Finnair Oyj

Earnings Release • Jun 5, 2009

Disclosure 270812

Finnair Oyj - Company Announcement

FINNAIR SEEKS FURTHER COST CUTS OF 100 MILLION EUROS

FINNAIR PLC STOCK EXCHANGE RELEASE 5.6.2009 12:45 FINNAIR SEEKS FURTHER COST CUTS OF 100 MILLION EUROS Finnair is seeking cost cuts of over 100 million euros in addition to previous cost-cut measures of 100 million euros. Of the additional target, 70 million euros are to be aimed at staff costs being emphasized on next year. Finnair's turnover has fallen since the beginning of the year by almost 15 per cent because of a reduction in scheduled traffic and a fall in the average ticket price. The aim is for a 15 per cent improvement in productivity. “Previously completed savings measures are not sufficient,” says Deputy CEO, Finnair, Lasse Heinonen. “We have to adjust our costs in line with the fall in turnover. Unit costs must adapt in line with the decrease in unit revenues. Our biggest cost item is staff costs, which represent about a quarter of all our expenditures and that is why savings targets must concentrate in that direction. Together with our labour unions, we have aimed at models with which to adapt workforce expenditure in these difficult times.” Discussions with labour unions about ways of increasing productivity will be continued. No decisions about new YT talks (official terms of employment negotiations) have been made. At present Finnair is continuing to implement the cost efficiency program launched last year, about half of which was directed towards staff costs. Based on this plan, over 6,000 employees will be placed on varying periods of unpaid leave this year. The average layoff period is two weeks. In addition, Finnair has reduced nearly 600 employees. Finnair Plc Communications 5.6.2009