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1. Finnair Group
Interim Report
1 January – 31 March 2006

2. Industry bracing for
tightening competition
• Competition remained tough, especially in Nordic
countries
• All airlines have strict efficiency programmes
• US airlines are shifting capacity to international
traffic
• Record high volume of orders for new aircraft
• Many airlines still in shaky financial shape

3. Finnair’s fuel bill grew
30 MEUR in first quarter
• Fuel price remained high
• Average price of tickets still at last year’s level
• Good development in demand and turnover
• Asian demand engine for growth
• Introduction of new aircraft will temporarily
weaken productivity during first part of year

4. Slow quarter as predicted
Q1/2006 Q1/2005 Change %
Turnover mill. € 480.3 443.4 8.3
EBITDAR 40.9 59.7 -31.5
EBIT excl. capital gains and fair
values changes of derivatives -5.1 14.0 -
Capital gains 0.0 0.0 ‘-
Fair value changes of
derivatives -0.1 4.7 -
Operating profit/loss (EBIT) -5.2 18.7 -
Profit after financial items -5.2 17.4 -

5. Group continues to have
strong liquidity
Cash flow January-March
CASH FLOW STATEMENT (EUR mill.) 2006 2005
Cash flow from operations -33 24
Investments and sale of assets -20 -20
Cash flow from financing -6 22
Change in liquid funds -59 26
Liquid funds at the beginning 339 251
Liquid funds at the end 280 277

6. Strong balance sheet
Equity ratio and adjusted gearing
0
20
40
60
80
100
120
2002 2003 2004 2005 Q1 2006
Equity ratio Adjusted gearing
%

7. -20
-15
-10
-5
0
5
10
15
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Yield (EUR/RTK) Unit costs (EUR/ATK)
Unit costs +10.2%,
without fuel +3.0%
Change YoY
%
2004 2005 2006
2003
2002

8. Expensive fuel raises unit costs
* excluding fair value changes of derivatives
ATK = Available Tonne Kilometre
Q1/2006
Unit costs of flight operations* c/ATK +10,2 %
Unit costs of flight operations excl. fuel* c/ATK +3,0 %
Personnel expenses c/ATK +2,4 %
Fuel costs c/ATK +46,4 %
Traffic charges c/ATK +5,4 %
Ground handling and catering €/passenger -2,0 %
Sales and marketing €/passenger -6,4 %
Purchases and maintenance of equipment c/ATK +13,7 %
Aircraft lease payments and depreciation c/ATK -1,3 %
Other costs c/ATK +8,3 %

9. Asian success story continues
• Demand grew by 21.8%, passenger numbers by
26.5% and load factors by 1.5%
• Amount of cargo grew by 20.4%
• New route to Nagoya (Japan) in June and Delhi
(India) in November. Next year Kuala Lumpur
(Malesia) which is 11th Asian destination.
• 1-2 new Asian destinations per year, more
frequencies to existing destinations
• New Asian feeder routes to Edinburgh, Pisa, Kiev,
Krakow, and Geneva, more flights to St Petersburg
and Warsaw
• Lie-flat bed seats installed in long-haul business
class

10. Share of Asian traffic growing
Scheduled traffic passenger and cargo revenues Q1/2006
Domestic
20 %
Europe
46 %
Asia
30 %
America
4 %

11. Modern fleet
• Finnair Scheduled Traffic will have one of most
modern fleets in Europe by summer
• Very popular new Embraer 170/190 aircraft
increase flexibility, decrease costs and are eco-
efficient
• Remaining Boeing MD-80 aircraft retired at
quickened pace, last flight on 3 July
• Eighth wide-body aircraft, Finnair’s first Airbus 340
takes flight in July
• New Airbus A340/350 aircraft replace current
wide-body fleet by 2012

12. • 2003: 10.2% of turnover
• 2004: 12.5% of turnover
• 2005: 15.6% of turnover
• 2006: >20.0% of turnover at current price level and
planned traffic growth
Finnair has hedged 55% of its fuel purchases for the next six
months, thereafter for the following 18 months with a
decreasing level.
Fuel costs increasing

13. Realized prices and swap prices

14. Development of average flight and fuel price
2001 - 2006
6,00
7,00
8,00
9,00
10,00
11,00
12,00
2001 2002 2003 2004 2005 2006 Q1
Average
price
/
RPK
200
250
300
350
400
450
500
550
€/
tonne
Finnair averageprice
Fuel tonneprice

15. 120 million euro challenges
• Fuel prices remain high
• Fuel bill grew by 100 million euros last year, 120
million euros this year
• Ticket prices still at low level
• Focus on improving competitiveness without
sacrificing service level
• Internal services to work according to market
rules
• Streamline hierarchy, improve flexibility

16. Personnel cuts of 670…
• New allocation of jobs
• Statutory employer-employee negotiations
beginning to cut 670 jobs in 2006-2007
• Planned efficiency measures to bring 80 MEUR
annual cost benefits
• Efficiency measures everywhere in organisation
• Emphasis on Finnair Technical Services and
support functions

