Finnair Oyj - Company Announcement

Changes in Finnair’s financial reporting principles

Finnair Plc      Stock Exchange Release     27 March 2014 at 14.30 EET

Finnair is changing the accounting principle of its aircraft engine overhauls
and will combine the Aviation Services segment with Airline Business segment
from the first quarter of 2014 onward. Finnair's financial reporting for 2013
has been adjusted to account for the new reporting practices. The restated 2013
figures are presented in the attached tables.

Capitalization of the aircraft engine overhauls

Finnair is changing the accounting principle for its aircraft engine overhauls.
From the beginning of 2014, Finnair capitalizes engine overhauls to its balance
sheet and depreciates related costs during the engines' maintenance periods.
Earlier overhauls have been booked as expense when they occur.

The change will reduce the volatility of engine overhaul costs, which improves
the accuracy of forecasting future profitability and improves comparability over
of periods. It will also improve comparability with other airlines, because,
based on the study conducted by International Air Traffic Association (IATA),
the amended practice corresponds to the current industry practice. It will
decrease Finnair equity at 31 December 2013 by 13.8 million euros and improve
2013 EBIT by 16.7 million euros. In addition, the change will increase 2013
gross investments, improve 2013 cash flow from operating activities and reduce
cash flow from investing activities respectively. It will also impact Finnair's
2013 key figures.

The change in the accounting principle affects the Airline Business segment.

Aviation Services segment combined with Airline Business segment

Due to restructurings made in past years, the nature and scope of Aviation
Services business have changed. Due to the changes, the Board of Directors has
decided to change the business segment structure. From the first quarter of 2014
onward, the Aviation Services segment is not reported separately, but its
operations are reported as a part of the Airline Business segment. After the
structural changes in technical services and catering implemented in 2012, the
Aviation Services segment has consisted of aircraft maintenance and the
operations of Finncatering Oy and Finnair Travel Retail Oy, as well as Finnair's
property holdings, office services and the management and maintenance of
properties related to the company's operational activities. Finncatering Oy was
sold to LSG Lufthansa Service Europa/Afrika GmbH on 28 February 2014.

The segment information for 2013 have been restated accordingly.

Appendix: Restated comparable 2013 figures
FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms(a)finnair.com

Distribution:
NASDAQ OMX Helsinki
Principal media

Attachments:

03275713.pdf