{
"documentInfo": {
"documentType": "https://xbrl.org/2021/xbrl-json",
"features": {
"xbrl:canonicalValues": true
},
"namespaces": {
"FIN": "http://finnair.com/2022-12-31",
"ifrs-full": "http://xbrl.ifrs.org/taxonomy/2021-03-24/ifrs-full",
"iso4217": "http://www.xbrl.org/2003/iso4217",
"scheme": "http://standards.iso.org/iso/17442",
"xbrl": "https://xbrl.org/2021",
"xbrli": "http://www.xbrl.org/2003/instance"
},
"taxonomy": [
"http://finnair.com/2022-12-31/213800SB6EOB8SSK9W63-2022-12-31.xsd"
]
},
"facts": {
"f26339": {
"value": "2356600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Revenue",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26342": {
"value": "838400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Revenue",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26347": {
"value": "153500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26350": {
"value": "62500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26357": {
"value": "449600000",
"decimals": -5,
"dimensions": {
"concept": "FIN:StaffAndOtherCrewRelatedCosts",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26360": {
"value": "229300000",
"decimals": -5,
"dimensions": {
"concept": "FIN:StaffAndOtherCrewRelatedCosts",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26365": {
"value": "835100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FuelExpense",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26368": {
"value": "211400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FuelExpense",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26373": {
"value": "102500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RentalExpense",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26376": {
"value": "71300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RentalExpense",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26381": {
"value": "192400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:AircraftMaterialsAndOverhaul",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26384": {
"value": "117200000",
"decimals": -5,
"dimensions": {
"concept": "FIN:AircraftMaterialsAndOverhaul",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26389": {
"value": "206500000",
"decimals": -5,
"dimensions": {
"concept": "FIN:TrafficCharges",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26392": {
"value": "120400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:TrafficCharges",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26397": {
"value": "103100000",
"decimals": -5,
"dimensions": {
"concept": "FIN:SalesMarketingAndDistributionCosts",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26400": {
"value": "38100000",
"decimals": -5,
"dimensions": {
"concept": "FIN:SalesMarketingAndDistributionCosts",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26406": {
"value": "348000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PassengerAndHandlingServices",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26409": {
"value": "148000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PassengerAndHandlingServices",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26415": {
"value": "349800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DepreciationAmortisationAndImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26418": {
"value": "319800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DepreciationAmortisationAndImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26424": {
"value": "123700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PropertyItAndOtherExpenses",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26427": {
"value": "99700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PropertyItAndOtherExpenses",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26432": {
"value": "-200600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26435": {
"value": "-454400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26441": {
"value": "6500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26444": {
"value": "12800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26450": {
"value": "137900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceCosts",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26453": {
"value": "117800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceCosts",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26459": {
"value": "-38800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationRecognisedInProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26462": {
"value": "-22500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationRecognisedInProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26467": {
"value": "-370700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26470": {
"value": "-581900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26476": {
"value": "105400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26479": {
"value": "-117600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26484": {
"value": "-476200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26487": {
"value": "-464300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26493": {
"value": "-476200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26496": {
"value": "-464300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26505": {
"value": "-0.36",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f26508": {
"value": "-0.34",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f26514": {
"value": "-0.36",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f26517": {
"value": "-0.34",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f26528": {
"value": "-476200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26531": {
"value": "-464300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26538": {
"value": "-13800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnCashFlowHedgesBeforeTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26541": {
"value": "30100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnCashFlowHedgesBeforeTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26546": {
"value": "-100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26549": {
"value": "6000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26556": {
"value": "49900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26559": {
"value": "43000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26564": {
"value": "10000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26567": {
"value": "8600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26572": {
"value": "26200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26575": {
"value": "58400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26580": {
"value": "-450000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26583": {
"value": "-405900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26589": {
"value": "-450000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26592": {
"value": "-405900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26678": {
"value": "894800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Aircraft",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26681": {
"value": "946300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Aircraft",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26687": {
"value": "932900000",
"decimals": -5,
"dimensions": {
"concept": "FIN:RightOfUseAssetsAircraft",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26690": {
"value": "1025300000",
"decimals": -5,
"dimensions": {
"concept": "FIN:RightOfUseAssetsAircraft",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26695": {
"value": "1827600000",
"decimals": -5,
"dimensions": {
"concept": "FIN:AircraftAndRightOfUseAssetsAircraft",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26698": {
"value": "1971600000",
"decimals": -5,
"dimensions": {
"concept": "FIN:AircraftAndRightOfUseAssetsAircraft",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26704": {
"value": "150100000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherPropertyPlantAndEquipmentAndIntangibleAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26707": {
"value": "162300000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherPropertyPlantAndEquipmentAndIntangibleAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26713": {
"value": "145400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:RightOfUseAssetsOtherPropertyPlantAndEquipment",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26716": {
"value": "156400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:RightOfUseAssetsOtherPropertyPlantAndEquipment",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26721": {
"value": "295500000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherPropertyPlantAndEquipmentIntangibleAssetsAndRightOfUseAssetsOtherPropertyPlantAndEquipment",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26724": {
"value": "318700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherPropertyPlantAndEquipmentIntangibleAssetsAndRightOfUseAssetsOtherPropertyPlantAndEquipment",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26730": {
"value": "120000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26733": {
"value": "80900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26738": {
"value": "4500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26741": {
"value": "6900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26747": {
"value": "80600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26750": {
"value": "191900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26755": {
"value": "2328300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26758": {
"value": "2569900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26765": {
"value": "134900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTradeReceivables",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26768": {
"value": "110900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTradeReceivables",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26774": {
"value": "122000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:InventoriesAndOtherCurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26777": {
"value": "55800000",
"decimals": -5,
"dimensions": {
"concept": "FIN:InventoriesAndOtherCurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26783": {
"value": "23500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26786": {
"value": "26100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26792": {
"value": "738600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26795": {
"value": "531400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26801": {
"value": "785800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26804": {
"value": "734300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26809": {
"value": "1804800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26812": {
"value": "1458500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26817": {
"value": "18700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26822": {
"value": "4133000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26825": {
"value": "4047100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26837": {
"value": "75400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IssuedCapital",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26840": {
"value": "75400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IssuedCapital",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26845": {
"value": "335200000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherReservesRetainedEarningsAndHybridCapital",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26848": {
"value": "400200000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherReservesRetainedEarningsAndHybridCapital",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26853": {
"value": "410700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26856": {
"value": "475700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26863": {
"value": "1128000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentLeaseLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26866": {
"value": "1204100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentLeaseLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26872": {
"value": "1058400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:LongtermBorrowings",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26875": {
"value": "986200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:LongtermBorrowings",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26881": {
"value": "700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26884": {
"value": "700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26890": {
"value": "186400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:NonCurrentProvisionsAndOtherNonCurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26893": {
"value": "200700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:NonCurrentProvisionsAndOtherNonCurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26898": {
"value": "2373500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26901": {
"value": "2391600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26908": {
"value": "202700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentLeaseLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26911": {
"value": "176900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentLeaseLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26917": {
"value": "240100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ShorttermBorrowings",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26920": {
"value": "441700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ShorttermBorrowings",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26925": {
"value": "71700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentProvisions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26928": {
"value": "13800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentProvisions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26933": {
"value": "90300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayablesToTradeSuppliers",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26936": {
"value": "53500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayablesToTradeSuppliers",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26942": {
"value": "36700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26945": {
"value": "400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26951": {
"value": "452000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:CurrentDeferredIncomeIncludingCurrentContractLiabilitiesAndCurrentAdvances",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26954": {
"value": "291100000",
"decimals": -5,
"dimensions": {
"concept": "FIN:CurrentDeferredIncomeIncludingCurrentContractLiabilitiesAndCurrentAdvances",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26960": {
"value": "111200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentRecognisedLiabilitiesDefinedBenefitPlan",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26963": {
"value": "74400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentRecognisedLiabilitiesDefinedBenefitPlan",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26969": {
"value": "144400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26972": {
"value": "128100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26977": {
"value": "1348900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26980": {
"value": "1179800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26985": {
"value": "3722400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Liabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26988": {
"value": "3571400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Liabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26993": {
"value": "4133000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EquityAndLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f26996": {
"value": "4047100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EquityAndLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27078": {
"value": "-370700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27081": {
"value": "-581900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27086": {
"value": "349800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDepreciationAndAmortisationExpenseAndImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27089": {
"value": "319800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDepreciationAndAmortisationExpenseAndImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27094": {
"value": "-170200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForFinanceIncomeCost",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27097": {
"value": "-127500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForFinanceIncomeCost",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27102": {
"value": "-6600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForLossesGainsOnDisposalOfNoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27105": {
"value": "-19400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForLossesGainsOnDisposalOfNoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27110": {
"value": "45200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForProvisions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27113": {
"value": "19800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForProvisions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27118": {
"value": "12700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInEmployeeBenefitLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27121": {
"value": "-4300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInEmployeeBenefitLiabilities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27126": {
"value": "2100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27129": {
"value": "3300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27134": {
"value": "60000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsForNoncashItems",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27137": {
"value": "18900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsForNoncashItems",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27142": {
"value": "-86900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAndOtherReceivables",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27145": {
"value": "-49900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAndOtherReceivables",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27150": {
"value": "-10100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27153": {
"value": "1900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27158": {
"value": "249500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27161": {
"value": "257300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27166": {
"value": "-152500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInWorkingCapital",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27169": {
"value": "-209200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInWorkingCapital",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27174": {
"value": "96100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceCostsPaidClassifiedAsOperatingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27177": {
"value": "99300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceCostsPaidClassifiedAsOperatingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27182": {
"value": "259000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27185": {
"value": "-25300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27191": {
"value": "83100000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PurchaseOfAircraftClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27194": {
"value": "70300000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PurchaseOfAircraftClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27199": {
"value": "4900000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PurchaseOfOtherPropertyPlantAndEquipmentAndIntangibleAssetsClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27202": {
"value": "6000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:PurchaseOfOtherPropertyPlantAndEquipmentAndIntangibleAssetsClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27207": {
"value": "25500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27210": {
"value": "441700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27215": {
"value": "400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncomeFromSubleasingRightOfUseAssetsClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27218": {
"value": "11700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncomeFromSubleasingRightOfUseAssetsClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27223": {
"value": "12800000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncreaseDecreaseInOtherCurrentFinancialAssetsMaturityLaterThanThreeMonths",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27226": {
"value": "67500000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncreaseDecreaseInOtherCurrentFinancialAssetsMaturityLaterThanThreeMonths",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27231": {
"value": "-700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:ChangeInOtherNonCurrentAssetsClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27234": {
"value": "-0",
"decimals": -5,
"dimensions": {
"concept": "FIN:ChangeInOtherNonCurrentAssetsClassifiedAsInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27239": {
"value": "-75500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27242": {
"value": "309600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27248": {
"value": "396700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27253": {
"value": "144000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27256": {
"value": "154800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27261": {
"value": "193400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27264": {
"value": "146800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27269": {
"value": "20500000",
"decimals": -5,
"dimensions": {
"concept": "FIN:HybridBondInterestsAndExpensesClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27272": {
"value": "20500000",
"decimals": -5,
"dimensions": {
"concept": "FIN:HybridBondInterestsAndExpensesClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27277": {
"value": "400000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:ProceedsFromCapitalLoanClassifiedAsFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27282": {
"value": "1100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27287": {
"value": "42100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27290": {
"value": "73400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27295": {
"value": "225600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27298": {
"value": "357800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27303": {
"value": "1150000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27306": {
"value": "792200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27311": {
"value": "225600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27314": {
"value": "357800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27319": {
"value": "1375600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27322": {
"value": "1150000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27332": {
"value": "738600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27335": {
"value": "531400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialAssets",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27340": {
"value": "785800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27343": {
"value": "734300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27348": {
"value": "1524400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherCurrentFinancialAssetsAndCashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27351": {
"value": "1265700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherCurrentFinancialAssetsAndCashAndCashEquivalents",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27356": {
"value": "-148800000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherCurrentFinancialAssetsMaturityLaterThanThreeMonths",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27359": {
"value": "-115700000",
"decimals": -5,
"dimensions": {
"concept": "FIN:OtherCurrentFinancialAssetsMaturityLaterThanThreeMonths",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27364": {
"value": "1375600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27367": {
"value": "1150000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27466": {
"value": "75400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27469": {
"value": "168100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:RestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27472": {
"value": "16600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27475": {
"value": "762000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:ReserveOfInvestedUnrestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27478": {
"value": "-744500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27481": {
"value": "198000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:HybridCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27484": {
"value": "475700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27489": {
"value": "-476200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27492": {
"value": "-476200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27497": {
"value": "-13700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnCashFlowHedgesNetOfTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27500": {
"value": "-13700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnCashFlowHedgesNetOfTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27505": {
"value": "40000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27508": {
"value": "40000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27513": {
"value": "26200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27516": {
"value": "-476200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27519": {
"value": "-450000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27524": {
"value": "290000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncreaseThroughHybridBondContributionsEquity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:HybridCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27527": {
"value": "290000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncreaseThroughHybridBondContributionsEquity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27532": {
"value": "-290000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughConversionOfConvertibleInstruments",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:HybridCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27535": {
"value": "290000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughConversionOfConvertibleInstruments",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:CapitalLoanMember",
"unit": "iso4217:EUR"
}
},
"f27540": {
"value": "110000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncreaseDecreaseThroughCapitalLoan",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:CapitalLoanMember",
"unit": "iso4217:EUR"
}
},
"f27543": {
"value": "110000000",
"decimals": -5,
"dimensions": {
"concept": "FIN:IncreaseDecreaseThroughCapitalLoan",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27548": {
"value": "-16400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:HybridBondInterestsAndExpenses",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27551": {
