FINNAIR PLC STOCK EXCHANGE RELEASE 25 NOVEMBER 2008 15:05 FINNAIR UPDATES COST-CUTTING PROGRAMME IN CARGO OPERATIONS Finnair is updating its cost-cutting programme, initiated in June, for its cargo companies. The aim of the cost-cutting programme is to save at least four million euros within cargo operations. As part of the programme, Finnair Cargo Oy and Finnair Cargo Terminal Operations Oy, which maintains terminal operations, will initiate, on 26 November 2008, statutory employer-employee negotiations under the Act on Co-Determination within Undertakings in order to cut personnel costs. “Cargo demand has fallen worldwide since last spring. Finnair's cargo demand has also weakened rapidly during the autumn. We estimate that cargo volume will decline next year by at least ten per cent. This will be reflected above all in terminal operations, where the volume of cargo being handled has declined sharply,” says Antero Lahtinen. The planned efficiency and restructuring measures may, when implemented, mean a reduction of an estimated 71 jobs during 2009. In addition, both cargo companies are planning temporary lay-offs affecting an estimated total of 300 employees. The reduction in personnel numbers is expected to take place mostly in Finnair Cargo Terminal Operations' transport offices in Helsinki, Turku and Tampere and at the cargo warehouse in Helsinki. In Finnair Cargo, the reductions are expected to implemented place, for example, in cargo sales and invoicing. In addition, further cost-cutting and efficiency measures will be implemented in cooperation with other units of the Finnair Group. More than half of the Finnair Group's 50 million euro cost-cutting programme has already been implemented. Personnel costs will be reduced through unit-specific redundancies and lay-offs. Finnair Plc Communications 25 November 2008 Further information: Antero Lahtinen, Managing Director Cargo Operations, tel. +358 9 818 5400 Kukka-Maaria Salomaa, Personnel and Development Manager, +358 9 818 5428 Timo Riihimäki, Vice President Sales, +358 9 818 5487