 Change in liquid funds -53,4 -17,4 -7,4 Liquid funds, in the end 240,9 284,3 294,3 The figures in this review have not been audited.

FIGURES BY SECTOR TURNOVER BY SECTOR 2004 2003 Change 2004 2003 Change 1 July-30 Sept 1 July-30 Sept % 1 Jan-30 Sept 1 Jan-30 Sept % (Mill. EUR) Scheduled Passenger Traffic 318,0 285,8 11,3 933,4 847,7 10,1 Leisure Traffic 80,9 75,7 6,9 254,2 238,1 6,8 Aviation Services 103,8 101,4 2,4 312,2 307,3 1,6 Travel Services 22,5 21,0 7,1 69,4 64,9 6,9 Group eliminations -102,4 -98,7 3,7 -321,9 -306,4 5,1 Finnair Group Total 422,8 385,2 9,8 1 247,3 1 151,6 8,3

OPERATING PROFIT EXCLUDING CAPITAL GAINS BY SECTOR 2004 2003 2004 2003 1 July-30 Sept 1 July-30 Sept 1 Jan-30 Sept 1 Jan-30 Sept (Mill. EUR) Scheduled Passenger Traffic 5,5 -2,4 -21,7 -29,3 Leisure Traffic 7,7 6,6 19,8 9,5 Aviation Services 6,8 7,5 18,5 11,1 Travel Services 1,2 0,7 5,3 1,6 Other functions -11,1 -7,1 -22,3 -24,6 Finnair Group Total 10,1 5,3 -0,4 -31,7

AVERAGE PERSONNEL 2004 2003 Change 1 Jan-30 Sept 1 Jan-30 Sept % Scheduled Passenger Traffic 3 840 3 930 -2,3 Leisure Traffic 322 330 -2,4 Aviation Services 3 970 4 254 -6,7 Travel Services 1 187 1 292 -8,1 Other functions 247 271 -8,9 Finnair Group Total 9 566 10 077 -5,1

CONTINGENT LIABILITIES AND DERIVATIVE CONTRACTS (Mill. EUR)

2004 2003 2003 30 Sept 30 Sept 31 Dec

Pension liabilities Total liability of pension fund 776,7 731,4 746,6 Uncovered liability of pension fund 0,0 0,0 0,0 Liability for pensions paid directly by the companies 0,0 0,0 0,0 Other contingent liabilities Pledges on own behalf 249,4 284,3 255,6 Pledges on own behalf of subsidiaries 0,0 0,6 0,6 Guarantees on group undertakings 77,4 35,8 42,4 Guarantees on others 0,0 0,0 0,0 Aircraft lease liabilities 431,2 471,4 429,0 Total 758,0 792,1 727,6

CONTINGENT LIABILITIES AND DERIVATIVE CONTRACTS (Mill. EUR)

Fair- 2004 value 2003 2003 30 Sept 30 Sept 31 Dec

Derivative contracts Currency derivatives Forward contracts 271,7 -3,6 116,0 121,0 Currency options Bought 5,2 0,0 70,4 27,7 Sold 5,2 -0,1 120,2 32,5 Currency swaps 109,3 -28,8 136,0 121,6 Interest rate derivativies Interest rate options Bought 24,2 0,0 25,7 23,8 Sold 48,4 -1,0 51,5 47,5 Total 463,9 -33,5 519,7 374,0

Other derivative contracts Fuel price agreements (tonnes) 139 500 14,4 170 300 161 300 Fuel options (tonnes) Bought 33 000 0,0 1 900 0 Sold 33 000 0,0 1 900 18 000

AIR TRAFFIC 1 Jan - 30 September 2004 Total Europe North Asia Domestic Scheduled Leisure Cargo traffic America Traffic Total Passengers (1000) 6 041 2 700 125 452 1 747 5 023 1 018 %-change 18,8 27,6 16,3 59,0 7,7 21,7 6,4 Cargo and mail (tonnes) 63 190 19 384 5 880 26 060 3 310 54 635 8 555 63 190 %-change 21,0 4,31,4 46,3 -7,6 19,3 32,621,0 Available seat-kilometres mill 15 980 5 577 1 016 3 991 1 554 12 138 3 842 %-change 17,7 15,65,7 53,4 2,8 22,6 4,6 Revenue passenger kilometres 11 437 3 244 846 3 000 875 7 965 3 472 %-change 22,1 18,619,4 63,5 10,0 31,2 5,5 Passenger load factor % 71,6 58,2 83,3 75,2 56,3 65,6 90,4 %-change 2,6 1,59,6 4,7 3,7 4,3 0,8 Available tonne-kilometres 2 322 509 * %-change 21,3 30,4 Revenue tonne-kilometres mill 1 312 292 %-change 24,5 33,1 Overall load factor % 56,5 57,4 * %-change 1,4 1,2

* Operational calculatory capacity