Finnair Oyj

Management Reports • Jun 12, 2008

Disclosure 259611

Finnair Oyj - Company Announcement

FINNAIR TO BEGIN NEGOTIATIONS WITH PERSONNEL BROUGHT ON BY FUEL CRISIS AND DROP IN DEMAND

FINNAIR OYJ STOCK EXCHANGE RELEASE 12 JUNE 2008 AT 16:00 The price of fuel has risen throughout the first half of the year at much faster rate than anticipated. Finnair's fuel bill this year will most likely grow by 160-180 million euros compared with the previous year. Finnair today announced that it will begin negotiations with is personnel in accordance with the Act on Co-operation within Undertakings. The company is preparing for cuts in production, which will affect all traffic types. The exact nature of the cuts will become apparent during the negotiations, but they are expected to affect approximately 500 staff members. The means used will include adjusting the number of temporary staff, part-timing, lay-offs and as a last resort, terminations. “To ensure the company's growth strategy, we need additional cuts of at least 50 million euros per year and we have begun discussions with our personnel to map out savings targets,” says Finnair SVP Human Resources Anssi Komulainen. Demand has decreased and this decrease has accelerated at such a rate in the past weeks that together with the price development of fuel, Finnair's result-making capability has significantly weakened. Demand has dropped especially on Chinese routes and it is also reflected on European and domestic traffic. Finnair Plc Communications 12.6.2008 Additional information: Anssi Komulainen, SVP Human Resources, tel. +358 9 818 4300 Finnair Media Desk tel. +358 9 818 4020