FINNAIR GROUP INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2008


FINNAIR OYJ	STOCK EXCHANGE RELEASE	31 OCTOBER 2008 AT 09:00

FINNAIR GROUP INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2008

Weak third-quarter result 

Summary of 2008 third-quarter key figures

- Turnover rose by 2.7% to 559.7 million euros (545.2 million)
- Passenger traffic in passenger kilometres grew by 1.3% from previous year, 
    passenger load factor rose 2.5 percentage points to 79.8 (77.3) %.
- Unit revenues from flight operations fell by 2.2%, unit costs rose by 4.8%
- The operating result was -24.8 million euros (59.9 million)
- The operational result, i.e. EBIT excluding capital gains, non-recurring
items and 
    changes in the fair value of derivatives, was 2.8 million euros (39.2
million) 
- The result before taxes was -22.3 million euros (55.9 million) 
- Gearing at the end of September was -8.7% (17.7%) and gearing adjusted for 
    leasing liabilities was 51.1% (103.3%)
- Balance sheet cash and cash equivalents at the end of the period totalled
374.0 
    million euros (257.1 million)
- Equity ratio 46.2% (37.5%) 
- Equity per share 7.54 euros (7.68)
- Earnings per share -0.15 euros (0.41)
- Return on capital employed 5.5% (9.3%) (rolling 12 months)

In the interim report, comparison figures for 2007 are presented in brackets
after the figures for the current year. 

President and CEO Jukka Hienonen on the interim result:

What is usually our best quarter of the year fell far short of expectations.
The main factors were a historically high fuel price and an average ticket
price weakened by the economic downturn. A fall in oil prices towards the end
of the quarter provided only limited relief. 

Demand is actually quite good, but instead of business passengers, aircraft are
increasingly filled with leisure passengers who pay less for their tickets. 

Conditions for profitable business are increasingly marginal. In this situation
we have sought cost savings by rationalising operations and by examining
closely our second largest expense item, personnel costs. 

Our aim was to achieve flexibility through a temporary salary reduction, but
personnel organisations clearly rejected this proposal. Thus we have had to
continue statutory employer-employee negotiations to achieve the savings
through job cuts and lay-offs. And if this is not enough, we will make
additional cuts in our capacity. 

In our industry we have clearly moved to a new stage. The intensity of the
changes is undermining the viability of airlines in an unprecedented way.
Economic cycles come and go, but the key point is the shape in which companies
emerge from the downturn. Those that have an effective strategy and adjust most
quickly to altered circumstances will survive largely unscathed. 

We still believe in our Asian strategy. This is our lifeblood in the coming
years. Even in the most difficult of times, we cannot concede our place as one
of Europe's most significant Asian operators. Our task is now to adjust in
order to put our profitability on a sustainable basis. 

In these conditions, I would also hope that EU decision-makers will attend to
the long-term development of a significant form of transport for the world
economy. European air transport is being taken into emissions trading bound
hand and foot against its will. Although emissions trading as a system will
succeed in controlling the environmental effects of air transport, the model as
it now stands, relating only to the EU, will undermine the competitiveness of
European airlines. Air transport is a marginal producer of greenhouse gases
(less than 2 per cent of the emissions load) but a substantial part of the
logistics of many industrial sectors worldwide. 

EU decision-makers would also have the opportunity to implement an integrated
air traffic control system in Europe, which has been under discussion for 40
years. This would immediately bring a 12 per cent fuel saving and emissions
reduction by shortening routes and curtailing waiting patterns. 

The financial performance of the aviation industry this year and next will be
facing big challenges, and Finnair is not immune to what is happening in the
whole sector. We will, however, implement our planned investments in new
aircraft and find in our organisation the efficiencies we need to ensure that
we are in good shape when economic conditions recover. 

Market and General Review

Finnair's result in the third quarter deteriorated sharply from the previous
year, chiefly due to higher fuel prices and weaker average revenues. At the
same time, cost flexibilities of a similar magnitude were not achieved. 

Air traffic profitability has weakened further in the third quarter. The oil
price in the current year peaked in July and for most of the quarter the price
level was above 100 dollars per barrel. 

The competitive situation in the sector has not allowed the Group to make the
price increases that more expensive fuel would require to maintain healthy
profitability. The International Air Transport Association IATA estimates that
airlines will report total losses of around five billion dollars this year. 

Owing to the state of the world economy, growth in demand for air transport has
abated and has been redirected to cheaper price classes. European airlines'
demand grew in January-September by more than one per cent compared with the
previous year. Capacity growth remained above three per cent, however, which
has weakened the passenger load factor. In September, a downturn in demand was
perceptible. 

Finnair's traffic demand has continued to grow. Moreover, load factors have
been higher in July-September than in the previous year, but price levels have
fallen. Finnair Scheduled Passenger Traffic's average revenue per passenger
kilometre fell in the third quarter by around four per cent. 

A weakening of the average ticket prices and a strengthening of the US dollar
have diluted the benefit from the recent fall in fuel prices. 

Finnair Scheduled Passenger Traffic's capacity in European and Asian traffic
has been increased more modestly than originally planned. Even so, Finnair's
market share in Europe-Asia traffic grew more than its competitors. 

In the spring, Finnair initiated a 50 million euro cost-cutting programme. As
part of the programme, statutory employer-employee negotiations were initiated
to find areas for productivity improvements and savings. The 25 million euro
saving planned as the personnel contribution remains partly unidentified. 

The contribution made by other processes, on the other hand, has already been
implemented. Subcontracting and service provider agreements, for example, have
been renegotiated in order to cut costs. 

Operational quality as well as traffic punctuality and regularity have clearly
improved during the third quarter. 

Financial Result, 1 July - 30 September 2008

Turnover rose in the third quarter by 2.7 per cent to 559.7 million euros
(545.2 million). The Group's operational result, i.e. EBIT excluding capital
gains, non-recurring items and changes in the fair value of derivatives, fell
by more than 36 million euros to 2.8 million euros (39.2 million). Adjusted
operating profit margin was 0.5 per cent (7.2). The result before taxes was
-22.3 million euros (55.9 million). Earnings per share for the third quarter
were -0.15 euros (0.41). 

Due to the lower price of oil, a 26.1 million euro (-3.4 million) item
weakening the third quarter result has been recognised for changes in the fair
value of derivatives, which significantly increases the item “Other expenses”.
Changes in the fair value of derivatives have no effect on cash flow. 

In July-September, Finnair's passenger traffic capacity grew by 4.3 per cent
and revenue passenger kilometres 7.6 per cent; Asian traffic revenue passenger
kilometres grew 13.1 per cent, and leisure traffic by 10.9 per cent. Passenger
load factor for all traffic rose by 2.5 percentage points from the previous
year to 79.8 per cent. The amount of cargo carried grew by 0.7 per cent. 

In scheduled passenger and leisure traffic, total unit revenues per passenger
kilometre fell by 3.9 per cent. Yield per passenger rose by 2.0 per cent. Cargo
traffic unit revenues per tonne kilometre rose by 9.9 per cent, due to fuel
surcharges collected as a result of increased costs. Weighted unit revenues for
passenger and cargo traffic fell by 2.2 per cent. 

Euro-denominated operating costs rose during the period by 15.0 per cent. Unit
costs of flight operations rose by 4.8 per cent. 

The rise in fuel costs took place mainly in the third quarter. Fuel costs rose
in July-September by 35.8 per cent, and per tonne kilometre flown by 27.5 per
cent. Unit costs for flight operations, excluding fuel costs, fell by 3.4 per
cent. 

A 14.7 per cent rise in fleet materials and maintenance expenses as well as a
16.9 per cent fall in other rental payments resulted from overhauls scheduled
in the third quarter. A rise in package tour production expenses, both in the
third quarter and in January-September as a whole, resulted from a rise in
volume and price levels. A 25.7 per cent growth in sales and marketing expenses
reflects Finnair's increased investment in boosting recognition in markets
outside Finland. 

Financial Result, 1 January - 30 September 2008

The 2007 January-September comparison figures include financial and performance
figures for FlyNordic for the first six months of the period. 

