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Business ReviewFinancial ReviewInformation for shareholders

Board of Directors Report
Financial Statement Principles
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Finnair Oyj Income Statement
Finnair Oyj Balance Sheet
Finnair Oyj Cash Flow Statement
Notes
Shares and Shareholders
Proposal Concerning Disposal of the Profit
Statement of the Supervisory Board
Auditors Report
Key Figures 1998/99-2002
Formula for ratios

Short Term Outlook

Uncertainty about a recovery in economic growth as well as the world political situation make the operating result for 2003 difficult to estimate. The intensified market situation and the possible start-up of new airlines may have a negative impact on unit revenues in future.

Finnair will continue to focus on strengthening its competitiveness through cost cutting while further developing the Group structure by concentrating on the core scheduled and leisure traffic operations .

Additional increases in capacity on Asian routes can be expected. June 2003 will see the start of Osaka followed by Shanghai in September. Both new destinations will be served three times a week. The number of weekly flights to Beijing will rise to six in June and later during the autumn to daily.

The most significant adjustments in capacity will take place in European and domestic traffic. The overall growth in capacity, measured in passenger kilometres, is expected to be less than five per cent in the period January-June 2003.

Finnair has hedged over 60 per cent of its jet fuel purchases for the first half of 2003.

At the moment the Airbus A320 family consists of a total of 18 aircraft and by the end of 2003 the Airbus fleet will comprise 24 aircraft. In accordance with the fleet strategy, the harmonization of the fleet will continue, so that the ageing DC-9 aircraft are decommissioned by autumn 2003. One additional wide-bodied aircraft will be leased, mainly for Asian traffic, which will increase the number of MD-11s to five. Capital expenditure is expected to total around 70 million euros. The new Airbus A320 aircraft will be acquired on long-term operational lease agreements.

Board of Directors Proposal on the Dividend

The Group's distributable equity amounts to 322.5 million euros while the distributable equity of the parent company comes to 307.7 million euros. The Board of Directors proposes to the Annual General Meeting that a dividend of 0.15 euros per share be distributed, a total of 12,7 million euros, and that the remainder of the distributable equity be carried over as retained earnings.