"value": "-16400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:HybridBondInterestsAndExpenses",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27556": {
"value": "1400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:ReserveOfInvestedUnrestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27559": {
"value": "1400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27564": {
"value": "75400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27567": {
"value": "168100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:RestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27570": {
"value": "42800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27573": {
"value": "763300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:ReserveOfInvestedUnrestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27576": {
"value": "-1237000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27579": {
"value": "198000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:HybridCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27582": {
"value": "400000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:CapitalLoanMember",
"unit": "iso4217:EUR"
}
},
"f27585": {
"value": "410700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27607": {
"value": "75400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27610": {
"value": "168100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:RestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27613": {
"value": "-41800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27616": {
"value": "759500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:ReserveOfInvestedUnrestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27619": {
"value": "-262600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27622": {
"value": "198000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:HybridCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27625": {
"value": "896600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27630": {
"value": "-464300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27633": {
"value": "-464300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27638": {
"value": "24000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnCashFlowHedgesNetOfTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27641": {
"value": "24000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnCashFlowHedgesNetOfTax",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27646": {
"value": "34400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27649": {
"value": "34400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27654": {
"value": "58400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27657": {
"value": "-464300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27660": {
"value": "-405900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27665": {
"value": "-16400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:HybridBondInterestsAndExpenses",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27668": {
"value": "-16400000",
"decimals": -5,
"dimensions": {
"concept": "FIN:HybridBondInterestsAndExpenses",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27673": {
"value": "1100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27676": {
"value": "1100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27681": {
"value": "2400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:ReserveOfInvestedUnrestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27684": {
"value": "2400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f27689": {
"value": "75400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27692": {
"value": "168100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:RestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27695": {
"value": "16600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:AccumulatedOtherComprehensiveIncomeMember",
"unit": "iso4217:EUR"
}
},
"f27698": {
"value": "762000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:ReserveOfInvestedUnrestrictedEquityMember",
"unit": "iso4217:EUR"
}
},
"f27701": {
"value": "-744500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:EUR"
}
},
"f27704": {
"value": "198000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "FIN:HybridCapitalMember",
"unit": "iso4217:EUR"
}
},
"f27707": {
"value": "475700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"pp-value-1-1": {
"value": "Basis of preparationFinnairPlc consolidated financial statements for 2022 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union, and they comply with the IAS and IFRS standards and respective SIC and IFRIC Interpretations effective on 31 December 2022.The notes to the consolidated financial statements also comply with Finnish accounting and corporate law. Changes applied in accounting principles in 2022 and future periods are described in the below section Changes in accounting principles.The consolidated financial statements are presented in euros, which is the parent company\u2019s functional currency. Transactions denominated in foreign currencies are translated into functional currency by using the exchange rates prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies and outstanding at the end of the reporting period are translated using the exchange rates of the closing date. Foreign exchange gains and losses arising from monetary assets and liabilities as well as fair value changes of related hedging instruments are recognized in the income statement. The 2022 consolidated financial statements have been prepared based on original acquisition costs, except for financial assets recognised through profit and loss at fair value and derivative contracts measured at fair value. Financial statement data is presented in millions of euros and rounded to the nearest hundred thousand euro, which is why the sum of the individual figures may differ from the total shown. Impact of the COVID-19 pandemic and the war in Ukraine on the consolidated financial statementsThe effects of the COVID-19 pandemic and the related travel restrictions on Finnair\u2019s revenue and profitability eased during the financial year 2022 with the exception of the Asian markets, which was reflected in the increase of passenger numbers and load factors in Europe and the United States. The number of passenger kilometers (ASK) offered in 2022 increased clearly from the comparison period and amounted to 31,298 million (12,094 million). Finnair\u2019s revenue increased to 2,356.6 million euro (838.4) and the total number of passengers to 9.1 million (2.9). Although the impact of the pandemic on Finnair\u2019s operations eased during the year, the pandemic\u2019s effects especially in the beginning of the year and the closure of Russian airspace following the war in Ukraine caused the Group\u2019s result for the period to remain considerably negative amounting to -476.2 million euro (-464.3). The Russian airspace closure had a significant impact on the routings and cost of Finnair flights to Asia, in addition to which the market price of jet fuel rose to exceptionally high levels. Profitability was further impacted by write-downs recognized for deferred tax assets and four A330 aircraft totaling to 149.7 million euro. Finnair estimates that the current difficult operating environment, including the closure of Russian airspace, will continue for a longer period and announced its new strategy on September 7, 2022 aiming to improve the weak profitability and strengthen its financial position. The implementation of the new strategy started at the end of 2022, as part of which Finnair recorded a provision of EUR 2.6 million related to a decision to reduce approximately 150 jobs.The group\u2019s equity decreased mainly as a result of the losses generated during the period and totaled to 410.7million euros (475.7). Equity was strengthened by the 400 million euro hybrid loan from the Finnish government, which was converted into a capital loan during the year. The deferred tax asset recognised on the consolidated balance sheet decreased to 80.6 million euros (191.9) as a result of a write-down, resulting from the expected impacts of the Russian airspace closure on Finnair\u2019s taxable future income.Net cash flow from operating activities turned positive due to the improved passenger ticket sales, amountingto 259.0 million euro (-25.3). Following the increase in passenger demand, working capital increased by 152.5 million euro as a result of the increase in ticket liability. Overall, the Group\u2019s liquid funds grew by 225.6 million euro during the financial period, amounting to 1,375.6 million euro (1,150.0) at the end of the year. Further detail on the Group\u2019s financial figures can be found in the following notes: revenue and operating expenses (note 1.2 and 1.3), deferred income and advances received (note 1.2.4), changes in liabilities and equity (notes 3.3 and 3.9) and income taxes (note 5.1).The COVID-19 pandemic and Russia\u2019s war against Ukraine have also impacted the critical accounting estimates and sources of uncertainty used in the preparation of the financial statements. This has been dislosed in more detail in the below section Critical accounting estimates and sources of uncertainty.Notes to the consolidated financial statementsAccounting principlesHow should Finnair\u2019s accounting principles be read?Finnair describes the accounting principles in conjunction with each note with the aim of providing an enhanced understanding of each accounting area. The basis of preparation is described as part of this note at a general level, while the principles more directly related to a specific note are attached to the corresponding note. The Group focuses on describing the accounting choices made within the framework of the prevailing IFRS policy and avoids repeating the actual text of the standard, unless Finnair considers it particularly important to the understanding of the note\u2019s content. The table below shows in which notes the related accounting principles are presented and to which IFRS standard the accounting principle is primarily based on.Company informationThe Group\u2019s parent company iswhich is domiciled inat the registered address The parent company is listed on the NASDAQ OMX Helsinki Stock Exchange. The consolidated financial statements of Finnair Group for the year ended 31 December 2022 were authorized for issue by the Board of Directors of Finnair Plc on 14 February 2023.Under Finland\u2019s Limited Liability Companies Act, shareholders have the option to accept, or reject the financial statements in the Annual General Meeting of the shareholders, which will be held after the publication of the financial statements.Accounting principle Note Nr. IFRSSegment reporting Segment information 1.1 IFRS 8Revenue recognition, other income and trade IFRS 15, IFRS 9, receivables Operating income 1.2IFRS 7Provisions and contingent liabilities Provisions 1.3.6 IAS 37Employee benefits and share-based payments Employee benefits 1.3.8 IAS 19, IFRS 2Pensions Pensions 1.3.8.2 IAS 19Tangible and intangible assets Fleet and other fixed assets 2.1 IAS 16, IAS 36, IAS 38Leases Leasing arrangements 2.2 IFRS 16Impairment of assets Depreciation and impairment 2.3 IAS 36Interest income and expenses Financial income and expenses 3.1 IFRS 7, IAS 32Financial assets Financial assets 3.2 IFRS 9, IFRS 7Cash and cash equivalents Financial assets 3.2 IFRS 9, IFRS 7Financial liabilities Financial liabilities 3.3 IFRS 9, IFRS 7Derivative contracts and hedge accounting Derivatives 3.8 IFRS 9, IFRS 7Equity, dividend and treasury shares Equity-related information 3.9 IAS 32, IAS 33Consolidation principles of subsidiaries Subsidiaries 4.2 IFRS 10Non-controlling interests and transactions with non-controlling interests Subsidiaries 4.2 IFRS 10Investments in associates and Investments in associates and joint venturesjoint ventures 4.4 IFRS 11, IAS 28Related party disclosures Related party transactions 4.5 IAS 24Income tax and deferred taxes Income taxes 5.1 IAS 12Presentation of consolidated income statement and balance sheet Finnair\u2019s consolidated income statement includes a subtotal \u2018operating result\u2019 which is not defined in the IAS 1 Presentation of Financial Statements standard. The Group has defined it as the net amount of operating income and expenses, including revenue and other operating income, less operating expenses, such as employee benefits, fuel costs, maintenance expenses and depreciations. Exchange rate differences and realised changes in fair values of derivatives are included in the operating result if they arise from items related to business operations; otherwise, they are recognised in financial items. The operating result excludes financial items, shareof results from associates and joint ventures and income taxes. In the consolidated balance sheet, assets and liabilities are classified as current when they are expected to realise within 12 months or when they are classified as liquid funds or as financial assets or liabilities classified at fair value through profit or loss. Other assets and liabilities are classified as non-current assets or liabilities. Interest-bearing liabilities include loans from financial institutions, bonds, loans taken for aircraft financing (JOLCO-loans & export credit support), lease liabilities and commercial papers. Interest-bearing assets include interest-bearing deposits as well as investments in commercial paper and certificates, bonds and money market funds. Interest-bearing net debt is the net amount of interest-bearing assets and liabilities and cross-currency interest rate swaps that are used for hedging the currency and interest rate risk arising from interest-bearing loans.Critical accounting estimates and sources of uncertaintyThe preparation of IFRS financial statements requires Group management to make certain estimates, assumptions and judgements in applying the accounting principles that affect the reported amounts of assets and liabilities as well as income and expenses. The application of the accounting policies prescribed by IFRS require making estimates and assumptions relating to the future where the actual outcome may differ from the earlier estimates and assumptions made. In addition, management discretion has to be exercised in applying the accounting principles especially when the IFRS has alternative accounting, valuation or presentation methods. The estimates and assumptions made are based on past experience and management\u2019s best estimate of future events and other factors, that are believed to be reasonable given the current circumstances. The estimates and associated assumptions are continuously evaluated and any changes therein are reflected in the period that the changes occur. Although the negative impacts of the COVID-19 pandemic eased towards the end of the year 2022, Finnair\u2019s operating environment became significantly more difficult due to the escalation of the geopolitical situation in Eastern Europe which resulted from Russia\u2019s attack against Ukraine in February 2022. The resulting sanctions, and countersanctions, led to the closure of Russian airspace which has had negative impact on the routings and operating costs of Finnair flights to Asia. Also, the price of jet fuel increased to exceptionally high level during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and operating costs as well as the changes in the economic and competitive environment are subject to increased uncertainty. Further, even when after the opening of China, there were practically no pandemic-related travel restrictions remaining at the time of the preparation of the financial statements, the uncertainties associated with possible new virus variants and travel restrictions continue to pose a risk to air passenger demand and therefore, to the development of Finnair\u2019s revenue.In order to reflect the increased uncertainty in its estimates and assumptions, Finnair\u2019s management has considered three different forecast scenarios incorporating possible variations of the development of passenger demand and changes in its operating environment based on its best estimate at the time. The scenarios are discussed in more detail in the earlier section of the notes called Board\u2019s assessment of Finnair as a going concern. Further, in order to consider the increased uncertainty also in its impairment testing performed at the year-end, Finnair is using the expected cash flow approach which incorporates expectations about all forecast scenarios instead of relying on just a single, most likely, cash flow estimate.Information about the estimates and judgement exercised by management in applying the Group\u2019s accounting principles and the areas where estimates and judgements have biggest impact on the financial statements are highlighted in the following table Critical accounting estimates and sources of uncertainty. The consolidated financial statements have been prepared on a going concern basis. Assessment of the going concern is made based on management estimates about future events and other information that is available to the management and the Board of Directors at the time of the assessment. The main identified critical estimates and sources of uncertainty related to the assessment are presented earlier in this note in section Board\u2019s assessment of Finnair as going concern. The identified main critical estimates and sources of uncertainty related to separate sections of the financial statements are presented in connection to the financial items considered to be affected and attached to the corresponding note. The table below shows where to find more information about those estimates and uncertainties. Climate-related matters in the consolidated financial statementsFinnair\u2019s environmental management is based on the principle of continuous and systematic improvement, and it is committed to the goal of carbon neutral flying by the end 2045, in addition to which it will halve carbon net emissions by 2025 compared to the 2019 level. Finnair\u2019s climate-related targets have been disclosed in more detail in the Report of the Board of Directors and Sustainability Appendix. Finnair expects the climate-related costs to increase significantly over the next 1-5 years, resulting from carbon emission reduction targets and tightening climate legislation. Especially three initiatives included in the EU\u2019s \u2018\u2018Fit for 55\u2019\u2019 legislative package are particularly relevant for the aviation industry: the reform of emissions trading (EU-ETS), the mixing quota for sustainable aircraft fuel (ReFuelEU Aviation) and the proposal to introduce a kerosene tax (energy tax directive). When in force, the new regulation is expected to result in higher costs for Finnair due to more expensive emission allowances, increased consumption of renewable fuel and possible abolition of the aviation fuel tax exemption. Where Finnair considers such costs will be recovered through increase in ticket fares, a corresponding adjustment is added to passenger revenue. In preparing the consolidated financial statements, the expected impacts of the climate related matters on the Group\u2019s results have been considered in the management\u2019s profitability and cash flow forecasts, which are used in impairment testing of non-financial assets and evaluation of the recovery of deferred tax assets.Finnair expects the impact of climate-related matters on the estimated economic life of its fleet to be insignificant, as management is not aware of such regulations at the balance sheet date that would directly prevent or limit the company\u2019s ability to use its current fleet. For example, an unexpected and significant increase in emission costs could, if realized, affect the timing of the planned fleet renewal in the future, but this is not considered likely at the time of the preparation of the financial statements.Changes in accounting principlesNew and amended IFRS standards and IFRIC interpretationsThe changes in the IFRS standards and IFRIC-interpretations effective from periods beginning 1 January 2022 included mainly amendments or improvements to current standards and did not have material effect on Finnair financial statements. Other standards issued that are effective from periods on or after 1st of January 2023 mainly include amendments and improvements to current standards that are not expected to have a material impact on the Group\u2019s consolidated financial statements.Critical accounting estimates and sources of uncertainty Note number NoteFinnair Plus Customer Loyalty Program 1.2 Operating incomeMaintenance reserves of the fleet 1.3.6 ProvisionsPension obligations 1.3.8.2 PensionsLeasing arrangements 2.2 Leasing arrangementsImpairment testing of the fleet and other fixed assets 2.3 Depreciation and impairment Derivative contracts and hedge accounting 3.8 Derivatives Deferred taxes 5.1 Income taxes 1 Operating result Operating result includes notes related to revenue and operating result from the point of view of income statement and balance sheet. 1.1 Segment information Segment reportingOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Group\u2019s Executive Board. Segments are defined based on Group\u2019s business areas. Group has one business and reporting segment: Airline business. The Finnair Executive Board, defined as the chief operative decision maker according to IFRS 8 Segment reporting, considers the business as one operating segment. Thus, separate segment information is not reported.The revenue by product and geographical area is presented in the note 1.2.1 Revenue by product and traffic area. The division is based on the destination of Finnair flights. Finnair operates international and domestic routes, but the assets are almost solely owned in Finland. The fleet composes the major part of the non-current assets (see note 2.1 Fleet and other fixed assets). The fleet is owned or leased by Finnair\u2019s Finnish subsidiary and the aircraft are operated flexibly across different traffic (geographical) areas. More details about fleet management and ownership can be found in the management report in the section \u201cFleet\u201d.Even though the passenger traffic figures improved from prior year, the negative impact of the COVID-19 pandemic and related travel restrictions was still clearly visible in the figures. Further, the Russian airspace closure had a negative impact on the figures in 2022. During the financial year Finnair transported 9.1 million passengers (2.9), which was 218.9 per cent more than in 2021. Strong cargo demand continued and the revenue of cargo business was record high. The demand for travel services also grew strongly with the lifting of travel restrictions. Finnair continued to control and optimize its costs in all operations. The effects on revenue and operating expenses as well as the related receivables and liabilities are presented in more detail in the following notes 1.2 and 1.3.Due to the wide scale of customers and nature of the business, sales to any individual customer is not material compared to Finnair\u2019s total revenue.1.2 Operating income The operating income section includes both income statement and balance sheet notes that relate to revenue. The aim is to provide a more coherent picture of income related items affecting Finnair\u2019s result and financial position. Trade receivables and deferred income containing mainly prepaid flight tickets and travel tour services are presented in connection with this section, because those are an essential part in revenue recognition. Revenue recognitionRevenue is recognised when goods or services are delivered. Revenue is measured at fair value of the consideration received or receivable, net of discounts and indirect taxes.Passenger revenue includes sale of flight tickets, and is recognised as revenue when the flight is flown in accordance with the flight traffic program. Recognition of unused tickets as revenue is based on the expected breakage amount of tickets remaining unused in proportion to the pattern of rights exercised by the passenger.Sales price is allocated to a flight ticket and points in Finnair Plus\u2019 Customer Loyalty Program. Finnair loyalty customers can earn Finnair Plus Points from tickets or services purchased, and use the earned points to buy services and products offered by Finnair or its cooperation partners. The points earned are measured at fair value and recognised as a decrease of revenue and debt at the time when the points-earning event (for example, flight is flown) is recognised as revenue. Fair value is measured by taking into account the fair value of those awards that can be purchased with the points and the customer selection between different awards based on historical customer behaviour. In addition, the fair valuation takes into account the expiry of the points. The debt is derecognised when the points are used or expire.Customer compensations for delays or cancellations is a variable consideration in the contract and it is recognised as an adjustment to revenue.Ancillary revenue includes sale of ticket related services, such as advance seat reservations, additional baggage fees as well as different service fees, and sale of goods in the aircraft. The service revenue is recognized when the flight is flown in accordance with the flight traffic program, since it is considered as a contract modification instead of a separate revenue transaction. The sale of goods is recognized when the goods are delivered to the customer. Cargo revenue is recognized when the cargo has been delivered to the customer. Tour operations revenue includes sale of flight and hotel considered as separate performance obligations, which are recognized as the service is delivered.Public subsidies are recognised as other operating income. Trade receivablesFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other operating expenses. Finnair Plus Customer Loyalty ProgramValuation and revenue recognition related to Finnair Plus debt requires management judgment especially related to fair valuation of points and timing of revenue recognition related to points expected to expire. The fair value of the point is defined by allocating the point to award selection based on historical behaviour of customers, after which the fair value of each award is defined. The liability is calculated by taking the total amount of points earned by customers, decreased by the expected expiry of the points. These points are then fair valued as described above, and the result is recognised as liability on the balance sheet. 