Finnair GroupFinancial Statement1 January – 31 December 2007

Finnair clearly above European level

European network airlines grew five per cent, Finnair’sscheduled traffic 18.5 per centFinnair fastest growing Europe-Asia airlineHalf of the growth in Europe-Asia traffic taken byFinnair

Finnair kept its promises

2006 was a pit stop, 2007 delivered the resultProfitability improved substantially in each quarterReturn on capital employed hit new recordEfficiency programme sharpened cost structureRecord traffic growth and load factorsAverage price recovered late in yearUnit costs clearly fell, despite high price of fuel80 million euro efficiency programme implementedImproving trend in customer satisfaction

Improved results by efficiency programme

-

-

-

-

-

39.0

9.6

Change %

-13.230.4One off items/ capital gains

-10.8141.5Operating profit/loss (EBIT)

-14.7138.9Profit before tax

-8.814.5Fair value changes of derivatives

1 989.62 180.5Turnover mill. €

11.296.6EBIT excl. capital gains, fair values changes of derivatives and non recurring items

206.8287.4EBITDAR excl. capital gains, fair values changes of derivatives and non recurring items

20062007

Profit up every quarter in 2007

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

MEUR

2003 2004 20052002 2006 2007

Change in EBIT per quarter (Excluding capital gains, fair value changes of derivatives and non recurring items)

ROE and ROCERolling 12 months

-4

-2

0

2

4

6

8

10

12

14

16

Q1 20

02Q2

2002

Q3 20

02Q4

2002

Q1 20

03Q2

2003

Q3 20

03Q4

2003

Q1 20

04Q2

2004

Q3 20

04Q4

2004

Q1 20

05Q2

2005

Q3 20

05Q4

2005

Q1 20

06Q2

2006

Q3 20

06Q4

2006

Q1 20

07Q2

2007

Q3 20

07Q4

2007

% ROE ROCE

All business areas improved

Scheduled Passenger Traffic’s profitability clearlyimproved, even though unit revenues fellLeisure Traffic very profitableFinnair Technical Services’ competitiveness project is bearing fruitCargo’s average prices fell due to tighter competition, but demand is still strongNorthport still loss-making; Norwegian and Swedishoperations sold to Menzies Aviation

Continuous optimisationof business portfolio

•Horizon Travel•Calypso

•FlyNordic•Finnhandling AB•Northport Norway AS•Domestic stations

Unit costs decreased more than yieldChange YoY

-20

-15

-10

-5

0

5

10

15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

% Yield (EUR/RTK) Unit costs (EUR/ATK)

2004 2005 200620032002 2007

Efficiency programme materialized

80 million euro efficiency programme completedEffect felt strongest in the second half of the yearProfit impact for 2007 about EUR 50 millionFull financial impact will begin in 2008Jobs cut by over 600 in 2006-07Annual recruiting for flight operations of 200

Business growing, number of staff stable

0

2000

4000

6000

8000

10000

12000

14000

1999 2000 2001 2002 2003 2004 2005 2006 2007

Personnel on averagePersonnel

Unit costs dropping

+1.8 %-5.4%Unit costs of flight operations* c/ATK

+1.9 %-9.7%Aircraft lease payments and depreciation c/ATK

-3.1 %-11.3%Other costs c/ATK

-7.9 %+2.9%Sales and marketing €/passenger

-1.0 %+8.3%Ground handling and catering €/passenger

-3.9 %-3.4%Traffic charges c/ATK+24.1 %+1.0%Fuel costs c/ATK

-4.1 %-1.4%Personnel expenses c/ATK

-3.5 %-7.4%Unit costs of flight operations excl. fuel* c/ATK

20062007

* excluding fair value changes of derivatives and restructuring itemsATK = Available Tonne Kilometre

Productivity improvedProductivity (incl. Aero)

