Finnair Group Interim Report 1 January – 30 June 2007

Flight travel growing, infrastructure under pressure European airlines’ performance improved in the early part of the year by an average five per cent, Finnair growth was over 20% Asian traffic overall grew by less than five per cent, Finnair’s Asian traffic grew 30% European airlines’ growth is now directed towards South America Fuel prices were high and rose slightly The industry is expecting its first profitable year since the beginning of the millennium In the difficult years, system investments have fallen behind growth in traffic

Baggage chaos in Europe Increased travel and security measures have delayed baggage at large European airports => also reflected in Finnair’s customer service. Strongly growing Asian traffic creates challenges for the service level of Helsinki-Vantaa Airport => temporary arrangements together with Finavia Preparations made for summer challenges; sharp tightening of security regulations in UK was a surprise Long delays, lots of problems for customers Terminal extension ready in 2009 will raise infrastructure to an excellent standard at Finnair’s home station

Finnair heading in the right direction Strong demand in scheduled traffic continues In addition to Asia, European traffic is also growing Finnair’s market share growing in international traffic departing from Finland Unit revenues on last year’s level Unit costs have fallen due to efficiency measures Profitability of scheduled traffic has improved FlyNordic joined Norwegian Air Shuttle, creating a strong Scandinavian airline

Finnair sold FlyNordic to Norwegian Deal was signed at the end of June Payment in shares, Finnair’s holding in Norwegian Air Shuttle rose over five per cent Options allow Finnair to increase its ownership up to ten per cent by the end of 2008 FlyNordic’s charter traffic revenue divided 50/50 until October 2008 Cooperation agreement between Finnair and Norwegian in Asian feeder traffic

Result improved as expected Q2/2007Q2/2006Change % Turnover mill. € EBITDAR EBIT excl. capital gains, fair values changes of derivatives and reorganization expenses Reorganization expenses Capital gains Fair value changes of derivatives Operating profit/loss (EBIT) Profit after financial items

Scheduled Passenger Traffic and Technical Services improved Profitability of scheduled traffic has improved Unit revenues have stabilised Unit costs have fallen Finnair Technical Services and FlyNordic have also clearly improved Northport still loss-making Due to tighter competition, average prices for cargo have fallen

Unit costs decreased more than yield Change YoY %Yield (EUR/RTK)Unit costs (EUR/ATK)

Efficiency programme yields concrete results Target EUR 80 million, of which half from personnel expenses Targets specified in full Savings weighted towards end of year Profit impact for 2007 over EUR 40 million Full financial impact will begin in 2008 Jobs cut by around 600 in More than 300 people recruited into Flight Operations Group

Business growing, number of staff maintains Personnel on average Personnel

Key efficiency areas Technical Services competitiveness programme Flight personnel agreements Savings from support functions More efficient crew utilisation through network reform Management of irregularity processes Feeder traffic reform Mergers in travel agency network (SMT+Area) Cutting distribution costs

Unit costs decreasing Q2/ Unit costs of flight operations* c/ATK -3,8%+1.8 % Unit costs of flight operations excl. fuel* c/ATK -5.3%-3.5 % Personnel expenses c/ATK -5.0%-4.1 % Fuel costs c/ATK +1.3%+24.1 % Traffic charges c/ATK -3.1%-3.9 % Ground handling and catering €/passenger +3.3%-1.0 % Sales and marketing €/passenger +7.3%-7.9 % Aircraft lease payments and depreciation c/ATK -14.4%+1.9 % Other costs c/ATK -2.9%-3.1 % * excluding fair value changes of derivatives ATK = Available Tonne Kilometre

Productivity improved

Higher jet fuel prices

Fuel costs a fifth of turnover 2003: 10.2% of turnover 2004: 12.5% of turnover 2005: 15.6% of turnover 2006: 19.4% of turnover 2007: ~20% of turnover (over 400 mill. euro) Finnair scheduled traffic has hedged 66% of its fuel purchases for the next six months, thereafter for the following 24 months with a decreasing level. Finnair leisure flights hedged 60% of summer traffic programme’s consumption.

