Finnair Oyj - Company Announcement

FINNAIR TO BEGIN NEGOTIATIONS WITH PERSONNEL BROUGHT ON BY FUEL CRISIS AND DROP IN DEMAND

FINNAIR OYJ   STOCK EXCHANGE RELEASE   12 JUNE 2008   AT 16:00                  

The price of fuel has risen throughout the first half of the year at much faster
rate than anticipated. Finnair's fuel bill this year will most likely grow by   
160-180 million euros compared with the previous year.                          

Finnair today announced that it will begin negotiations with is personnel in    
accordance with the Act on Co-operation within Undertakings. The company is     
preparing for cuts in production, which will affect all traffic types. The exact
nature of the cuts will become apparent during the negotiations, but they are   
expected to affect approximately 500 staff members. The means used will include 
adjusting the number of temporary staff, part-timing, lay-offs and as a last    
resort, terminations.                                                           

“To ensure the company's growth strategy, we need additional cuts of at least 50
million euros per year and we have begun discussions with our personnel to map  
out savings targets,” says Finnair SVP Human Resources Anssi Komulainen.        

Demand has decreased and this decrease has accelerated at such a rate in the    
past weeks that together with the price development of fuel, Finnair's          
result-making capability has significantly weakened. Demand has dropped         
especially on Chinese routes and it is also reflected on European and domestic 
traffic.                                                                        

Finnair Plc                                                                     
Communications                                                                  
12.6.2008                                                                       

Additional information:                                                         
Anssi Komulainen, SVP Human Resources, tel. +358 9 818 4300                     
Finnair Media Desk tel. +358 9 818 4020