Efficiency measures improved Finnair’s result

Finnair’s turnover in the third quarter rose by 5.8 per cent to 545.2 million euros. The operational result rose from the previous year’s 22.5 million euros to 39.2 million euros. In addition, capital gains of 17.3 million euros were registered in the third quarter. The profit before taxes was 55.9 million euros. “Thanks to Finnair’s efficiency programme launched last year, we are in a better result-making condition which is reflected in the figures for the third quarter and the start year. The implementation of the growth strategy and fine-tuning of our engine have required flexibility from both the core of the Group as well as all sides of it. The weeding of our cost structure is part of the continuous rationalisation of our operations and focus on the essential,” says President and CEO Jukka Hienonen. Operating costs in the third quarter rose by 1.2 per cent. Unit costs for flight operations dropped by just under eight per cent. One important contributing factor was the drop in maintenance expenses due to new aircraft in the fleet. Fuel expenses increased by about 11 per cent, but decreased by two percent in relation to available tonne kilometres. In January-September, Finnair carried 6.7 million passengers. Both capacity and demand in passenger traffic rose by approximately 12 per cent. The passenger load factor was at last year’s level, 76 per cent. Asian traffic grew by over 30 per cent. “World air transport has kept pace well with the development of the world economy. Despite the rise in fuel price, traffic numbers have grown on all continents. The growth of demand has been particularly strong in Asia and South America. Finnair’s growth comes from Europe-Asia traffic. We come in fourth in this segment, right after the big players,” Hienonen states. In Group passenger traffic, total unit revenues per passenger kilometre fell 1.5 per cent. Yield per passenger rose by 11.1 per cent. The total operational result for the first part of the year was 72.2 million euros. Efficiency measures will continue to be implemented at Finnair in accordance with the 80 million euro programme launched last year. The operational result for 2007 is expected to exceed 70 million euros. “It is a joy to publish such a result on Finnair’s 84th birthday, it is much needed for the coming investments. We have a long, distinguished history, but it does not guarantee our success tomorrow. This success needs to be built every day. We are in a position to expect the best operating result of the new millennium so far this year. In October, Finnair published its long-term vision, which outlines the company’s future for the next ten years. The vision defines scheduled traffic between Europe and Asia as well as North America and Asia as central areas for growth. “Our recently published vision tells of our commitment to growth and profitability. Finnair has in its hands the keys to its success with the help of which we can realise our goal of becoming the airline of choice for quality and environmentally conscious air travellers in intercontinental traffic in the Northern Hemisphere,” President and CEO Jukka Hienonen concludes. Finnair Plc Communications 1.11.2007