Turnover rose in January-September by 4.4 per cent to 1,682.3 million euros
(1,611.8 million). The comparable turnover growth, excluding FlyNordic, which
was sold in July 2007, was 7.1 per cent. The Group's operational result, i.e.
EBIT excluding capital gains, changes in the fair value of derivatives and
non-recurring arrangement expenses, fell to 19.1 million euros (72.2 million).
Adjusted operating profit margin was 1.1 per cent (4.5). The result before
taxes was 4.4 million euros (103.7 million). Net cash flow from operations fell
in January-September from 168.7 million to 70.2 million euros. Earnings per
share for January-September were 0.02 euros (0.77). 

Changes in the fair value of derivatives had a 13.6 million euro (-14.3
million) weakening effect on the result reported for the first nine months of
the year. Capital gains in January-September totalled 5.0 million euros (28.7
million). 

In January-September, passenger traffic capacity rose 8.6 per cent and total
revenue passenger kilometres grew 6.9 per cent; demand in Asian traffic alone
rose 17.4 per cent. The passenger load factor for traffic overall declined from
the previous year by 1.5 percentage points to 74.8 per cent. The amount of
cargo carried grew from the previous year by 10.0 per cent. 

In Group passenger traffic, total unit revenues per passenger kilometre fell
3.2 per cent. Yield per passenger rose by 11.1 per cent. Unit revenues per
tonne kilometre for cargo traffic rose by 6.8 per cent. Weighted unit revenues
for passenger and cargo traffic fell by 3.2 per cent. 

Euro-denominated operating costs rose during the period by 9.6 per cent. Unit
costs per available tonne kilometre for flight operations fell by 1.7 per cent. 

Personnel expenses overall have remained almost at the previous year's level.
Salary costs have risen, however, by around five per cent per employee.
Correspondingly, personnel expenses have not been burdened this year by share
based incentive and personnel funds provisions, which totalled about 11 million
euros in the first nine months of last year. 

Investment, Financing and Risk Management 

In January-September, investments totalled 219.7 million euros (264.3 million).
Investments included two Embraer 190 aircraft and two long-haul traffic Airbus
A340 aircraft. Including advance payments, the cash-flow impact of fleet and
auxiliary investments was around 152.1 million euros in the third quarter. 

The cash-flow impact of the new aircraft acquisition programme and auxiliary
investments in 2008 will be around 250 million euros and in 2009 more than 400
million euros. The final investment sum will depend on how many of the aircraft
are acquired on operational leasing agreements. 

Balance sheet cash and cash equivalents at the end of September totalled 374.0
million euros (257.1 million). Agreed, but to date unused, credit facilities
total 295 million euros, which includes a recently agreed 60 million dollar
credit facility with the Nordic Investment Bank. In addition, Finnair also has
a 250 million euro credit facility with the European Investment Bank, which
requires a bank guarantee. 

Due to the share issue completed in December last year, gearing fell from 17.7
per cent at the end of September 2007 to a debt-free position, namely -8.7 per
cent, at the end of the period under review. Gearing adjusted for leasing
liabilities was 51.1 per cent (103.3). The equity ratio correspondingly rose
from the previous year by 8.7 percentage points to 46.2 per cent. 

According to the financial risk management policy approved by Finnair's Board
of Directors, the company has hedged 76 per cent of scheduled traffic's jet
fuel purchases during the next six months and thereafter for the following 24
months with a decreasing level of hedging. Finnair Leisure Flights price hedges
fuel consumption according to its agreed traffic programme within the framework
of the hedging policy. Derivatives linked to jet fuel and gasoil prices are
mainly used as the fuel price hedging instrument. 

Under IFRS rules, a change during the financial period in the fair value of
derivatives that mature in future is recognised in the Finnair income statement
item “Other expenses”. The said change in the fair value of derivatives is not
a realised hedging gain nor does it have an effect on cash flow; it is a
valuation gain in accordance with IFRS reporting practice. In July-September,
the change in the fair value of derivatives was -26.1 million euros, whereas in
January-September the figure was -13.6 million euros. 

The operational result for January-September includes realised gains on
derivatives of 66 million euros, which appear mainly in the fuel item of the
income statement and partly in the item “Other expenses”. The figure includes
both foreign exchange and fuel derivatives. 

Shareholders' equity includes, as a fluctuating item, the hedging reserve,
whose value correlates with the changes in the oil price and foreign exchange
rates. The hedging reserve's value at the closing date was 35 million euros,
which includes foreign exchange and fuel derivatives less deferred taxes. 

A weakening of the US dollar against the euro has had a positive impact of
around nine million euros on Finnair's operational result for the third quarter
compared to the previous year, taking foreign currency hedging into account. At
the end of September, the degree of hedging for a dollar basket over the next
12 months was 67 per cent. 

Shares and Share Capital

The company's market value on 30 September 2008 was 517.7 million euros
(1,038.4 million) and the closing share price was 4.04 euros. In
January-September, the highest price for the Finnair Plc share on the NASDAQ
OMX Nordic Exchange Helsinki was 8.49 euros (14.35), while the lowest price was
3.95 euros (10.86) and the average price 6.32 euros (12.86). Some 57.7 million
(13.8 million) of the company's shares, with a value of 365.0 million euros
(177.5 million), were traded. At the end of the period under review, the
Finnish State owned 55.8 per cent (55.8) of the company's shares, while 17.7
per cent (32.9) were held by foreign investors or in the name of a nominee. 

At the beginning of the financial year, Finnair held 151,903 of its own shares,
which it had purchased in previous years. From 11 February to 17 March 2008,
Finnair acquired 598,097 of its own shares, based on an authorisation of the
Annual General Meeting on 22 March 2007. The Annual General Meeting held on 27
March 2008 authorised the Board of Directors for a period of one year to
purchase the company's own shares up to a maximum of 5,000,000 shares and
dispose of the company's own shares up to a maximum of 5,500,000 shares. The
authorisation applies to shares amounting to less than five per cent of the
company's total shares outstanding. Under the authorisation, on 9 May 2008
Finnair transferred a total of 327,693 of its own shares to individuals within
the sphere of the 2007-2009 share bonus scheme as share bonuses payable for
2007. On 30 September 2008, the company held a total of 422,307 of its own
shares, i.e. 0.3 per cent of all shares. 

Personnel

In the period January-September, the average number of personnel employed by
the Finnair Group amounted to 9,614, which was 0.8 per cent more than a year
before. Scheduled Traffic had 4,254 employees and Leisure Traffic 456
employees. The total number of personnel in technical, catering and ground
handling services was 3,658 and in Travel Services 1,095. A total of 151 people
were employed in other functions. 

At the end of September, Finnair Group had around 800 employees outside of
Finland, of whom 300 worked in sales and customer service tasks for Finnair's
passenger and cargo traffic. There are a total of 500 employees working for
travel agencies and tour operators based in the Baltic states and Russia, and
as guides at Aurinkomatkat-Suntours' holiday destinations. Foreign personnel
are included in the total number of Group employees. 

In June, the Finnair Group initiated statutory employer-employee negotiations
under the Act on Co-Determination within Undertakings aimed at finding savings
of around five per cent in salary expenses. The target corresponds to a
reduction of around 500 jobs. 

At the beginning of September, the personnel organisations were presented with
three options aimed at achieving a cost-cutting target of 25 million euros. The
alternatives were based on a fixed-term salary reduction or the giving up of
holiday pay. Personnel organisations rejected the employer's proposals, which
could have minimised job reductions. The negotiations are continuing. Savings
are now being presented for implementation through unit-specific redundancies
and lay-offs. 

The company is preparing for production cuts this year and next relating to all
types of traffic. Cutbacks will be implemented in line with the development of
demand. 

The pilots' collective employment agreement expired at the end of April. A
six-month long collective employment agreement was negotiated with the Finnish
Air Line Pilots' Association at the beginning of June; this agreement will
expire at the end of November 2008. Negotiations to reach a new agreement are
under way. 

Fleet changes

Finnair Group's fleet is managed by Finnair Aircraft Finance Oy, which belongs
to the Scheduled Passenger Traffic business area. At the end of September, the
Finnair Group had a total of 66 aircraft in flight operations. The average age
of Finnair Scheduled Passenger Traffic's entire fleet is 6.3 years and in
European traffic less than five years. 

Finnair's wide-bodied fleet grew in May by one Airbus A340 aircraft. A second
A340 aircraft joined the Finnair fleet in July. One Boeing MD-11 aircraft will
be withdrawn from Finnair's fleet in October. 

