Finnair Oyj - Company Announcement

Finnair has successfully placed EUR 200 million hybrid bonds

Finnair Plc            Stock Exchange Release                1 October 2015 at
5:15 pm EET

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, TO ANY
U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED) OR IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, SOUTH
AFRICA, SINGAPORE AND JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION
OR RELEASE WOULD BE UNLAWFUL.

Finnair Plc successfully placed EUR 200 million hybrid bonds on 1 October 2015
(the “New Hybrid Bonds”).

The initial coupon rate of the New Hybrid Bonds is fixed at 7.875 per cent per
annum, but it will be subject to a coupon reset on each 5th anniversary of the
issue date of the New Hybrid Bonds. The New Hybrid Bonds have no specified
maturity date, but Finnair may exercise its redemption option on the 5th
anniversary of the issue date of the New Hybrid Bonds and on each annual
interest payment date thereafter.

The New Hybrid Bonds were significantly oversubscribed and were allocated to
more than 100 investors. The New Hybrid Bonds are expected to be issued on 13
October 2015.

The launch of the voluntary cash tender offer (the “Tender Offer”) announced on
28 September 2015 by Finnair for its outstanding hybrid bonds issued on 26
November 2012 (the “2012 Hybrid Bonds”) is conditional upon the successful issue
of the New Hybrid Bonds, and Finnair considers it has received indications of a
sufficient amount of subscriptions for the New Hybrid Bonds to proceed with the
Tender Offer. As a result, in the absence of any unforeseen development, Finnair
expects that it will complete the Tender Offer in accordance with, but subject
always to, the terms and conditions of the Tender Offer contained in the Tender
Offer Memorandum dated 28 September 2015 (the “Tender Offer Memorandum”)
relating to the Tender Offer."We are pleased to have successfully placed new hybrid bonds, which constitute
Finland's largest hybrid bond issue to date. We are especially pleased with the
strong demand from international and domestic investors, which clearly indicates
confidence in Finnair and our ability to successfully implement our strategy in
the current market environmen," says Finnair CFO Pekka Vähähyyppä.

The New Hybrid Bonds, like Finnair's 2012 Hybrid Bonds, which are the subject of
the Tender Offer, are debt instruments, which are subordinated to Finnair's
unsubordinated debt obligations and treated as equity in the consolidated
financial statements under IFRS. The New Hybrid Bonds do not confer on their
holders the right to vote at shareholder meetings and do not dilute the holdings
of the current shareholders.

Finnair has appointed Danske Bank Oyj as tender agent and Danske Bank A/S and
each of Danske Bank A/S and Morgan Stanley & Co. International plc as dealer
managers in connection with the Tender Offer. Finnair has appointed each of
Danske Bank A/S and Morgan Stanley & Co. International plc as joint
coordinators, structuring advisors and joint lead managers and Pohjola Bank plc
as joint lead manager in connection with the issue of the New Hybrid Bonds.

Further information:
Financial Communications Manager Ilkka Korhonen, tel. +358 9 818 4705,
ilkka.korhonen@finnair.com

Distribution:
NASDAQ OMX Helsinki
Principal media

Disclaimer:

This release is for information purposes only and is not to be construed as an
offer to purchase or sell or a solicitation of an offer to purchase or sell with
respect to any securities of Finnair. The distribution of this release and the
related material concerning the Tender Offer or issuance of the New Hybrid Bonds
are prohibited or restricted by law in certain countries. The Tender Offer is
not being made and the New Hybrid Bonds are not being and will not be offered to
the public either inside or outside of Finland. Persons resident outside of
Finland may receive this release and any offering material or documentation
related to the New Hybrid Bonds only in compliance with applicable exemptions or
restrictions. Persons into whose possession this release and any such offering
material or documentation may come are required to inform themselves about and
comply with such restrictions. This release and any such offering material or
documentation may not be distributed or published in any country or jurisdiction
if to do so would constitute a violation of the relevant laws of such
jurisdiction or would require actions under the laws of a state or jurisdiction
other than Finland, including the United States, Australia, Canada, Hong Kong,
South Africa, Singapore and Japan. The information contained herein shall not
constitute an offer to sell or tender, or a solicitation of an offer to buy or
sell any of Finnair's securities including New Hybrid Bonds or the 2012 Hybrid
Bonds to any persons in any jurisdiction in which such offer, solicitation or
sale or tender would be unlawful. None of Finnair, the Joint Lead Managers or
their respective representatives assume any legal responsibility for such
violations, regardless of whether persons contemplating investing in or
divesting Finnair's securities including New Hybrid Bonds or the 2012 Hybrid
Bonds are aware of these restrictions or not.