1.2.1 Revenue by product and traffic area2022The division of revenue by traffic area is based on destination of the Finnair flights.Finnair\u2019s revenue increased significantly when compared to the financial year 2021 due to reduced impact of the COVID-19 pandemic and exceptionally high passenger yields resulting from strong passenger demand and restricted capacity. Despite the increase in total revenues, the negative impact of the COVID-19 pandemic and closure of the Russian airspace was still reflected in the passenger numbers especially on the Asian routes.Share, % of North Unallo-revenue by EUR mill. AsiaAtlantic Europe Domesticcated TotalproductPassenger revenue 425.0 244.3 897.9 128.2 15.3 1,710.7 72.6Ancillary and retail revenue 19.4 12.8 37.6 5.4 48.0 123.2 5.2Cargo 227.1 82.6 46.3 0.4 -4.1 352.3 15.0Travel services 7.6 0.3 161.7 0.5 0.2 170.3 7.2Total 679.2 340.0 1,143.6 134.4 59.4 2,356.6Share, % of revenue by traffic area 28.8 14.4 48.5 5.7 2.520211.2.2 Revenue by currencyThe hedging policies against foreign exhange rate fluctuations are described in note 3.5 Management of financial risks.1.2.3 Receivables related to revenueMost of the accrued income represents contract assets, for which Finnair has met the performance requirement prior to receiving payment from customers and these have not yet been recognized as trade receivables. Contract assets mainly include accrued income related to cargo sales and receivables from airlines involved in the Siberian Joint Business on flights between Europe and Japan, and the Atlantic Joint Business on flights between Europe and North America.The fair value of trade receivables does not materially differ from balance sheet value.During the financial year, the Group recognised credit losses in total of 0.2 million euros (1.5). Trade receivables do not contain significant credit risk because of the diversified customer base. The maximum exposure to credit risk at the reporting date equals to the total carrying amount of trade receivables. The Group does not hold any collateral as security related to trade receivables.Trade receivables by currency1.2.4 Deferred income and advances receivedMost of the deferred income and advances received represents contract liabilities, for which payments have been received from customers before the performance obligation is discharged by Finnair.Deferred income and advances received includes prepaid flight tickets and package tours for which the departure date is in the future. The Finnair Plus liability is related to Finnair\u2019s customer loyalty program, and equals the fair value of the accumulated, unused Finnair Plus points. Other items mainly include gift voucher liabilities and liabilities to airlines involved in the Siberian Joint Business on flights between Europe and Japan, and the Atlantic Joint Business on flights between Europe and North America.Deferred revenue on ticket sales and advances received for tour operations increased significantly as a result of the lifting of travel restrictions and the strong increase in passenger demand.Share, % of North Unallo-revenue by EUR mill. AsiaAtlantic Europe Domesticcated TotalproductPassenger revenue 75.3 38.6 243.6 60.3 3.0 420.8 50.2Ancillary and retail revenue 9.7 1.8 10.7 2.5 19.4 44.1 5.3Cargo 236.3 49.8 35.9 0.2 12.6 334.7 39.9Travel services 1.5 0.0 35.8 1.3 0.0 38.7 4.6Total 322.8 90.2 326.0 64.4 35.0 838.4Share, % of revenue by traffic area 38.5 10.8 38.9 7.7 4.2EUR mill. 2022 2021EUR 1,381.5 387.3USD 180.4 38.1SEK 99.4 29.5JPY 96.7 76.0KRW 52.3 39.8CNY 43.7 57.5Other currencies 502.5 210.2Total 2,356.6 838.4EUR mill. 2022 2021Trade receivables 89.4 68.2Accrued income 45.5 42.7Total 134.9 110.92022 2021Aging analysis Trade Probability Expected Trade Probability Expected of trade receivables, of not uncollectible, receivables, of not uncollectible, receivablesEUR mill.collecting, %EUR mill.EUR mill.collecting, %EUR mill.Not overdue 87.1 0.5% 0.4 67.7 0.7% 0.5Overdue less than 60 days 0.2 19.7% 0.0 0.1 5.9% 0.0Overdue more than 60 days 2.1 6.3% 0.1 0.4 1.4% 0.0Total 89.4 0.7% 0.6 68.2 0.7% 0.5EUR mill. 2022 2021EUR 52.6 19.3NOK 6.2 4.4USD 5.2 4.3GBP 3.7 2.3SEK 3.3 2.8KRW 3.2 5.2JPY 3.1 5.0THB 2.7 11.4SGD 2.1 2.6HKD 1.7 3.7CNY 0.8 4.1Other currencies 4.7 3.0Total 89.4 68.2EUR mill. 2022 2021Deferred revenue on ticket sales 356.4 202.7Loyalty program Finnair Plus 51.3 55.1Advances received for tour operations 27.9 15.2Other items 16.4 18.1Total 452.0 291.11.2.5 Other operating incomeOther operating income increased when compared to financial year 2021 mainly due to agreed wet lease arrangements with British Airways and Eurowings Discover in which Finnair leases out aircraft and crew for a fixed period of time.Public subsidies received due to COVID-19 pandemic increased compared to previous year mainly because of a support received for uncovered fixed expenses. Overall, the amount of subsidies was not material.1.3 Operating expenses The operating expenses section includes the income statement and balance sheet notes related to operating expenses, aiming to provide a better overview of business operations and related expenses. Maintenance provisions of leased aircraft that inherently relate to aircraft overhaul costs are included in this operating expenses section. Also accrued expenses, such as liabilities related to jet fuel and traffic charges, are presented in this section. In addition, items related to employee benefits are presented at the end of this section in a separate note 1.3.8. Employee benefits. It includes the different forms of benefits received by Finnair employees, including share-based payments and pensions, their effect on staff costs and balance sheet as well as information on management remuneration. Although Finnair continued with the cost adjustment measures due to the effects of the closure of Russian airspace and the COVID-19 pandemic also in 2022, the Group\u2019s operating expenses increased as compared to the prior year due to increased operational volumes and exceptionally high fuel prices.1.3.1 Operating expenses by currencyThe hedging policies against foreign exchange rate fluctuations are described in note 3.5 Management of financial risks.1.3.2 Passenger and handling servicesPassenger and handling costs (including also tour operation expenses related to e.g., hotels) were driven up by the increased volumes, especially in passenger traffic.1.3.3 Property, IT and other expensesProperty, IT and other expenses mainly consist of fixed costs.Audit feesThe auditor\u2019s fees of KPMG Oy Ab included fees of 466 thousand euro (332) for audit services and 127 thousand euro (15) for auditor\u2019s statements. Non-audit services to Finnair Group entities were 3 thousand euro (1).1.3.4 Inventories and other current assetsCredit card acquirer holdbacks relate to cash funds from passenger ticket sales that are held by credit card processors.1.3.5 Other liabilitiesEUR mill. 2022 2021EUR 1,490.1 930.6USD 1,092.3 364.0Other currencies 128.3 60.8Total 2,710.6 1,355.3EUR mill. 2022 2021Ground and cargo handling expenses 158.3 93.6Expenses for tour operations 88.9 21.5Catering expenses 45.0 9.5Other passenger services 55.8 23.4Total 348.0 148.0EUR mill. 2022 2021IT expenses 63.9 55.1Property expenses 20.6 15.9Other expenses 39.2 28.7Total 123.7 99.7EUR mill. 2022 2021Auditor's fees 0.6 0.3Tax advisingOther fees 0.0 0.0Total 0.6 0.3EUR mill. 2022 2021Credit card acquirer holdbacks 57.0Inventories 31.1 21.0Aircraft materials and overhaul 7.4 7.8Jet fuels 6.6 3.4Capacity rent receivables 6.4 6.7VAT receivables 2.1 1.2Interest and other financial items 1.5 1.1Receivables from sublease contracts 0.3 8.0Other items 9.5 6.6Total 122.0 55.8EUR mill. 2022 2021Jet fuel and traffic charges 50.9 49.8Passenger and handling services 34.8 29.6Aircraft materials and overhaul 14.0 10.0Sales, marketing and distribution cost accruals 13.8 7.3Interest and other financial items 9.0 15.7Other items 21.9 15.8Total 144.4 128.1EUR mill. 2022 2021Lease income 118.8 23.0Sales gains on fixed assets 6.8 23.3Other income 27.9 16.2Total 153.5 62.51.3.6 Provisions ProvisionsProvisions are recognised when the Group has a present legal or constructive obligation as the result of a past event, the fulfilment of the payment obligation is probable, and a reliable estimate of the amount of the obligation can be made. The amount to be recognised as provision corresponds to the management\u2019s best estimate of the expenses that will be necessary to meet the obligation at the end of the reporting period.In most cases, the Group is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. To fulfil these maintenance obligations, the Group has recognised airframe heavy maintenance, engine performance maintenance, engine life limited part, landing gear, auxiliary power unit and other material maintenance provisions. The provision is defined as a difference between the current condition and redelivery condition of these maintenance components. The provision is accrued based on flight hours flown until the next maintenance event or the redelivery and recognised in the aircraft overhaul costs in the income statement. The provision is reversed at the maintenance event or redelivery. The price of the flight hour depends on the market price development of the maintenance costs. Estimated future cash flows are discounted to the present value. The maintenance market prices are mainly denominated in US dollars, which is why the amount of maintenance provision changes due to currency fluctuation of the dollar.The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost, but these are recognised according to the principles presented above.Restructuring provisions are recognised when the Group has prepared a detailed restructuring plan and has begun to implement the plan or has announced it. Maintenance reserves of the fleetThe measurement of aircraft maintenance provisions requires management judgement especially related to the timing of maintenance events and the valuation of maintenance costs occurring in the future. The future maintenance costs and their timing are dependent on, for example, how future traffic plans actually realise, the market price development of maintenance costs and the actual condition of the aircraft at the time of the maintenance event. The ultimate duration of the war in Ukraine may have an impact on the level of future maintenance expenses, which could cause the actual outcome to differ from the estimates currently made. Non-current aircraft maintenance provisions are expected to be used by 2034.On balance sheet, non-current provisions and other liabilities 186.4 million euro (200.7) includes, in addition to provisions, other non-current liabilities 6.3 million euro (14.7), which mainly consist of received lease deposits. Long-term incentives for the Executive Board and other personnel, which are expected to be paid during the third quarter of 2023, were transferred to current liabilities.1.3.7 Items affecting comparabilityFinnair uses alternative performance measures in its internal reporting to the chief operative decision maker, or Finnair Executive Board. The figures are referred to in the European Securities Markets Authority (ESMA) Guidelines on Alternative Performance Measures, which Finnair uses to describe its business and financial performance development between periods. The alternative performance measures do not replace IFRS indicators, but shall be read in conjunction with key figures in accordance with IFRS financial statements.Unrealised exchange rate differences of mainly in US dollars denominated aircraft maintenance provisions and unrealised fair value changes of derivatives where hedge accounting is not applied are excluded from comparable operating result. These exchange rate and fair value effects are included in the comparable operating result only when they will realize. In addition, gains and losses on aircraft and other transactions, the impairment of owned A330 aircraft, certain changes in defined benefit pension plans and restructuring costs are not included in the comparable operating result.Aircraft Aircraft maintenance Other maintenance Other EUR mill.provisionprovisions 2022provisionprovisions 2021Provision at the beginning of period 195.9 3.8 199.8 162.8 13.0 175.8Provision for the period 56.1 4.8 60.9 32.0 1.9 33.9Provision used -16.6 -2.6 -19.2 -12.7 -9.0 -21.8Provision reversed -3.1 -1.0 -4.2 -1.3 -2.1 -3.4Provision for right-of-use assets redelivery -0.9 -0.9 2.2 2.2Unwinding of discount 6.4 6.4 1.4 1.4Exchange rate differences 8.8 8.8 11.7 11.7Total 246.7 5.0 251.7 195.9 3.8 199.8Of which non-current 178.7 1.4 180.1 184.6 1.4 186.0Of which current 68.0 3.6 71.7 11.3 2.5 13.8Total 246.7 5.0 251.7 195.9 3.8 199.81.3.8 Employee benefits1.3.8.1 Employee benefit expenses and share-based payments Share-based paymentsFinnair provides a number of share-based compensation plans for its employees, under which the Group receives services from employees as consideration for share-based payments. Regarding share-based incentive plans for key personnel, the awards are paid only if performance criteria set by the Board of Directors is met. Share-based savings plan for employees (FlyShare) requires the employees to remain in Finnair\u2019s service for the defined period, but payment does not depend on any performance criteria.The total expense for share-based payments is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Share-based payments that are settled net of taxes are considered in their entirety as equity-settled share-based payment transactions. The reward is valued based on the market price of the Finnair share as of the grant date, and recognised as an employee benefit expense over the vesting period with corresponding entry in the equity. Income tax paid to tax authorities on behalf of employee is measured based on the market price of the Finnair share at the delivery date and recognised as a decrease in equity. If the reward includes the portion settled in cash, it is accounted for as a cash-settled transaction. The liability resulting from the cash-settled transactions is measured based on the market price of the Finnair share at the balance sheet date and accrued as an employee benefit expense for service period with corresponding entry in the liabilities until the settlement date.Termination benefitsTermination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to a termination. Group is demonstrably committed when it has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer.Accounting principles related to pension benefits are described in the note 1.3.8.2 Pensions. Staff and other crew related costsAt Finnair, the total salary of personnel consists of fixed pay, allowances, short- and long-term incentives, fringe benefits and other personnel benefits. The total amount of short-term incentives excluding social security costs recognised for 2022 were 9.2 million euro (5.8).In 2020, Finnair established a new long-term Rebuild incentive program for the personnel. As part of the program, employee can earn a cash reward equaling to one month base salary, when the targets set by the Board of Directors are met. A maximum of two months\u2019 base salary can be paid when targets are exceeded. The possible reward is paid during third quarter 2023. The program is available to those employee groups which have agreed to actions related to staff cost savings. In 2022, the cost recognised for the Rebuild incentive established for personnel was 0.3 million euro (3.8) excluding social security costs. The performance criteria are the same as those of the Rebuild incentive plan established for the Executive Board, which is described in the section Share-based payments of this note.Staff and other crew related costs include one-off personnel related restructuring costs of 2.5 million euro. In 2021, the one-off items included a 19.5 million euro positive effect mainly consisting of amendmends made to the collective labour agreement relating to a curtailment of occupational disability pensions and withdrawn pilots\u2019 early retirement announcements.Transfer to Personnel FundFinnair has a Personnel Fund that is owned and controlled by the personnel. A share of Finnair\u2019s profits is allocated to the fund. The share of profit allocated to the fund is determined based on the targets set by the Board of Directors. The participants of the performance share plan (LTI) are not members of the Personnel Fund. Personnel Fund is obliged to invest part of the bonus in Finnair Plc\u2019s shares. In 2022 and 2021, no profit was allocated to the fund because the set performance criteria were not met.Liabilities related to employee benefitsEUR mill. 2022 2021Wages and salaries 297.3 185.8Defined contribution schemes 55.4 30.1Defined benefit schemes 11.4 -6.6Pension expenses total 66.8 23.4Other social expenses 31.6 0.6Salaries, pension and social costs 395.7 209.9Operative staff related costs 27.6 8.3Leased and outsourced crew 19.0 7.2Other personnel related costs 7.3 3.9Total 449.6 229.3Items affecting comparability include an impairment of 32.7 million euros related to four owned A330 aircraft, unrealized exchange rate difference of 8.8 million euros related to aircraft maintenance provisions and sales gain of 6.8 million euros on four A321 aircraft. In addition, 2.5 million euros have been recognised in staff and other crew related costs related to the change negotiations ended in November 2022.2022 2021Items Items affecting affecting compara-compara-EUR mill. Reportedbility Comparable Reportedbility ComparableRevenue 2,356.6 2,356.6 838.4 838.4Other operating income 153.5 -6.8 146.7 62.5 -23.3 39.2Operating expensesStaff and other crew related costs -449.6 2.5 -447.1 -229.3 -19.5 -248.9Fuel costs -835.1 -0.9 -836.0 -211.4 0.0 -211.4Capacity rents -102.5 -102.5 -71.3 -71.3Aircraft materials and overhaul -192.4 8.8 -183.6 -117.2 25.5 -91.7Traffic charges -206.5 -206.5 -120.4 -120.4Sales, marketing and distribution costs -103.1 -103.1 -38.1 -38.1Passenger and handling services -348.0 -348.0 -148.0 -148.0Property, IT and other expenses -123.7 0.4 -123.3 -99.7 2.9 -96.8EBITDA 153.2 -149.0Depreciation and impairment -349.8 32.7 -317.1 -319.8 -319.8Operating result -200.6 36.6 -163.9 -454.4 -14.4 -468.9EUR mill. 2022 2021Holiday payments 66.8 47.0Other employee related accrued expenses 44.4 27.4Liabilities related to employee benefits 111.2 74.4Other employee related accrued expenses mainly include witholding tax and accrued expenses related to social security costs and remunerations. Other non-current liabilities include the Rebuild incentives of 0.0 million euro (7.8). In addition, restructuring provisions related to termination benefits (see note 1.3.6 Provisions) amounted to 2.3 million euro (1.1).Management remunerationThe President and CEO and Executive Board remuneration* Statutory pensions include Finnair\u2019s share of the payment to Finnish statutory \u201cTyel\u201d pension plan.Management remuneration is presented on an accrual basis. Share-based payments include LTI plans and employee share savings plans and are recognised over the vesting period until the end of the lock-up period, according to IFRS 2. Therefore the costs accrued and recognised for the financial year include effects from several share-based payment plans independent of when the shares are delivered. Management has not been provided any other long-term incentives in addition to share-based payments.During 2022 and 2021, the CEO and Executive Board were not paid holiday bonus.In conjunction with the rights offering in 2020, the EU commission set restrictions to CEO and Executive Board remuneration covering years 2020-2022. The restrictions cover variable compensation payouts and any changes to fixed compensation during the years 2020-2022. As a result, the Board of Directors decided to cancel the 2018-2020, 2019-2021 and 2020-2022 LTI plans as well as the 2020-2022 STI plan for the CEO and Executive Board. A new share-based long-term Rebuild incentive program was established for the CEO and Executive Board for the period 7/2020-6/2023.The voluntary pension plans of one member of the Executive Board have been arranged through a Finnish pension insurance company. The retirement age for this member of the Executive Board is 63 years. The plan is a defined contribution plan.More information on share-based payment schemes can be found later in this note and in a separate Remuneration report as well as on company website.Remuneration paid to Board of DirectorsThe remuneration of the Board of Directors is presented on an accrual basis. The compensation paid to the members of the Board of Directors include annual remuneration and meeting compensation. The members of the Board of Directors are entitled to a compensation for travel expenses in accordance with Finnair\u2019s general travel rules. In addition, the members of the Board of Directors and their spouses have a limited right to use staff tickets in accordance with Finnair\u2019s staff ticket rules. These tickets constitute taxable income in Finland and are reported as fringe benefits in the table above.Share-based paymentsThe note below provides description and information on effects of the Group\u2019s share-based incentive schemes. More information on share-based personnel bonus schemes can be found in Remuneration report.Performance share plan for key personnel (LTI)Finnair\u2019s share-based incentive plan is a performance-based, annually commencing long-term incentive (LTI) arrangement, and the commencement of each new plan is subject to a separate decision made by Finnair\u2019s Board of Directors. The purpose of these plans is to encourage the management to work to increase long-term Compensation paid Fixed Meeting Fringe for board service, EUR Total 2022remunerationcompensationbenefits Total 2021Board of Directors 416,222 282,900 129,600 3,722 372,233Alahuhta-Kasko Tiina 43,500 30,300 13,200Barrington Colm, until 7 April 2022 12,975 8,175 4,800Brewer Montie 54,300 32,700 21,600Erlund Jukka 43,729 32,700 10,800 229Jakosuo-Jansson Hannele 46,167 32,700 13,200 267Karvinen Jouko 80,627 63,000 14,400 3,227Kjellberg Henrik 51,900 30,300 21,600Large Simon, from 7 April 2022 onwards 39,525 22,725 16,800Strandberg Maija 43,500 30,300 13,200President President and CEO Executive and CEO Executive Thousand eurosTopi MannerBoard Total 2022Topi MannerBoard Total 2021Fixed pay 734 1,712 2,446 736 1,817 2,553Fringe benefits 20 105 125 21 129 150Share-based payments 287 789 1,076 469 941 1,409Pensions (statutory)* 124 298 421 120 310 430Pensions (voluntary, defined contribution) 20 20 20 20Total 1,165 2,923 4,088 1,346 3,217 4,563shareholder value. The Finnish Government\u2019s guidance regarding the remuneration of executive management and key individuals have been taken into consideration when designing the plans.In all ongoing LTI plans, the members of Finnair\u2019s Executive Board are expected to accumulate their share ownership in Finnair until it corresponds to their annual gross base salary and thereafter retain it for as long as they are members of the Executive Board.The potential reward will be delivered in Finnair shares. The shares are delivered to the participants during the year following the performance period, except for the Rebuild incentive where the performance period ends in June 2023 and the reward is delivered in the same year.The target levels and maximum levels set for the criteria are based on the long-term strategic objectives set by the company\u2019s Board of Directors. Criteria are monitored against the performance on a quarterly basis. The performance criteria of the plan for 2019-2021 were met at 54% level while the target was at 100% and the maximum earning level at 200%. In the comparison period, the performance criteria applied to the 2018-2020 plan was met at 22% level.The expense recognised for 2022 amounted to 0.9 million euros (1.7). The amount expected to be transferred to the tax authority to settle the employee\u2019s tax obligation is 3.0 million euros (5.3). The cost related to share-based payments is recognised in staff and other crew related costs and unrestricted equity funds, except the cash-settled portion of the Rebuild incentive plan in liabilities related to employee benefits.Rebuild incentive plan 7/2020-6/2023In 2020, a new Rebuild incentive plan for CEO and Executive Board was launched. The program contains a three-year performance period (7/2020\u20136/2023) and it is designed to contain only this one plan. The potential share rewards will be delivered to the participants in a pre-determined proportion of shares and cash after the end of the performance period and the rewards are at the participants\u2019 free disposal after delivery. If the combined value of incentive rewards in 2023 exceeds 120% of executive\u2019s annual salary, the exceeding part is deferred to coming years so that the combined incentive payout in any year does not exceed 120% of the executive\u2019s annual base salary. The total expense for the plan is recognised over the vesting period, which is three years. The grant date is at the beginning of performance period and the compensation is measured in shares.The payout opportunity is defined in the beginning of each plan in relation to the participants annual base salary. If the performance criteria set for the plan are met at the target level, the incentive paid in Finnair shares to the President and CEO or other member of the Executive Board participating in the plans will be a total of 180% of the participant\u2019s annual base salary. If the performance criteria set for the plan are met at the maximum level, the incentive paid in Finnair shares will be a total of 360% of the participant\u2019s annual base salary.The amount corresponding to tax payable at the time of payment is first deducted from the gross reward defined as shares. The net reward is delivered in a combination of cash and shares in a proportion decided by the Board of Directors.The performance criteria are set for the whole 3-year period as well as for three 12-month mid-term periods:\u2022 7/2020\u20136/2021: comparable EBITDA, gearing, lost-time injury frequency and CO emissions (measured 2through fuel efficiency),\u2022 7/2021\u20136/2022: comparable EBIT, revenue, employee retention and CO emissions (measured through 2fuel efficiency) as well as\u2022 7/2022\u20136/2023: comparable EBITDA, net promoter score (NPS), lost-time injury frequency and employee retention.The criteria for the whole 3-year period, is cash flow from operating activities which functions as a multiplier (0-2) for the whole program. This means that the threshold level needs to be reached in order for any reward to be paid.Other incentive plansThere are two LTI plans ongoing (2020\u20132022 and 2021\u20132023). The annually commencing performance share plans retain the three-year performance period. The potential share rewards will be delivered to the participants in one tranche after the performance period and they are at the participants\u2019 free disposal after delivery. In conjunction with the rights offering in 2020, according to the restrictions set by EU commission, the Board of Directors decided to cancel the 2018\u20132020, 2019\u20132021 and 2020\u20132022 LTI plans for the CEO and Executive Board. In 2022, no new LTI program was launched due to continuous business environment changes caused by the war in Ukraine. The total expense for the plans is recognised over the vesting period, which is three years. The grant date is at the beginning of performance period and the compensation is measured in shares.The payout opportunity is defined as a fixed share amount in the beginning of each plan in relation to the participants annual base salary. Therefore, changes in the share price during the performance period impacts the value of the payout opportunity. If the performance criteria set for the plan are met at the target level, the incentive paid in Finnair shares to the President and CEO or other member of the Executive Board participating in the plans will be 20% of the participant\u2019s annual base salary. If the performance criteria set for the plan are met at the maximum level, the incentive paid in Finnair shares will be 60% of the participant\u2019s annual base salary.The maximum level for incentives for other key personnel is 20\u201350% of the person\u2019s annual base salary. As a result of the rights issue in 2020, the share allocations for the ongoing 2018\u20132020, 2019\u20132021 and 2020\u20132022 plans were adjusted 5.5-fold in order for the earning opportunities to retain their value.The maximum combined value of all variable compensation (including both short- and long-term incentives) paid to an individual participant in any given calendar year may not exceed 120% of the participant\u2019s annual gross base salary. The amounts of shares paid are stated before tax. The number of shares delivered will be deducted by an amount corresponding to the income tax and transfer tax payable for the incentive at the time of payment.The performance criteria applied to the plans are:\u2022 2019\u20132021 plan: earnings per share (EPS, 50% weight), revenue growth (16.7% weight) and unit cost with constant currencies and fuel price (CASK, 33.3% weight),\u2022 2020\u20132022 plan: earnings per share (EPS, 50% weight) and unit cost with constant currencies and fuel price (CASK, 50% weight) as well as\u2022 2021\u20132023 plan: earnings per share (EPS, 45% weight), unit cost with constant currencies and fuel price (CASK, 45% weight) and fuel efficiency (10% weight).