Finnair’s fleet renewal advances - positive one-off impact in H2/2015 result approximately EUR 70 million

Finnair Plc                        Stock Exchange Release
                     24 September 2015 at 8:00 am EET

Finnair, which is the European launch customer for the Airbus A350-900 XWB, is
preparing to receive its first A350 delivery from Airbus in early October.

As Finnair announced in December 2013, it has made sale and leaseback agreements
for its two first A350 aircraft with GECAS (GE Capital Aviation Services). These
agreements will be concluded in connection with the delivery of the respective
aircraft, and the value of the transaction is approximately EUR 260 million.

It has also been stated previously that non-recurring items associated with the
long haul fleet renewal in 2015 will have a substantial positive impact on
Finnair’s operating result due to the strengthened US Dollar. This separate
guidance covered the sale and leaseback agreements for Finnair’s first two
A350s, constituting a significant positive impact, as well as the phase out of
all Finnair’s remaining A340-300s, which will involve non-recurring costs
primarily materialising in 2015. The remainder of these costs, presently
estimated at below EUR 10 million, will be booked in 2016.

Calculated at present exchange rates, the positive net impact of these
arrangements on Finnair’s operating profit in H2/2015 is expected to amount to
approximately EUR 70 million.

Finnair has ordered a total of 19 new A350-900 XWB aircraft, and under the
target delivery schedule it will receive four aircraft in the second half of
2015, seven in 2016–2017 and eight in 2018–2023. Finnair will dispose of the
seven A340-300 aircraft it currently operates by the end of 2017, replacing them
as the A350s are delivered and enter into service on Finnair’s scheduled traffic
routes. Airbus has agreed to acquire four A340-300 aircraft currently owned by
Finnair in 2016 and 2017.

Since the arrangements relating to both sale and leaseback of the A350s and the
sale of A340-300s are denominated in US Dollars, the final financial impact
depends on the EUR/USD exchange rate prevailing at the time of delivery of the
respective aircraft.

Disclosures on financing arrangements for the A350 aircraft other than the first
two to be delivered will be made as those agreements are finalized. Finnair’s
fleet consists of both owned and leased aircraft

The fleet operated and owned by Finnair is listed on the company’s website at
www.finnairgroup.com.
Further information:
Financial Communications Manager Ilkka Korhonen, tel. +358 9 818 4705,
ilkka.korhonen@finnair.com

Distribution:
Nasdaq Helsinki
Principal media
Finnair is a network airline specialising in passenger and cargo traffic between
Asia and Europe. Helsinki’s geographical location gives Finnair a competitive
advantage, since the fastest connections between many European destinations and
Asian megacities fly over Finland. Finnair’s vision is to offer its passengers a
unique Nordic experience, and its mission is to offer the smoothest, fastest
connections in the northern hemisphere via Helsinki and the best network to the
world from its home markets. Finnair is the only Nordic carrier with a 4-star
Skytrax ranking and a member of the oneworld alliance. In 2014, Finnair’s
revenues amounted to EUR 2,400 million and it had a personnel of almost 4,500 at
the year-end. Finnair Plc’s shares are quoted on Nasdaq Helsinki.