Persons into whose possession this communication or other information referred
to herein comes should inform themselves about and observe any such restriction.
Any failure to comply with these restrictions may constitute a violation of the
securities laws of any such jurisdiction.

This communication is not an offer of securities for sale in the United States.
The securities referred to herein (including the New Hybrid Bonds) have not been
and will not be registered under the U.S. Securities Act of 1933, as amended
(the “Securities Act”), or under the securities laws of any state or other
jurisdiction of the United States. Accordingly, the securities referred to
herein may not be offered, sold, taken up, exercised, resold, transferred or
delivered, directly or indirectly, in or into the United States, or for the
account or benefit of, U.S. persons absent registration under, or pursuant to an
applicable exemption from, the registration requirements of the Securities Act
and in compliance with any relevant state securities laws. There will be no
public offer of the securities referred to herein in the United States.

This communication is not being made, and this communication has not been
approved, by an authorised person for the purposes of section 21 of the
Financial Services and Markets Act 2000, as amended (the “FSMA”). Accordingly,
this communication is not being distributed to, and must not be passed on to,
the general public in the United Kingdom or to persons in the United Kingdom
save in circumstances where section 21(1) of the FSMA does not apply. This
communication is being distributed on the basis that each person in the United
Kingdom to whom it is made available or at whom it is directed is (i) an
investment professional within the meaning of Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of
the United Kingdom (the “Financial Promotion Order”); (ii) a person within
Articles 49(2)(a) to (d) (“high net worth companies, unincorporated
associations, etc.”) of the Financial Promotion Order; or (iii) any other person
to whom it may otherwise lawfully be communicated by virtue of an exemption to
section 21(1) of the FSMA or otherwise in circumstances where it does not apply
(all such persons together being referred to as “relevant persons”). This
communication and the securities referred to herein are, and will be made,
available only to, and any invitation, offer or agreement to subscribe, purchase
or otherwise acquire such securities will be engaged in only with, such relevant
persons. No other person should rely or act upon it.

This communication is an advertisement and not a prospectus for the purposes of
Directive 2003/71/EC, as amended.

Stabilisation Notice

Danske Bank A/S (contact: Jens Ismunden; telephone: +45 45 14 67 99) hereby
gives notice as Stabilisation Manager may stabilise the offer of the following
securities in accordance with Commission Regulation EC/2273/2003 implementing
the Market Abuse Directive (2003/6/EC).

+-----------------------------------+--------------------------------------+
|The   securities:                  |                                      |
+-----------------------------------+--------------------------------------+
|Issuer:                            |Finnair   Plc                         |
+-----------------------------------+--------------------------------------+
|Guarantor (if any):                |None.                                 |
+-----------------------------------+--------------------------------------+
|Aggregate nominal amount:          |EUR 200 million.                      |
+-----------------------------------+--------------------------------------+
|Description:                       |Unsecured and   subordinated capital  |
|                                   |securities.                           |
+-----------------------------------+--------------------------------------+
|Stabilisation:                     |                                      |
+-----------------------------------+--------------------------------------+
|Stabilisation Manager(s):          |Danske Bank A/S.                      |
+-----------------------------------+--------------------------------------+
|Stabilisation   period expected to |1 October 2015.                       |
|start on:                          |                                      |
+-----------------------------------+--------------------------------------+
|Stabilisation   period expected to |For a maximum of 30   days after the  |
|end no later than:                 |proposed issue date of the securities.|
+-----------------------------------+--------------------------------------+
|Existence, maximum   size and      |The Stabilisation   Manager may over  |
|conditions of use of over-allotment|-allot the securities to the extent   |
|facility:                          |permitted in accordance   with        |
|                                   |applicable law.                       |
+-----------------------------------+--------------------------------------+

In connection with the offer of the above securities, the Stabilisation
Manager(s) may over-allot the securities or effect transactions with a view to
supporting the market price of the securities at a level higher than that which
might otherwise prevail. However, there is no assurance that the Stabilisation
Manager(s) will take any stabilisation action and any stabilisation action, if
begun, may be ended at any time.

ICMA/FCA stabilisation.


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.