17. …and increases of over 1000
• Strong growth in traffic between Asia and
Europe has already ensured 3000 jobs
• This year 350 persons will be recruited to
flight operations
• If competitive cost level is met, at best over
1000 will be recruited during next 5 years to
operational functions

18. • Growth from traffic between Europe and Asia as well
as from near-by areas
• Most desired airline by customers
• Increased flexibility
• Cost efficiency vs. competitors
Strategic cornerstones
SUSTAINABLE, PROFITABLE GROWTH

19. Assesments for future development
• Focus on traffic expansion between Asia and
Europe will continue with additional aircraft
• Load factors will improve with more flexible
capacity
• Strong booking situation
• Continuing improvement of profitability
• Fuel expenses will continue to be high
• Price development continues poor due to tight
competition
• 2006 result clearly profitable

20. Appendices

21. -50
-40
-30
-20
-10
0
10
20
30
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
MEUR
2003
Slow fourth quarter as predicted
Change in EBIT per quarter
(Excluding capital gains and fair value changes of
derivatives)
2004 2005
2002 2006

22. 40
50
60
70
80
90
100
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
Q
1
Yield (EUR/RTK) Unit costs (EUR/ATK)
Average yield and costs
EUR c/RTK & EUR c/ATK
2004 2005 2006
2003
2002

23. Development of Group Business Areas
Excluding capital gains and fair value changes of
derivatives
2006 2005
Q1 Q1
MEUR
Scheduled Passenger Traffic -4.5 9.7
Leisure Traffic 5.9 4.9
Aviation Services -3.5 5.2
Travel Services 0.3 1.3
Unallocated items -3.3 -7.1
Total -5.1 14.0

24. Investments and cash flow from
operations
-50
0
50
100
150
200
250
2002 2003 2004 2005 Q1 2006
Operational net cash flow Investments
MEUR

25. Aircraft operating lease liabilities have
grown in line with strategy
Flexibility, costs, risk management
0
50
100
150
200
250
300
350
400
450
500
MEUR
2002 2003 2004 2005 Q1 2006
On 31 March all leases were operating leases. If capitalised using
the common method of multiplying annual aircraft lease payments by
seven, the adjusted gearing on 31 March 2006 would have been
85,0%

26. ROE and ROCE
Rolling 12 months
-6
-3
0
3
6
9
12
15
Q
1
2
0
0
2
Q
2
2
0
0
2
Q
3
2
0
0
2
Q
4
2
0
0
2
Q
1
2
0
0
3
Q
2
2
0
0
3
Q
3
2
0
0
3
Q
4
2
0
0
3
Q
1
2
0
0
4
Q
2
2
0
0
4
Q
3
2
0
0
4
Q
4
2
0
0
4
Q
1
2
0
0
5
Q
2
2
0
0
5
Q
3
2
0
0
5
Q
4
2
0
0
5
Q
1
2
0
0
6
ROE ROCE
%

27. Finnair share price beats industry
index
Indexof share price of Finnair vs. Indexof major European carriers 31.12.1998 - 31.3.2006
0
50
100
150
200
250
300
12.98 12.99 12.00 12.01 12.02 12.03 12.04 12.05
Bloomberg Europe
Airlines Index
Finnair

28. Superiority of product
• Direct to 50 international destinations
– No time-consuming transfers at crowded airports
• Best schedules
– Morning-evening concept
• Most punctual in Europe with least
cancellations
• Top class service in Europe
• oneworld – alliance with best quality and
coverage
• New aircraft in European traffic

29. Operations systematically
rationalised
Personnel
7 000
8 000
9 000
10 000
11 000
12 000
2002 2003 2004 2005 Q1 2006
Personnel on average

30. Finnair Financial Targets
”Sustainable value creation”
Operating profit
(EBIT)
EBIT margin at least 6% => 110-120 mill. € in the coming few years
EBITDAR EBITDAR margin at least 17% => over 300 mill. € in the coming few
years
Economic profit To create positive value over pretax WACC of 8.5%
Pay out ratio Minimum one third of the EPS
Adjusted Gearing Gearing adjusted for aircraft lease liabilities not to exceed 140 %
Total Shareholder
Return (TSR)
On average 15% annual TSR => to double the value for shareholders in five
years

31. Finnair’s Financial Targets
Description of targets
Operating profit
(EBIT)
Turnover + other operating revenues – operating costs
EBITDAR Result before depreciation, aircraft lease payments and capital
gains
Economic profit Operating profit EBIT – Weighted Average Cost of Capital
Adjusted Gearing (Interest bearing debt + 7*Aircraft lease payments – liquid
funds) / (Equity + minority interests)
Pay out ratio Dividend per share / Earnings per share
Total shareholder
return (TSR)
Total return for shareholders including dividend paid out during
certain period. Expects that dividend is invested back into
Finnair shares immediately.

32. www.finnair.com
Finnair Group Investor Relations
email: investor.relations@finnair.com
tel: +358-9-818 4951
fax: +358-9-818 4092