PROFIT WARNING: CABIN STAFF STRIKE EXPECTED TO TURN FINNAIR’S FULL-YEAR OPERATIONAL RESULT INTO A LOSS

The strike directed at Finnair by the Finnish Cabin Crew Union (SLSY),
beginning Tuesday 30 November, is expected to give rise to significant earnings losses for Finnair due to a loss of bookings in the period during and surrounding the strike. In addition, significant additional costs will arise from exceptional arrangements. As a result of these factors, Finnair’s full-year operational result is expected to decline into a loss. During the strike, the direct net loss to Finnair will be 2-2.5 million euros per day.

The Finnair Group’s nine-month operational result this year was 2 million euros. Earlier profit guidance given in August projected a profit for the final quarter, so the full-year operational result at that time was expected to be a profit.

In a rapidly tightening competitive situation, Finnair’s objective is to
achieve significant savings in unit costs also in terms of cabin staff. The collective agreement negotiations and conciliation that began in February and broke down today have not proceeded, however, in the desired direction.

Finnair Plc
Communications

Taneli Hassinen
Vice President, Financial Communications and Investor Relations
tel. +358 9 818 4976