* Grant price until plan granted on 7 February 2020 has been adjusted by a bonus element included in the rights issue in 2020.** As a result of the rights issue in 2020, the share allocations for the ongoing 2018\u20132020, 2019\u20132021 and 2020\u20132022 plans were adjusted 5.5-fold in order for the earning opportunities to retain their value. These plans were cancelled for the CEO and Executive Board.FlyShare employee share savings plan 2013 onwardsFinnair offers an annually commencing share savings plan for its employees. Commencing of each plan is subject to the decision of Finnair\u2019s Board of Directors. The first plan commenced in 2013, and for the time being there are two plans ongoing. In 2022, Finnair\u2019s Board of Directors decided to terminate commencing the new FlyShare programs as a part of savings program.Rebuild 2019\u20132021 2020\u201320222020\u20132023 2021\u20132023 TotalGrant date 14 Feb 2019 7 Feb 2020 9 Oct 2020 26 Jan 2021Grant price, euros* 1.1914 1.0478 0.3948 0.6250Number of persons at the end of the reporting year 0 36 10 57Expenses recognised for the financial year, LTI\u2019s total (million euros) 0.1 0.0 1.2 -0.4 0.9of which share-settled (net of taxes) 0.1 0.0 1.1 -0.4 0.7of which cash-settled 0.2 0.2Liability related to LTI\u2019s total 0.8 0.8Shares granted, million shares 0.2** 1.1** 18.0 6.5 25.8Each plan consists of one year savings period followed by two year lock-up period. Through the plan, each eligible Finnair employee is offered the opportunity to save part of his or her salary to be invested in Finnair shares. The maximum monthly savings are 8% and the minimum 2% of each participant\u2019s gross base salary per month. Shares are purchased with the accumulated savings at the market price quarterly, after the release of Finnair\u2019s interim reports.The plan lasts for three years, and Finnair awards each participating employee with one share for each two shares purchased and held at the end of three-year period. The awarded bonus and additional shares are taxable income for the recipient. The number of shares delivered will be deducted by an amount corresponding to the income tax and transfer tax payable for the shares at the time of payment. The cost related to additional shares delivered is recognised as expense during vesting period. The expense recognised for FlyShare employee share saving plans in 2022 amounted to 0.9 million euros (1.3). The amount expected to be transferred to the tax authority to settle the employee\u2019s tax obligation is 0.9 million euros (1.0). The cost related to employee share saving plans is recognised in staff and other crew related costs and unrestricted equity funds.1.3.8.2 Pensions Defined benefit and defined contribution plansPension plans are classified as defined benefit and defined contribution plans. Payments made into defined contribution pension plans are recognised in the income statement in the period to which the payment applies. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Current service cost is the present value of the post employment benefit, which is earned by the employees during the year and it is recognised as staff and other crew related costs. The liability recognised in the balance sheet in respect of defined pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligations is determined by discounting the estimated future cash flows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. If fair value of plan assets is higher than present value of funded obligations, the net amount is presented as pension assets in the Group\u2019s balance sheet. Pension obligationsThe present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Any changes in these assumptions will impact the carrying amount of pension obligations. The note below includes a description of exposure to most significant risks and a sensitivity analysis on impacts of changes in actuarial assumptions. Description of pension plans at FinnairThe statutory pension cover of the employees of the Group\u2019s Finnish companies has been arranged in a Finnish pension insurance company. The statutory pension cover is a defined contribution plan. The Group\u2019s foreign sales offices and subsidiaries have various defined contribution plans that comply with local rules and practices. CEO has no supplementary pension plan. The supplementary defined contribution pension plan of one member of the Executive Board is arranged in a pension insurance company. The retirement age for this member is 63 years.Other supplementary pension cover of the Group\u2019s domestic companies has been arranged mainly in the Finnair Pension Fund, in which the pension schemes are defined benefit plans. These pension plans cover old age supplementary pensions and disability pensions exceeding the pension cover under the Employment Pensions Act. The survivors\u2019 pensions under the supplementary pension cover applies on a limited basis to pensioners who have retired on 1 January 2005 at the latest, as well as to recipients of benefits previously in accordance with Finnair Plc\u2019s survivor\u2019s pension rules who transferred to the pension fund on 31 December 2015. The Pension Fund\u2019s old age and occupational disability pension scheme has been closed to other employees since 1 February 1992 and to pilots since 1 January 2010. After this, pilots have only been covered by the occupational disability pension scheme if they have not switched to another work offered by the employer. The pension fund as a whole has been closed on 31 May 2021.Old age pensions of pilots recruited in 2015 or later are defined contribution schemes arranged in a life insurance company. Supplementary pension cover has also vested pension right on a limited basis and the retirement age of the pension fund\u2019s vested pension is tied to a change in the retirement age under the Employment Pensions Act that came into force in 2017 or an event under disability pension cover under the Employment Pensions Act. Beginning from 2021, the earnings or supplementary pensions payable on which the pension fund\u2019s defined benefit supplementary pension cover is based are not adjusted by the pension index increment. The supplementary pension liability of the pension fund is fully covered in accordance with Finnish legislation. In addition, approximately 500 Finnair pilots have the right to a separate defined contribution supplementary pension arranged in a life insurance company after reaching the age of 55 years in addition to the pension fund\u2019s defined benefit old age pension cover, if the pilot continues to work as pilot over the age of 55 years and retires from his/her job.Exposure to most significant risksVolatility of plan assets: Some of the plan assets are invested in equities which causes volatility but are in the longrun expected to provide higher returns than corporate bonds. The discount rate of plan obligations is defined based on the interest rates of corporate bonds.Changes in bond yield: A decrease in corporate bond yields increases plan obligations due to the fact that the pension obligation is discounted to net present value with a rate that is based on corporate bond rates. This increase in plan obligations is partially mitigated by a corresponding increase in the value of corporate bonds in plan assets.Life expectancy: The most significant part of the provided pension benefits relate to old age pensions. Therefore, an increase in the life expectancy rate results in an increase of plan obligations.Defined benefit pension plansEUR mill. 2022 2021Items recognised in the income statementCurrent service costs 6.2 8.3Past service cost 5.3 -1.8Amendments 0.0Settlements and curtailments -0.1 -13.1Service cost total, recognised in staff costs 11.4 -6.6Net interest expenses and foreign exchange differences -0.6 -0.2Total included in the income statement 10.8 -6.8Amounts recognised through other comprehensive incomeExperience adjustment on plan obligation 1.5 5.4Changes in financial actuarial assumptions -86.4 -17.0Changes in demographic actuarial assumptions 0.2Net return on plan assets 34.9 -31.6Amounts recognised through other comprehensive income total -49.9 -43.0Number of persons involved, pension fund 4,258 4,364Number of persons involved, other defined benefit plans 53 52Items recognised in the balance sheetPension assets 120.0 million euro (80.9) includes 119.7 million euro (78.9) related to defined benefit plans insured through the pension fund and 0.4 million euro (2.0) related to other defined benefit plans. Pension obligations includes 0.7 million euro (0.7) related to other defined benefit plans. The change during 2022 mainly is due to change in discounting rate and net return on plan assets.Changes in pension obligationsChanges in plan assetsPlan assets are comprised as followsPlan assets of the pension fund include Finnair Plc shares with a fair value of 0.6 million euros (0.9) and buildings used by the Group with a fair value of 13.0 million euros (12.8).Defined benefit plans: principal actuarial assumptionsSensitivity analysisThe sensitivity analysis describes the effect of a change in actuarial assumptions on the net defined benefit obligation. The analyses are based on the change in the assumption while holding all other assumptions constant. The method used is the same as that which has been applied when measuring the defined benefit obligation recognised in the balance sheet.Sensitivity analysis on principal actuarial assumptionsAccording to Finnish legislation, the pension fund needs to be fully funded. Finnair does not expect to pay contributions to the pension fund in 2023. The duration of defined benefit obligation is 8 years. The duration is calculated by using a discount rate of 3.69%.EUR mill. 2022 2021Fair value of pension obligations at 1 January 361.2 405.5Current service costs 5.7 7.7Past service cost 5.3 -1.8Settlements and curtailments -0.5 -13.2Amendments -0.1Interest expenses and foreign exchange differences 2.3 1.6Expense recognised in income statement 12.8 -5.9Changes in actuarial assumptions -86.4 -16.8Experience adjustment on plan obligation 1.5 5.4Remeasurements recognised through OCI -84.9 -11.4Benefits paid -24.8 -27.1Net present value of pension obligations 264.4 361.2EUR mill. 2022 2021Fair value of plan assets at 1 January 441.4 435.8Administration expenses -0.5 -0.6Settlements and curtailments -0.4 -0.2Amendments -0.1Interest income and foreign exchange differences 2.9 1.7Items recognised through profit and loss 2.0 0.9Acturial gain (loss) on plan assets -34.9 31.6Items recognised through OCI -34.9 31.6Contributions paid 0.0 0.1Benefits paid -24.8 -27.1Fair value of plan assets at 31 December 383.7 441.4% 2022 2021Listed shares 12.2 17.8Debt instruments 59.7 55.1Property 24.2 23.0Other 3.9 4.1Total 100.0 100.0% 2022 2021Discount rate % 3.69% 0.74%Annual rate of future salary increases % 0.60% 1.80%Future pension increases % 0.00% 0.00%Estimated remaining years of service 8 8Impact when Impact when increase in decrease in Change in assumption, assumption, Actuarial assumptionassumptionEUR mill. %EUR mill. %Discount rate % 0.25% -5.0 -1.9% 5.2 2.0%Annual rate of future salary increases % 0.25% 1.3 0.5% -1.2 -0.5%Life expectancy at birth 1 year 5.2 2.0%EUR mill. 2022 2021Pension Pension Pension Pension assetsobligationsassetsobligationsPresent value of funded obligations -263.2 -1.1 -359.8 -1.4Fair value of plan assets 383.3 0.5 440.7 0.7Pension assets (+) / pension obligations (-) in the balance sheet 120.0 -0.7 80.9 -0.72 Fleet and other fixed assets and leasing arrangements Fleet and other fixed assets and leasing arrangements includes notes particularly related to the aircraft fleet. Notes related to the aircraft operated by the Group are combined in this section so that the general view of the fleet is easier to understand. In addition to owned aircraft, the notes cover leased aircraft under different kinds of aircraft lease arrangements. The assets owned and leased by Finnair consist mostly of aircraft operated by Finnair and Norra. In 2022, the number of owned aircraft was 37 (41) and leased 43 (43). Finnair sold four owned A321 aircraft during 2022. Due to the easing of the impacts of the COVID-19 pandemic, as at the balance sheet date, 79 out of Finnair\u2019s 80 aircraft recognized in fixed assets were operative. The remaining one aircraft is expected to return to service during first quarter of 2023.Fleet in Finnair balance sheet2.1 Fleet and other fixed assets Fleet and other fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment loss if applicable. Fleet includes aircraft and aircraft prepayments. The acquisition cost of aircraft is allocated to the aircraft frame, cabin components, engines and maintenace components as separate assets. Maintenance components include heavy maintenance, C-checks, APU (auxiliary power unit) restorations, landing gear overhauls and thrust reversers of aircraft frames, as well as performance restoration and maintenance of life limited parts of engines. Aircraft frames and engines are depreciated over the useful life of the aircraft. The maintenance components are depreciated during the maintenance cycle. Cabin components are depreciated over their expected useful life. Significant modifications of owned or leased aircraft are capitalised as separate items and depreciated over their expected useful life, which in the case of leased aircraft cannot exceed the lease period. Replaced components are derecognised from the balance sheet. Advance payments for aircraft are recorded as fleet fixed assets. Interest costs related to advance payments are capitalised as acquisition cost for the period at which Finnair is financing the manufacturing of the aircraft. Hedging gains or losses related to the fair value changes of firm, USD nominated purchase commitments for aircraft are recognised in advance payments. Advance payments, realised foreign exchange hedges and capitalised interests are recognised as part of the aircraft acquisition cost once the aircraft is delivered and taken to commercial use.Other fixed assets include rotable aircraft spare parts, other fixed assets and their prepayments. Other fixed assets are depreciated during their expected useful life.Intangible assets mainly include computer software and connection fees. Connection fees are not depreciated. Gains and losses on disposal of tangible and intangible assets are included in other operating income and expenses.Useful life and residual valueDepreciation of fleet and other fixed assets is based on the following expected economic lifetimes:New aircraft and engines as well as flight simulators (other equipment) on a straight-line basis as follows:Airbus A350 fleet, over 20 years to a residual value of 10%Airbus A320 and Embraer fleet, over 20 years to a residual value of 10%Airbus A330 fleet, over 18 years to a residual value of 10%Turboprop aircraft (ATR fleet), over 20 years to a residual value of 10%Heavy maintenance, C-checks, APU and landing gear restorations and thrust reversers of aircraft frame, as well as performance maintenance and life limited parts of the engines, on a straight-line basis during the maintenance periodCabin components, over 7\u201320 yearsRotable spare parts and components, over 15 years to a residual value of 0%Buildings, over 10\u201350 years from the time of acquisition to a residual value of 10%Other tangible assets, over 3\u201315 yearsComputer software, over 3\u20138 yearsThe residual values and estimated useful lives of the assets are assessed at each closing date and if they differ significantly from previous estimates, the depreciation periods and residual values are changed accordingly. The useful life of Finnair\u2019s current Airbus A320 fleet was prolonged in 2021 as part of the investment optimizations resulting from the COVID-19 pandemic. As a result, the existing A320 fleet\u2019s aircraft and engines are depreciated over a period of 25-29 years to a residual value of 0%.Assets held for saleNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction, a sale is considered highly probable and expected to take place within the next twelve months. Assets classified as held for sale are stated at the lower of the carrying amount or fair value less cost to sell. Assets classified as held for sale are no longer depreciated.ImpairmentThe Group reviews its fleet and other fixed assets for indication of impairment on each balance sheet date. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. EUR mill. 2022 2021 ChangeAdvances paid for aircraft 111.2 127.7 -16.5Owned aircraft 783.6 818.6 -35.0Right-of-use fleet 932.9 1,025.3 -92.4Fleet total 1,827.6 1,971.6 -143.9Fleet sublease receivables 10.0 -10.0Fleet lease liabilities 1,164.4 1,204.6 -40.2Depreciation for the period of owned aircraft -120.9 -155.7 34.8Depreciation for the period of right-of-use fleet -156.0 -123.2 -32.8Impairment for the period related to owned aircraft -32.7 -1.5 -31.2Assets held for sale (fleet) 18.5 -18.5Fleet 2022Additions to fleet in 2022 relate mainly to cabin renewal investments of Finnair\u2019s widebody aircraft. An impairment of 32.7 million euro related to four owned A330 aircraft was recognized during the financial year resulting from the impacts of the closure of Russian airspace. Impairment for the financial year is presented in more detail in the note 2.3 Depreciation and impairment. Currency hedging of aircraft acquisitions is described in the notes 3.5 Management of financial risks and 3.8 Derivatives. Fleet 2021Other fixed assets 2022In addition to the aircraft rotable parts included in the other fixed assets, Finnair\u2019s inventories include non-rotable aircraft parts amounting to 24.4 million euro (16.9). EUR mill. Aircraft Advances TotalAcquisition cost 1 Jan 2022 1,749.4 127.7 1,877.1Additions 69.1 12.2 81.2Disposals -39.5 -39.5Currency hedging of aircraft acquisitions 20.4 20.4Reclassifications 49.2 -49.2 0.0Transfer to assets held for saleAcquisition cost 31 Dec 2022 1,828.1 111.2 1,939.3Accumulated depreciation and impairment 1 Jan 2022 -930.8 -930.8Disposals 39.5 39.5Transfer to assets held for saleReclassifications 0.4 0.4Depreciation for the financial year -120.9 -120.9Impairment for the financial year -32.7 -32.7Accumulated depreciation and impairment 31 Dec 2022 -1,044.5 -1,044.5Book value 31 Dec 2022 783.6 111.2 894.8EUR mill. Aircraft Advances TotalAcquisition cost 1 Jan 2021 2,358.7 117.7 2,476.3Additions 13.7 55.6 69.3Disposals -425.2 -425.2Currency hedging of aircraft acquisitions -22.6 -22.6Reclassifications -1.3 -22.9 -24.2Transfer to assets held for sale -196.5 -196.5Acquisition cost 31 Dec 2021 1,749.4 127.7 1,877.1Accumulated depreciation and impairment 1 Jan 2021 -1,036.1 -1,036.1Disposals 84.5 84.5Transfer to assets held for sale 178.0 178.0Depreciation for the financial year -155.7 -155.7Impairment for the financial year -1.5 -1.5Accumulated depreciation and impairment 31 Dec 2021 -930.8 -930.8Book value 31 Dec 2021 818.6 127.7 946.3Aircraft rotable Buildings Other Intangible EUR mill.partsand landequipmentassets Advances TotalAcquisition cost 1 Jan 2022 34.2 74.5 119.5 47.8 0.8 276.7Additions 2.3 4.4 0.2 0.4 7.2Disposals -1.1 -1.4 -7.9 -10.5Reclassifications 0.1 0.6 -0.8 0.0Transfers to/from assets held for sale 0.0 0.1 0.0Acquisition cost 31 Dec 2022 35.3 74.5 122.5 40.7 0.4 273.4Accumulated depreciation and impairment 1 Jan 2022 -19.2 -10.8 -41.9 -42.5 -114.4Disposals 1.0 0.9 7.9 9.8Transfer to/from assets held for sale 0.3 0.3ReclassificationsDepreciation for the financial year -4.5 -1.8 -9.5 -3.1 -18.9Accumulated depreciation and impairment 31 Dec 2022 -22.3 -12.7 -50.5 -37.7 0.0 -123.3Book value 31 Dec 2022 12.9 61.8 72.0 3.0 0.4 150.1Other fixed assets 2021Capitalised borrowing costsIn 2022 borrowing costs of 1.8 million euro (1.4) were capitalised in tangible assets related to the Airbus A350 investment program. Finnair uses the effective interest rate to calculate the capitalised borrowing costs, that represents the costs of the loans used to finance the investment. The average yearly interest rate in 2022 was 4.19% (3.66%). The general borrowings used to fund the acquisition of capital assets are included in the calculation of the capitalisation rate. Assets and liabilities held for saleFinnair had no assets classified as held for sale at the end of the financial year 2022. In 2021, the assets held for sale related to four A321 aircraft which were sold during 2022.Pledged assets and other restrictions on fixed assetsFinnair does not have fixed assets pledged as a security for bank loans. Fleet assets include three A350 aircraft financed with JOLCO-loans and one A350 aircraft where the legal title is transferred to Finnair after loans are repaid. More details on these arrangements are presented in the note 3.3. Financial liabilities. Investment commitmentsInvestment commitments as at the end of the year totalled 366.1 million euro (355.3) and it includes firm aircraft orders, other aircraft related investments as well as committed maintenance investments. Out of the total investment commitments, 62.1 million euro is expected to take place within the next 12 months and 304.0 million euro during the following 1-5 years. The amount of the total commitments fluctuates between the order and the delivery date of the aircraft mainly due to EUR/USD exchange rate changes and escalation clauses included in airline purchase agreements. The exact amount of the commitments in relation to each aircraft is only known at the time of the delivery.2.2 Leasing arrangements The Group as lessee Finnair assesses whether a contract that relates to tangible assets is, or contains, a lease in accordance with the IFRS 16. Lease agreements for tangible assets, where the contract conveys the right to use an identified asset for a period of time in exchange for consideration, are classified as leases.The lease term is the non-cancellable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if Finnair is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if Finnair is reasonably certain not to exercise the option.The lease recognition requirements are not applied to short-term leases, where at the commencement date, the lease term is 12 months or less and does not contain a purchase option. Finnair considers the lease period to be the period that is enforceable. Hence, for contracts where the contract term is non-fixed and Finnair has the right to terminate the contract without the permission from the other party with no more than an insignificant penalty and there are no other indications that the contract is enforceable, Finnair classifies these contracts as short-term. The lease recognition requirements are also not applied to leases that are not material to Finnair.For short-term leases and immaterial leases to which these exemptions are applied, the lease payments are recognised as an expense on either a straight-line basis over the lease term, or on another systematic basis if that basis is more representative of the pattern of Finnair\u2019s benefit.At the commencement date of a lease, Finnair recognises both a right-of-use asset and a lease liability.The lease liability is the present value of future lease payments. At Finnair, lease payments for aircraft leases typically contain variable payments that depend on interest rates and indices. The variable payments are included in the measurement of the lease liability from the commencement date of the lease. The right-of-use asset is measured at cost, comprising the amount of the initial measurement of the lease liability;any lease payments made at or before the commencement date, less any incentives received;any initial direct costs incurred by Finnair; and an estimate of costs to be incurred by Finnair in restoring the assets to the condition required by the terms and conditions of the lease.In most cases, Finnair is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. The maintenance costs can be divided into two main groups: 1) costs that are incurred independent of the usage of the aircraft / leasing period and 2) costs that are incurred dependent on the usage of the aircraft / leasing period The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost.Finnair remeasures the lease liability when there is a lease modification that changes the scope of a lease or the consideration for the lease, that was not part of the original terms and conditions of the lease (including changes in lease payments resulting from a change in indices and rates used in variable aircraft lease payments) or when the the likehood of Finnair using a purchase-option is changed. The amount of the remeasurement of the lease liability is generally recognised as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the remaining measurement is recognised in profit or loss.After initial recognition, right-of-use assets are measured at cost less any accumulated depreciations and accumulated impairment losses. The assets are depreciated with a straight-line method from the commencement date to the shorter of end of useful life of the right-of-use asset and the end of lease term. However, if the lease transfers ownership of the Aircraft rotable Buildings Other Intangible EUR mill.partsand landequipmentassets Advances TotalAcquisition cost 1 Jan 2021 33.9 75.6 116.0 55.3 7.2 288.0Additions 1.4 0.0 4.5 1.3 0.2 7.4Disposals -0.9 -1.1 -4.9 -4.0 -10.8Reclassifications 0.0 3.9 -4.8 -6.6 -7.6Transfer to assets held for sale -0.3 -0.1 -0.3Acquisition cost 31 Dec 2021 34.2 74.5 119.5 47.8 0.8 276.7Accumulated depreciation and impairment 1 Jan 2021 -17.3 -9.8 -33.4 -42.3 -102.8Disposals 0.6 0.6 0.2 4.0 5.4Reclassifications 3.9 3.9Depreciation for the financial year -2.5 -1.6 -8.7 -8.1 -21.0Accumulated depreciation and impairment 31 Dec 2021 -19.2 -10.8 -41.9 -42.5 0.0 -114.4Book value 31 Dec 2021 15.0 63.7 77.6 5.2 0.8 162.3Aircraft Advances TotalEUR mill. 2022 2021 2022 2021 2022 2021Book value 1 Jan 8.8 18.6 2.7 2.8 11.5 21.4Additions 1.8 1.4 1.8 1.4Disposals -10.6 0.0 -10.6Reclassifications -1.5 0.0 -1.5Depreciation -0.5 0.8 -0.5 0.8Book value 31 Dec 8.3 8.8 4.5 2.7 12.8 11.5asset to Finnair by the end of lease term or if the cost of the right-of-use asset reflects that Finnair will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of useful life of the asset.At Finnair aircraft lease contracts contain the interest rate implicit in the lease, even if the aircraft lease agreements do not clearly define the interest rate implicit in the lease. Since the fair values of the aircraft are provided publicly by third parties, Finnair is able to calculate the implicit interest rate for each qualifying aircraft operating lease. The rate implicit in the lease is defined as the rate that causes the sum of the present value of the lease payments and the present value of the unguaranteed residual value of the underlying asset at the end of the lease to equal the sum of the fair value of the underlying asset and any initial direct costs of the lessor. The implicit interest rate is determined by each aircraft lease contract separately.For other lease contracts, an implicit interest rate cannot be usually determined. The incremental borrowing rate is therefore used and it is determined by each class of assets separately, based on management estimate. Aircraft lease contracts are usually denominated in foreign currency (US dollars) and the foreign currency lease liabilities are revalued at each balance sheet date to the spot rate. The lease payments (lease payments made) are accounted for as repayments of the lease liability and as interest expense.The Group as lessorAgreements, where the Group is the lessor, are accounted for as operating leases, when a substantial part of the risks and rewards of ownership are not transferred to the lessee. The assets leased under operating lease are included in the tangible assets and they are depreciated during their useful life. Depreciation is calculated using the same principles as the tangible assets for own use. Under the provisions of certain aircraft lease agreements, the lessee is required to pay periodic maintenance reserves which accumulate funds for aircraft maintenance. Advances received for maintenance are recognised as liability, which is charged, when maintenance is done. The rents for premises and aircraft are recognised in the income statement as other operating income over the lease term.Agreements, where the Group is the lessor, are accounted for as finance leases, when a substantial part of the risks and rewards of ownership are transferred to the lessee. Finnair recognises assets held under a finance lease in its balance sheet and presents them as a receivable at an amount equal to the net investment of the lease which is equal to the sum of the present values of the lease income it will receive in the future and the unguaranteed residual value.Finnair subleases aircraft and buildings as well as ground equipment from time to time, which are classified either as finance leases or operating leases based on the individual contract terms. A lease is classified on its commencement date and is reassessed only if the lease is amended. At the commencement date, for the subleases, a net investment (lease receivable), equaling to the present value of lease payments and the present value of the unguaranteed residual value, is recognised. The proportion of the right-of-use asset subleased is derecognised from the balance sheet and the difference between the right-of-use asset and the net investment is recognised in the profit or loss, in other operating income and expenses. Subsequently, the lease payments received are accounted for as repayments of the lease receivable and as interest income. Sale and leaseback In sale and leaseback transactions, where Finnair sells and then leases back aircraft, Finnair measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of-use retained by the Group. Accordingly, Finnair recognises only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor. ImpairmentThe Group reviews its leased assets for indication of impairment on each balance sheet date. Impairment loss is recognized if the recoverable amount is below its carrying amount. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. Leasing arrangements Determining the interest rate and lease term used in discounting the lease payments, estimating the redelivery obligations of aircraft leases and the classification of sublease agreements to operating and financial leases require management discretion in interpretation and application of accounting standards. The COVID-19 pandemic or the war in Ukraine and the following closure of Russian airspace did not have a significant impact on the terms of the leasing arrangements of the Group, neither did it significantly increase the amount of discretion related to abovementioned critical accounting estimates and sources of uncertainty. The pandemic or the geopolitical situation did not, for example, have significant impact on the estimated lease terms as extension options are usually not considered in the initial lease term determination. Additionally, the impact of contracts terminated early during the period was not significant. The carrying value of the right-of-use assets are tested for impairment as part of cash generating unit at the balance sheet date. More details is presented in the note 2.3. Right-of-use assets 2022The changes in contracts relate to changes either in the scope, or consideration, of leases. Right-of-use assets 2021Lease liabilitiesThe Group leases aircraft, premises and other fixed assets, for which the lease liability is recorded on the balance sheet. The lease agreements have different terms of renewal and include index-linked terms and conditions. The Group was operating 43 leased aircraft at the end of the year with lease agreements of differenttenors. The leased aircraft, that Finnair is subleasing to other operators and which are classified as finance leases are shown in the table below.Buildings Other EUR mill. Aircraftand landequipment TotalBook value 1 Jan 2022 1,025.3 123.0 33.4 1,181.7Additions 0.0 0.5 9.0 9.5Changes in contracts 63.5 3.8 -3.0 64.3Depreciation for the financial year -156.0 -13.3 -8.0 -177.3Book value 31 Dec 2022 932.9 114.0 31.4 1,078.2Buildings Other EUR mill. Aircraftand landequipment TotalBook value 1 Jan 2021 772.5 133.8 11.2 917.5Additions 346.9 1.4 32.2 380.6Changes in contracts 29.0 1.0 -4.7 25.3Depreciation for the financial year -123.2 -13.2 -5.3 -141.6Book value 31 Dec 2021 1,025.3 123.0 33.4 1,181.7Aircraft Buildings and land Other equipmentEUR mill. 2022 2021 2022 2021 2022 2021less than one year 183.0 157.2 12.2 12.6 7.4 7.01\u20135 years 605.5 602.7 41.1 43.1 22.3 19.9more than 5 years 375.9 444.6 80.8 86.8 2.5 6.8Total 1,164.4 1,204.6 134.1 142.6 32.2 33.8Finance lease receivables, Group as lessor Finnair had no aircraft related finance lease receivables at the end of 2022 as the sublease contracts for aircraft classified earlier as finance leases were reclassified as operating leases due to contract modifications. Leasing arrangements in profit and lossOperating expenses include costs related to short-term and capacity based rental agreements, that are not material for the Group or do not contain a lease according to IFRS 16, and are therefore not recognised in the balance sheet. In the income statement, the short-term wet leases and variable purchase traffic and cargo capacity rents are included in capacity rents and the short-term office rents are included in property, IT and other expenses. Gains related to sale and leaseback transactions are recorded in other operating income in profit and loss. Total cash outflow relating to leases was -376.7 million euro (-284.2).Off-balance sheet lease commitments, Group as lesseeOff-balance sheet lease commitments are short-term lease agreements and other lease agreements for which the underlying asset is of low value or contracts that do not contain a lease according to IFRS 16. Therefore, these contracts are not recognised as right-of-use assets and lease liabilities in the balance sheet. The most significant item in the premises rents is the right-to-use a test cell, which is excluded from the lease liabilty on the basis that it is not for the exclusive use of Finnair. Other rents include IT equipment leases, that are not material.Off-balance sheet lease receivables, Group as lessorThe Group has leased 15 owned aircraft as well as premises with irrevocable lease agreements. Additionally, Finnair has subleased 9 aircraft classified as operating leases. These agreements have different terms of renewal and other index-linked terms and conditions. 2.3 Depreciation and impairmentDepreciationDepreciation of assets is determined based on their expected useful life or maintenance cycle and residual value. The depreciation for all assets is calculated using straight-line method. The depreciation is started when the asset is available for use. Depreciation is ceased when the asset is either classified as held for sale or derecognised. The useful life and residual value for assets are described in more detail in the note 2.1. Depreciation and impairment include both planned depreciations on fixed assets as well as impairment. The depreciation of own fleet decreased and the depreciation of right-of-use fleet increased in 2022 mainly as a result of the four A350 sale and leaseback transactions executed in 2021. An impairment of 32.7 million euro was recognized in 2022 related to four A330 aircraft because of the closureof Russian airspace and the prolonged flight times to many Asian destinations. Aircraft Buildings and landEUR mill. 2022 2021 2022 2021less than 12 months 7.6 0.3 0.413\u201324 months 2.4 0.3 0.325\u201336 months 0.3 0.337\u201348 months 0.0 0.349\u201360 months 0.0 0.0more than 60 months 0.1 0.1Total 10.0 1.1 1.4EUR mill. 2022 2021Depreciation expense of right-of-use assets -177.3 -141.6Interest expense on lease liabilities -80.1 -62.7Interest income on sublease receivables 0.1 1.6Exchange rate changes of lease liabilities -76.1 -75.5Hedging result of lease liabilities 19.1 16.3Short-term wet leases -28.4 -6.5Short-term office rents -3.2 -3.2Variable purchase traffic and cargo capacity rents -74.0 -65.0Gains and losses on sale and leaseback transactions 14.4Total -419.9 -322.2Premises rents Other rentsEUR mill. 2022 2021 2022 2021less than one year 2.5 2.3 1.5 1.51\u20135 years 5.5 6.3 0.9 0.9more than 5 years 6.7 6.9Total 14.7 15.5 2.4 2.4Aircraft Buildings and landEUR mill. 2022 2021 2022 2021less than 12 months 23.5 19.4 2.1 1.813\u201324 months 23.5 15.4 2.1 1.825\u201336 months 23.5 6.2 2.1 1.837\u201348 months 23.5 6.2 2.1 1.849\u201360 months 11.3 6.2 1.8 1.5more than 60 months 3.8 1.6 2.5 2.0Total 109.0 55.1 12.7 10.8EUR mill. 2022 2021Amortisation of intangible assets 3.1 7.6Depreciation of own fleet 120.9 155.7Depreciation of right-of-use fleet 156.0 123.2Depreciation of other tangible assets 15.8 12.9Depreciation of other right-of-use assets 21.3 18.5Amortisation and depreciation 317.1 317.8Impairment of assets 32.7 2.0Impairment 32.7 2.0Total depreciation and impairment in income statement 349.8 319.8Impairment testingImpairment testing The Group reviews its fleet, other fixed assets and other non-current assets for indication of impairment on each balance sheet date. The recoverable amount of an asset or a cash generating unit is determined as the higher of value in use and the fair value less cost to sell. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is defined for the cash generating unit, and the impairment is evaluated at the cash generating unit level. Impairment testing of the fleet and other fixed assetsFinnair applies the value in use model as its primary method for determining the recoverable amount of the assets. Preparation of the calculations used for impairment testing requires the use of significant management judgement and estimates, which is why the actual outcome may differ from the current management estimates and assumptions made. The management estimates are based on budgets and forecasts, which already inherently contain some degree of uncertainty, in addition to which the COVID-19-pandemic and Russia\u2019s war against Ukraine in Europe has resulted in increased estimation uncertainty. It is especially difficult to predict the duration of the Russian airspace closure. Also, the price of jet fuel increased significantly during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and costs as well as the changes in the economic and competitive environment are subject to increased uncertainty.In order to consider the increased uncertainty in its estimates and assumptions, the management has considered three different forecast scenarios differing mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. These scenarios, as well as the main identified uncertainties, are discussed in more detail in the beginning of the notes, in the section Board\u2019s assessment of Finnair as a going concern. In order to consider the increased uncertainty of its operating environment in the impairment testing, Finnair is applying the expected cash flow approach which incorporates expectations about all three forecast scenarios instead of relying on just a single, most likely, cash flow estimate. Determination of the probabilities used for each of the senarios are based on the management\u2019s best estimate at the time and require the use of significant management judgement. Finnair has preparared a sensitivity analysis on the key assumptions used in the impairment testing as well as on changes of the EBITDA-margin. Based on the analysis, the value in use calculation is sensitive to changes in the discount rate, terminal growth rate, fuel cost as well as to changes in the EBITDA-margin. Key assumptions used and the related sensitivities are described in more detail below. During the fiscal year 2022, Finnair has reviewed quarterly whether indications for impairment exist. Finnair considers the various adverse economic and business implications relating to the COVID-19 pandemic and the closure of the Russian airspace following the war in Ukraine as indications of possible impairment and therefore, impairment test has been carried out as at the balance sheet date. Such indicators include the unprecedented global market disruptions caused by the pandemic and the war in Ukraine as well as their negative impacts on the Group\u2019s operating environment, financial performance, and capacity utilization. Impairment review is carried out at the level of a cash-generating unit (\u2018CGU\u2019). Finnair is a network carrier with highly integrated fleet operations and it considers all its fleet (including right-of-use fleet) and other closely related assets as one CGU. Intangible assets with indefinite useful life have been identified to belong to the aircraft CGU for impairment testing purposes. At year-end 2022, the amount of other intangible assets with indefinite useful life in Finnair\u2019s balance sheet totaled to 1.4 million euro (1.4). Assets that are held for sale are excluded from CGU and reviewed separately for impairment. The cash generating unit has been tested for impairment using the value in use model based on which the recoverable amount of the CGU exceeds its carrying value at the balance sheet date. The recoverable amount of the CGU as at 31.12.2022 was 2,059.2 million euros (2,748.6) based on expected cash flow approach as described below, and the carrying value of the assets was 1 ,635.0 million euros (2,155.8).The value in use measurement is based on a discounted cash flow model where the cash flow projections are based on Finnair\u2019s strategy approved by the Board of Directors and a management forecast covering a five-year period. The cash flow projections beyond the five-year period are based on the management\u2019s long-term growth assumptions. In order to consider the increased uncertainty caused by the Russia\u2019s war in Ukraine, Finnair is utilizing the expected cash flow approach which is using multiple, probability-weighted cash flow projections based on three different forecast scenarios prepared by the management. The scenarios and probabilities allocated to each scenario have been reviewed and approved by the Board of Directors. When determining the probabilities, the management has considered, in particular, the heightened uncertainty surrounding a possible economic downturn as well as the uncertainty related to the duration of the Russian airspace closure. In the base scenario, which is considered to have a probability of 50%, the Russian airspace would remain closed for the foreseeable future. In the more pessimistic scenario, which is considered to have a probability of 30%, the Russian airspace is also estimated to remain closed until the foreseeable future and additionally, a possible economic downturn to have a negative impact on passenger revenues. In the optimistic scenario, which is considered to have a probability of 20%, Finnair estimates that the Russian airspace would open by mid-2025. Finnair expects it will optimize its fleet and network in all three scenarios as well as enhance its operations in accordance with the renewed strategy during the years 2022\u20132024.Key assumptions used in impairment reviewKey assumptions used in the impairment review are presented in the table above. The assumptions are the same for all scenarios except for the long-term growth rate. The long-term growth rate in the optimistic scenario is 2.8% and in the base scenario and the more pessimistic scenario 2.5%. The long-term growth rate of the expected cash flow model is 2.6% which is presented in the table. The discount rate used is based on the weighted average cost of capital (WACC), which reflects the market assessment of the time value of money and the risks specific to Finnair\u2019s business. Both pre-tax and post-tax discount rates are presented above.The estimated business growth is based on the management\u2019s best estimate at the time of the prepration of the financial statements and depends the duration of the Russian airspace closure, as well as the development of market demand and environment. The estimates are benchmarked against external information sources when available, such as long-term average growth estimates for the industry. Fuel price is based on the hedge-weighted fuel price based on the forward curve, estimated fuel consumption based on planned flights and the historical data of fuel consumption for each aircraft type. Sensitivities of the key assumptions and EBITDA-marginThe calculations used in impairment testing require significant use of management estimates and assumptions. The Group has prepared a sensitivity analysis to reflect, how the results of the impairment test would react to changes in key assumptions or EBITDA-margin. The sensitivity analysis considers changes in one assumption at a time, whereby other assumptions are kept unchanged. Results of the sensitivity analysis reflect the sensitivity of the recoverable amount based on the expected cash flow model. The table below shows the changes required to decrease the difference between the recoverable amount and the carrying value of the assets to zero.Dec 31, 2022 Dec 31, 2021Discount rate (post-tax long-term weighted average cost of capital), % 8.5 7.7Discount rate (pre-tax, derived from the long-term weighted average cost of capital), % 9.9 8.8Long-term growth rate, % 2.6 2.8Fuel cost range per ton (USD) 952-1015 768\u2013864Dec 31, 2022 Dec 31, 2021EBITDA margin % -1.0 %-p -1.1 %-pDiscount rate % +1.5 %-p +1.4 %-pTerminal growth rate % -2.1 %-p -1.5 %-pFuel cost, % change in cost level +3 % +4 %3 Capital structure and financing costs3.1 Financial income and expensesThe notes related to financial assets, liabilities and equity have been gathered into the capital structure and financing costs-section in order to give a better overview of the Group\u2019s financial position. The note \u00b4Earnings per share\u00b4 has been added to the equity section.Interest income and expensesInterest income and expenses are recognised on a time-proportion basis using the effective interest method. Interest expenses related to the financing of significant investments are capitalised as part of the asset acquisition cost and depreciated over the useful life of the asset.More detailed information about financial assets can be found in note 3.2 and about interest bearing liabilities in note 3.3. In the effectiveness testing of the Group\u2019s hedge accounting, both cash flow and fair value hedging were found to be effective at year end 2022. Thus, as in the comparison year 2021, no inefficiency is included in the financial items for 2022. The COVID-19 pandemic has impacted Finnair\u2019s business negatively both in 2021 and 2022Additionally, the war in Ukraine impacted the year 2022 negatively. As a result of the negative impacts, in the comparison year figures the discontinuation of the application of hedge accounting to the majority of hedges related to jet fuel price risk and foreign exchange risk is visible. The discontinued hedges are shown in profit and loss instead of other compherensive income. The remaining discontinued hedges matured during the last quarter of 2021. In 2022 Finnair has resumed normal hedging operations. Financial income and expenses includean identical amount of profit and loss for fair value hedging instruments and for hedged items resulting from the hedged risk.In 2022, foreign exchange gains and losses recognised in financial expenses consist of a net realised exchange gain of 20.5 million euro and a net unrealised exchange loss of 59.3 million euro which were mostly caused by strenghtening of US dollar relative to euro. During the year 2022, 1.8 million euros of interest expense was capitalised in connection with the A350 investment program (1.4). More information about the capitalised interest can be found in note 2.1 Fleet and other fixed assets.Other financial expenses include for example guarantee fees as well as interest and penalties related to taxes.3.2 Financial assetsFinancial assetsIn the Group, financial assets have been classified into the following categories according to the IFRS 9 standard \u201cFinancial Instruments\u201d: amortised cost and fair value through profit and loss. The classification is made at the time of the original acquisition based on the objective of the business model and the characteristics of contractual cash flows of the investment, or by applying a fair value option. All purchases and sales of financial assets are recognised on the trade date. Financial assets at fair value through profit and loss include such assets as investments in bonds and money market funds. Financial assets at fair value through profit and loss have mainly been acquired to obtain a gain from short-term changes in market prices. All those derivatives that do not fulfil the conditions for the application of hedge accounting are classified as financial assets at fair value through profit and loss and are valued at fair value in each financial statement. Realised and unrealised gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. Financial assets recognised at fair value through profit and loss, as well as those maturing within 12 months, are included in current assets. In Finnair Group, unquoted shares are valued at their acquisition price in the absence of a reliable fair value.Investments in debt securities are measured at amortised cost, but only when the objective of the business model is to hold the asset to collect the contractual cash flows and the asset\u2019s contractual cash flows represent only payments of principal and interest. Financial assets recognised at amortised cost are valued using the effective interest method. Financial assets valued at amortised cost include trade receivables and security deposits for aircraft operating lease agreements. Due to the nature of short-term receivables and other receivables, their book value is expected to be equal to the fair value.Derecognition of financial assets takes place when the Group has lost its contractual right to receive cash flows or when it has substantially transferred the risks and rewards outside the Group.Impairment of financial assetsFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other expenses in the consolidated income statement. More information on the credit loss provision on trade receivables can be found in note 1.2.3. Receivables related to revenue.The impairment model does not apply to financial investments, such as bonds and money market funds, included in other financial assets as those are measured at fair value through profit and loss under IFRS 9, which already takes into account expected credit losses. With respect to the assets measured at amortised cost, Finnair is actively following such instruments and will recognise impairment through profit and loss if there is evidence of deterioration in credit quality.Cash and cash equivalentsCash and cash equivalents consist of cash reserves and short-term bank deposits with maturity of less than three months. Foreign exchange-denominated items have been converted to euro using the mid-market exchange rates on the closing date.EUR mill. 2022 2021Financial income from discontinued hedges 11.6Interest income on leases 0.1 1.6Gains on investment instruments held at FVPL 3.7 -0.4Interest from assets held at amortised cost 2.7 0.0Other interest income 0.0 0.0Other financial income 0.1 0.0Dividend income 0.0 0.0Financial income total 6.5 12.8Financial expenses for discontinued hedges -5.2Interest on leases -80.1 -62.7Other financial expenses -29.7 -24.2Interest expenses for liabilities measured at amortised cost -28.1 -25.7Financial expenses total -137.9 -117.8Foreign exchange gains and losses -38.8 -22.5Financial expenses, net -170.2 -127.53.2.1 Other current financial assetsAs of 31 December 2022, investments in instruments issued by unrated counterparties mostly include investmentsin money market funds (EUR 690.8 million euro).The Group\u2019s financial asset investments and risk management policy are described in more detail in note 3.5 Management of financial risks. The IFRS classifications and fair values of the financial assets are presented in Note 3.6 Classification of financial assets and liabilities.3.2.2 Cash and cash equivalentsThe items include cash and bank deposits realised on demand. Foreign currency cash and bank deposits have been valued using the closing date mid-market exchange rates. The reconciliation of cash and cash equivalents is illustrated in the notes of the consolidated cash flow statement.3.3 Financial liabilities Financial liabilitiesFinnair Group\u2019s financial liabilities are classified into two different classes: amortised cost and fair value through profit and loss. Financial liabilities are initially recognised at fair value on the basis of the original consideration received. Transaction costs have been included in the original book value of financial liabilities. Thereafter, all non-derivative financial liabilities are valued at amortised cost using the effective interest method. Financial liabilities are included in long- and short-term liabilities, and they can be interest-bearing or non-interest-bearing. Loans that are due for payment within 12 months are presented in the short-term liabilities. Foreign currency loans are valued at the mid-market exchange rate on the closing date, and translation differences are recognised in the financial items.Accounts payable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.Derecognition of financial liabilities takes place when the Group has fulfilled the contractual obligations. Non-current liabilitiesFinnair\u2019s interest-bearing liabilies decreased slightly during the financial year 2022. The most significant financing transactions during 2022 were the withdrawal of the 400 million euro capital loan from the Finnish State and the refinancing of the 600 million euro pension premium loan during the last quarter of 2022. Non-interest-bearing liabilities mainly include leases and maintenance reserves related to the aircraft leased to other airlines.The Group\u2019s JOLCO loans and other include the JOLCO loans (Japanese Operating Lease with Call Option) for three A350 aircraft and export credit support for one A350 aircraft. Export credit support is a debt arrangement to finance aircraft. The transactions are treated as loans and owned aircraft in Finnair\u2019s accounting. Non-interest-bearing liabilities mainly include leases and maintenance reserves related to the aircraft leased to other airlines.Current interest-bearing liabilitiesJOLCO loans and other include the JOLCO loans (Japanese Operating Lease with Call Option) for three A350 aircraft and export credit support for one A350 aircraft. The transactions are treated as loans and owned aircraft in Finnair\u2019s accounting.EUR mill. 2022 2021Loans from financial institutions, non-current 399.2 299.7JOLCO loans and other 261.3 289.4Bonds 397.9 397.2Lease liabilities 1,128.0 1,204.1Interest-bearing liabilities total 2,186.4 2,190.3Non-interest-bearing liabilities 6.3 6.3Total 2,192.7 2,196.6EUR mill. 2022 2021Loans from financial institutions, current 199.6 299.8JOLCO loans and other 40.4 43.1Bonds 98.9Lease liabilities 202.7 176.9Total 442.7 618.6Fair value Book valueInterest-bearing liabilities, EUR in millions 2022 2021 2022 2021Non-current interest-bearing liabilitiesLease liabilities 1204.1 1,204.1 1128.0 1,204.1Loans from financial institutions 305.6 299.7 399.2 299.7Bonds 298.0 406.2 397.9 397.2JOLCO loans and other 164.4 289.4 261.3 289.4Total 1,896.0 2,199.4 2,186.4 2,190.3Current interest-bearing liabilitiesLease liabilities 202.7 176.9 202.7 176.9Loans from financial institutions 207.3 299.8 199.6 299.8Bonds 98.9 98.9JOLCO loans and other 53.0 43.1 40.4 43.1Total 462.9 618.7 442.7 618.6EUR mill. 2022 2021Commercial paper, certificates and bonds 47.8 19.0Money market funds 690.8 512.4Total 738.6 531.4Ratings of counterpartiesBetter than AA 11.0BBB 12.0 5.0BB 2.0Unrated 713.7 526.4Total 738.6 531.4EUR mill. 2022 2021Cash and bank deposits 785.8 734.3Total 785.8 734.3Fair values of interest-bearing liabilities (excluding lease liabilities) have been calculated by discounting the expected cash flows using the market interest rate and company\u2019s credit risk premium at the reporting date. Fair value of bonds has been calculated by using the quoted price of reporting date (75.5).The interest rate re-fixing period is three months for variable interest loans and six months for variable interest lease liabilities. The bonds maturing do not include the amortised cost of 2.1 million paid in 2021 and due on 2025.JOLCO loans do not include the amortised cost of 3.1 million euros paid on 2016 and due in 2025 and loans from financial institutions do not include 1.2 million euros paid as an arrangement fee from the pension premium loan in 2022. Therefore, the total amount of interest-bearing financial liabilities differs from the book value by the amount equal to the amortised costs. Also, Finnair has refinanced the 600 million euro pension premium loan during last quarter of 2022. The loan has an amortization schedule of four 100 million euro and one 200 million euro instalments. The first instalment is due during the second quarter of 2023 and the second one is due during the second quarter of 2023.The minimum lease payments, discount values and present values of lease liabilities are presented in note 2.2 Leasing arrangements.The currency mix of interest-bearing liabilities is as follows:The weighted average effective interest rate on interest-bearing liabilities was 4.0% (3.8%).Interest rate re-fixing period of interest-bearing liabilitiesMaturity dates of interest-bearing financial liabilities 31 Dec 2022 EUR mill. 2023 2024 2025 2026 2027 Later TotalJOLCO loans and other, fixed interest 26.0 13.0 39.0JOLCO loans and other, variable interest 40.4 41.8 89.0 33.0 10.3 51.2 265.8Loans from financial institutions, variable interest 200.0 200.0 200.0 600.0Bonds, fixed interest 400.0 400.0Lease liabilities, fixed interest 144.4 148.0 150.0 104.6 86.3 353.7 987.0Lease liabilities, variable interest 58.2 61.0 51.5 32.9 34.6 105.5 343.7Interest-bearing financial liabilities total 443.1 450.8 916.5 183.6 131.2 510.4 2,635.5Payments from currency derivatives 809.4 809.4Income from currency derivatives -792.1 -8.7 -800.8Commodity derivatives 4.4 0.2 4.6Trade payables and other liabilities 234.7 234.7Interest payments 121.4 98.9 69.5 39.9 29.8 92.8 452.3Total 820.9 541.2 986.0 223.5 160.9 603.2 3,335.7Maturity dates of interest-bearing financial liabilities 31 Dec 2021 EUR mill. 2022 2023 2024 2025 2026 Later TotalJOLCO loans and other, fixed interest 14.0 0.0 42.1JOLCO loans and other, variable interest 43.1 38.2 39.4 83.8 31.1 57.9 293.5Loans from financial institutions, variable interest 300.0 0.0 600.0Bonds, fixed interest 0.0 498.9Lease liabilities, fixed interest 133.8 135.9 137.5 138.4 95.4 416.7 1,057.7Lease liabilities, variable interest 43.0 44.6 46.5 40.6 26.8 121.6 323.3Interest-bearing financial liabilities total 618.9 518.7 223.4 690.9 167.3 596.2 2,815.5Payments from currency derivatives 490.2 0.0 490.2Income from currency derivatives -506.2 -1.9 -512.0Commodity derivatives -3.8 -0.1 -3.9Trade payables and other liabilities 181.5 181.5Interest payments 104.8 91.0 70.8 57.1 33.5 107.8 465.1Total 885.4 607.8 290.4 748.0 200.8 704.0 3,436.4Short-term Long-term Short-term Long-term borrowingsborrowingslease liabilitieslease liabilities TotalTotal liabilities from financing activities, 1 January 2021 51.5 1,111.0 135.6 880.6 2,178.7Repayments 0.2 -154.9 -146.8 -301.6Additions 0.0 400.0 2.5 437.0 839.5Decreases -2.8 -2.8Foreign exchange adjustments 21.2 10.4 64.5 96.1Reclassification between short-term and long-term liabilities 390.0 -390.0 28.4 -28.4 0.0Other non-cash movements -1.1 0.0 0.0 -1.1Total liabilities from financing activities, 31 December 2021 441.7 986.2 176.9 1,204.1 2,808.9EUR mill. 2022 2021EUR 1,170.7 1,291.6USD 1,418.7 1,468.1JPY 39.6 49.2HKD 0.1 0.0SGD 0.0 0.1INR 0.0 0.02,629.1 2,808.9Short-Long-Short-term Long-term term lease term lease borrowingsborrowingsliabilitiesliabilities TotalTotal liabilities from financing activities, 1 January 2022 441.7 986.2 178.9 1,204.1 2,808.9Repayments 0.0 -144.0 -193.4 -337.4Acquisitions 3.9 69.2 73.1Decreases -5.7 -5.7Foreign exchange adjustments 14.4 9.1 66.5 90.0Reclassification between short-term and long-term liabilities 201.3 201.3 12.8 -12.8 0.0Other non-cash movements -0.4 0.6 0.2Total liabilities from financing activities, 31 December 2022 240.0 1,058.4 202.7 1,128.0 2,629.12022 2021Up to 6 months 23.6% 21.0%6\u201312 months 3.9% 10.7%1\u20135 years 43.2% 38.5%More than 5 years 29.3% 29.9%Total 100.0% 100.0%State aid relating to Finnair\u2019s refinancingState aid in pension premium loan and rights offering The European Commission has concluded that the State of Finland\u2019s guarantee of Finnair\u2019s pension premium loan up to EUR 540 million, which was approved by the European Commission on 18 May 2020, and the State of Finland\u2019s participation in the rights offering are so closely linked that they must be regarded as an overall transaction that constitutes State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union. Under the Commission\u2019s decision, the Company has agreed to certain conditions following the offering, which include, among other things, a ban on acquisitions, restricting the Company from acquiring a stake of more than 10 per cent in competitors or other operators in the same line of business, including upstream or downstream operations for a period of three years from the offering. As a result of the restrictions based on the Commission\u2019s decision, the remuneration of each member of Finnair\u2019s management will not go beyond the fixed part of his/her remuneration on 31 December 2019. For persons becoming members of the management on or after the rights issue, the applicable limit of the remuneration for such new member will be benchmarked to the remuneration of comparable managerial positions and areas of responsibility in Finnair applied on 31 December 2019. Finnair will not pay bonuses and other variable or comparable remuneration elements during the three fiscal years 2020\u20132022 to the members of the management. Further, Finnair is committed to publishing information about the use of the aid received within 12 months from the date of the offering and thereafter periodically every 12 months, for a period of three years. In particular, this should include information on how the company\u2019s use of the aid received supports its activities in line with EU objectives and national obligations linked to the green and digital transformation, including the EU objective of climate neutrality by 2050. The EU Commission\u2019s competition authority approved the extension of the 540-million-euro guarantee related to the pension premium loan on 20 June 2022. The extended guarantee is in force until the second quarter of 2026.State aid in hybrid loan and conversion to capital loanFinnair and the State of Finland signed an agreement on 17 March 2021 on a hybrid loan of maximum 400 million euros to support Finnair. The decision was made by the Plenary Session of the Government on 18 February 2021. The arrangement has the approval of the EU Commission\u2019s competition authority in line with the European Union\u2019s state aid rules. Of the credit limit, approximately 350 million euros can be used by Finnair based on the state aid decision made by the Commission on 12 March 2021. Finnair is able to access the funds, if its cash or equity position would drop below the limits defined in the facility\u2019s terms and conditions.3.4 Contingent liabilities3.5 Management of financial risksPrinciples of financial risk managementThe nature of Finnair Group\u2019s business operations exposes the company to a variety of financial risks: foreign exchange, interest rate, credit, liquidity and commodity price risks. The Group\u2019s policy is to limit the uncertainty caused by such risks on cash flow, financial performance, balance sheet items and equity.The management of financial risks is based on the risk management policy prepared by the Financial Risk Steering Committee and approved by the Board of Directors. The policy specifies the minimum and maximum levels permitted for each type of risk. Financial risk management is directed and supervised by the Financial Risk Steering Committee. Practical implementation of the risk management policy and risk management have been centralized to the parent company\u2019s treasury department.For the management of foreign exchange, interest rate and jet fuel the company uses different derivative instruments, such as forward contracts, swaps and options. At inception, derivatives are designated as hedges of highly probable cash flows (cash flow hedges), hedges of firm orders (hedges of the fair value of firm commitments) or as financial derivatives where the hedging relationship does not qualify for hedge accounting (economic hedges). Finnair Group implements cash flow hedging through foreign exchange hedging of highly probable forecasted sales and costs denominated in foreign currencies and jet fuel price risk, in accordance with the hedge accounting principles of IFRS 9. Hedge accounting compliant fair value hedges of Finnair Group consist of interest rate hedges of the issued bond and fair value hedges of firm aircraft purchase commitments. Fuel price risk in flight operationsFuel price risk means the cash flow and financial performance uncertainty arising from fuel price fluctuations.Finnair hedges against jet fuel price fluctuations using jet fuel forward contracts and options. The Jet Fuel CIF Cargoes NWE index is used as the underlying asset of jet fuel derivatives, since over 65 per cent of Finnair\u2019s fuel purchase contracts are based on the benchmark price index for Northwest Europe jet fuel deliveries.EUR mill. 2022 2021Guarantees on behalf of group companies 52.5 51.0Total 52.5 51.0The EU Commission\u2019s competition authority approved the remaining, approximately 50-million-euro share of the hybrid loan facility on 10 February 2022. Therefore, the whole 400-million-euro hybrid loan facility is at the company\u2019s disposal according to the terms and conditions of the facility.On 22 June 2022, Finnair withdrew 290 million euros of hybrid bond, which was converted into capital loan on 30 June 2022 based on the decision of the States Council. The EU Commission\u2019s competition authority approved the conversion of the hybrid loan facility into capital loan on 20 June 2022. More information about the capital loan can be found in note 3.9.On 2 September 2022 Finnair withdrew the remaining 110 million euros of the available capital loan. After the withdrawal the total withdrawn amount is 400 million euro meaning that the capital loan is now fully withdrawn. State aid in pension premium loan extensionThe EU Commission\u2019s competition authority approved the extension of the 540-million-euro guarantee related to the pension premium loan on 20 June 2022. The pension premium loan maturity is extended until 2025 and the repayment schedule is amended so that the company will amortise the loan by 100 million euros every 6 months.However, the remaining two 100-million-euro tranches will be paid in full on 15 May 2025. In accordance with the loan terms, the pension premium loan is required to have a guarantee. The guarantee is granted by the State of Finland and a commercial bank.Finnair applies the principle of time-diversification in its fuel hedging. According to the risk management policy, the hedging horizon is one year. The risk management policy states that hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. Due to hedging, the fuel cost per period is not as low as the spot-based price when prices fall, but when spot prices rise, the fuel cost rises more slowly. The hedges of jet fuel consumption are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. During 2022, Finnair has hedged the jet fuel price risk in its entirety, withoutseparating it into underlying risk components, such as crude oil price risk. However, Finnair has used proxy hedging for certain layer components of its jet fuel consumption, as described below. In the hedging of jet fuel price risk, Finnair Group designates layer components of its jet fuel consumption as hedged items. The layer components are defined as jet fuel consumption linked to different jet fuel price benchmarks. The first layer is defined as jet fuel purchases based on the Jet Fuel CIF Cargoes NWE index, with consumption linked to other price benchmarks, notably Cargoes FOB Singapore, representing other layers. Since the Jet Fuel CIF Cargoes NWE index is used as the underlying of all jet fuel derivatives, they are designated as proxy hedges for consumption based on other price benchmarks. Therefore, ineffectiveness may arise if the correlation between the NWE index and the price benchmark for the underlying consumption is not high enough for the fair value changes in the hedged item and the hedging instrument to be exactly offsetting. Any ineffectiveness resulting from overhedging or insufficient correlation is recognised in fair value changes in derivatives and changes in exchange rates of fleet overhauls.Update in financial risk managementDuring the year 2022 Finnair returned to normal hedging operations despite the increased uncertainty to Finnair\u2019s operations caused by the COVID-19 pandemic and the war in Ukraine. Finnair increased the hedging ratios in jet fuel and foreign exchange steadily during the year 2022 and revised the risk management policy during the the last quarter of 2022. The risk management policy was updated so that hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. The hedging period is 12 months.The average hedged price of the instruments hedging highly probable jet fuel purchases is calculated by taking into account only the hedging (bought) leg of collar option structures, and therefore represents the least favorable hedged rate. The most favorable rate, calculated by including only the sold leg of collar option structures, is 879.04 US dollars per tonne for NWE consumption. Options excluded from hedge accounting are excluded.At the end of the financial year, Finnair had hedged 41 per cent of its forecasted fuel purchases for the first six months of 2023 and 21 per cent of the purchases for the second half of the year. In the financial year 2022, fuel used in flight operations accounted for approximately 35 per cent of Group\u2019s turnover. At the end of the financial year, the forecast for 2023 is approximately 33 per cent of the Group\u2019s turnover. On the closing date, a 10 per cent rise in the market price of jet fuel \u2013 excluding hedging activity \u2013 increases annual fuel costs by an estimated 80 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent rise in the market price of jet fuel lowers the operating profit by around 64 million euro. Foreign exchange riskForeign exchange risk means the uncertainty in cash flows and financial performance arising from exchange rate fluctuations. Finnair Group\u2019s foreign exchange risk mainly arises from fuel purchases, aircraft lease liabilities, acquisition and divestment of aircraft, aircraft maintenance, overflight royalties and foreign currency revenue. About 59 per cent of the Group\u2019s revenue is denominated in euros. The most important foreign revenue currencies are the Japanese yen (4 per cent, percentage of revenue), the Chinese yuan (2 per cent), the US dollar (8 per cent) and the Swedish krona (4 per cent). Approximately 45 per cent Group\u2019s operating costs are denominated in foreign currencies. The most important purchasing currency is the US dollar, which accounts for approximately 41 per cent of all operating costs. The most significant US dollar-denominated expense is fuel costs. The largest investments \u2013 aircraft and their spare parts \u2013 are also mainly made in US dollars.The risk management policy divides the foreign exchange position into three parts, namely exposure to forecasted cash flows, balance sheet position and investment position. The cash flow exposure mainly consists of sales denominated in a number of different currencies and US dollar-denominated expenses. Forecasted jet fuel purchases, aircraft materials and overhaul expenses and traffic charges form a group of similar items that are hedged with the same hedging instrument. The purpose of currency risk hedging \u2013 for cash flow exposure \u2013 is to reduce the volatility of cash flows and the comparable operating result due to fluctuating currency prices. This is done using a layered hedging strategy for the two biggest sources of currency risk and utilising diversification benefits of the portfolio of various currencies. The contracts are timed to mature when the cash flows from operating expenses are expected to be settled. The hedging limits are set only for the main contributors to currency risk: the Japanese yen and the US dollar basket consisting of the US dollar and the Hong Kong dollar. For both of these, the hedging horizon is one year, which is divided into four three-month periods. hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. The investment position includes all foreign currency denominated aircraft investments for which a binding purchase agreement has been signed as well as commitments for sale and leaseback transactions in the next four years. According to its risk management policy, Finnair Group hedges 50\u2013100% of its aircraft investment exposure. New hedges of investments in aircraft are made as an IFRS 9 fair value hedge of a firm commitment.Balance sheet exposure consists of foreign currency denominated financial assets and liabilities, as well as other foreign currency denominated balance sheet items, such as provisions, trade receivables, trade payables and assets held for sale. Finnair Group has a target hedging ratio of 80% for net positions foreign currency denominated financial assets and financial liabilities exceeding 10 MEUR. The target ratio is reviewed quarterly. Maximum hedge ratio for balance sheet position is 100% and minimum is 0%. At the end of the financial year, Finnair had a hedge level for net operating cash flows of 36 per cent in the USD-basket and 32 per cent in JPY for the coming 12 months. On the closing date \u2013 excluding hedges \u2013 a 10 per cent strengthening of the US dollar against the euro has a negative impact on the 12-month result of around 74 million euro and a 10 per cent weakening of the Japanese yen against the euro has a negative impact on 12-month of around 8 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent strengthening of the US dollar weakens the result by around 48 million euro and a 10 per cent weakening of the Japanese yen weakens the result by around 5 million euro. In the above numbers, the USD-basket risk includes the Hong Kong dollar, which historical correlation with the US dollar is high. The hedge levels for balance sheet position at the end of the financial year were 70 per cent for USD and 90 per cent for Japanese yen. On the closing date \u2013 excluding hedges \u2013 a 10 per cent strengthening of the US dollar against the euro has a negative impact on the result of around 142 million euro and a 10 per cent strengthening of the Japanese yen against the euro has a negative impact of around 5 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent strengthening of the US dollar weakens the result by around 43 million euro and a 10 per cent strengthening of the Japanese yen weakens the result by around 0.5 million euro.MaturityTiming of the notional Hedged price Notional amount and hedged price$/tonne(tonnes)Under 1 year 1 to 2 years31 December 2022Jet fuel consumption priced with NWE index 1,042.9 358,000 338,000 20,000 Jet fuel consumption priced with SING index31 December 2021Jet fuel consumption priced with NWE index 625.0 68,000 66,000 2,000 Jet fuel consumption priced with SING index - - - Cross-currency interest rate swaps are included in the nominal amount calculation.The average exchange rate of the instruments hedging highly probable forecasted sales and purchases denominated in foreign currencies is calculated by taking into account only the hedging (bought) leg of collar option structures, and therefore represents the least favorable hedged rate. The most favorable rate, calculatedby including only the sold leg of collar option structures, is 1.14 for USD contracts and 119.60 for JPY instruments.Interest rate riskInterest rate risk means the cash flow, financial performance and balance sheet uncertainty arising from interestrate fluctuations.In Finnair Group, the interest rate risk is measured using the interest rate re-fixing period. If necessary, interest rate derivatives are used to adjust the interest rate re-fixing period. According to the risk management policy, the mandate for the investment portfolio\u2019s interest rate re-fixing period is 0\u201312 months and for interest-bearing liabilities 36\u201372 months. On the closing date, the investment portfolio\u2019s interest rate re-fixing period was approximately 1 month and approximately 48 months for interest-bearing liabilities. On the closing date, a one percentage point rise in interest rates increases the annual interest income of the investment portfolio by approximately 13.8 million euros and the interest expenses of the loan portfolio by approximately 3.4 million euros. The situation as of December 31 2021 is a reasonable representation of conditions throughout the year given the current market environment.Future lease agreements expose the group to interest rate risk, as the interest rate is one component of the lease price. The interest rate is fixed when the lease payments start. If necessary, the group can hedge this exposure with cash flow hedges.Cross-currency interest rate swaps are included in the nominal amount calculation. Finnair has not entered into any interest rate derivatives on which it is paying a fixed rate.Credit riskThe Group is exposed to counterparty risk when investing its cash reserves and when using derivative instruments. The credit risk is managed by only making contracts with financially sound domestic and foreign banks, financial institutions and brokers, within the framework of the risk management policy for counterparty risk limits. Liquid assets are also invested in money market funds, bonds and commercial papers issued by conservatively selected companies, according to company-specific limits. This way, risk exposure to any single counterparty is not significant. Changes in the fair value of Group loans arises from changes in FX and interest rates, not from credit risk. The Group\u2019s credit risk exposure arises from other current financial assets presented in note 3.2.1, cash and cash equivalents presented in note 3.2.2, trade receivables presented in note 1.2.3 and derivatives presented in note 3.8.Foreign exchange investment exposure EUR mill. 31 December 2022 USDNet investment position -320.8Net hedges of investment position 183.7Weighted average exchange rate of hedging instruments against the euro 1.01Foreign exchange exposure from investment position after hedging -137.1Foreign exchange P&L exposure EUR mill. 31 December 2021 JPY USD-basketNet forecasted operating cash flows, next 12M 223.8 -705.6Net operating cash flow hedges, next 12M -5.0 57.0Weighted average exchange rate of hedging instruments against the euro 121.09 1.14Foreign exchange exposure from operating cash flows after hedging, next 12M 218.8 -648.6Foreign exchange balance sheet exposure EUR mill. 31 December 2021 JPY USDNet balance sheet items -53.0 -1,134.0Net hedges of balance sheet items 49.9 500.5Weighted average exchange rate of hedging instruments against the euro 130.26 1.17Foreign exchange exposure from balance sheet items after hedging -3.1 -633.5Foreign exchange investment exposure EUR mill. 31 December 2021 USDNet investment position -273.9Net hedges of investment position 162.9Weighted average exchange rate of hedging instruments against the euro 1.20Foreign exchange exposure from investment position after hedging -111.0Timing of the notional and hedged price rangeMaturityNotional amount Less than 31.12.2022(gross)1 year 1 to 2 years 2 to 4 yearsInterest rate derivatives 253.1 164.9 88.1 0.0Foreign exchange balance sheet exposure EUR mill. 31 December 2022 JPY USDNet balance sheet items -43.8 -988.5Net hedges of balance sheet items 38.9 564.1Weighted average exchange rate of hedging instruments against the euro 141.36 1.10Foreign exchange exposure from balance sheet items after hedging -4.9 -424.5Foreign exchange P&L exposure EUR mill. 31 December 2022 JPY USD-basketNet forecasted operating cash flows, next 12m 83.4 -707.1Net operating cash flow hedges, next 12m -26.2 258.5Weighted average exchange rate of hedging instruments against the euro 141.05 1.05Foreign exchange exposure from operating cash flows after hedging, next 12M 57.1 -448.7MaturityTiming of the notional Notional amount Less than EUR mill. 31 December 2022(gross)1 year 1 to 2 years 2 to 4 yearsUSD 994.1 905.9 88.1 0.0JPY 65.1 65.1Liquidity riskThe goal of the Finnair Group is to maintain good liquidity. Liquidity is ensured by cash reserves, bank account limits, liquid money market investments and committed credit facilities. Counterparties of groups\u2019 long term loans are solid financial institutions with good reputations.The war in Ukraine or the COVID-19 pandemic has not had a direct impact on the basic principles of Finnair\u2019s liquidity risk management. However, due to the continued uncertainty in 2022 Finnair has kept relatively high liquidity levels. The liquidity was kept on high levels mainly through new financing as well as refinancing maturingdebt. The most significant financing transactions during the year 2022 were the withdrawal of the 400 million euro capital loan during the second and third quarter of 2022 and the refinancing of the 600 million euro pension premium loan during the last quarter of the 2022. The Group\u2019s cash funds were 1,524.4 million euro at the end of financial year 2022. Finnair Plc has a domestic commercial paper program of 200 million euro, which was not in use as of the closing date.Capital managementThe aim of Finnair\u2019s capital management is to secure access to the capital markets at all times despite the volatile business environment, as well as to support future business development. Through maintaining an optimal capital structure the Group also aims to minimize the cost of capital and maximize the return on capital employed. The capital structure is influenced via, for example, dividend distribution and share issues. The Group can vary and adjust the level of dividends paid to shareholders, the amount of capital returned to them or the number of new shares issued. The Group can also decide on sales of asset items in order to reduce debt. The aim of Finnair\u00b4s dividend policy is to pay on average at least one third of the earnings per share as dividends during an economic cycle.The COVID-19 pandemic as well as the war in Ukraine still impact Finnair\u2019s business