Liquid funds used for investments Cash flow statement (EUR mill.)Q1-Q2/2007Q1-Q2/2006 Cash flow from operations Investments and sale of assets Investments Change of advances and others+50+6 Cash flow from financing-4672 Change in liquid funds Liquid funds at the beginning Liquid funds at the end Cash flow January-June

Strengthening the capital structure under evaluation Equity ratio and adjusted gearing Equity ratioAdjusted Gearing %

Expansion to Asia continues Demand grew during Jan-Jul07 by 30.5%, passenger numbers 24.6%, cargo 18.9% Passenger load factor 77,7% Indian traffic quadrupled in June, new destination Mumbai 59 flights a week to Asia Non-stop flights to 10 destinations, six out of which daily Growth in different markets in Asia diversifies risk Capacity will grow by over 30% this year Seoul in South Korea as new destination in 2008

Most rapid growth in Asian traffic China 2001: 3 flights/week 2007: 22 flights/week Japan 2001: 2 flights/week 2007: 15 flights/week India 2006: 3 flights/week 2007: 12 flights/week Aasian fleet increased from two to nine in six years

Long-haul network – summer New York Tokyo 4 Nagoya 4 Osaka 7 Beijing 7 Shanghai 7 Guangzhou 4 Hong Kong 7 Bangkok 7 Delhi 7 Mumbai 5 Helsinki

Share of Asian traffic growing AsiaAmerica DomesticEurope Scheduled traffic passenger and cargo revenues H1/2007

In A330/A340 fleet of maximum 15 planes in total In A350 fleet of maximum 15 planes in total New planes enable future growth

Most modern European fleet Average age of European fleet four years 29 Airbus A320 family aircraft A total of ten smaller (E170) and four larger (E190) Embraer in fleet, six larger aircraft coming New aircraft increase flexibility and improve load factors, decrease costs and are eco-efficient

oneworld energized oneworld a high quality and only profitable alliance. Three new members as of April 1st Japan Airlines, largest in Asia and the Pacific region Royal Jordanian, complementing our network in growing Middle-East market Hungary´s Malev will serve as partner in Central Europe

Future outlook High degree of hedging and dollar exchange rate will stabilise fuel costs in latter part of year Renewal of the wide-bodied fleet has begun New route openings will put pressure on traffic load factors and price levels Unit costs still decreasing Restructuring proceeding Six out of seven of the Finnair Group’s agreements with labour unions are due to expire in September The operational result for the full year is expected to exceed 70 million euros

Appendices

Profitability development MEUR Change in EBIT per quarter (Excluding capital gains, fair value changes of derivatives and reorganization expenses)

Average yield and costs EUR c/RTK & EUR c/ATK Yield (EUR/RTK)Unit costs (EUR/ATK)

Segment results Q2 MEUR Scheduled Passenger Traffic Leisure Traffic1.1 Aviation Services Travel Services Unallocated items Total Excluding capital gains, fair value changes of Derivatives and reorganization expenses

Investments and cash flow from operations Operational net cash flowInvestments MEUR

Aircraft operating lease liabilities MEUR Flexibility, costs, risk management On 30 June all leases were operating leases. If capitalised using the common method of multiplying annual aircraft lease payments by seven, the adjusted gearing on 30 June 2007 would have been 114,6%

ROE and ROCE Rolling 12 months % ROEROCE

Emissions trading for air traffic EU air traffic accounts for only 0.5% of all CO2 emissions in the world Finnair in favour of emissions trading principles EU proposal sets airlines at somewhat unequal footings depending on route network structure Should be global Competitively neutral Investments already made in new technology should be taken into account Open emissions trading

Customers can make environmental choices when flying Choose an airline with a modern fleet Fly in the right direction all the way, without unnecessary stopovers. Shorter flight routes result in less emissions Avoid large, congested airports By making these choices, fuel consumption and emissions can drop by at best 30%!

Finnair Financial Targets ”Sustainable value creation” Operating profit (EBIT) EBIT margin at least 6% => over 120 mill. € in the coming few years EBITDAR EBITDAR margin at least 17% => over 350 mill. € in the coming few years Economic profit Pay out ratio Minimum one third of the EPS Adjusted Gearing Gearing adjusted for aircraft lease liabilities not to exceed 140 % To create positive value over pretax WACC of 8,5%

Finnair’s Financial Targets Description of targets Operating profit (EBIT) EBITDAR Economic profit Pay out ratio Adjusted Gearing Turnover + other operating revenues – operating costs Result before depreciation, aircraft lease payments and 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

Finnair Group Investor Relations tel: fax: