finnair group interim report 1 january – 31 march 2014 · 2016. 11. 24. · ril 2014. by sharing...

Finnair Difficult firs January–M

Tur The Net

inve Uni

from Uni Goo

bus Mar

resu

CEO Pekka The first quaOur turnoveaffected by traffic revenparticularly signs of a re Our result fo34.2 million commercialmeasures is It was a majand the Finnconcluded iagreement. bear the currely on unila The first qua2013 have bon flights belevel, and wreplacing th We will contour long-hain achieving

Group in

st quarter, c

March 2014

rnover decline operationalt cash flow frestments totat cost per av

m previous yt revenue peod developmsiness for fligrket outlook fult of cost re

a Vauramo:

arter of the yer declined ba slight decr

nue decline min business tecovery in de

or the first queuros. This strategy aims inevitable a

jor disappoinnish Flight An NovemberNegotiations

rrent cost strateral measu

arter also incbeen very poetween Euro

we made effohe last of our

tinue the renul fleet starti

g our cost red

nterim re

continued co

ed by 8.4% tl result was -rom operatingalled 233.6 mvailable seat ear’s level.

er available sment in the traghts betweenfor 2014 remduction nego

year is typicay 8.4% year-rease in overmainly due totravel. Cargoemand.

uarter was veindicates cle

med at turnovand vital for F

ntment that oAttendants' Asr 2013 in lines with the Finructure, I hopures is the fin

cluded someositive. It haspe and Japa

orts to improvBoeing 757

newal of our sng next yearduction targe

eport 1 Ja

ost reductio

to 543.3 mill-34.2 million g activities smillion euros kilometre ex

seat kilometreansatlantic jo

n Europe andmain unchangotiations and

ally Finnair’s -on-year andrall capacity,o exchange ro traffic conti

ery weak: Ouearly that ourver growth arFinnair’s futu

our negotiatiossociation (S

e with the Finnnish Pilots' pe we can stnal and least

e positives. Ts also allowean, which begve the comfoaircraft with

service concr. However, oet. Only a pro

anuary –

ons essentia

ion euros (59euros (-17.5tood at -20.5(-9.2).

xcluding fuel,

e (RASK) feoint businessd Japan. ged, Finnair’sd employee c

weakest, and amounted t continued s

rate fluctuationued to suffe

ur operationar cost-reductre absolutely

ure.

ons with the SLSY) under nnish Employ

Associationill reach a mpleasant alte

The results ofed us to accugan in April. ort of travel b

new Airbus

cepts this yeaour future groofitable Finna

– 31 Marc

al

93.2). 5). 5 million euro

CASK (CAS

ll by 4.0%. s, the compa

s result for 2consultations

d this year thto 543.3 millistrong contraons, and a deer from mark

al result decltion program y essential. C

Finnish Aviathe crisis cla

yment and G(SLL) are stutual agreemernative, and

f the transatlmulate valuaOur operatioy launching a321 Sharkle

ar while alsoowth dependair can grow

ch 2014

os (-11.5), an

SK excl. fuel)

ny made pre

014 will be s.

he period waon euros. Thction in leisuecline in homket overcapa

ined significaand the mea

Continuing w

ation Union (Iause includerowth Pact dill ongoing. A

ment on how d we hope to

antic joint buable experienonal quality aa Business Ct aircraft.

making prepds significant.

nd cash flow

) decreased

eparations to

substantially

as particularlyhe decline inure traffic volme market deacity, but ther

antly and shoasures unde

with cost-redu

IAU), the Traed in the agredid not lead tAs Finnair sim to save cost

o avoid it.

usiness we bnce for the jo

also remainedClass seat re

paring for thetly on how we

from

by 0.2 per ce

o begin a join

affected by t

y difficult for turnover wa

ume, Asian emand, re were early

owed a loss r our new

uction

ade Union PReements o any mply cannot ts. Having to

began in Julyoint businessd at a high

enewal and

e renewal of ell we succe

ent

nt

the

us. as

y

of

RO

o

y s

ed

Outlook for The ongoingmain markefrom that gr Finnair estimhigh. The ousignificant imfor its full-ye Business E Global air trliberalisationnetwork carfirst quarter growth in thlong-haul tra The negativdevelopmeneconomy wkilometres, cent in the fsome 2 per remained la Cargo trafficbetween EudevelopmenHowever, thJapan. The price ofdollar is a scurrency. Ththe yen, whBank of Jap Strategy im At the beginjoining the thas started 2013, the coAirlines andmarkets, an The airlinescapacity, flig

r 2014 rema

g uncertain eets. Air trafficrowth without

mates its turnutcome of Fimpact on finaear 2014 fina

Environmen

raffic is curren, increasingrriers, Finnaiof 2014 to im

he market waaffic.

ve development of passengas reflected market capafirst quarter ocent.* Finna

argely uncha

c continued turope, the Nonts in exchanhere were ea

f the largest ignificant exphe US dollarich began in

pan.

mplementati

nning of July transatlantic well and theompetition ad British Airwnd the joint b

s participatingght schedule

ains unchan

economic ouc is expectedt progress in

nover to be cnnair's ongoancial perforancial perform

t

ently undergog competitionr included, comprove theiras mostly con

ent of the exger traffic anin home mar

acity betweenof 2014. Marair increased nged from th

to suffer fromordic region ange rates witarly signs of a

individual copense currenr depreciated 2013, contin

on and part

2013, Finnajoint busines

e first monthsuthorities ap

ways for flightusiness ente

g in the joint es and fares.

ged

tlook in Euroto grow mod its cost savi

close to the poing employermance in 20mance after t

oing a structun, overcapacontinued to i

r competitivenservative. V

xchange ratesd cargo reverket demandn Helsinki anrket capacity

its market she compariso

m overcapaciand Asia undth respect to a recovery in

ost factor of ancy in Finnaid slightly aganued in the f

tnerships

air increased ss founded bs of the transproved the cts between Jered into effe

businesses The aim of t

ope and Asiaderately in 20ings program

previous yeaee consultatio014, and therthe savings

ural change, city, consolidamplement stness in the p

Various partn

s of several enue in the fid, in both busnd Finnair’s E

between Finhare in Euroon period.*

ity in the firstder increasedcargo opera

n demand in

airlines, jet fur’s operation

ainst the eurofirst quarter a

its cooperatby American satlantic jointcompany’s enapan and Eu

ect at the beg

cooperate cothe participa

a is contributi014. Finnair

m and its targ

ar’s level in 2ons and costrefore the conegotiations

the typical cation, allianctructural chaprevailing tignerships have

income currerst quarter o

siness travel European dennair’s Asianopean traffic,

t quarter of 2d pressure. H

ations also wCentral Euro

uel, decreasens, while the o in the first qas a result of

ion with felloAirlines, Britbusiness we

ntry into the jurope. Japanginning of Ap

ommercially ting airlines

ing to weak cr, however, wget cost struc

014. Fuel cot-saving negompany will rehave been c

characteristicces and specnge and costht competitive increased,

encies had af 2014. The wand leisure tstinations gr and Europewhile in Asia

2014, which pHigh fuel priceakened theope as well a

ed slightly in Japanese ye

quarter. The f stimulus me

ow oneworld ish Airways aere in line witjoint busines

n is one of Fipril 2014.

by sharing reis to improve

consumer dewill not be abcture in place

osts are expeotiations will econsider givconcluded.

cs of which acialisation. Eust-reduction pve situation. especially in

a negative effweakness oftraffic. Measrew by approean destinatioan traffic ma

put average ces and negae result for caas Asia, parti

the first quaen is a signifsubstantial d

easures impl

alliance memand Iberia. Tth expectatio

ss establishennair’s most

revenue and e the efficien

emand in ourble to benefit e.

ected to remahave a ving guidanc

re market uropean programs in tCapacity n internationa

fect on the f the Finnishured in seat

oximately 4 pons grew by rket share

yields in trafative argo traffic. cularly in

arter. The USficant incomedepreciation emented by

mbers by The cooperatons. In Octobed by Japan t important

by coordinatcy of their

r

ain

ce

the

al

per

ffic

S e of the

tion ber

ting

operations, and Japan w Progress o Finnair cont2014. As paapproximatemillion eurosolutions an In NovembeFinnish Cablabour agreprocesses oloss-makingcompany w Although thon cost savdrafting optirepresentatfunctions as The employNegotiationmade later i Finnair’s obmarket waghours. Achiecompetitivecompetitionlong-term reper cent, wh Finnair is alannual costtarget is therespect to aeuros. At thbased varia Financial p Finnair’s turdecreased bin leisure trathe Japanesoutsourced.to 421.0 mildecreased bin the marke

increase thewith improve

of the struct

tinued the imart of the supely 35 million

os. Finnair cond schedules

er 2013, the Abin Crew Uniement in lineof separate, cg results for 2ould have to

e company’sings, it annoional plans toives on the iss well as cab

yee consultats with pilots in spring.

bjective in theges and costseving the tarness, as hig and fleet inv

eturn objectivhich would e

so continuints permanente company’s all of its costse same time

able costs.

performance

rnover in the by 2.9 per ceaffic, lower ese yen, and t. Operationallion euros (4by 5.0 per ceet price of fu

eir unit revened intercontin

ural change

mplementatiopplementary n euros and tontinued negos for achievin

Association on (SLSY), t

e with the Fincompany-sp2013, Finnai

o assess alte

s priority andunced in cono increase ossue. These

bin attendants

tions do not ainclude sign

e negotiations in the indusrgets of the ch fuel pricesvestments inve set for thenable invest

g to pursue stly by 200 munit cost lev

s. By the ende, the compa

e in January

first quarter ent. The factoeuro-denominthe loss of thl costs exclu

445.6). Fuel cent year-on-yel, and exch

ue, expand tnental connec

e and cost-re

n of its struccost-reductiotechnical serotiations with

ng these cost

of Support Sthe Finnish Annish Employecific negotiar stated that rnative meas

preference njunction withutsourcing. Fconsultation

s.

apply to pilotificant chang

s is primarilystry, primarilycost-reductio, successful the coming

e company bments in gro

savings in alillion euros bel in 2010. I

d of March 20ny has been

y–March 201

fell by 8.4 peors contributnated revenuhe external tuding fuel deccosts, includyear to 161.0ange rate flu

their networkctions.

eduction pr

ctural changeon program, rvices and cuh the trade ut reduction ta

Service IndusAviation Unioyment and Gations relateif necessary

sures for ach

is to reach ah the AnnualFinnair begans concern e

ts, as the piloges to Collec

y to achieve y by implemen program iscost reductioyears requir

by Finnair’s Bowth and bus

l other cost cby the end ofIn addition, th014, Finnair able to mov

14

er cent year-ting to the deue from Asianurnover of Avcreased by 5ing hedging

0 million eurouctuations. P

ks and provid

rogram

e and cost-reFinnair aims

ustomer servnions represargets.

stries (PALTAon (IAU) and Growth Pact ad to Finnair’s

y progress wehieving the co

an agreemenl General Men employee

employees wo

ots’ savings ctive Labour A

a level of cosenting changs essential foon measuresre a substantBoard of Diresiness develo

categories. Tf 2014. The phe company had achieve

ve a substant

-on-year to 5ecline in turnon traffic that viation Servic5.5 per cent fand costs in

os (169.4) duPersonnel cos

de the travell

duction progs to reduce flvice personnesenting perso

A) reached aTrade Union

and also agres cost reductere not madeost reduction

t with personeeting held oconsultationsorking in adm

negotiations Agreements

sts and wageges to wage sor improving ts taken by cotial improvemctors is an oopment.

The combinepoint of referemust achievd a total costtial share of f

543.3 million over in particwas mainly dces after thefrom the comcurred from

ue to a declinsts declined

ling public be

grams in the ight crew coel costs by aonnel regard

an agreemenn Pro on a nereed on the stions. When e in the negons.

nnel throughon 27 March ts with persoministrative a

s deadline is and the dec

es that correstructures anthe company

ompetitors, inment in profitoperating pro

ed total targetrence for the ve the markest reduction ofixed costs to

euros (593.2cular includedue to the de

e operations wmparison per

emissions trne in capacityby 11.4 per c

etween Euro

first quarter sts by

approximatelying the

nt with the ew collectiveschedule andannouncing

otiations, the

negotiationsthat it was nnel and support

in June. cisions will be

esponds withnd working y’s ntensified ability. The fit margin of

t is to reducecost reductio

et level with of 163 milliono volume-

2). Capacity d a contractiepreciation owere iod, amountirading, y, the decreacent to 90.0

ope

of

y 8

e d its

s

e

6

e on

n

on of

ng

ase

million eurodenominatewhich refersderivatives euros (-17.5 Finnair’s inccurrency delater. This isnot includedcurrency defor January–the companmillion euroafter taxes w Unit revenutraffic and bto 5.8 euro 2.6 per centcent and amper cent fro Balance sh The Group’seuros on 31(5.8). Shareincome sho Shareholdecurrency deaccording toafter deferre Cash flow a Finnair continvestments(-11.5), and The equity rper cent (80(552.7) andcompany rewhich sale a The companmillion eurothe option oemploymenentirely unumatures at t

os (101.6) dued operationas to the operand in the va5).

come statemenominated fs an unrealisd in the operaenominated f–March inclu

ny’s restructuos (-13.6). Thwas -28.1 m

e per availabbusiness travcents (6.1). Et from the co

mounted to 6m previous y

heet on 31 M

s balance sh1 March 2013eholders’ equowing a loss.

ers’ equity incerivatives useo IAS 19. Thed taxes.

and financia

tinues to havs. Net cash fd net cash flo

ratio was 30.0.3). At the e interest-bea

epaid an aircand leasebac

ny’s liquidity os (401.4) at of re-borrowinnt pension insused 180 millthe end of Ju

e to the persal costs decrrating result ealue of foreig

ment includesfleet maintensed valuationational resultfleet maintenuded items reuring, amounhe result befoillion euros (-

ble seat kilomvel and the dExcluding th

omparison pe6.43 euro cenyear’s level a

March 2014

heet totalled 23). Shareholduity declined

cludes a fair ed for hedgine value of th

al position

ve a strong filow from ope

ow from inves

.8 per cent (3end of the pearing net debraft financingck agreemen

remained stthe end of thng employmesurance comion euro synune 2016.

sonnel reducreased to 582excluding nogn currency-d

s the change ance reserve

n result basedt. The changance reserve

elated to the ting in total t

ore taxes for -15.7).

metre (RASKepreciation oe effect of exeriod. Unit conts (6.50). Unand amounte

2,056.2 millioders’ equity tin the first q

value reservng as well ase item at the

nancial positerating activitstments total

34.4) and geeriod under rebt stood at 32g loan of 107nts have bee

trong in the fhe period. Inent pension f

mpany. Drawindicated cred

ctions implem2.1 million eu

on-recurring idenominated

in the fair vaes that took d on IFRS, w

ge in the fair es amountedsale of Finn

to 12.7 millioJanuary–Ma

K) declined, pof the Japanexchange rateost per availanit cost exclued to 4.37 eu

on euros at ttotalled 625.uarter of 201

ve that is affes actuarial gae end of the f

tion, which sties in the firlled 233.6 m

earing was 5.review, intere2.6 million eu7 million euroen signed.

first quarter on addition to tfund reserveing these resdit agreemen

mented after turos (615.1).tems, capita

d fleet mainte

alue of derivaplace during

where the resvalue of derid to -6.9 millicatering, flee

on euros (-1.4arch was -33

primarily dueese yen by 4e fluctuationsable seat kilouding fuel (CAro cents.

the end of th9 million eur

14 due to the

ected by chanains and lossfirst quarter o

supports busirst quarter of illion euros (

.2 per cent (2est-bearing duros (151.3). os, which was

of 2014. The the cash fundes worth appserves requirnt, which was

the comparis The compal gains and cenance reser

atives and in the period usult has no cvatives and on euros (5.

et sale and le4). The opera.9 million eu

e to the weak4.0 per cent ys, passenger ometre (CASKASK excl. fu

e period undos (738.3), w

e period’s res

nges in the faes related toof 2014 was

iness develo2014 amoun-9.2).

20.6). The addebt amounte

During the ps used to fina

Group’s casds on the baroximately 43res a bank gus intended as

son period. Eany’s operatiochanges in thrves, was -34

the value ofunder reviewcash flow effein the value 3). The non-easeback agating result wros (-18.6) a

k developmeyear-on-yearr unit revenueK) decreaseel) decrease

der review (2which is 4.9 esult and com

fair values ofo defined ben-38.7 million

opment and fnted to -20.5

djusted geared to 498.8 mperiod underance four A3

sh funds amoalance sheet,30 million euuarantee. Fins reserve fun

Euro-onal result, he fair value 4.2 million

f foreign w but will fall dect and whichof foreign -recurring itegreements anwas -28.4 and the result

nt of leisure r and amoune declined byd by 1.0 per

ed by only 0.2

,188.4 millioeuros per shprehensive

f oil and nefit plans n euros (19.0

future 5 million euro

ing was 71.2million euros r review, the 330 aircraft, f

ounted to 466, the Group huros from its nnair has annding and

of

due h is

ms nd

t

ted y

2

n are

0)

os

2

for

6.3 has

Advance pa At the end o200 million expenses to Capital exp In the first qand was priincluding adrepresenting The currentasset investcorrespondsincludes thr Fleet Finnair’s fleof the first qaircraft. In thexpired, and As of the en During the pas per mem In addition tcompany. Toperated byother airlineairlines. A350 aircra Finnair estimsecond halfreplace airceight more adeliveries m Finnair has agreements Fleet operate

Finnair on 31

Narrow-body

Airbus A319

Airbus A320

Airbus A321

ayments rela

of the revieweuros were iotalled -5.6 m

penditure

quarter of 201marily relate

dvance paymg a majority

t state of the tments on cos to approximree finance le

et is managequarter of 201he first quartd one new A

nd of the first

period undermorandums o

to the aircrafThese aircrafy Finnair wases was 5.5 ye

ft

mates that itsf of 2015. Fincraft currentlyaircraft. Finn

may have.

the possibilis with differe

ed by

1.3.2014

y fleet

ted to fixed a

w period, 65.0n use. Net c

million euros

14, capital exed to fleet moments, is estimof this total.

credit markeompetitive temately 65 peease aircraft.

ed by Finnair14, Finnair itter, two B757

A321 Sharkle

t quarter of 2

r review, the of understand

ft operated byft are operates 9.6 years aears. Finnair

s first A350 Xnnair orderedy in use in lonair is evalua

ty to adjust tnt durations.

Seats

138/123

165

209/196

asset investm

0 million eurocash flow fro(-4.3) and fin

xpenditure eodifications amated at app

et and Finnairms. The com

er cent of the .

r Aircraft Finaself operated7 aircraft wert aircraft was

2014, the com

company coding signed i

y Finnair, its ed by other aat the end of t

also has eig

XWB wide-bod 11 A350 XWng-haul traffi

ating alternati

he size of its

# Own

9 7

10 6

10 4

ments were 7

os of Finnair’om financing nancial incom

excluding advand improvemproximately 1

ir’s good debmpany has 3value of the

ance Oy, a wd 44 aircraft,re removed fs added to th

mpany opera

oncluded salen December

balance sheairlines, mainthe first quar

ght leased ai

ody aircraft wWB aircraft fic. The orderives to minim

s fleet flexibly

Leased

(operational

leasing)

2

4

6.0

70.6 million e

s short-termamounted tome 0.8 millio

vance paymement. Capita160 million e

bt capacity e38 unencumbe entire fleet o

wholly-owned of which 15from Finnair’he fleet.

ates an all-Ai

e and leasebr 2013.

eet includes 2nly by Flybe Frter of 2014, rcraft that it h

will be deliverom Airbus inr includes anmise the effec

y according t

A

(finance

leasing)

euros (30.3).

commercial o -114.7 million euros (1.3)

ents totalled l expenditureuros, with in

nables the finbered aircrafof 1.0 billion

d subsidiary are wide-bos fleet accor

rbus fleet.

back agreeme

25 other aircFinland. The and that of t

has sublease

red and addn 2005. Som

n additional octs that any p

to demand a

Average C

age 31.1

31.1

12.7

11.6

8.0

paper progron euros (-1).

33.1 million e for the full yvestments in

nancing of fuft, the book veuros. The b

of Finnair Plody and 29 nrding to plan

ents for thre

craft owned be average agethe Finnair fleed to be ope

ed to the fleeme of these aoption for thepossible dela

and outlook d

Change Or

12.2013

12.2012

+1

ram totalling 3.6). Financi

euros (24.1)year 2014, n the fleet

uture fixed-value of whicbook value

c. At the enarrow-body as their leas

e A330 aircr

by the e of the fleeteet operatedrated by othe

et in the ircraft will delivery of ays in

due to its leas

rdered Add

option

1

ial

ch

d

ses

aft

t d by er

se

d.

ns

Boeing B757

Wide-body fl

Airbus A330

Airbus A340

Airbus A350

Total

Fleet owned

and operated

airlines on 31

ATR 72

Embraer 170

Embraer 190

Total * All ATR aircrathe Group. Business a The segmenbusiness arServices seTravel Retaproperties rThe segmen Airline Bus This busineservice andaircraft. TheManagemenFinnair FlighBusiness seoffice servicactivities.

Key figures

Turnover and

Turnover, EU

Operational re

Operating res

Operating r

Personnel

Average numb

The turnoveprofitability

leet

by Finnair

d by other

1.3.2014*

aft, all E190 airc

area develop

nt reporting oreas are Airliegment is notail Oy as wellelated to thent informatio

siness

ss area is re service con

e Airline Busnt functions aht Academy egment also ces and the m

d result

R million

esult, EUR millio

sult, EBIT, EUR

result, % of turn

ber of employee

er of Airline Bof operations

227

297/271/263

270/269

na.

Seats

68–72

76

100

craft and two E1

pment in Ja

of Finnair Grne Businesst reported se as Finnair’s

e company’s on for the 201

esponsible focepts, flight oiness segmeas well as thOy and Finnincludes airc

management

on

million

over

es

Business in Js declined su

0 0

8 1

7 5

44 23

# Own

12 12

5 5

8 8

25 25

170 aircraft hav

nuary–Marc

roup’s financand Travel S

eparately. Inss property hooperational a

13 financial y

or scheduled operations a

ent comprisese subsidiarie

nair Aircraft Fcraft maintent and mainte

January–Marubstantially. T

0

4

2

18

ve been leased t

ch 2014

cial statemenServices. Frostead, the opoldings, officeactivities) areyear has bee

passenger aand activity cos the Sales &es Finnair CaFinance Oy. Fnance, Finnaenance of pro

1–32014

508.1

-34.5

-28.2

-5.5

4,533

rch fell by 8.0Ticket reven

3

3

A

to Flybe Nordic

ts is based oom the first q

perations it ine services ane reported as

en restated a

and charter tonnected wit& Marketing,argo Oy, FinnFrom the firs

air Travel Retoperties relat

1–201

552.

-20.

-16.

-2.

5,01

0 per cent toue from sche

16.0

4.4

11.2

9.6

Average C

age 31.1

31.1

4.7

7.8

5.3

5.5

and three E170

on business aquarter of 20ncluded (aircrnd the manags part of the ccordingly.

raffic as wellth the procur Operations nair Cargo T

st quarter of 2tail Oy and Fted to the co

–33

2

5

2

9

6

508.1 millioneduled traffic

-2

-1

Change Or

12.2013

12.2012

0 aircraft to othe

areas. The r014 onward, traft maintenagement and Airline Busin

l as cargo sarement and fand Resourc

Terminal Ope2014 onward

Finnair’s propmpany’s ope

Change %

-8.0

-68.5

-74.2

-2.6 %-p

-9.6

n euros (552c constitutes

11

12

rdered Add

option

0

er parties outsid

eporting the Aviation ance, Finnairmaintenanceness segmen

ales, customefinancing of ces

erations Oy, d, the Airline perty holdingerational

2013

2,271.9

8.8

6.3

0.3

4,834

2.2) and the approximate

8

8

d.

ns

0

e

r e of nt.

er

s,

9

8

3

3

4

ely

65 per cent per cent of tthan-expectcomparison In January–overall capa78.7 per cenwhile capactraffic as meincreased b In January– The negativdevelopmenJapanese yweakness oleisure traffidestinationsAsian and Etraffic, while North Amerimproved in The demanregarding thoperators otheir 2013–2volumes anwith the numcorrespondiyear-on-yea Cargo translong-haul trarevenue. Thyear. The ovtonne kilomalso operateTokyo as paapproximate The arrival pscheduled f * Finnair’s eFinnair’s es

of turnover. total revenueted developm

n period.

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FINNAIR PLBoard of Dir Briefings Finnair will hoffice at TieThe conferecode 25585 For further Chief FinanErno Hilden Financial CoMari Repon Investor ReKati Kakso

LC rectors

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Key Figures Q1 2014 Q1 2013 Change % 2013

Turnover and result

Turnover, EUR million 543.3 593.2 -8.4 2,400.3

Operational result, EBIT, EUR million * -34.2 -17.5 -95.1 11.9

Operational result, % of turnover -6.3 -3.0 -3.3 %-p 0.5

Operating result, EBIT, EUR million -28.4 -13.6 -108.4 7.9

Operational EBITDAR, EUR million 17.4 33.3 -47.7 210.1

Result before taxes, EUR million -33.9 -18.6 -82.7 26.8

Net result, EUR million -28.1 -15.7 -79.4 22.9

Balance sheet and cash flow

Equity ratio, % 30.8 34.4 -10.3 32.6

Gearing, % 5.2 20.6 -74.8 19.9

Adjusted gearing, % 71.2 80.3 -11.3 79.2

Gross investment, EUR million 33.1 24.1 37.2 77.3

Return on capital employed, ROCE, 12 months rolling, % 2.7 3.3 -18.3 3.6

Return on equity, ROE, 12 months rolling, % 1.5 1.9 -18.7 3.2

Net cash flow from operating activities, EUR million -20.5 -11.5 -78.4 142.4

Share

Share price at the end of quarter, EUR 2.69 2.55 2.77

Earnings per share from the result of the period, EUR ** -0.22 -0.12 -78.1 0.18

Earnings per share, EUR -0.24 -0.15 -61.8 0.11

Traffic data, unit costs and revenue

Passengers, 1,000 2,214 2,160 2.5 9,269

Available seat kilometres (ASK), million 7,481 7,702 -2.9 31,162

Revenue passenger kilometres (RPK), million 5,885 6,129 -4.0 24,776

Passenger load factor (PLF), % 78.7 79.6 -0.9 %-p 79.5

Unit revenue per available seat kilometre, (RASK), cents/ASK 5.81 6.06 -4.0 6.24

Unit revenue per revenue passenger kilometre, yield, cents/RPK 6.42 6.68 -3.9 6.86

Unit cost per available seat kilometre, (CASK), cents/ASK 6.43 6.50 -1.0 6.47

CASK excluding fuel, cents/ASK 4.37 4.38 -0.2 4.35

Available tonne kilometres (ATK), million 1,134 1,149 -1.3 4,709

Revenue tonne kilometres (RTK), million 738 747 -1.2 3,107

Cargo and mail, tonnes 35,220 32,049 9.9 146,654

Cargo traffic unit revenue per revenue tonne kilometre, cents/RTK 23.49 25.42 -7.6 25.14

Overall load factor, % 65.1 65.0 0.1 %-p 66.0

Flights, number 23,982 23,518 2.0 97,360

Personnel

Average number of employees 5,516 6,061 -9.0 5,859

** Before hybrid bond interest.

* Operational result: Operating result excluding changes in the fair value of derivatives and in the value of foreign currency denominated fleet maintenance reserves, non-recurring items and capital gains.

Comparative figures for 2013 have been restated due to change in accounting principles related to treatment of overhauls. In addition, comparative figures in balance sheet have been effected by the netting of deferred taxes. See note 2 for more information.

Consolidated income statement

in mill. EUR Q1 2014 Q1 2013 Change % 2013

Turnover 543.3 593.2 -8.4 2,400.3

Other operating income 4.5 4.4 3.9 18.8

Operating expenses

Staff costs -90.0 -101.6 -11.4 -381.3

Fuel -161.0 -169.4 -5.0 -689.9

Lease payment for aircraft -16.2 -14.7 10.4 -57.5

Other rental payments -39.4 -35.6 10.8 -152.0

Fleet materials and overhaul -30.3 -35.6 -14.8 -125.8

Traffic charges -51.6 -50.1 3.1 -222.3

Ground handling and catering expenses -63.2 -63.5 -0.5 -257.3

Expenses for tour operations -25.1 -28.1 -10.5 -89.4

Sales and marketing expenses -14.3 -17.9 -20.2 -72.9

Depreciation -35.5 -36.2 -2.0 -140.7

Other expenses -55.4 -62.4 -11.3 -218.1

Operational result, EBIT -34.2 -17.5 -95.1 11.9Fair value changes of derivatives and foreign currency denominated fleet maintenance reserves -6.9 5.3 <-200 % 21.7

Non-recurring items 12.7 -1.4 > 200 % -25.7

Operating result, EBIT -28.4 -13.6 -108.4 7.9

Financial income 0.8 1.3 -39.0 42.6

Financial expenses -5.6 -4.3 -32.4 -19.7

Share of result in associates and joint ventures -0.7 -2.0 66.3 -4.0

Result before taxes -33.9 -18.6 -82.7 26.8

Direct taxes 5.8 2.9 100.5 -3.9

Result for the period -28.1 -15.7 -79.4 22.9

Result for the period attributable to shareholders of the parent company -28.2 -15.8 22.6

Result for the period to non-controlling interest 0.1 0.1 0.3Earnings per share attributable to shareholders of the parent company (euro)

Earnings per share (basic, diluted) -0.24 -0.15 0.11

Earnings per share from the result of the period -0.22 -0.12 0.18

Comparative figures for 2013 have been restated due to change in accounting principles related to treatment of overhauls. See note 2 for more information.

Consolidated balance sheet

in mill. EUR 31 Mar 2014 31 Mar 2013 2013

ASSETS

Non-current assets

Intangible assets 18.4 23.2 19.3

Tangible assets 1,152.6 1,312.9 1,292.6

Investments in associates and joint ventures 7.5 10.4 8.2

Financial assets 20.2 22.0 20.5

Deferred tax asset 8.6 0.0 0.0

Non-current assets total 1,207.3 1,368.4 1,340.6

Short-term receivables

Inventories 17.0 11.3 19.9

Derivatives 29.0 60.1 43.6

Trade and other receivables 324.0 309.6 237.1

Money market investments 165.6 361.6 335.9

Cash and cash equivalents 300.7 39.8 122.9

Current assets total 836.3 782.3 759.4

Non-current assets held for sale 12.6 37.6 17.7

Assets total 2,056.2 2,188.4 2,117.6

SHAREHOLDERS' EQUITY AND LIABILITIES

Shareholders' equity

Share capital 75.4 75.4 75.4

Other equity 549.9 662.2 601.9

Total 625.4 737.6 677.3

Non-controlling interest 0.5 0.7 0.7

Equity total 625.9 738.3 678.0

Long-term liabilities

Deferred tax liability 0.0 8.5 3.4

Long-term interest-bearing liabilities 369.3 373.4 385.5

Pension obligations 25.1 8.8 10.6

Provisions 75.4 86.3 69.3

Other long-term liabilities 26.7 20.5 25.4

Long-term liabilities total 496.5 497.4 494.1

Short-term liabilities

Provisions 30.1 36.2 40.5

Short-term interest-bearing liabilities 129.6 179.3 207.5

Derivatives 34.2 12.6 29.1

Trade payables and other liabilities 739.9 721.9 666.1

Liabilities of non-current assets held for sale 0.0 2.6 2.3

Short-term liabilities total 933.8 952.6 945.5

Liabilities total 1,430.3 1,450.1 1,439.6Shareholders' equity and liabilities total 2,056.2 2,188.4 2,117.6


Consolidated statement of changes in equity

in mill. EUR

Share capital Other restricted

funds

Hedging reserve and

other OCI items

Unrestricted equity funds

Retained earnings

Hybrid bond Equity attributable

to share-holders of the parent

Non-controlling

interests

Own equity total

Shareholders' equity, 1 Jan 2014 75.4 168.1 -15.0 247.3 82.5 118.9 677.3 0.7 678.0Result for the period -28.2 -28.2 0.1 -28.1Items of comprehensive income -23.7 -23.7 -23.7Translation difference 0.0 0.0 0.0Comprehensive income for the financial period 0.0 0.0 -23.7 0.0 -28.2 0.0 -51.9 0.1 -51.8Dividends paid 0.0 -0.2 -0.2Share-based payments -0.1 -0.1 -0.1Shareholders' equity, 31 Mar 2014 75.4 168.1 -38.7 247.3 54.3 118.9 625.4 0.5 625.9

in mill. EUR

Share capital Other restricted

funds

Hedging reserve and

other OCI items

Unrestricted equity funds

Retained earnings

Hybrid bond Equity attributable

to share-holders of the parent

Non-controlling

interests

Own equity total

Shareholders' equity, 1 Jan 2013 75.4 168.1 0.0 247.1 112.6 171.1 774.4 0.9 775.2Change in accounting principles (restatement) -25.6 -25.6 -25.6Shareholders' equity, restated, 1 Jan 2013 75.4 168.1 0.0 247.1 87.0 171.1 748.7 0.9 749.6Result for the period -15.7 -15.7 0.1 -15.7Items of comprehensive income 19.0 19.0 0.0 19.0Translation difference -0.1 -0.1Comprehensive income for the financial period 0.0 0.0 19.0 0.0 -15.7 0.0 3.3 -0.1 3.1Dividends paid -12.7 -12.7 -12.7Purchase of own shares -1.7 -1.7 -1.7Shareholders' equity, 31 Mar 2013 75.4 168.1 19.0 245.5 58.5 171.1 737.6 0.7 738.3

Consolidated cash flow statement

in mill. EUR Q1 2014 Q1 2013 2013

Cash flows from operating activities

Profit for the financial year -28.1 -15.7 22.9

Operations for which a payment is not included * 21.4 30.9 115.9

Other adjustments to profit for the period

Interest and other financial expenses 5.6 4.3 19.7

Interest income and other financial income -0.1 -1.2 -38.6

Income taxes -5.8 -2.9 3.9

Changes in working capital -11.6 -21.6 35.8

Interest paid -2.6 -3.1 -12.1

Paid financial expenses -2.0 -1.0 -3.8

Received interests 2.7 0.9 1.4

Taxes paid 0.0 -2.0 -2.7

Net cash flow from operating activities -20.5 -11.5 142.4

Cash flows from investing activities

Investments in intangible assets -0.1 -0.6 -2.3

Investments in tangible assets -39.2 -18.5 -96.4

Net change of financial interest bearing assets at fair value through profit and loss 90.4 9.0 14.6

Net change of shares classified as available for sale 0.0 0.0 53.7

Divestment of fixed assets and group shares 181.8 0.0 8.9

Dividends received 0.0 0.1 1.2

Change in non-current receivables 0.7 0.7 1.0

Net cash flow from investing activities 233.6 -9.2 -19.3

Cash flows from financing activities

Proceeds and changes from borrowings 0.0 0.0 150.0

Loan repayments and changes -114.7 -11.9 -115.0

Hybrid bond repayments 0.0 0.0 -52.4

Hybrid bond interest and expenses 0.0 0.0 -15.4

Purchase of own shares 0.0 -1.7 -1.7

Dividends paid 0.0 0.0 -13.0

Net cash flow from financing activities -114.7 -13.6 -47.4

Change in cash flows 98.4 -34.3 75.7Liquid funds, at beginning 331.8 256.1 256.1

Change in cash flows 98.4 -34.3 75.7

Liquid funds, at end 430.2 221.7 331.8

0.0 0.0

Notes to consolidated cash flow statement

* Operations for which a payment is not included

Depreciation 35.5 36.2 140.7

Employee benefits 2.9 0.5 7.3

Fair value changes in derivatives and changes in exchange rates of fleet overhauls 6.9 5.3 -21.7

Other adjustments -23.9 -11.1 -10.5

Total 21.4 30.9 115.9

Financial asset at fair value 165.6 361.6 335.9

Liquid funds 300.7 39.8 122.9

Short-term cash and cash equivalents in balance sheet 466.3 401.4 458.8

Maturing after more than 3 months -36.1 -132.2 -126.5

Shares held to trading purposes 0.0 -47.5 -0.4

Total in cash flow statement 430.2 221.7 331.8


NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. BASICS OF PREPARATION

2. ACCOUNTING PRINCIPLES

3. CRITICAL ACCOUNTING ESTIMATES AND SOURCES OF UNCERTAINTY

4. SEGMENT INFORMATION

This consolidated interim report has been prepared according to the International (IAS) Standard 34: Interim Financial Reporting.

The accounting principles applied in the interim report are consistent with the principles published in the 2013 consolidated financial statements, except for the changes mentioned below. The figures presented in this statement are not rounded, and therefore total sum calculated from these individual figures does not necessarily match the corresponding sum stated here. Key figures stated here are calculated using the exact figures.

Finnair has changed 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. Previously overhauls were expensed when they occured.

The change reduces the volatility of engine overhaul costs, which improves the accuracy of forecasting future profitability and improves comparability over of periods. It also improves 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. The change decreased Finnair equity at 31 December 2013 by 13.8 million euros and improved 2013 EBIT by 16.7 million euros. In addition, the change increased 2013 gross investments, improved 2013 cash flow from operating activities and reduced cash flow from investing activities respectively. It also affected Finnair’s 2013 key figures.

The change in the accounting principle affects the Airline Business segment. Comparative periods have been restated accordingly, and comparison between restated and previously reported figures have been published at 27 of March 2014 in a separate stock exchange release.

In addition, the group has made an evaluation on the nature and classification of its deferred tax assets and liabilities, and concluded that they meet the criteria for netting according to IAS 12, up to the amount that they relate to income taxes levied by the same taxation authority. The deferred tax assets and liabilities have been netted and comparative periods have been adjusted accordingly.

The IFRS-standards and interpretations applied by the Group in 2014 are introduced in the accounting principles of 2013 financial statements.

The preparation of the interim report requires the company’s management to make estimates and assumptions that influence the levels of reported assets and liabilities as well as of revenue and expenses. The actual outcome may differ from the estimates made. The main estimates used are the same as used while preparing the financial statements 2013.

Segment information is presented in line with business segments, which are based on the Group's internal organisation structure and management reporting. From the first quarter of 2014 onward, 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 business segments are Airline Business and Travel Services. Comparative periods have been restated according to new segment division.

Business segment data

in mill. EURAirline

Business

Travel

Services

Group

eliminations

Unallocated

items Group

External turnover 469.4 73.9 543.3

Internal turnover 38.7 0.3 -39.0 0.0

Turnover 508.1 74.2 -39.0 0.0 543.3

Operational result, EBIT -34.5 0.3 -34.2

Operating result -28.2 -0.3 0.0 -28.4

Share of result in associates and joint ventures -0.7 -0.7

Financial income 0.8 0.8

Financial expenses -5.6 -5.6

Income tax 5.8 5.8

Non-controlling interest -0.1 -0.1

Result for the period attributable to shareholders of the parent company -28.2


Business segment data

in mill. EURAirline

Business

Travel

Services

Group

eliminations

Unallocated

items Group

External turnover 511.7 81.5 593.2

Internal turnover 40.5 0.3 -40.9 0.0

Turnover 552.2 81.8 -40.9 593.2

Operational result, EBIT -20.5 2.9 -17.5

Operating result -16.2 2.5 -13.6

Share of result in associates and joint ventures -2.0 -2.0Financial income 1.3 1.3

Financial expenses -4.3 -4.3

Income tax 2.9 2.9

Non-controlling interest -0.1 -0.1

Result for the period attributable to shareholders of the parent company -15.8


Turnover


Airline Business 508.1 552.2 -8.0 2,271.9

Travel Services 74.2 81.8 -9.3 251.7

Group eliminations -39.0 -40.9 4.6 -123.2

Total 543.3 593.2 -8.4 2,400.3

Operating result


Airline Business -28.2 -16.2 -74.2 6.3

Travel Services -0.3 2.5 -109.9 1.6

Total -28.4 -13.6 -108.4 7.9

Employees average by segment

Q1 2014 Q1 2013 Change % 2013

Airline Business 4,533 5,016 -9.6 4,834

Travel Services 704 787 -10.5 751

Other functions 279 258 8.1 274

Total 5,516 6,061 -9.0 5,859

Q1 2013

Q1 2014

5. MANAGEMENT OF FINANCIAL RISKS

Derivatives, in mill. EURNominal

value

Fair net

value

Nominal

value

Fair net

value

Nominal

value

Fair net

value

Currency derivatives

Hedge accounting items (forward contracts):

Jet fuel currency hedging 379.8 -12.8 432.0 10.8 370.5 -17.0

Fair value hedging of aircraft acquisitions 302.1 4.0 294.9 22.3 244.1 2.2

Currency hedging of lease payments 99.5 -0.9 35.8 0.6 58.3 -1.6

Hedge accounting items total 781.4 -9.6 762.7 33.7 672.9 -16.4

Items outside hedge accounting:

Jet fuel currency hedging 4.9 -0.3 0.0 0.0 0.0 0.0

Operational cash flow hedging (forward contracts) 364.5 3.4 179.0 3.8 407.9 2.4

Operational cash flow hedging (options)

Call options 130.5 11.3 278.5 14.1 149.8 16.1

Put options 164.2 -0.7 344.1 -4.8 169.5 -0.8

Balance sheet hedging (forward contracts) 19.3 -0.3 32.7 0.8 20.4 -1.2

Items outside hedge accounting total 683.3 13.4 834.3 13.9 747.5 16.5

Currency derivatives total 1,464.7 3.7 1,597.0 47.6 1,420.4 0.1

Commodity derivatives

Hedge accounting items:

Jet fuel forward contracts, tonnes 575,950 -11.3 584,060 1.1 563,550 11.8

Electricity derivatives, MWh 20,388 -0.1 0 0.0 17,568 0.0

Hedge accounting items total -11.4 1.1 11.8

Items outside hedge accounting:

Jet fuel forward contracts, tonnes 17,500 -0.3 0 0.0 18,000 0.8

Options

Call options, jet fuel, tonnes 204,500 1.7 213,000 1.2 201,000 3.4

Put options, jet fuel, tonnes 204,500 -1.3 268,500 -2.5 201,000 -1.1

Electricity derivatives, MWh 63,936 -0.6 83,376 -0.3 71,100 -0.5

Items outside hedge accounting total -0.5 -1.6 2.6

Commodity derivatives total -11.8 -0.5 14.4

Interest rate derivatives

Hedge accounting items:

Interest rate swaps 150.0 3.3 0.0 0.0 150.0 1.2

Hedge accounting items total 150.0 3.3 0.0 0.0 150.0 1.2Items outside hedge accounting:

Cross currency Interest rate swaps 17.1 0.0 23.6 1.6 17.3 0.2

Interest rate swaps 25.0 -0.4 25.0 -0.9 25.0 -0.5

Items outside hedge accounting total 42.1 -0.4 48.6 0.7 42.3 -0.3

Interest rate derivatives total 192.1 2.9 48.6 0.7 192.3 0.9

Derivatives total -5.3 47.8 15.4

No significant changes have been made to the Group’s risk management principles in the reporting period. The objectives and principles of risk management are consistent with information presented in the Group’s 2013 Financial Report. The tables below present the nominal value or the amount and net fair value of derivative contracts used in Group's hedge accounting.

31 Mar 2014 31 Mar 2013 2013

6. FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

Fair value hierarchy of financial assets and liabilities valued at fair value

Fair values at the end of the reporting period, in mill. EUR 31 Mar 2014 Level 1 Level 2 Level 3

Financial assets at fair value through profit and loss

Securities held for trading 150.6 35.2 115.4

Derivatives held for trading

Currency and interest rate swaps 3.3 3.3

- of which in fair value hedge accounting 3.3 3.3

Currency derivatives 23.6 23.6


- of which in cash flow hedge accounting 0.6 0.6

Commodity derivatives 0.9 0.5 0.4


Total 178.3 35.2 142.7 0.4

Financial liabilities recognised at fair value through profit and loss


Interest rate swaps 0.4 0.4


Currency derivatives 19.9 19.9



Commodity derivatives 12.7 12.7


Total 33.0 0.0 33.0 0.0

During the reporting period no significant transfers took place between fair value hierarchy Levels 1 and 2.

Reconciliation of financial assets and liabilities valued at fair value according to Level 3

Fair values at the end of the reporting period, in mill. EURSecurities held

for trading


Available-for-sale share

investments Total

Opening balance 2.3 2.3

Profits and losses in income statement total -0.3 -0.3

In comprehensive income 0.0

Purchases (and sales) 0.0

Settlements (and issues) -1.6 -1.6

Transfers to and from Level 3 0.0

Closing balance 0.0 0.4 0.0 0.4

Total profits and losses recognised for the period for assets held at the end of the reporting period

In other operating expenses -0.3 -0.3

The fair values of hierarchy Level 1 are based fully on quoted (unadjusted) prices in active markets of the same assets and liabilities. The fair values of Level 2 instruments are based to a significant extent on input data other than the quoted prices included in Level 1, but however on data that are observable either directly (price) or indirectly (derived from price) for the said asset or liability. The fair values of Level 3 instruments, on the other hand, are based on asset or liability input data that are not based on observable market information (unobservable inputs), but rather to a significant extent on confirmations supplied by counterparties based on generally accepted valuation models.

The fair value hierarchy level, to which a certain item valued at fair value is classified in its entirety, is determined in accordance with the requirements of IFRS 7 based on the lowest level of input significant to the overall fair value of the said item. The significance of the input data has been assessed in its entirety in relation to said item valued at fair value.

During the reporting period, no transfers took place to or from fair value hierarchy Level 3 in the fair value levels of financial assets and liabilities. According to management estimates, the changing of input data used in determining the fair value of financial instruments valued at Level 3 to some other possible alternative assumption would not significantly change the fair value of items valued at fair value in Level 3, given the relatively small amount of the said assets and liabilities.

7. COMPANY ACQUISITIONS AND SALES

8. INCOME TAXES

The tax rate for the first quarter was -17.1 % (-15.6 %).

9. DIVIDEND PER SHARE

10. CHANGE IN INTANGIBLE AND TANGIBLE ASSETS


Carrying amount at the beginning of period 1,311.9 1,354.2 1,354.2

Fixed asset investments 33.1 24.1 77.3

Change in advances 4.6 -2.4 33.3

Disposals -142.9 -2.8 -11.0

Depreciation -35.5 -36.2 -140.7

Depreciation included in non-recurring items -0.3 -0.9 -1.2

Carrying amount at the end of period 1,171.0 1,336.1 1,311.9

Proportion of assets held for sale at the beginning of period 9.8 16.7 16.7

Proportion of assets held for sale at the end of period 7.1 18.6 9.8

11. NON-CURRENT ASSETS HELD FOR SALE

Non current assets held for sale 31 Mar 2014 31 Mar 2013 2013

Tangible assets 7.1 18.6 9.8

Inventories 5.5 16.5 5.4

Trade receivables and other receivables 0.0 2.5 2.5

Total 12.6 37.6 17.7

Liabilities of non-current assets held for sale 31 Mar 2014 31 Mar 2013 2013


Total 0.0 2.6 2.3

12. INTEREST-BEARING LIABILITIES

13. CONTINGENT LIABILITIES


Pledges on own behalf 218.7 577.0 503.7

Guarantees on behalf of group undertakings 70.4 66.0 67.6

Guarantees on behalf of others 2.3 2.5 2.3

Total 291.3 645.5 573.5

Investment commitments for property, plant and equipment at 31 March 2014 totalled 928 million euros (1,000).

14. OPERATING LEASE COMMITMENTS


Lease commitments from fleet payments 496.5 155.3 259.2

Other lease commitments 239.5 244.9 244.8

Total 736.0 400.2 504.0

During the financial period the Group did not acquire any businesses. During Q1 2014 Finnair sold its subsidiary Finncatering Oy, which was previously classified as assets held for sale.

The Annual General Meeting on 27 March 2014 decided that no dividend is paid for 2013.The Annual General Meeting on 27 March 2013 decided to distribute a dividend of 0.10 euros per share. The total dividend was 12.7 million euros, based on the number of shares registered on 3 April 2013. The dividend was paid on 10 April 2013.

Mainly inventories and tangible asset related to Finnair Technics. Comparative period includes also non-current assets and liabilities of Finncatering Oy, which was sold during Q1 2014.

During the first quarter of 2014 Finnair amortized its loans according to the loan instalment program. In addition, Finnair repaid the loans related to the sold A330 aircraft.

15. RELATED PARTY TRANSACTIONS


Transactions with associates and joint ventures

Sales 18.2 17.3 65.5

Purchases 20.5 18.3 105.8

Non-current financial assets 9.9 9.9 9.9

Trade and other receivables 65.4 32.4 36.1

Other long-term liabilities 10.1 8.3 9.7

Pension obligations 24.8 8.3 10.5


Guarantees on behalf of associates and joint ventures 2.0 2.0 2.0

16. ITEMS OF STATEMENT OF COMPREHENSIVE INCOME


Profit for the period -28.1 -15.7 -79.4 22.9

Other comprehensive income items

Items that may be classified reclassified to profit or loss in subsequent periods

Translation differences 0.0 -0.1 112.5 0.0Change in fair value of available-for-sale financial assets after taxes 0.0 10.6 -100.0 -10.4Change in fair value of hedging instruments after taxes -14.6 10.6 <-200 % -4.2

Items that will not be reclassified to profit or loss in subsequent periodsActuarial gains and losses from defined benefit plans -9.1 -2.3 <-200 % -0.2Other comprehensive income items total -23.7 18.8 <-200 % -15.0Comprehensive income for the financial period -51.8 3.1 <-200 % 7.9

Earnings attributable to shareholders of the parent company of the comprehensive income statement -51.9 3.3 <-200 % 7.7

Earnings attributable to non-controlling interest of the comprehensive income statement 0.1 -0.1 163.9 0.3

17. EVENTS AFTER THE REVIEW PERIOD

There have not been other remarkable events after the closing date as told in the interim report.

Other comprehensive income include the unrealisable change in the fair value of the hedging instruments of the hedge accounting items, which has earlier been recognised straight in the hedging reserve of the shareholders’ equity, and the translation difference.

18. CALCULATION OF KEY RATIOS

Earnings / share: Return on capital employed, % (ROCE):

Result for the period - hybrid bond interestProfit before taxes + interest andother financial expenses * 100

Average number of shares at the end of the financial year, adjusted for share issues

Balance sheet total - non-interest-bearing liabilities (average)

Earnings per share from the result of the period: Net interest-bearing liabilities:

Result for the periodInterest-bearing liabilities - interest-bearing assets - listed shares

Average number of shares at the end of the financial year, adjusted for share issues

Equity / share: Equity ratio, %:

Shareholders' equity Shareholders' equity + non-controlling interest * 100

Number of shares at the end of the financial year, adjusted for share issues

Balance sheet total - advances received

Gearing, %: Return on equity, % (ROE):

Net interest-bearing liabilities * 100 Result * 100

Shareholders' equity + non-controlling interest Equity + non-controlling interest (average)

Operating profit, EBIT:

Shareholders' equity:

To equity holders of the parent

The figures of interim report have not been audited.

Operating profit excluding capital gains, non-recurring items and fair value changes in derivatives and changes in the exchange rates of fleet overhauls

finnair group interim report 1 january – 31 march 2014 · 2016. 11. 24. · ril 2014. by sharing...

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