(ATK/person) 12 m rolling sum

240

290

340

390

440

490

540

590

01.0

1

05.0

1

09.0

1

01.0

2

05.0

2

09.0

2

01.0

3

05.0

3

09.0

3

01.0

4

05.0

4

09.0

4

01.0

5

05.0

5

09.0

5

01.0

6

05.0

6

09.0

6

01.0

7

05.0

7

09.0

7

ATK1000/person

High Jet fuel prices

Jet fuel price risk hedging (Scheduled traffic, 31.12.2007)

68%73%

2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3

Fuel costs a fifth of turnover2003: 10.2% of turnover2004: 12.5% of turnover2005: 15.6% of turnover2006: 19.4% of turnover2007: 20,2% of turnover2008: >22% of turnover

Finnair scheduled traffic has hedged 70% of its fuel purchases for the next six months, thereafter for the following 24 months with a decreasing level.

Improved cash flow used for investments

418294Liquid funds at the beginning

-124+246Change in liquid funds

294540Liquid funds at the end with financial interestbearing assets at fair value

66217Cash flow from financing

-34+37Change of advances and others

-252-326Investments

-286-289Investments and sale of assets

96318Cash flow from operations

Q1-Q4/2006Q1-Q4/2007Cash flow statement (EUR mill.)

Cash flow January-December

Strengthening balance sheetby cash flow and share issueEquity ratio and adjusted gearing

0

20

40

60

80

100

120

2002 2003 2004 2005 2006 2007

Equity ratio Adjusted Gearing%

Asia leads Finnair growth

Demand grew during in 2007 by 32.6%, passenger numbers 27.1%, cargo 24.5%Passenger load factor 77.9%Business Class growing faster than average traffic61 flights a week to AsiaNon-stop flights to 10 destinations, daily to sixTwo new planes, totally 11 planes in Asian trafficEnd of year capacity will grow by over 20%Seoul new destination in JuneGrowth in different markets in Asia diversifies risk

Capacity in Asia has grown rapidlyChina 2001:3 flights/week2007:25 flights/week

Japan2001:2 flights/week2007:15 flights/week

India2006:3 flights/week2007:13 flights/week

0

10

20

30

40

50

60

70

2001 2002 2003 2004 2005 2006 2007 2008

KoreaIndiaJapanChinaThailand

Long-haul network summer 2008

7 New York

Tokyo 4Nagoya 4Osaka 7

Beijing 7Shanghai 7

Guangzhou 4Hong Kong 7Bangkok 7

Delhi 7Mumbai 6

Helsinki

Soul 5

More than half of revenue from Europe-Asia

43 %

41 %

4 %12 %

Asia USDomestic Europe

Scheduled traffic passenger and cargo revenue

Asia-Europegateway

>50%

In 2007-14• A330/A340 fleet of maximum 15 planes in

total

In 2014-16• A350 fleet of maximum 15 planes in total

New planes enable future growth

Most modern European fleet

Average age of European fleet four years29 Airbus A320 family aircraftA total of ten smaller Embraer 170s and six larger Embraer 190s in fleet, two larger aircraft arriving this year, two in next yearNew aircraft have increased flexibility and improve load factors, decrease costs and are eco-efficient

Share issue was fully subscribed244 million euro equity financing for future investmentsTotal investment in 2007-2010 around one billion euros• over 300 million euros in 2007• around 250 million euros in 2008• over 400 million euros in 2009

Share issue proceeds invested in commercial paper and bank certificates of deposit

Operating model more complexPunctuality of European airlines fell last year by fiveper centNetwork traffic more challenging than local traffic for Finnair, tooFinnair among the best third of European airlines in punctualityNo single reason for delays at turn of the yearModest standard of airports at leisure destinations a constant challengeAround one delay of more than 8 hours per 1,000 flights

We want to improve ourpresent level of punctuality

We will focus on ensuring that our fleet operates betterin our new, more demanding operating modelWe develop production coordination• Clarifies organisation of work• Improving coordination of different functions in the

Group• Centralized control in irregularities

Safety and security remains priority when developingfunctionsThis year, we will incentivise all personnel with a special punctuality bonus