The modernisation of the wide-bodied fleet will continue in 2009 with the
acquisition of five new Airbus A330-300 long-haul aircraft and in 2010 with the
acquisition of three more. The Boeing MD-11 aircraft will be withdrawn from
Finnair's fleet in 2009-2010, three aircraft in each year. In 2010 the aircraft
will be completely withdrawn by the end of March. 

In the first quarter of 2009, Finnair's fleet will be supplemented by two new
100-seat Embraer 190 aircraft. On the other hand, three of smaller 170-model
planes will be withdrawn from operations in 2009, two in January and one later
during the first half of the year due to the weakening demand. 

Environment

In July, the Parliament of the European Union made the decision to incorporate
air transport into the emissions trading scheme as of 2012. This decision will
increase the costs of European airlines in particular. 

Free emissions rights for air transport will be distributed on the basis of
actual carbon dioxide emissions recorded in 2004-2006. This includes the 20 per
cent reduction target for carbon dioxide emissions already specified in the
Kyoto agreement. 

Emissions trading and more expensive fuel will raise airlines' costs. A modern
fleet is efficient in terms of fuel consumption and has lower carbon dioxide
and noise emissions. Finnair has been systematically modernising its fleet
since 1999. The European and domestic traffic's Airbus A320 and Embraer
aircraft represent the latest technology. Leisure Traffic's Boeing 757 aircraft
are energy-efficient, and the aircraft's winglets, fitted by Finnair, reduce
jet fuel consumption by five per cent. 

The long-haul fleet modernisation initiated last year will continue with the
replacement of Finnair's Boeing MD-11 aircraft by new, low-emission Airbus A330
aircraft. The programme will be concluded by spring 2010. Fleet growth during
the next decade will be realised with new-generation technology aircraft. 

Business area development in the third quarter

The primary segment reporting of the Finnair Group's financial statements is
based on business areas. The reporting business areas are Scheduled Traffic,
Leisure Traffic, Aviation Services and Travel Services. 

Scheduled Traffic

This business area is responsible for sales of scheduled passenger traffic and
cargo, service concepts, flight operations and activity connected with the
procurement and financing of aircraft. Scheduled Traffic leases to Leisure
Traffic the crews and aircraft it requires. The business area consists of the
following units and companies: Finnair Scheduled Passenger Traffic, Finnair
Cargo Oy, Finnair Cargo Terminal Operations Oy and Finnair Aircraft Finance Oy.
The operations of the Estonian subsidiary Aero Airlines were discontinued on 6
January 2008. 

Turnover rose in the third quarter by 3.4 per cent to 447.4 million euros
(432.6 million). The operational result was -4.0 million euros (28.8 million). 

Scheduled Passenger Traffic passenger volume in July-September was a good 1.8
million, i.e. around the same as the previous year. Scheduled Passenger
Traffic's revenue passenger kilometre volume grew 7.0 per cent, while capacity
increased by 5.0 per cent. Passenger load factor improved by 1.5 percentage
units to 78.2 per cent. 

During the third quarter, Scheduled Passenger Traffic's unit revenues per
passenger kilometre fell by 4.0 per cent from the previous year. The decline
was due to a reduction in business travel and an increase in lower revenue
travel. 

In January-September unit revenues fell 2.9 per cent, mainly due to a weaker
price level in long-haul traffic and due to the increased share of long-haul
traffic. 

Cargo revenues account for a good ten per cent of all Scheduled Traffic's
revenues. In July-September, cargo unit revenues rose by 9.9 per cent, taking
all types of traffic into account. The total amount of cargo carried in
scheduled traffic grew by 2.8 per cent. The amount of cargo carried in Asian
traffic rose by 10.7 per cent from the previous year. In traffic overall, also
including leased cargo aircraft capacity and leisure traffic, the amount of
cargo grew by 0.7 per cent. 

Finnair Cargo Oy's profitability improved in July-September through improved
average revenue. The euro revenue of cargo operations was boosted by a
strengthening of Asian currencies and a rise in the level of ticket prices,
which included a fuel surcharge. The fuel surcharge compensates for the impact
of higher oil prices. 

In international scheduled traffic, Finnair has increased its market share
compared with its main competitors. In domestic traffic, Finnair's market share
has fallen, primarily due to the discontinuation of short routes. 

In July-September, Scheduled Traffic's flight arrival punctuality improved
compared with the third quarter of the previous year by 3.9 percentage points
to 85.4 per cent (81.5). 

Leisure Traffic

This business area consists of Finnair Leisure Flights and the
Aurinkomatkat-Suntours package tour company as well as its Estonian tour
operator Horizon Travel, the St. Petersburg Calypso travel agency and the
takeOFF brand, which focuses on youth travel. Aurinkomatkat-Suntours is
Finland's leading tour operator, with a market share of 37 per cent. Finnair
Leisure Flights has a strong market leadership in leisure travel flights. The
unit's customers include all of the significant tour operators in Finland. 

Leisure Traffic's third-quarter turnover rose by 4.0 per cent to 93.7 million
euros. The Leisure Traffic business area's operational profit was 6.0 million
euros (7.8 million). 

In the third quarter, Finnair Leisure Flights carried 344,000 passengers, 8.3
per cent more than a year earlier. Performance calculated in passenger
kilometres rose 10.9 per cent. Leisure Flights' passenger load factor rose 8.1
percentage points to 88.2 per cent. Poor summer weather in Finland improved
demand for package tours and Leisure Flights' seat-only sales. Summer season
direct flights to Toronto and Boston sold significantly better than the
previous year. 

During the first nine months of the year, Leisure Flights carried 980,000
passengers, 10.3 per cent more from the previous year. Growth in passenger
kilometres was 13.3 per cent. 

Finnair has agreed fixed prices with tour operators and provided for the fuel
risk with price hedging in accordance with the Group's financial policy. 

In previous summers, Finnair Leisure Flights has leased one or two aircraft to
European airlines. The Boeing 757 fleet was used in the summer season in
scheduled passenger traffic, for example on the Rome and Barcelona routes. 

Finnair Leisure Flights has leased an Airbus A330-200 long-haul aircraft from
the leisure flight company Air Europe for the coming winter 2008/2009 program
to Thailand. The aircraft will be used to replace the originally planned XL
Airways flights as XL Airways went bankrupt during autumn. 

Aviation Services

This business area comprises aircraft maintenance services, ground handling and
the Group's catering operations. In addition, most of the Group's property
holdings, the procurement of office services, and the management and
maintenance of properties related to the Group's operational activities also
belong to the Aviation Services business area. 

Aviation Services' turnover declined in the third quarter 1.2 per cent to 108.6
million euros (109.9 million). The operational result weakened by 0.8 million
euros and was 1.9 million euros (2.7 million). 

The profitability of Finnair Technical Services is still unsatisfactory.
Maintenance of a modernising fleet requires fewer working hours by maintenance
staff. As a result, customer relationships outside the Finnair Group are
growing in importance. Of these, the most significant customer is currently
Aeroflot Cargo. 

The US company Gemini Air Cargo Inc., which was a Technical Services customer,
has filed for bankruptcy, as a consequence of which a 1.5 million euro
weakening item arising from additional depreciation of fixed assets was
recognised in Finnair's third-quarter result. A credit loss of 0.6 million
euros was recognised during Q3 in trade receivables in addition to earlier
booked provision. 

Operational quality and productivity have improved significantly in Northport
Oy, which has been apparent, for example, in a clear decline in the amount of
baggage being left behind. Work to improve the company's profitability is
continuing. 

In Finnair Catering, process improvements facilitated by a new production
building have boosted operations and improved quality. Profitability has also
developed positively. 

Travel Services

This business area consists of the Group's travel agencies: Matkatoimisto Area,
Finland Travel Bureau and its subsidiary Estravel, which operates in the Baltic
states, as well as Amadeus Finland Oy, which integrates travel agency systems
and sells travel reservation systems. Estravel celebrated the 20th anniversary
of its founding in August. 

The business area's turnover in July-September declined by 3.7 per cent to 18.3
million euros (19.0 million), but the operational result remained the same at
1.3 million euros (1.3 million). In the early part of the year, Finland Travel
Bureau has managed to acquire significant new customer relationships, which
will be evident in sales later in the year. 