and operating enviroment and therefore the balance sheet and capital structure. During the year 2022 Finnair strengthened the capital structure by withdrawing the 400 million euro capital loan, which according to the terms and conditions of the facility is considered to be equity. The development of the Group\u2019s capital structure is continuously monitored using the adjusted gearing ratio. When calculating adjusted gearing, adjusted interest-bearing net debt is divided by the amount of shareholders\u2019 equity. The Group\u2019s adjusted gearing at the end of 2022 was 266.4 per cent (321.8).Sensitivity analysis of the fair value reserveIf the price of Jet fuel CIF NWE had been 10 per cent higher, the balance of the reserve would have been 16.1 million euro (2.6) higher. Correspondingly, a 10 per cent weaker Jet fuel CIF NWE price would have reduced the reserve by 17.6 million euro (2.6). In terms of the US dollar, a 10 per cent weaker level would have lowered the balance of the fair value reserve by 25.4 million euro (3.3) and a 10 per cent stronger dollar would have had a positive impact of 25.4 million euro (3.3). In terms of Japanese yen, a 10 per cent stronger yen would have had a negative impact of 2.6 million euro (0.5), and a 10 per cent weaker level would have increased the balance of thefair value reserve by 2.6 million euro (0.5). The effect of change in interests to the fair value reserve in own equity is not material. The enclosed sensitivity figures do not take into account any change in deferred tax liability (tax assets).3.6 Classification of financial assets and liabilitiesHedge Fair value accounting through profit Amortised EUR mill.itemsand losscost Book value31 Dec 2021Financial assetsReceivables 3.7 3.7Other financial assets 738.6 738.6Trade receivables and other receivables 256.9 256.9Derivatives 8.6 14.9 23.5Cash and cash equivalents 785.8 785.8Book value total 8.6 753.5 1,046.3 1,808.5Fair value total 8.6 753.5 1,406.3 1,808.5Financial liabilitiesInterest-bearing liabilities 1,298.5 1,298.5Lease liabilities 1,330.7 1,330.7Derivatives 33.1 3.5 36.7Trade payables and other liabilities 234.7 234.7Book value total 33.1 3.5 2,863.8 2,900.5Fair value total 33.1 3.5 2,358.9 2,395.6Hedge Fair value accounting through profit Amortised EUR mill.itemsand losscost Book value31 Dec 2021Financial assetsReceivables 3.3 3.3Other financial assets 531.4 531.4Trade receivables and other receivables 166.7 166.7Derivatives 13.7 12.4 26.1Cash and cash equivalents 734.3 734.3Book value total 13.7 543.8 904.3 1,461.8Fair value total 13.7 543.8 904.3 1,461.8Financial liabilitiesInterest-bearing liabilities 1,427.9 1,427.9Lease liabilities 1,381.0 1,381.0Derivatives 0.3 0.1 0.4Trade payables and other liabilities 234.7 234.7Book value total 0.3 0.1 3,043.6 3,044.0Fair value total 0.3 0.1 3,052.7 3,053.1In this note interest rate derivatives (currency and interest-rate swaps) are included in derivatives. Item Receivables mainly includes USD-denominated security deposits for leased aircraft. Trade payables and other liabilities include trade payables as well as other interest-bearing and non-interest-bearing liabilities.Derivatives are valued at fair value, with further details in the fair value hierarchy. Financial assets valued at fair value are money market funds (fair value hierarchy level 1) and bonds, or commercial papers (fair value hierarchy level 2). Receivables are mainly current and the book value is equivalent to the fair value, because the discount effect is not significant. Pension premium loan and issued bond make the most significant part of the loans valued at amortised cost. Breakdown of fair values of financial liabilities is presented in note 3.3. The valuation principles of financial assets and liabilities are outlined in the accounting principles. Fair value hierarchy of financial assets and liabilities valued at fair valueFair values at the end of the reporting periodDuring the financial year, no significant transfers took place between fair value hierarchy Levels 1 and 2.The fair values of hierarchy Level 1 are fully based on quoted (unadjusted) prices in active markets of the same assets and liabilities.The fair values of Level 2 instruments are, to a significant extent, based on input data other than the quoted prices included in Level 1, but still mainly based on directly observable data (price) or indirectly observable data (derived from price) for the particular asset or liability.On the other hand, the fair values of Level 3 instruments are based on asset or liability input data that is not based on observable market information (unobservable inputs). The fair values are based on confirmations supplied by counterparties, based on generally accepted valuation models.3.7 Offsetting financial assets and liabilitiesFor the above financial assets and liabilities, subject to enforceable master netting arrangements or similar arrangements, each agreement between the Group and the counterparty allows net settlement of the relevant financial assets and liabilities when both parties choose to settle on a net basis. In the absence of such mutual decision, financial assets and liabilities will be settled on a gross basis. However, each party of the master netting agreement, or similar agreement, will have the option to settle on a net basis in the event of default of the other party. Depending on the terms of each agreement, an event of default includes failure by a party to make a payment when due, failure by a party to perform any obligation required by the agreement (other than payment), if such failure is not remedied within periods of 30 to 60 days after notice of such failure is given to the party, or bankruptcy.3.8 Derivatives Derivative contracts and hedge accountingAccording to its risk management policy, Finnair Group uses foreign currency, interest rate and commodity derivatives to reduce the exchange rate, interest rate and commodity risks which arise from the Group\u2019s balance sheet items, foreign currency denominated purchase agreements, anticipated foreign currency denominated purchases and sales as well as future jet fuel purchases. It is the Group\u2019s policy not to enter into derivative financial contracts for speculative purposes.The derivatives are initially recognised as well as subsequently valued at fair value in each financial statement and interim report. The fair values of the derivatives are based on the value at which the instrument could be exchanged between knowledgeable, willing and independent parties, with no compulsion to sell or buy in the sales situation. The fair values of derivatives are determined as follows:The fair values of all derivatives are calculated using the exchange rates, interest rates, volatilities and commodity price quotations on the closing date. The fair values of currency forward contracts are calculated as the present value of future cash flows. The fair values of currency options are calculated using the Black-Scholes option pricing model. The fair values of interest rate swap contracts are calculated as the present value of future cash flows. The fair values of cross-currency interest rate swap contracts are calculated as the present value of future cash flows. The fair values of interest rate options are calculated using generally accepted option valuation models. The fair values of commodity forward contracts are calculated as the present value of future cash flows. The fair values of commodity options are calculated using generally accepted option valuation models.The Group uses credit valuation adjustment for cross-currency interest rate swaps as the maturities of these derivatives are long. The credit valuation adjustment is not done for the rest of the derivatives as the maturities for these are short and the impact would not be material. Credit risk management is described in more detail in note 3.5.Gains and losses arising from changes in the fair value are presented in the financial statements according to the original classification of the derivative. Gains and losses on derivatives qualifying for hedge accounting are recognised in accordance with the nature of the risk being hedged. At inception, derivative contracts are designated as hedges of future cash flows, hedges of the fair value of recognised assets or liabilities and binding purchase contracts (cash flow hedges or fair value hedges) or as derivatives not meeting the hedge accounting criteria or to which hedge accounting is not applied (economic hedges). Hedging of the fair value of net investments of foreign units or embedded derivatives have not been used. At the inception of hedge accounting, Finnair Group documents the economic relationship and the hedge ratio between the hedged item and the hedging instrument, as well as the Group\u2019s risk management objectives and the strategy for EUR mill. 2022 2021Derivative assets gross amounts 23.5 26.1Amounts of financial assets presented in the balance sheet 23.5 26.1Enforceable master netting agreement -21.2 -0.4Derivative assets net amount 2.3 25.7EUR mill. 2022 2021Derivative liabilities gross amounts -36.7 -0.4Amounts of financial liabilities presented in the balance sheet -36.7 -0.4Enforceable master netting agreement 21.2 0.4Derivative liabilites net amount -15.5 0.0EUR mill. 31 Dec 2022 Level 1 Level 2AssetsFinancial assets at fair valueSecurities held for trading 738.6 690.8 47.8DerivativesCurrency and interest rate swaps and options 13.5 13.5Currency derivatives 0.5 0.5 - of which in cash flow hedge accounting 0.1 0.1Commodity derivatives 9.5 9.5 - of which in cash flow hedge accounting 8.6 8.6Total 762.1 690.8 71.3LiabilitiesFinancial liabilities at fair valueDerivativesCurrency and interest rate swaps and options 2.8 2.8Currency derivatives 19.8 19.8 - of which in fair value hedge accounting 11.6 11.6 - of which in cash flow hedge accounting 7.4 7.4Commodity derivatives 14.1 14.1 - of which in cash flow hedge accounting 14.1 14.1Total 36.7 36.7the inception of hedging. At the inception of hedging, and at least at the time of each financial statement, the Group documents and assesses the effectiveness of hedge relationships by examining the past and prospective capacity of the hedging instrument to offset changes in the fair value of the hedged item or changes in cash flows. The values of derivatives in a hedging relationship are presented in the balance sheet item Short\u2013term financial asset and liabilities.Finnair Group implements the IFRS hedge accounting principles in the hedging of future cash flows (cash flow hedging). The principles are applied to the price and foreign currency risk of jet fuel, the foreign currency risk of lease payments and the foreign currency risk of highly probable future sales and costs denominated in foreign currencies. The IFRS fair value hedge accounting principles are applied to the hedging of foreign exchange and interest rate risk of aircraft.The change in the fair value of the effective portion of derivative instruments that have been designated and qualify as cash flow hedges are recognised in comprehensive income and presented within equity in the fair value reserve, to the extent that the requirements for the application of hedge accounting have been fulfilled and the hedge is effective. The gains and losses, recognised in the fair value reserve, are transferred to the income statement in the period in which the hedged item is recognised in the income statement. When a hedging instrument expires or is sold, terminated or exercised, or the criteria for cash flow hedge accounting are no longer fulfilled, but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in the hedge reserve and is recognised in accordance with the above policy when the transaction occurs. If the underlying hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in the hedge reserve with respect to the hedging instrument is recognised immediately in the consolidated income statement.The effectiveness of hedging is tested on a quarterly basis. The effective portion of the hedges is recognised in the fair value reserve of other comprehensive income, from which it is transferred to the income statement when the hedged item is realised or, in terms of investments, as an acquisition cost adjustment.Fair value hedging is implemented on firm orders of new aircraft, and in order to hedge the fixed interest rate bond. The binding purchase agreements for new aircraft are treated as firm commitments under IFRS, and therefore, the fair value changes of the hedged part arising from foreign currency movements are recognised in the balance sheet as an asset item, and corresponding gains or losses recognised through profit and loss. Similarly, the fair value of instruments hedging these purchases is presented in the balance sheet as a liability or receivable, and the change in fair value is recognised in profit and loss. The gain or loss related to the effective portion of the interest rate swap, which hedges the fixed interest rate bond, is recognised as financial income or expenses in the income statement. The gain or loss related to the ineffective portion is recognised within other operating income and expenses in the income statement. The change in the fair value attributable to the interest rate risk of the hedged fixed interest rate loans is recognised in the financial expenses in the income statement.If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item, for which the effective interest method is used, is amortized to profit or loss over the period to maturity.Finnair Group uses cross-currency interest rate swaps in the hedging of the interest rate and foreign exchange risks of foreign currency denominated loans. Cross-currency interest rate swaps are excluded from hedge accounting, and therefore the fair value changes are recognised in derivative assets and liabilities in the balance sheet, as well as in the financial income and expenses in the income statement. The fair value changes of the loans are simultaneously recognised in the financial income and expenses. Realised foreign exchange rate differences, as well as interest income and expenses, are recognised in the financial income and expenses against the exchange rate differences and interest income and expenses of the loanFinnair Group uses jet fuel swaps (forward contracts) and options in the hedging of jet fuel price risk. Unrealised gains and losses on derivatives hedging jet fuel, which are designated as cash flow hedges and fulfil the requirements of IFRS hedge accounting, are recognised in the hedging reserve within other comprehensive income. Accrued derivative gains and losses, recognised in shareholders\u2019 equity, are recognised as income or expense in the income statement in the same financial period as the hedged item is recognised in the income statement. If a forecasted cash flow is no longer expected to occur, and as a result the IFRS hedge accounting criteria are not fulfilled, the fair value changes and the accrued gains and losses reported in shareholders\u2019 equity are transferred to the items affecting comparability in the income statement. Changes in the fair value of jet fuel swaps and options excluded from hedge accounting are recognised in fair value changes in derivatives in the income statement, while the realised result is presented in fuel costs. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as the hedging instrument and the hedged item are expected to move in opposite directions because of the same underlying exposure. This is true for all hedge relationships except for the SING consumption hedged with NWE hedges (as described in section 3.5). In that case, the underlying is different, but the underlying hedged item (SING) and the hedge (NWE) have a historical correlation of 0.99. Therefore, it can be classified as a relationship where the underlying and the hedge are economically closely related. Ineffectiveness on fuel derivatives can also arise from timing differences on the notional amount between the hedged instrument and hedged item, significant changes in credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying fuel consumption forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Finnair has established a hedge ratio of 1:1 for hedging relationships.Finnair uses forward contracts and options to hedge its exposure to foreign currency denominated cash flows. The hedges of cash flows denominated in foreign currencies are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. Unrealised gains and losses on hedges of forecasted cash flows qualifying for hedge accounting are recognised in the hedging reserve in OCI, while the change in the fair value of such hedges not qualifying for hedge accounting is recognised in Fair value changes in derivatives and changes in exchange rates of fleet overhauls in the income statement. The change in fair value recognised in the hedging reserve in equity is transferred to the income statement when the hedged transaction is realised. Forward points are included in the hedging instrument and in the hedge relationship. Potential sources of ineffectiveness include changes in the timing of the hedged item, significant changes in the credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying cash flow forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Realised profit or loss on derivatives hedging JPY-denominated operating cash flows is presented in revenue, realised profit or loss on derivatives hedging a group of similar USD costs is proportionally recognised in corresponding expense lines, while profit or loss on derivatives hedging cash flows denominated in other currencies is presented in Other expenses.The hedge ratio is defined as the relationship between the quantity of the hedging instrument and the quantity of the hedged item in terms of their relative weighting. With currency hedging, the hedge ratio is typically 1:1. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as there is an expectation that the value of the hedging instrument and the value of the hedged item would move in opposite directions because of the common underlying exposure. Changes in the fair value of interest rate derivatives not qualifying for hedge accounting are recognised in financial income and expenses in the income statement. Changes in the fair value as well as realised gain or loss on forward contracts used to hedge foreign currency denominated balance sheet items of Finnair Group are recognised in financial expenses. Changes in the fair value and the realised result of hedges of assets held for sale are recognised in Items affecting comparability. Cost of hedgingAt Finnair, the time value of an option is excluded from the designation of a financial instrument and accounted for as a cost of hedging. Up on initial recognition, Finnair defers any paid premium in the cost of hedging reserve within other comprehensive income. The fair value changes of the time value are recognised in the cost of hedging reserve within other comprehensive income. The premium will be transferred to the consolidated income statement in the same period that the underlying transaction affects the consolidated income statement for transaction-related hedges. As of 31 December 2022, Finnair has deferred premiums only on transaction-related hedges.Impact of COVID-19 to hedge accounting and derivativesDue to the COVID-19 pandemic impacts on Finnair\u2019s underlying business during 2020 and 2021, the hedging operations regarding foreign exchange currencies and jet fuel price risk were impacted. Much lower demand as a result of the COVID-19 pandemic during the year 2020 meant that the amount of underlying risk was significantly reduced from forecasted amounts forcing Finnair to discontinue hedge accounting on the majority of its hedges in foreign exchange and jet fuel that were under hedge accounting. The last discontinued hedging relationships matured during the last quarter of 2021 and the realized gains or losses are shown in financial income and expenses. In the last quarter of 2021 Finnair restarted its hedging program in foreign exchange as well as jet fuel according to the revised risk management policy. The risk management policy was further revised in December 2022. More information about the revised risk management policy can be found in note 3.5.Impact of war in Ukraine to hedging operationsFinnair\u2019s operating environment has become significantly more difficult since the publication of the 2021 financial statements, due to the escalation of the geopolitical situation in Eastern Europe resulting from Russia\u2019s attack against Ukraine. The resulting sanctions, and countersanctions, led to the closure of Russian airspace which has had a significant impact on the routings and operating costs of Finnair\u2019s flights to Asia. Also, the price of jet fuel increased significantly during the financial year and increased the uncertainty. At the same time, the COVID-19 pandemic continues to still have an impact on Finnair\u2019s business, especially in the Asian markets, which is also contributing to the uncertainty relating to the near- and long-term development of its operating environment. The war in Ukraine did not directly impact the hedging operations of Finnair and after publishing the revised strategy the risk management policy was also updated in December 2022. More detailed information about the update can be found from the note 3.5. Critical accounting estimates and sources of uncertaintyFinnair accounts for its cash flow hedges of forecasted foreign currency denominated purchases and sales and future jet fuel purchases in accordance with the IFRS 9. Under the hedge accounting principles, a forecast transaction can be designated as a hedged item only if that transaction is considered as highly probable. The evaluation of probability is based on the management forecasts about the future level of Finnair\u2019s operations and cash flows. Such forecasts require the use of management judgement and assumptions, which inherently contain some degree of uncertainty that is further increased due to the COVID-19-pandemic. Should the expected circumstances or outcome change i the future, the management would need to reassess whether a hedged forecast transaction is still highly likely to occur. This could be the case if, for example, the expected recovery and thus the expected jet fuel consumption levels would not realize as expected. Should the forecast transaction no longer be highly probable, it would no longer qualify as an eligible hedged item and hedge accounting would need to be discontinued. Should it no longer be expected to occur at all, the balance of the cash flow hedge reserve included in other comprehensive income would need to be reclassified to profit or loss. * Positive (negative) fair value of hedging instruments as of 31.12.2022 is presented in the statement of financial position in the item derivative financial instruments within current assets (derivative financial instruments within current liabilities). Uncertainty and discontinued hedging relationships due to the COVID-19 pandemic are visible in the comparison figures. However, during the year 2022 Finnair has resumed normal hedging operations..Hedged items in hedge relationshipsRatings of derivative counterpartiesDerivatives realised through profit and loss2022 2021Positive Negative Positive Negative Nominal fair fair Fair net Nominal fair fair Fair net EUR mill.valuevaluesvaluesvaluevaluevaluesvaluesvalueCurrency derivativesJet fuel currency hedgingOperational cash flow hedging (forward contracts) 284.7 0.1 -7.4 -7.3 57.4 0.8 -0.1 0.7Operational cash flow hedging, bought options 4.5 0.0 0.0Operational cash flow hedging, sold options 4.3 0.0 0.0Fair value hedging of aircraft acquisitions 183.7 -11.6 -11.6 162.9 8.8 8.8Hedging of lease paymentsHedge accounting items total 468.4 0.1 -19.0 -18.9 229.2 9.6 -0.1 9.5Balance sheet hedging (forward contracts) 337.7 0.4 -0.7 -0.3 270.1 0.1 -0.1 0.0Items outside hedge accounting total 337.7 0.4 -0.7 -0.3 270.1 0.1 -0.1 0.0Currency derivatives total 806.1 0.5 -19.8 -19.3 499.3 9.7 -0.2 9.5Commodity derivativesJet fuel forward contracts, tonnes 209,000 3.4 -6.0 -2.5 68,000 4.1 -0.2 3.9Bought options, jet fuel, tonnes 149,000 4.9 -0.2 4.8Sold options, jet fuel, tonnes 149,000 0.2 -7.9 -7.8Hedge accounting items total 8.6 -14.1 -5.6 4.1 -0.2 3.9Bought options, jet fuel, tonnes 149,000 0.9 0.9Items outside hedge accounting total 0.9 0.9Commodity derivatives total 9.5 -14.1 -4.6 4.1 -0.2 3.9Cross currency interest rate swaps 253.1 13.5 -2.8 10.7 280.3 12.3 12.3Items outside hedge accounting total 253.1 13.5 -2.8 10.7 280.3 12.3 12.3Interest rate derivatives total 253.1 13.5 -2.8 10.7 280.3 12.3 12.3Derivatives total * 23.5 -36.7 -13.2 26.1 -0.4 25.7Changes in Accumulated Changes in fair value of amount of fair value Line item fair value of the hedging hedge adjustments in the the hedged instrument included in the statement item used for used for Carrying amount of carrying amount of of financial calculating calculating the hedged itemthe hedged itemposition in hedge inef-hedge inef-which the fectiveness, fectiveness, hedged item previous 12 previous 12 is includedmonthsmonths31 December 2022 Assets Liabilities Assets LiabilitiesCash flow hedgesJet fuel price risk- Forecasted jet fuel purchases -191.3 21.7Foreign exchange risk- Forecasted sales and purchases -59.3 2.5Fair value hedgesForeign exchange riskNon-current - Aircraft acquisitions 11.6 11.6assets -17.0 7.9EUR mill. 2022 2021Better than A 0.7 9.1A -11.9 16.6BBB 0.0Total -13.2 25.7EUR mill. 2022 2021Jet fuel hedging Fuel costs 21.3 7.6Operational cash flow hedging Fuel costs 8.4 -4.2Operational cash flow hedging Aircraft materials and overhaul 0.4 -0.2Operational cash flow hedging Traffic charges 0.5 -1.0Operational cash flow hedging Revenue 0.3 2.4Expenses of hedge accounting items total 31.0 4.5Discontinued Jet fuel hedging Financial expenses -26.5Balance sheet hedging Financial expenses 16.6 15.5Discontinued foreign currency hedging Financial expenses 3.4Cross-currency interest rate swaps Financial expenses 5.5 2.3Expenses of items outside hedge accounting total 18.9 -5.33.9 Equity-related information Shareholders\u2019 equityThe nominal value of shares had been recognised in the share capital before an amendment to the Articles of Association registered on 22 March 2007. Share issue profit and gains on sale of own shares had been recognised in other restricted funds before the change in the Limited Liability Company Act in 2006.The subscription proceeds from the 2007 share issue less transaction costs after taxes as well as share-based payments according to IFRS 2 have been recognised in the unrestricted equity funds.The rights issue proceeds from 2020 less the transaction costs has been recognized in the unrestricted equity funds Hedging reserve and other OCI items include changes in the fair value of derivative instruments used in cash-flow hedging, in addition to actuarial gains and losses related to defined benefit pension plans, cost of hedging and translation differences.The acquisition cost of repurchased owned shares less transaction costs after taxes is charged to equity until the shares are cancelled or reissued. The consideration received for sale or issue of own shares is included in equity.The dividend proposed by the Board of Directors is not deducted from distributable equity until approved at the Annual General Meeting. The hybrid bond is recognised in equity. It is unsecured and subordinated to all senior debt. The hybrid bond does not confer shareholders\u2019 rights, nor does it dilute the holdings of shareholders. Finnair is not required to redeem the hybrid bond at any time and they are not redeemable on demand of the holders of the hybrid bond. Interest expenses are debited from retained earnings on cash basis net of tax. In the calculation of earnings per