Future outlook

Asian demand will continue to growCargo demand still strongTwo new A340 wide-bodied aircraftTwo new Embraer 190 aircraftLeisure Traffic’s outlook is relatively goodFuel costs will rise, but competitiveness will bemaintained by keeping costs downEmployment agreement negotiations with pilots in springPoor visibility due to uncertain economic climate

Appendices

Improved results by efficiency programme

-

-

-

-

-

-

13.9

Change %

0.06.2One off items/ capital gains

-25.830.8Operating profit/loss (EBIT)

-26.335.2Profit before taxes

-1.40.2Fair value changes of derivatives

499.3568.7Turnover mill. €

-24.424.4EBIT excl. capital gains, fair values changes of derivatives and non recurring items

27.970.6EBITDAR excl. capital gains, fair values changes of derivatives and non recurring items

Q4/2006Q4/2007

Average yield and costsEUR c/RTK & EUR c/ATK

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Yield (EUR/RTK) Unit costs (EUR/ATK)

2004 2005 200620032002 2007

Segment results

-24.424.4Total

3.59.7Leisure Traffic

MEUR

-4.0-7.4Unallocated items0.1-0.9Travel Services

-15.13.0Aviation Services

-8.920.0Scheduled Passenger Traffic

Q4Q420062007

Excluding capital gains, fair value changes of Derivatives and non restructuring items

Investments and cash flowfrom operations

0

50

100

150

200

250

300

350

2002 2003 2004 2005 2006 2007

Operational net cash flow InvestmentsMEUR

Aircraft operating lease liabilities

0

100

200

300

400

500

600

2002 2003 2004 2005 2006 2007

MEUR Flexibility, costs, risk management

On 31 December all leases were operating leases. If capitalised usingthe common method of multiplying annual aircraft lease payments byseven, the adjusted gearing on 31 December 2007 would have been35,1%

Finnair’s vision 2017

Take further advantage of Helsinki’s geographical positionVia Helsinki a travel conceptThe airline of choice for quality and environmentally conscious air travellers in intercontinental traffic in the Northern HemisphereA reliable and safe option in an uncertain worldAs large European airports become increasingly congested, Helsinki-Vantaa Airport has plenty of room for construction and possibilities for developmentSustainable, profitable growth, an attractive investment

Finnair 2017 – ”On top of the World”

India opens up new opportunities

Indian traffic makes it possible to open the fastest connections between North America and IndiaFinland is situated along the shortest routeDemand expected to grow significantlyRussia’s air traffic markets expected to open up in the future, offering opportunities to complement network

Success factors

Safe• Expert, professional people doing quality work• Modern fleet• Sound finances• Trust• Caring for customers and personnel

Finnish• Reliable, responsible, punctual, professional

Creative• Modern, developing, innovative

Fresh• Clean, stylish, refreshing, uncomplicated

Finnair Financial Targets

”Sustainable value creation”

Operatingprofit (EBIT)

EBIT margin at least 6% => over 120 mill. € in the coming few years

EBITDAREBITDAR margin at least 17% => over 350 mill. € in the coming few years

Economicprofit

Pay out ratio Minimum one third of the EPS

AdjustedGearing

Gearing adjusted for aircraft lease liabilities not to exceed 140 %

To create positive value over pretax WACC of 9,5%

Finnair’s Financial Targets

Description of targets

Operatingprofit (EBIT)

EBITDAR

Economicprofit

Pay out ratio

AdjustedGearing

Turnover + other operating revenues – operating costs

Result before depreciation, aircraft lease paymentsand capital gains

Operating profit EBIT – Weighted Average Cost of Capital

Interest bearing debt + 7*Aircraft lease payments– liquid funds) / (Equity + minority interests)

Dividend per share / Earnings per share

www.finnair.comFinnair Group Investor Relationsemail: investor.relations@finnair.com

tel: +358-9-818 4951fax: +358-9-818 4092