A general fall-off in demand for air travel as well as cuts to company travel
budgets has weakened the profitability of the travel agency sector. 
Air Traffic Services and Products 

In recent years, the Finnair route network has been developed to serve traffic
between Europe and Asia passing through Helsinki. At the same time, Finns have
been offered efficient and diverse connections to destinations all over the
world. 

Finnair has a total of 60 direct flights per week to 10 Asian destinations.
Finnair began direct flights to Seoul, the capital of South Korea. The Seoul
route is flown five times per week. Finnair's other Asian destinations are
Bangkok, Mumbai, Delhi, Hong Kong, Nagoya, Osaka, Beijing, Shanghai and Tokyo.
The Guangzhou route was discontinued when the winter season began at the end of
October. The Guangzhou area is served by daily connections with Hong Kong. 

Flights covering 45 European and 13 domestic destinations connect into
Finnair's Asia network. At the same time, a wide selection of direct
connections is offered from Finland to the rest of Europe. In the coming winter
season, connections between Asia and Europe will be increased by changing the
Asian flight timetables. Also in the coming winter season, capacity has been
reduced compared with plans at the beginning of the year by around five per
cent, measured in passenger kilometres. 

The departure time of the second daily flight between Helsinki and Bangkok in
the winter season will be moved from the morning to late in the evening, in
which case the number of onward connections from Europe will multiply.
Following the change, good connections will be established from around 40
cities to the Bangkok route. Connections via Bangkok to Australia will also
improve as a result. 

The departure times of Finnair's Delhi and Mumbai routes will be moved closer
to the main wave of European arrival times in Helsinki. In this way, the number
of onward connections from Europe to Delhi will double. 

Compared to last winter season, the number of flights per week on the New York
route will increase from five to six and the number of flights on the Hong Kong
route from four per week to daily. Flights to Guangzhou, on the other hand,
were suspended from the beginning of the winter traffic season. The new Seoul
route will be flown four times per week during the winter season. 

At the beginning of September, Finnair began scheduled flights from Helsinki to
Yekaterinburg, located in the Urals. The route, flown three times per week with
Airbus A319 aircraft, is Finnair's third scheduled traffic destination in
Russia after Moscow and St. Petersburg. Finnair flies the route in cooperation
with Ural Airlines. The three-hour flight time as well as onward connections
with brief changeovers at both ends make the route very competitive in Russia,
the Nordic countries and elsewhere in Europe. 

The Leisure Flights fleet consists of seven Boeing 757 aircraft, and Airbus
capacity leased from Scheduled Passenger Traffic. Due to increased demand,
Finnair Leisure Flights will lease for the winter season one wide-bodied
aircraft, which will fly to Phuket in Thailand. In the summer season, Leisure
Flights flies, in addition to charter flight traffic, certain holiday routes,
including Boston and Toronto. 

At the beginning of June, the electronic ticket (e-ticket) was adopted
worldwide in flight traffic for all journeys. Finnair has been among the
leading companies in introducing the e-ticket. Using e-tickets is more
economical than using paper tickets. 

Short-term risks and uncertainty factors

Despite the recent fall in oil prices, the price of fuel remains the most
significant uncertainty factor in terms of costs. Turnover is affected mainly
by the development of demand and the average revenue of flight tickets and
cargo. 

The sensitivity of the result to changes in the demand and price is
significant. A change of one percentage point in the load factor affects the
annual result by more than 15 million euros. Correspondingly a change of one
percentage point in the average price also affects the annual result by more
than 15 million euros. 

A change of ten per cent in the price of oil on an annual level affects the
company's fuel bill by over 25 million euros, based on Finnair´s hedging
levels. Correspondingly, a ten per cent strengthening of the US dollar against
the euro weakens the result by a good 15 million euros annually with Finnair's
degree of hedging. 

In scheduled traffic, bookings extend for only a few weeks. The impact of the
world economy on Finnair's demand and price level cannot be reliably estimated
in the long term, but a weakening of economic conditions is a significant risk
to the development of air travel and air cargo. 

Negotiations to renew the collective employment agreement of pilots, which ends
on 30 November 2008, are currently under way. 

Outlook

In the final quarter, scheduled passenger traffic capacity, measured in
passenger kilometres, will grow around six per cent. In Asian traffic, growth
of revenue passenger kilometres will not meet the previous forecast of 20 per
cent. In 2009 Finnair's scheduled passenger traffic capacity is expected to
reduce by 1-2 per cent, as a consequence of production cutbacks. These will
have impact on personnel. 

The company's cost structure and operations will be enhanced through a 50
million result improvement programme, which is not expected, however, to have
any significant impact on the 2008 result. In connection with the programme,
statutory employer-employee negotiations are currently under way, aimed at
cutting 500 jobs. Part of the savings will also be found through lay-offs. 

Leisure Flights' sales to tour operators in terms of winter long-haul trips
have grown from last year. 

During the coming few months the situation in the sector is expected to remain
extremely difficult, however, due to uncertain development in demand. Finnair's
demand is expected to remain at last year's level, but average unit revenue in
scheduled passenger and cargo traffic is expected to fall from the level of the
previous year. 
The decrease of fuel spot prices will help Finnair in medium / long term but
high hedging ratios reduces the impact in the short term. The operational
result for the final quarter is expected to be negative. 

FINNAIR PLC
Board of Directors

Press conference

Finnair will hold briefings for media representatives (11 a.m.) and analysts
(12.30 p.m.) on 31 October 2008, at the address Toimistotorni, Lentäjäntie 3,
Helsinki-Vantaa Airport. Further information and registrations: Hanna-Kaisa
Nurmi, tel. +358 9 818 4951 or hanna-kaisa.nurmi@finnair.com. 

Finnair Plc
Communications
Christer Haglund
SVP Corporate Communications


For further information, please contact:

SVP and CFO Lasse Heinonen
tel. +358 9 818 4950
lasse.heinonen@finnair.fi

SVP Corporate Communications, Christer Haglund
tel. +358 9 818 4007
christer.haglund@finnair.fi

VP Financial Communications and Investor Relations Taneli Hassinen
tel. +358 9 818 4976
taneli.hassinen@finnair.fi
http://www.finnair.com/investor 

FINNAIR GROUP INTERIM REPORT FOR JANUARY 1 - SEPTEMBER 30, 2008

KEY FIGURES EUR mill.

 	2008	2007	Change	2008
 	1 Jul-
 30 Sep	1 Jul-
 30 Sep	%	1 Jan- 
30 Sep
Turnover	559.7	545.2	2.7	1 682.3
Result before depreciation and lease payments, EBITDAR *	54.0	88.0	-38.6	166.2
Lease payments for aircraft	20.7	19.8	4.5	61.8
Operating result, EBIT*	2.8	39.2	-92.9	19.1
Fair value changes of derivatives	-26.1	3.4	-	-13.6
Result from disposal of capital assets	-1.5	17.3	-	2.5
Operating result, EBIT	-24.8	59.9	-	8.0
Result for the financial year (share attributable to shareholders of parent
company)	-17.3	39.6	-	2.1 
 				
Operating result, EBIT, % of turnover *	0.5	7.2	-	1.1
EBITDAR, % of turnover *	9.6	16.1	-	9.9
Unit revenues of flight operations c/RTK	67.4	68.9	-2.2	70.5
Unit costs of flight operations c/ATK	42.8	40.9	4.8	42.9
Earnings per share EUR (basic)	-0.15	0.41	-	0.02
Earnings per share EUR (diluted)	-0.15	0.41	-	0.02
Equity per share EUR	7.54	7.68	-1.8	7.54
Gross investment EUR mill.	74.9	19.7	-	219.7
Gross investment, % of turnover	13.4	3.6	-	13.1
Equity ratio %	 	 	 	46.2
Gearing %	 	 	 	-8.7
Adjusted gearing %	 	 	 	51.1
Rolling 12-month ROCE %	 	 	 	5.5
Rolling 12-month ROE %	 	 	 	3.6

KEY FIGURES EUR mill.

 	2007	Change	2007
 	1 Jul-
 30 Sep	%	1 Jan- 
31 Dec
Turnover	1 611.8	4.4	2 180.5
Result before depreciation and lease payments, EBITDAR *	216.8	-23.3	287.4
Lease payments for aircraft	60.6	2.0	81.2
Operating result, EBIT*	72.2	-73.5	96.6
Fair value changes of derivatives	14.3	-	14.5
Result from disposal of capital assets	24.2	-89.7	30.4
Operating result, EBIT	110.7	-	141.5
Result for the financial year (share attributable to shareholders of parent
company)	74.7	-	101.6 
 			
Operating result. EBIT, % of turnover *	4.5	-74.7	4.4
EBITDAR, % of turnover *	13.5	-26.6	13.2
Unit revenues of flight operations c/RTK	72.8	-3.2	72.6
Unit costs of flight operations c/ATK	43.7	-1.7	43.5
Earnings per share EUR (basic)	0.77	-	1.04
Earnings per share EUR (diluted)	0.77	-	1.04
Equity per share EUR	7.68	-1.8	7.70
Gross investment EUR mill.	264.3	-16.9	326.3
Gross investment, % of turnover	16.4	-	15.0
Equity ratio %	37.5	23.2	47.0
Gearing %	17.7	-	-22.5
Adjusted gearing %	103.3	-	35.1
Rolling 12-month ROCE %	9.3	-	14.2
Rolling 12-month ROE %	8.3	-	12.9

* Excluding capital assets, fair value changes of derivatives and non-recurring
items. 

Unit costs of flight operations c / ATK = Operating expenses (excluding fair
value changes of derivatives and non-recurring items) of Scheduled Traffic
business area and Leisure Flights business unit / ATK of Group. 

CALCULATION OF KEY RATIOS

Earnings / share:
Result for the financial year/
Average number of shares at the end of the financial year adjusted for share
issues 

Equity / share:
Shareholders' equity/
Number of shares at the end of the financial year 
adjusted for share issues

Gearing %:
Net interest bearing liabilities*100/
Shareholders' equity + minority interest

Return on capital employed % (ROCE):
Result before taxes + interest and other financial expenses *100/
Balance sheet total - non-interest-bearing liabilities (average)

Net interest-bearing liabilities:
Interest-bearing liabilities - interest-bearing assets - listed shares 

Equity ratio %:
Shareholders' equity + minority interest*100/
Balance sheet total - advances received

Return on equity %: (ROE)
Result *100/
Equity + minority interests (average)

Operating result, EBIT = Operating result excluding the disposal of the capital
assets, fair value changes of derivatives and non-recurring items 

Shareholders equity = To equity holders of the parent

The figures of interim report have not been audited.

CONSOLIDATED INCOME STATEMENT (EUR mill.)

 	2008	2007	Change	2008
 	1 Jul-
 30 Sep	1 Jul
 30 Sep	%	1 Jan- 
30 Sep
Turnover	559.7	545.2	2.7	1 682.3
Work used for own purposes and capitalized	0.5	1.1	-54.5	1.1
Other operating income	4.3	26.1	-83.5	18.5
Operating income	564.5	572.4	-1.4	1 701.9
Operating expenses	 	 	 	 
Staff costs	129.3	129.1	0.2	398.0
Fuel	158.2	116.5	35.8	436.6
Lease payment for aircraft	20.7	19.8	4.5	61.8
Other rental payments	13.3	16.0	-16.9	48.5
Fleet materials and overhauls	19.5	17.0	14.7	58.4
Traffic charges	48.6	46.0	5.7	139.3
Ground handling and catering expenses	38.1	39.1	-2.6	109.8
Expenses for tour operations	27.4	25.0	9.6	97.5
Sales and marketing expenses	24.0	19.1	25.7	76.0
Depreciation	32.0	33.5	-4.5	87.8
Other expenses	78.2	51.4	52.1	180.2
Total	589.3	512.5	15.0	1 693.9
Operating result EBIT	-24.8	59.9	-	8.0
Financial income 	5.4	2.0	170.0	18.0
Financial expenses	-2.9	-6.0	-51.7	-21.6
Share of result in associates	0.0	0.0	-	0.0
Result before taxes	-22.3	55.9	-	4.4
Direct taxes	5.0	-16.1	-	-2.3
Result for financial year	-17.3	39.8	-	2.1

CONSOLIDATED INCOME STATEMENT (EUR mill.)

 	2007	Change	2007
 	1 Jan-
 30 Sep	%	1 Jan- 
31 Dec
Turnover	1 611.8	4.4	2 180.5
Work used for own purposes and capitalized	2.4	-54.2	3.0
Other operating income	42.7	-56.7	52.8
Operating income	1 656.9	2.7	2 236.3
Operating expenses	 	 	 
Staff costs	391.4	1.7	541.5
Fuel	324.0	34.8	439.9
Lease payment for aircraft	60.6	2.0	81.2
Other rental payments	48.5	0.0	63.8
Fleet materials and overhauls	58.4	0.0	76.7
Traffic charges	134.1	3.9	177.0
Ground handling and catering expenses	118.3	-7.2	154.3
Expenses for tour operations	83.8	16.3	120.6
Sales and marketing expenses	65.6	15.9	92.0
Depreciation	88.5	-0.8	112.6
Other expenses	173.0	4.2	235.2
Total	1 546.2	9.6	2 094.8
Operating result EBIT	110.7	-	141.5
Financial income 	8.2	119.5	17.2
Financial expenses	-15.3	41.2	-19.9
Share of result in associates	0.1	-	0.1
Result before taxes	103.7	-	138.9
Direct taxes	-28.6	-	-36.8
Result for financial year	75.1	-	102.1

CONSOLIDATED INCOME STATEMENT (EUR mill.)

 	2008	2007	Change	2008
 	1 Jul-
 30 Sep	1 Jul
 30 Sep	%	1 Jan- 
30 Sep
Earnings per share to shareholders of the parent company	-17.3	39.6	 	2.1
Minority interest	0.0	0.2	 	0.0
 	 	 	 	 
Earnings per share calculated from result attributable to shareholders of the
parent company	 	 	 	 
Earnings per share EUR (basic)	-0.15	0.41	 	0.02
Earnings per share EUR (diluted)	-0.15	0.41	 	0.02

CONSOLIDATED INCOME STATEMENT (EUR mill.)

 	2007	Change	2007
 	1 Jan-
 30 Sep	%	1 Jan- 
31 Dec
Earnings per share to shareholders of the parent company	74.7	 	101.6
Minority interest	0.4	 	0.5
 	 	 	 
Earnings per share calculated from result attributable to shareholders of the
parent company	 	 	 
Earnings per share EUR (basic)	0.77	 	1.04
Earnings per share EUR (diluted)	0.77	 	1.04

CONSOLIDATED BALANCE SHEET (EUR mill.)

 	30 Sep 2008	30 Sep 2007	31 Dec 2007
ASSETS			
Non-current assets			
Intangible assets 	47.7	47.0	46.6
Tangible assets	1 242.7	1 163.2	1 168.9
Investments in associates	5.8	5.7	5.7
Financial assets	21.5	14.3	13.8
Deferred tax receivables	12.3	18.1	13.2
Total	1 330.0	1 248.3	1 248.2
Short-term receivables	 	 	 
Inventories	37.6	39.8	36.1
Trade receivables and other receivables	358.5	307.6	287.3
Investments	357.7	231.8	518.6
Cash and bank equivalents	16.3	26.6	21.5
Total	770.1	605.8	863.5
Non-current Assets held for sale	35.3	11.2	34.7
Assets total	2 135.4	1 865.3	2 146.4
SHAREHOLDERS´ EQUITY AND LIABILITIES	 	 	 
Capital and reserves attributable to equity holders of the parent company	 	 	 
Shareholders´equity	75.4	75.4	75.4
Other equity	887.6	605.1	909.9
Total	963.0	680.5	985.3
Minority interest	0.8	1.6	1.7
Equity, total	963.8	682.1	987.0
Long-term liabilities	 	 	 
Deferred tax liability	149.1	118.7	143.4
Financial liabilities	242.8	313.6	269.6
Pension obligations	2.2	11.8	15.8
Total	394.1	444.1	428.8
Short-term liabilities			
Current income tax liabilities	0.0	23.1	12.1
Reserves	53.3	56.5	53.6
Financial liabilities	51.9	70.3	54.5
Trade payables and other liabilities	672.3	579.2	610.4
Total	777.5	729.1	730.6
Liabilities related to long-term asset items held for sale	0.0	10.0	0.0
Liabilities total	1 171.6	1 183.2	1 159.4
Shareholders' equity and liabilities, total	2 135.4	1 865.3	2 146.4

SHAREHOLDERS´EQUITY EUR mill.

Equity attributable to shareholders of parent company	
	Share capi-tal	New issue	Share pre-mium account	Bonus issue	Hedging reserve
	Retained 
earnings
	Total	Mino-rity inte-rests	Own equity total
Sharehol-ders´ equity 1.1.2007	75.4	0.0	20.4	147.7	-21.1	377.5	599.9	1.6	601.5
Translation difference 	 	 	 	 	 	-0.3	-0.3	 	-0.3
Dividend payment 	 	 	 	 	 	-8.9	-8.9	-0.4	-9.3
Change in fair value of hedging instruments 	 	 	 	 	15.1	 	15.1	 	15.1
Result for the period 	 	 	 	 	 	74.7	74.7	0.4	75.1
Sharehol-ders´ equity 30.9.2007	75.4	0.0	20.4	147.7	-6.0	443.0	680.5	1.6	682.1

SHAREHOLDERS´EQUITY EUR mill.

Equity attributable to shareholders of parent company	
	Share capi-tal	Share issue	Share pre-mium ac-count	Bonus issue	Hedging reser-ve
	Unrest-ricted equity	Retai-ned ear-nings	Total	Mino-rity inte-rests
	Own equi-ty total
Share-holders´ equity
1.1.2008	75.4	0.0	20.4	147.7	26.8	244.9	470.1	985.3	1.7	987.0 
Trans-lation diffe-rence	 	 	 	 	 	 	0.2	0.2	 	0.2
Dividend payment	 	 	 	 	 	 	-31.9	-31.9	-0.6	-32.5
Minority change	 	 	 	 	 	 	0.0	0.0	-0.3	-0.3
Purchase of own shares	0.0	0.0	0.0	 	 	 	-4.7	-4.7	 	-4.7
Assign-ment of own shares/ Share premium account charges	 	 	 	 	 	2.1	0.8	2.9	
	2.9 
Change in fair value of hedging inst-ruments	 	 	 	 	9.1	 	 	9.1	 	9.1
Result for the period	 	 	 	 	 	 	2.1	2.1	0.0	2.1
Share-holders´ equity
30.9.2008	75.4	0.0	20.4	147.7	35.9	247.0	436.6	963.0	0.8	963.8 

CONSOLIDATED CASH FLOW STATEMENT

EUR mill.	1 Jan - 
30 Sep 2008	1 Jan - 
30 Sep 2007	1 Jan - 
31 Dec 2007
 			
Cash flow from operating activities			
Result for the financial year	2.1	75.1	102.1
   Operations for which a payment is not included 1)	69.7	79.8	100.0
Interest and other financial expenses	21.6	15.3	19.9
Interest income	-14.8	-8.1	-11.9
Other financial income	-3.2	-0.1	-5.1
Dividend income	0.0	0.0	-0.2
Taxes	2.3	28.6	36.8
Changes in working capital:			
Change in trade and other receivables	-50.2	-86.3	2.4
Change in inventories	-1.5	-1.3	2.4
Change in accounts payables and other liabilities	49.1	87.9	86.4
Interest paid 	-9.6	-10.5	-14.6
Paid financial expenses	-3.5	-2.5	-2.3
Received interest	10.8	6.3	9.6
Received financial income	3.2	0.1	0.5
Taxes paid	-5.8	-15.6	-24.2
Net cash flow from operating activities	70.2	168.7	301.8
 			
Cash flow from investing activities			
Sell of subsidiaries, net cash sold	0.0	0.0	0.6
Acquisitions of subsidiaries	-3.2	-0.6	-0.6
Investments in intangible assets	-6.2	-15.2	-15.4
Investments in tangible assets	-199.8	-264.3	-346.2
Net change of financial interest bearing assets at fair value through result
and loss	123.6	12.6	-205.6 
Net change of shares classified as available for sale	18.9	0.0	0.0
Sales of tangible fixed assets	64.8	40.7	65.2
Received dividends 	0.0	0.0	0.2
Change in non-current receivable	-7.7	1.1	1.7
Net cash flow from investing activities	-9.6	-225.7	-500.1
			
Cash flow from financing activities 			
Loan withdrawals	3.7	85.1	95.6
Loan repayments and changes	-51.3	-43.8	-115.0
Share issue	0.0	0.0	244.9
Purchase of own shares	-4.7	0.0	0.0
Dividends paid	-31.9	-8.9	-8.9
Net cash flow from financing activities	-84.2	32.4	216.6
			
Change in cash flows	-23.6	-24.6	18.3
			
Change in liquid funds			
Liquid funds. at beginning	291.8	273.5	273.5
Change in cash flows	-23.6	-24.6	18.3
Liquit funds, in the end	268.2	248.9	291.8

CONSOLIDATED CASH FLOW STATEMENT

EUR mill.
1 Jan - 
30 Sep 2008	1 Jan - 
30 Sep 2007	1 Jan - 
31 Dec 2007
Notes to consolidated cash flow statement
 	 	 
1) Operations for which a payment is not included			
   Depreciation	87.8	88.5	112.6
   Employee benefits	-13.7	-4.8	6.8
   Other adjustments	-4.4	-3.9	-19.4
Total	69.7	79.8	100.0
			
Financial asset at fair value	357.7	231.8	518.6
Cash and bank equivalents 	16.3	25.3	21.5
Short-term cash and cash equivalents in balance sheet	374.0	257.1	540.1
Maturing after more than 3 months 	-99.1	-5.3	-222.7
Shares held to trading purposes	-6.7	-2.9	-25.6
Total in cash flow statement	268.2	248.9	291.8

NOTES TO THE CONSOLIDATED INTERIM REPORT

1. BASIS OF PREPARATION

This consolidated interim report has been prepared according to the
International (IAS) Standard 34: Interim Financial Reporting, which has been
introduced in the EU. 

2. BASIS OF PREPARATION

In preparing this interim report, the Group has applied the same accounting
principles as in its 2007 financial statements, but so that the Group has
introduced the following new interpretations as of 1 January 2008: 

IFRIC 11. IFRS 2 - Group and Treasury Share Transactions. The interpretation
clarifies the treatment of transactions relating to an entity's own equity
instruments or to Group companies in the parent company and in Group companies'
financial statements by providing guidance on their classification into
share-based transactions payable as shareholders' equity or payable as cash.
The interpretation has no impact on the consolidated financial statements. 

In addition, the Group has introduced the following amendments to standards
that have been issued during 2008: 

IAS 39 (Amendment) and IFRS 7 (Amendment), Reclassification of Financial Assets
*. The amendment facilitates the reclassification of financial assets from
financial assets held for trading purposes or financial assets
available-for-sale under certain conditions and only in special situations. In
such cases additional disclosures are required in the financial statements. The
amendment has been effective as of 1 July 2008. The interpretation has no
impact on the consolidated financial statements. 

In addition to the new standards and interpretations presented in the 2007
financial statements, the Group will introduce in 2009 the following amended
standards and interpretations published after 1 January 2008: 

IFRIC 16, Hedges of a Net Investment in a Foreign Operation *. IFRIC 16
clarifies the treatment of hedges of a net investment in a foreign operation.
This means that hedges of a net investment in a foreign operation relate to
differences in the functional currency of the foreign operation and not to
differences in the presentation currency. In addition, the hedging instrument
may be held by any entity within the Group. IAS 21, The Effects of Changes in
Foreign Exchange Rates is applied to the hedged item. Group management is
examining the impact on the consolidated financial statements of the amendment
to the standard. ** 

IFRIC 15, Agreements for the Construction of Real Estate *. The interpretation
provides guidance on how to determine whether an agreement for the construction
of real estate is within the scope of IAS 11 Construction Contracts or IAS 18
Revenue and, accordingly, when revenue from construction projects should be
recognised. The interpretation has no impact on the consolidated financial
statements. ** 

IAS 39 (Amendment), Financial instruments: Recognition and Measurement -
Eligible Hedged Items *. According to the amendment, inflation may not be
designated as hedged component in a fixed-rate debt. In addition, when hedge
accounting is applied to options, the time value of an option may no longer be
included in the hedging of a one-sided risk. Group management is examining the
impact on the consolidated financial statements of the amendment to the
standard. ** 

* The names and interpretations of the standards which do not have official
translating will be published in English. 
 
** The standard/interpretation in question has not yet been approved for
application in the EU. 

3. CRITICAL FINANCIAL STATEMENT ESTIMATES AND ASSUMPTIONS

The preparation of interim reports requires the company's management to make
estimates and assumptions that influence the levels of reported assets and
liabilities as well as of revenue and expenses. Realised results might differ
from these estimates. 

In connection with the preparation of this interim report, the significant
estimates made by management relating to the consolidated accounting principles
and the key uncertainty factors are the same as those applied in the 2007
annual financial statements. 

4. SEGMENT INFORMATION

The business segments, Scheduled Passenger,Traffic, Leisure Traffic, Aviation
Services and Travel Services, are the primary reporting format. The
geographical segments, Finland, Europe, Asia, North America and Others, are the
secondary reporting format. Segment information will base on the corresponding
information reported in the financial statement. 

PRIMARY REPORTING FORMAT - BUSINESS SEGMENT DATA 1 January - 30 September 2008

 	Scheduled Passenger Traffic	Leisure Traffic	Aviation Services	Travel
Services	Group 
eliminations	Unallo-cated items	Group
EUR mill.	 	 		 			
External turnover	1 234.0	311.9	79.3	57.1	 	 	1 682.3
Internal turnover	75.5	5.9	250.7	2.9	-335.0	 	0.0
Turnover	1 309.5	317.8	330.0	60.0	-335.0	0.0	1 682.3
Operating profit	1.5	14.6	7.8	3.2	 	-19.1	8.0
Share of results of associated undertakings	 	 	 	 	 	0.0	0.0
Financial income	 	 	 	 	 	18.0	18.0
Financial expenses	 	 	 	 	 	-21.6	-21.6
Income tax	 	 	 	 	 	-2.3	-2.3
Minority interest	 	 	 	 	 	0.0	0.0
Result for the period	 	 	 	 	 	 	2.1
 	 	 	 	 	 	 	 
Other items	 	 	 	 	 	 	 
    Investments	182.5	0.1	36.2	0.4	0.0	0.5	219.7
    Depreciation	56.8	0.3	28.7	1.0	0.0	1.0	87.8

PRIMARY REPORTING FORMAT - BUSINESS SEGMENT DATA 1 January- 30 September 2007

 	Scheduled Passenger Traffic	Leisure Traffic	Aviation Services	Travel
Services	Group eliminations	Unallo-cated items	Group 
EUR mill.	 	 					
External turnover	1 179.0	285.1	89.0	58.7	 	 	1 611.8
Internal turnover	78.8	4.7	231.5	3.4	-318.4	 	0.0
Turnover	1 257.8	289.8	320.5	62.1	-318.4	0.0	1 611.8
Operating profit	63.4	14.5	8.5	3.8	 	20.5	110.7
Share of results of associated undertakings	 	 	 	 	 	0.1	0.1
Financial income	 	 	 	 	 	8.2	8.2
Financial expenses	 	 	 	 	 	-15.3	-15.3
Income tax	 	 	 	 	 	-28.6	-28.6
Minority interest	 	 	 	 	 	-0.4	-0.4
Result for the period	 	 	 	 	 	 	74.7
 	 	 	 	 	 	 	 
Other items	 	 	 	 	 	 	 
    Investments	237.2	0.8	23.3	0.8	0.0	2.2	264.3
    Depreciation	64.7	0.3	19.8	1.1	0.0	2.6	88.5

TURNOVER

 	2008	2007	Change	2008
 	1 Jul-
 30 Sep	1 Jul
 30 Sep	%	1 Jan- 
30 Sep
EUR mill.				
Scheduled Passenger Traffic	447.4	432.6	3.4	1 309.5
Leisure Traffic	93.7	90.1	4.0	317.8
Aviation Services	108.6	109.9	-1.2	330.0
Travel Services	18.3	19.0	-3.7	60.0
Group eliminations	-108.3	-106.4	1.8	-335.0
Total	559.7	545.2	2.7	1 682.3

TURNOVER

 	2007	Change	2007
 	1 Jan-
 30 Sep	%	1 Jan- 
31 Dec
EUR mill.			
Scheduled Passenger Traffic	1 257.8	4.1	1 685.3
Leisure Traffic	289.8	9.7	409.6
Aviation Services	320.5	3.0	433.9
Travel Services	62.1	-3.4	82.3
Group eliminations	-318.4	5.2	-430.6
Total	1 611.8	4.4	2 180.5

OPERATING RESULT EXCLUDING THE DISPOSAL OF THE CAPITAL ASSETS AND FAIR VALUE
CHANGES OF DERIVATIVES AND NON-RECURRING ITEMS 

 	2008	2007	Change	2008
 	1 Jul-
 30 Sep	1 Jul
 30 Sep	%	1 Jan- 
30 Sep
EUR mill.				
Scheduled Passenger Traffic	-4.0	28.8	-113.9	-2.5
Leisure Traffic	6.0	7.8	-23.1	14.6
Aviation Services	1.9	2.7	-29.6	8.8
Travel Services	1.3	1.3	0.0	3.1
Unallocated items	-2.4	-1.4	71.4	-4.9
Total	2.8	39.2	-92.9	19.1

OPERATING RESULT EXCLUDING THE DISPOSAL OF THE CAPITAL ASSETS AND FAIR VALUE
CHANGES OF DERIVATIVES AND NON-RECURRING ITEMS 

 	2007	Change	2007
 	1 Jan-
 30 Sep	%	1 Jan- 
31 Dec
EUR mill.			
Scheduled Passenger Traffic	56.2	-104.4	76.2
Leisure Traffic	14.5	0.7	24.2
Aviation Services	7.3	20.5	10.3
Travel Services	3.8	-18.4	2.9
Unallocated items	-9.6	-49.0	-17.0
Total	72.2	-73.5	96.6

EMPLOYEES AVERAGE BY SEGMENT

 	2008	2007	Change 
	1 Jan- 
30 Sep	1 Jan- 
30 Sep	%
Scheduled Passenger Traffic	4 254	4 145	2.6
Leisure Traffic	456	372	22.6
Aviation Services	3 658	3 730	-1.9
Travel Services	1 095	1 129	-3.0
Other functions	151	158	-4.4
Finnair Group Total	9 614	9 534	0.8

SECONDARY REPORTING FORMAT - GEOGRAPHICAL SEGMENTS

TURNOVER OUTSIDE THE GROUP BY SALES DESTINATION

 	2008	2007	Change	2008
 	1 Jul- 
 30 Sep	1 Jul-
 30 Sep	%	1 Jan- 
30 Sep
EUR mill.				
Finland	90.3	99.0	-8.8	307.2
Europe	256.9	246.8	4.1	755.7
Asia	181.3	164.9	9.9	519.4
North America	21.8	21.3	2.3	51.9
Others	9.4	13.2	-28.8	48.1
Total	559.7	545.2	2.7	1 682.3

TURNOVER OUTSIDE THE GROUP BY SALES DESTINATION

 	2007	Change	2007
 	1 Jan-
 30 Sep	%	1 Jan- 
31 Dec
EUR mill.			
Finland	308.5	-0.4	419.7
Europe	762.2	-0.9	992.8
Asia	440.4	17.9	626.3
North America	49.5	4.8	63.2
Others	51.2	-6.1	78.5
Total	1 611.8	4.4	2 180.5

5. MANAGEMENT OF FINANCIAL RISKS

No significant changes have been made to the Group's risk management principles
in the reporting period. The objectives and principles of risk management are
consistent with information presented in the Group's 2007 Annual Report. 
The tables below present the nominal value or the amount and net fair value of
derivative contracts used in the Group's hedge accounting. 

DERIVATIVE CONTRACTS EUR mill.

Derivative contracts	30 Sep 2008	30 Sep 2007	31 Dec 2007
Currency derivatives	Nominal value (EUR mill.)	Fair value (EUR mill.)	Nominal
value (EUR mill.)	Fair value (EUR mill.)	Nominal value (EUR mill.)	Fair value
(EUR mill.) 
Hedge accounting items						
Forward contracts, Jet Fuel currency hedging	380.0	7.2	254.3	-17.1	267.0	-20.0
Forward contracts, Hedging of Aircraft purchace
price	469.9	9.8	424.8	-15.0	463.0	-16.9 
Forward contracts. Currency hedging of lease
payments	49.1	1.4	62.6	-3.2	56.3	-3.9 
Total	899.0	18.4	741.7	-35.3	786.3	-40.8
Currency derivatives at fair value through result or loss						
Operating cash flow hedging (termins)	60.1	3.4	0.0	0.0	2.7	0.0
Operating cash flow hedging (options)						
Currency call options	20.4	0.3	28.2	0.0	54.3	0.1
Currency put options	19.4	-0.1	28.2	-0.5	64.5	-0.6
Balance sheet hedging	67.4	0.4	77.6	-1.3	47.2	-0.6
Total	167.3	4.0	134.0	-1.8	168.7	-1.1
Currency derivatives, total	1 066.3	22.4	875.7	-37.1	955.0	-41.9
						
	30 Sep 2008	30 Sep 2007	31 Dec 2007
	Nominal value (tonnes)	Fair value (EUR mill.)	Nominal value (tonnes)	Fair
value (EUR mill.)	Nominal value (tonnes)	Fair value (EUR mill.) 
Commodity derivatives						
Hedge accounting items						
Jet Fuel swaps	602 800	52.0	538 000	17.5	562 750	55.3
						
Commodity derivatives at fair value through result or loss						
Jet Fuel Forward contracts	69 200	-5.3	9 400	0.3	11 100	0.6
Gasoil forward contracts	28 500	0.5	38 400	1.7	21 900	2.7
Jet differential forward contracts	460 500	1.1	333 000	1.8	395 000	1.1
Options						
   Jet Fuel call options	45 000	2.0	28 500	2.0	64 500	2.0
   Jet Fuel put options	45 000	-3.9	57 000	-0.7	76 000	-0.7
   Gasoil call options	64 000	-2.9	51 000	3.3	48 500	3.1
   Gasoil put options	78 500	0.0	99 000	-0.8	86 500	-0.5
Total	 	43.4	 	25.1	 	63.5
						
	30 Sep 2008	30 Sep 2007	31 Dec 2007
	Nominal value (EUR mill.)	Fair value (EUR mill.)	Nominal value (EUR
mill.)	Fair value (EUR mill.)	Nominal value (EUR mill.)	Fair value (EUR mill.) 
Interest rate derivatives						
Cross currency Interest rate swaps						
Hedge accounting items	18.6	-8.5	30.3	-13.6	26.9	-13.6
Cross currency interest rate swaps at fair value through result or
loss	12.4	-7.4	17.1	-10.2	15.4	-10.1 
Total	31.0	-15.9	47.4	-23.8	42.3	-23.7
						
Interest rate swaps						
Hedge accounting items	0.0	0.0	0.0	0.0	0.0	0.0
Interest rate swaps at fair value through result or
loss	20.0	0.7	20.0	1.0	20.0	0.9 
Total	20.0	0.7	20.0	1.0	20.0	0.9
Share derivatives		 	 	 	 	 
Shares		 	 	 	 	 
      Call options, share	15.4	0.0	16.6	3.2	16.1	8.4

6. COMPANY ACQUISITIONS AND SALES

On 23 October 2007, the Group subsidiary Oy Aurinkomatkat - Suntours Ltd Ab
signed an agreement by which it purchased a majority shareholding of all three
Russian companies belonging to the Calypso Group. 80 per cent of share stock
and control was transferred in January 2008, at which time the company became
part of the Group. The gross investment in the shares was 2.5 million euros.
During the reported period additional purchase price 0.4 million euros has been
paid from Horizon Travel shares. 


7. INCOME TAXES

Income taxes have been entered in the income statement using the tax rates that
will be applied to the expected total result for the year. 

8. DIVIDEND PER SHARE

The Annual General Meeting decided on 27 March 2008 to distribute a dividend of
0.25 euros per share. The total dividend was 31.9 million euros, based on the
number of shares registered on 1 April 2008. The dividend was paid on 7 April
2008. 

9. CHANGE IN INTANGIBLE AND TANGIBLE ASSETS EUR mill.

	30 Sep 2008	30 Sep 2007	31 Dec 2007
Carrying amount at beginning of period	1 250.2	1 067.4	1 067.4
Fixed asset investments	241.7	264.3	326.3
Change in advances	-13.6	15.8	35.8
Disposals	-64.8	-40.7	-66.7
Depreciation 	-87.8	-88.5	-112.6
Carrying amount at end of period	1 325.7	1 218.3	1 250.2


Proportion of assets held for sale at beginning of period	34.7	7.6	7.6
Proportion of assets held for sale at end of period	35.3	8.1	34.7

10. INTEREST-BEARING LIABILITIES

In the reported period, Group loans were repaid in accordance with a repayment
programme also the bond has been repurchased by 23.0 million euros. The rest of
the loan transactions presented in the accounts relate to old secured loans,
which owing to their exceptional agreement structure have a net repayment
entered gross both as a withdrawal and a repayment. 

11. CONTINGENT LIABILITIES EUR mill.

 	30 Sep 2008	30 Sep 2007	31 Dec 2007
Other contingent liabilities			
Pledges on own behalf	268.3	282.8	263.1
Guarantees on group undertakings	67.5	60.9	67.5
Total	335.8	343.7	330.6

Investment commitments for property, plant and equipment on 30 September 2008
totalled 1,360.0 million euros (31 December 2007: 1,311.1 million euros) 

12. LIABILITIES (EUR million)

	30 Sep 2008	30 Sep 2007	31 Dec 2007
Fleet lease payment liabilities	301.5	333.2	324.8
Other liabilities	201.5	181.8	177.7
Total	503.0	515.0	502.5

13. RELATED PARTY TRANSACTIONS

Related party transactions are presented in Finnair's 2007 Annual Report. There
have been no substantial changes after the closing date. 

Transactions and open balances with associated undertakings were of very minor
significance in the reporting period. 

14. AIR TRAFFIC 1 January - 30 September 2008

 	Total
 traffic	Europe	North
America	Asia
Passengers (1000)	6 248	3 088	114	965
 %-change	-6.8	-13.8	5.4	15.1
Cargo and mail (tonnes)	78 225	15 683	5 544	52 128
%-change	10.0	-2.5	-0.7	25.0
Available seat-kilometres mill	21 702	6 413	896	9 228
%-change	8.6	-4.5	4.6	22.5
Revenue passenger kilometres	16 224	4 259	752	6 942
%-change	6.9	-8.4	5.4	17.4
Passenger load factor %	74.8	66.4	84.0	75.2
%-change	-1.2	-2.8	0.6	-3.3
Available tonne-kilometres	3 357	 	 	 
%-change	11.0	 	 	 
Revenue tonne-kilometres mill	1 901	 	 	 
%-change	8.6	 	 	 
Overall load factor %	56.6	 	 	 
%-change	-1.3	 	 	 
* Operational calculatory capacity

14. AIR TRAFFIC 1 January - 30 September 2008

 	Domestic	Scheduled Traffic Total	Leisure	Cargo
Passengers (1000)	1 101	5 267	981	 
 %-change	-14.5	-9.5	10.3	 
Cargo and mail (tonnes)	2 304	75 660	281	78 225
%-change	-7.8	14.9	-20.1	10.0
Available seat-kilometres mill	1 055	17 590	4 112	 
%-change	-4.7	8.5	9.1	 
Revenue passenger kilometres	624	12 577	3 648	 
%-change	-8.2	5.2	13.3	 
Passenger load factor %	59.2	71.5	88.7	 
%-change	-2.2	-2.2	3.3	 
Available tonne-kilometres	 	 	 	727
%-change	 	 	 	10.9
Revenue tonne-kilometres mill	 	 	 	448
%-change	 	 	 	13.9
Overall load factor %	 	 	 	61.7 *
%-change	 	 	 	1.6
* Operational calculatory capacity

15. EVENTS AFTER THE REVIEW PERIOD

There have not been other remarkable events after the closing date as told in
the interim report.

Attachments

ovk_q308_en.pdf