share, interest expenses for the hybrid bond are included in the earnings for the financial year.The capital loan is recognised in equity. In the calculation of earnings per share, interest expenses and other fees for the capital loan are included in the earnings for the financial year.Macroeconomic factors continue to be a key driver of air transportation demand, as there has historically been a strong correlation between air travel and the development of macroeconomic factors such as GDP. Due to this correlation, aviation is an industry which is highly sensitive to global economic cycles and reacts quickly to external disruptions, seasonal variations and economic trends, as the global COVID-19 pandemic and the war in Ukraine have demonstrated. Finnair Plc\u2019s share capital, paid in its entirety and registered in the trade register, was at 75,442,904.30 euros at the end of 2021 and 2022. The shares have no nominal value. During the year 2022, Finnair transferred a total of 902,093 shares to FlyShare participants and a total of 119,737 shares to participants in Finnair\u2019s share-based incentive scheme 2019\u20132021.Group\u2019s hedging reserve and other OCI items*Forward and option contracts hedging forecasted sales and purchases denominated in foreign currencies are hedges of a group of similar hedged items, and the amounts reclassified from OCI to P&L are proportionally allocated to different cost lines based on the realised cost amounts. Amounts reclassified to revenue and different cost lines are specified in the table \u201cDerivatives realised through profit or loss\u201d in note 3.8.Maturity dates of fair values recognised in the hedging reserveHybrid bondShareholders\u2019 equity (after equity belonging to the owners) includes a 200 million euro hybrid bond that was issued during the third quarter of 2020. The hybrid bond coupon is fixed at 10.25 per cent per year for the first three years, and thereafter fixed, at 15.25 per cent per year. Finnair can postpone interest payment if it does not Number of shares 2022 2021Number of outstanding shares in the beginning of the financial year 1,405,980,132 1,407,230,605Purchase of own shares -1,800,000Shares granted from the share-bonus scheme 2018\u20132020 36,903Shares granted from the share-bonus scheme 2019\u20132021 119,737Shares granted from FlyShare employee share savings plans 902,093 512,624Number of outstanding shares at the end of the financial year 1,407,001,962 1,407,980,132Own shares held by the parent company 399,303 1,421,133Total number of shares at the end of the financial year 1,407,401,265 1,407,401,265Line item Unrealised Discontinued affected in Amounts gains and hedges profit or loss reclassified losses reclassified Change in because of to profit or recognised to financial accounting the reclassi-EUR mill. 2022lossin OCIexpensesprinciples 2021ficationJet fuel price hedging -5.9 -21.3 11.6 3.9 Fuel costsJet fuel currency hedging Fuel costsLease Hedging of lease payments paymentsfor aircraftRevenue Operating cash flow and cost hedging -7.3 -9.7 1.6 0.7lines*Hedging of interest Lease related to future payments lease payments -3.6 0.7 -4.3for aircraftThe actuarial gains and losses of defined benefit plan 70.4 49.9 20.5Translation differencesCost of hedging reserve 3.3 3.3 0.0Tax effect -14.1 -9.9 -4.2Total 42.8 -30.3 56.5 0.0 0.0 16.6EUR mill. 2023 2024 2025 2026 2027 Later TotalJet fuel price hedging -5.5 -0.4 -5.9Operating cash flow hedging -7.3 -7.3Hedging of interest related to future lease payments -0.7 -0.7 -0.7 -0.7 -0.7 -3.6The actuarial gains and losses of defined benefit plan 70.4 70.4Cost of hedging reserve 3.3 3.3Tax effect -14.7 0.2 0.1 0.1 0.1 -14.1Total 45.5 -0.9 -0.6 -0.6 -0.6 0.0 42.8distribute dividends or any other equity to its shareholders. The bond has no maturity date, but the company has the right to redeem it in three years and on every interest payment date thereafter. The overall hybrid bond net position recognised in equity is 198 million euro, due to issuing expenses. The hybrid bond is unsecured and in a weaker preference position than promissory notes. A holder of hybrid bond notes has no shareholder rights.Capital loanDuring the second and third quarter of 2022 Finnair has withdrawn a 400 million euro capital loan. The capital loan does not have a determined maturity date, and it can be repaid in accordance with the Limited Liability Companies Act and terms and conditions specified in the capital loan agreement. Finnair can pay accrued interest and other payments from the loan if the conditions and the rules of the Limited Liability Companies Act are met. The interest accrued on the capital loan has not been recorded as an expense. The overall capital loan net position recognised in equity is 400 million euro.Earnings per shareThe basic earnings per share figure is calculated by dividing the result for the financial year attributable to the parent company\u2019s shareholders by the weighted average number of shares outstanding during the financial year. The result for the financial year is adjusted for the after-tax amounts of hybrid bond interests and capital loan interests and other fees regardless of payment date, as well as transaction costs of the new hybrid bond issued and premium paid, when a hybrid bond is redeemed. When calculating the earnings per share adjusted for dilution, the weighted average of the number of shares takes into account the diluting effect resulting from the conversion into shares all potentially diluting shares. Finnair has not granted any options.DividendThe Board of Directors proposes to the Annual General Meeting that no dividend is paid for 2022. In accordance with the proposal of the Board of Directors, the Annual General Meeting on 7 April 2022 resolved that no dividend be paid based on the balance sheet adopted for the year 2021.Finnair Plc\u2019s distributable equity 4 Consolidation Notes under the Consolidation section include a description of the general consolidation principles and methods of consolidation. The aim of the section is to provide an overall picture of the group\u2019s structure and principles applied in preparing consolidated financial statements and classifying ownership interests. In addition, notes include information about subsidiaries, associated companies and joint ventures held, acquired or sold by the group. 4.1 General consolidation principlesConsolidationConsolidation, the consolidation method and classification of ownership interests depend on whether Group has power to control or jointly control the entity or if it has significant influence or other interests in the entity. When Group has the power to control the entity, it is consolidated as a subsidiary in the group according to principles described in the note 4.2 Subsidiaries. When Group has joint control or significant influence over an entity but does not have the power to control, an entity is accounted for by using the equity method according to principles set in note 4.4 Investments in associates and joint ventures. If Group does not have power to control nor significant influence in the entity, its ownership interests are classified as financial assets available for sale and accounted for according to principles described in the note 3.2 Financial assets.4.2 Subsidiaries Consolidation principles of subsidiariesFinnair Plc\u2019s consolidated financial statements include the parent company Finnair Plc and all of its subsidiaries. Subsidiaries are defined as companies in which Finnair has control. Control exists when Finnair has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Usually Finnair has power over the entity when it owns more than 50% of the votes or where Finnair otherwise has the power to govern the financial and operating policies. The acquired subsidiaries are included in the consolidated financial statements from the day the Group has control, and disposed subsidiaries until the control ceases.Acquired and established companies are accounted for using the acquisition method of accounting. Accordingly, the acquired company\u2019s identifiable assets, liabilities and contingent liabilities are measured at fair value on the date of acquisition. The excess between purchase price and fair value of the Group\u2019s share of the identifiable net assets is recognised as goodwill.All inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless there is evidence of impairment related to the transferred asset. The accounting principles of subsidiaries have been changed to correspond Group\u2019s accounting policies.Non-controlling interest and transactions with non-controlling interestNon-controlling interests are presented within the equity in the Consolidated Balance Sheet, separated from equity attributable to owners of the parent. For each acquisition the non-controlling interest can be recognised either at fair value or at the non-controlling interest\u2019s proportionate share of the acquirer\u2019s net assets. The carrying amount of non-controlling interests is the amount of the interests at initial recognition added with the non-controlling interests\u2019 share of subsequent changes in equity. EUR mill. 2022 2021Result for the financial year, EUR mill. -476.2 -464.3Hybrid bond interest, EUR mill. -20.5 -20.5Capital loan cost, EUR mil. -15.9Tax effect 7.3 4.1Adjusted result for the financial year -505.3 -480.7Weighted average number of shares, mill. Pcs 1,406.8 1,406.1Basic earnings per share, EUR -0.36 -0.34Diluted earnings per share, EUR -0.36 -0.34Effect of own shares, EUR 0.00 0.00EUR mill. 2022Hedging reserve -9.9Unrestricted equity funds 772.9Retained earnings -698.7Received grants -6.0Result for the financial year -350.2Distributable equity total -291.9SubsidiariesBalticport O\u00fc was liquidated on 18 May 2022.4.3 Acquisitions and divestmentsThere were no business acquisitions or divestments in 2022. In 2021, Finnair sold its 49.5% share of Suomen Ilmailuopisto Oy to the city of Pori and to the Government of Finland. 4.4 Investments in associates and joint ventures Associates are companies in which the Group generally holds 20\u201350 per cent of the voting rights or in which the Group has significant influence but in which it does not exercise control. Companies where the Group has joint control with another entity and significant decisions require both parties approval are considered as joint ventures. The Group\u2019s interests in associated companies and jointly controlled entities are accounted for using the equity method. The group has no joint arrangements classified as joint operations in which the group would have rights to shares in the assets or liabilities of the joint ventures and which it would combine with its balance sheet.The investment in associates and joint ventures include goodwill recognized at the time of acquisition. The Group recognises its share of the post-acquisition results in associates and joint ventures in the income statement. When the Group\u2019s share of losses in an associate or a joint venture equals or exceeds its interest in the associate or joint venture, the Group does not recognise further losses, unless it has incurred obligations on behalf of the associate or joint venture.Results from the transactions between the Group and its associates and joint ventures are recognised only to the extent of unrelated investor\u2019s interests in the associates and joint ventures. The Group determines at each reporting date whether there is any objective evidence that the investment in the associates is impaired. In case of such indications, Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value. The impairment is recognised in share of results in associates and joint ventures.Accounting policies of associates or joint ventures have been changed to correspond with the accounting policies adopted by the Group. If financial statements for the period are not available, the share of the profit of certain associated or joint venture companies is included in the consolidated accounts based on the preliminary financial statements or latest available information. The Group\u2019s share of the result, asset items and liabilities of associates and joint ventures is presented below.There were no changes in 2022. During 2021, Finnair sold its 49.5% share of Suomen Ilmailuopisto Oy. More information on transactions with associated companies and joint ventures can be found in the note 4.5 Related party transactions.Information on the Group\u2019s associates and joint ventures 31 Dec 2022Information on the Group\u2019s associates and joint ventures 31 Dec 2021The result of associated companies and joint ventures for 2022 was 0.5 (2.1) million euros, of which Finnair\u2019s share was 0.0 (0.0) million euros.Nordic Regional Airlines ABNordic Regional Airlines AB (Norra) operates mainly purchased traffic for Finnair. The owners (Finnair 40% and Danish Air Transport 60%) have joint control over the entity. In the balance sheet of Finnair, Norra has been classified as a joint venture.4.5 Related party transactionsRelated parties of the Finnair group includes its subsidiaries, management (the Board of Directors, the President and CEO and the Executive Board), their close family members and companies controlled by them or their close family members, associated companies and joint ventures, Finnair pension fund and Finnair Group sickness fund. Subsidiaries are listed in the note 4.2 and associates and joint ventures in note 4.4. Related party transactions include such operations that are not eliminated in the group\u2019s consolidated financial statement.The State of Finland which has control over Finnair owns 55.9% (55.9%) of Finnair\u2019s shares. All the transactions with other government owned companies and other related parties are on arm\u2019s length basis, and are on similar terms than transactions carried out with independent parties.Group Group Name of the companyownership % Name of the companyownership %Finnair Cargo Oy, Finland 100.0 Amadeus Finland Oy, Finland 95.0Oy Aurinkomatkat - Suntours Ltd Ab, Finnair Aircraft Finance Oy, Finland 100.0Finland 100.0Finnair Technical Services Oy, Finland 100.0 Aurinko O\u00fc, Estonia 100.0Finnair Engine Services Oy, Finland 100.0 Matkayhtym\u00e4 Oy, Finland 100.0Finnair Kitchen Oy, Finland 100.0 FTS Financial Services Oy, Finland 100.0Kiinteist\u00f6 Oy Lentokonehuolto, Finland 100.0 Finnair Business Services O\u00fc, Estonia 100.0Northport Oy, Finland 100.0EUR mill. 2022 2021At the beginning of the financial year 0.0 2.5Disposals -2.4At the end of the financial year 0.0 0.0EUR mill. Domicile Assets Liabilities Revenue Profit/Loss Holding %Nordic Regional Airlines AB Sweden 133.9 134.2 77.1 0.5 40.00EUR mill. Domicile Assets Liabilities Revenue Profit/Loss Holding %Nordic Regional Airlines AB Sweden 98.0 97.3 70.3 2.1 40.005 Other notes Other notes include all such notes that do not specifically relate to any previous subject matters. 5.1 Income taxes The tax expense for the period includes current and deferred tax and adjustments to previous years\u2019 taxation. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or other equity items.Deferred taxes are calculated for temporary differences between accounting and taxation using the valid tax rates for future years at the closing date. Deferred tax asset is recognised to the extent that realisation of the related tax benefit through future profits is probable. Temporary differences arise mainly from sales of tangible assets and depreciation, right-of-use assets, lease liabilities and tax losses. Deferred tax is recognised for foreign subsidiaries\u2019 undistributed earnings only when related tax effects are probable.Deferred tax assets and liabilities are netted when they are levied by the same taxing authority and Finnair has a legally enforceable right to set off the balances. Deferred taxesRecognition of deferred tax asset is based on management estimates and require the use of management judgement in order to assess whether there will be sufficient taxable profits flowing to the company in the future. The expectations used in the calculation are based on the latest management forecasts at the reporting date and use assumptions that are consistent with those used elsewhere in the financial statements. The forecast scenarios have been updated to reflect the renewed strategy announced by Finnair in September. It aims to restore profitability and targets to reach the pre-pandemic comparable operating result level of 5% from mid-2024 onwards. Due to the current uncertainty embedded in the economic environment and the difficulty in forecasting the impact of the war in Ukraine, the management has considered alternative forecast scenarios that differ mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. The scenarios have been discussed in more detail early in the beginning of the notes section under Board\u2019s assessment of Finnair as a going concern. In financial year 2022, deferred tax asset was written down from the taxable losses of 2020-2021, and deferred tax asset from the 2022 loss was not recognized. Finnair expects to be able to use the tax losses remaining on balance sheet in advance of 10 years expiry date under all of the forecast scenarios. Income taxesThe following transactions have taken place with related party entities:Employee benefits and non-current receivables from pension fund are related to defined benefit pension plans in Finnair pension fund. These are described more detailed in the note 1.3.8.2. Management remuneration is presented in note 1.3.8. Management has not been granted any loans and there have not been any other transactions with management.More information on associated companies and joint ventures can be found in the note 4.4.Finnair pension fundThe Finnair pension fund in Finland is a stand-alone legal entity which mainly provides additional pension coverage to Finnair\u2019s personnel in the form of defined benefit plan, and manages related pension assets. The assets include Finnair\u2019s shares representing 0.1% (0.1%) of the company\u2019s outstanding shares. Real estate and premises owned by the pension fund have been mainly leased to Finnair. In 2022 and 2021 Finnair did not pay any contributions to the fund. Pension asset was 119.7 million euros (78.9) at the end of the financial year.EUR mill. 2022 2021Sales of goods and servicesAssociates and joint ventures 25.7 18.2Pension fund 0.3 0.1Sickness fund 0.0 0.2Employee benefitsPension fund 11.2 -7.4Sickness fund 0.6 0.6CEO and Executive Board 4.1 4.6The Board of Directors 0.4 0.4Purchases of goods and servicesAssociates and joint ventures 78.2 73.0Pension fund 2.0 2.0Financial income and expensesAssociates and joint ventures 1.6Pension fund 0.6 0.1ReceivablesAssociates and joint ventures 6.4 17.0Pension fund 119.9 78.9LiabilitiesAssociates and joint ventures 4.3 6.1EUR mill. 2022 2021Taxes for the financial yearCurrent taxAdjustments recognised for current tax of prior periodsDeferred taxes -105.4 117.6Total -105.4 117.6The reconciliation of income taxes to theoretical tax cost calculated at Finnish tax rateDeferred tax assets and liabilitiesThe Group has evaluated the nature and classification of deferred tax assets. Based on the evaluation, deferred tax assets and liabilities levied by the same taxing authority met the requirements for offset eligibility in accordance with IAS 12 standard. The deferred tax assets and liabilities are shown net on the balance sheet.Changes in deferred taxes during 2022:Finnair\u2019s taxable result continued to be highly negative in year 2022 as a result of the impact of the war in Ukraine and the COVID-19 pandemic on its operations and financial performance. Finnair has not recognized deferred tax assets arising from the losses of financial year 2022 and temporary differences, and tax losses of 2020-2021 were written down due to the significant uncertainty caused by the closure of the Russian airspace. The Group has recognized a deferred tax asset of 80.6 million euros (191.9).The forecast scenarios and their expected probabilities have been updated to reflect the renewed strategy announced by Finnair in September. It aims to restore profitability and targets to reach the pre-pandemic comparable operating result level of 5% from mid-2024 onwards. Based on these forecast scenarios and their expected probabilities, the company\u2019s Board of Directors expects that after the write-down of 117 million euros of the deferred tax asset recognized in the second quarter, the remaining deferred tax asset of 99 million euros, corresponding to taxable losses of approximately 497 million euros from financial years 2020 and 2021, which will expire in 2030 and 2031, can be utilized after the implementation of the new strategy. The write-down corresponds to tax losses of approximately 585 million euros from financial years 2020 and 2021, which will expire in 2030 and 2031.Deferred tax assets of financial year 2022 were not recognized for the estimated tax losses of approximately 169 million euros, which will expire in 2032, and temporary differences of 140 million euros, which have no expiry date. Temporary differences include the lease contract related losses of 64 million euros mainly derived from exchange rate differences, the interest expenses under the limitation of the right to deduct interest amounting to 57 million euros and the valuation of derivatives at fair value 13 million euros. The deferred tax asset is recognized up to the amount where it is probable that future taxable income will be generated against which the temporary difference can be utilized, also taking into account the tax planning methods available to Finnair relating to accumulated tax depreciations. The Board\u2019s assessment of the future taxable profit is based on the latest forecasts scenarios which are described in more detail in note Board\u2019s assessment of Finnair as a going concern and note 2.3 Depreciation and impairment.Distributing retained earnings of foreign subsidiaries as dividends would cause a tax effect of 0.3 million euros (0.3).Changes in deferred taxes during 2021:EUR mill. 2022 2021Result before taxes -370.7 -581.9Taxes calculated using the Finnish tax rate 20% 74.1 116.4Different tax rates of foreign subsidiaries 0.1 0.0Tax-exempt income 0.4 1.3Non-deductible expenses -3.9 -0.2Non-capitalized tax loss carryforwards -33.9Non-capitalized temporary differences -25.2Write-down of deferred tax on taxable losses 2020-2021 -117.0Adjustments recognised for taxes of prior periods 0.0 0.1Income taxes total -105.4 117.6Recognised Recognised in in the income shareholders\u2019 EUR mill. 2021statementequity 2022Deferred tax assetsConfirmed losses 216.6 -122.8 93.7Leases 42.8 0.0 42.8Valuation of derivatives at fair value 0.9 -0.9 0.0Other temporary differences 16.9 -3.4 4.1 17.6Total 277.1 -126.2 3.2 154.1Netted from deferred tax liabilities -85.2 20.8 -9.1 -73.5Deferred tax assets in balance sheet 191.9 -105.4 -5.8 80.6Recognised Recognised in in the income shareholders\u2019 EUR mill. 2021statementequity 2022Deferred tax liabilitiesDefined benefit pension plans -16.1 2.2 -10.0 -24.0Property, plant and equipment -68.2 18.6 -49.5Valuation of derivatives at fair value -0.9 0.9 0.0Total -85.2 20.8 -9.1 -73.5Netted from deferred tax assets 85.2 -20.8 9.1 73.5Deferred tax liabilities in balance sheet 0.0 0.0 0.0 0.0Recognised Recognised in in the income shareholders\u2019 EUR mill. 2020statementequity 2021Deferred tax assetsConfirmed losses 141.5 75.1 216.6Leases 17.1 25.7 42.8Valuation of derivatives at fair value 6.0 -5.1 0.9Other temporary differences 10.3 2.4 4.1 16.9Total 174.8 103.3 -1.0 277.1Netted from deferred tax liabilities -90.0 14.3 -9.5 -85.2Deferred tax assets in balance sheet 84.8 117.6 -10.5 191.9Recognised Recognised in in the income shareholders\u2019 EUR mill. 2020statementequity 2021Deferred tax liabilitiesDefined benefit pension plans -6.2 -1.4 -8.6 -16.1Property, plant and equipment -83.9 15.7 -68.2Valuation of derivatives at fair value -0.9 -0.9Total -90.0 14.3 -9.5 -85.2Netted from deferred tax assets 90.0 -14.3 9.5 85.2Deferred tax liabilities in balance sheet 0.0 0.0 0.0 0.05.2 Disputes and litigationFinnair reports only cases of which the interest is material and that are not insured. As of 31 December 2022 there were no such disputes pending.5.3 Events after the closing dateFinnair signed agreements to terminate two of its A320-aircraft lease contracts and one A321-aircraft lease contract and to acquire the aircraft to its own possession. The purchase of the aircraft is expected to have a positive impact on Finnair\u2019s profitability over the next few years. One of the transactions took place in February 2023 and the other two transactions are expected to take place during March 2023. The transactions will have a negative impact of around 50 million euro on the Group\u2019s cash flow during the first quarter of 2023. The purchase of the leased aircraft is not expected to have a material impact on the Group\u2019s profit or balance sheet due to simultaneous release of the related maintenance liabilities, in connection with the lease termination. After the financial year-end, Finnair and British Airways agreed to continue their cooperation where Finnair will lease four A320 aircraft with crew to be operated in British Airways\u2019 European routes starting from 24 March 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1-2": {
"value": "Basis of preparationFinnairPlc consolidated financial statements for 2022 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union, and they comply with the IAS and IFRS standards and respective SIC and IFRIC Interpretations effective on 31 December 2022.The notes to the consolidated financial statements also comply with Finnish accounting and corporate law. Changes applied in accounting principles in 2022 and future periods are described in the below section Changes in accounting principles.The consolidated financial statements are presented in euros, which is the parent company\u2019s functional currency. Transactions denominated in foreign currencies are translated into functional currency by using the exchange rates prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies and outstanding at the end of the reporting period are translated using the exchange rates of the closing date. Foreign exchange gains and losses arising from monetary assets and liabilities as well as fair value changes of related hedging instruments are recognized in the income statement. The 2022 consolidated financial statements have been prepared based on original acquisition costs, except for financial assets recognised through profit and loss at fair value and derivative contracts measured at fair value. Financial statement data is presented in millions of euros and rounded to the nearest hundred thousand euro, which is why the sum of the individual figures may differ from the total shown.4 Consolidation Notes under the Consolidation section include a description of the general consolidation principles and methods of consolidation. The aim of the section is to provide an overall picture of the group\u2019s structure and principles applied in preparing consolidated financial statements and classifying ownership interests. In addition, notes include information about subsidiaries, associated companies and joint ventures held, acquired or sold by the group. 4.1 General consolidation principlesConsolidationConsolidation, the consolidation method and classification of ownership interests depend on whether Group has power to control or jointly control the entity or if it has significant influence or other interests in the entity. When Group has the power to control the entity, it is consolidated as a subsidiary in the group according to principles described in the note 4.2 Subsidiaries. When Group has joint control or significant influence over an entity but does not have the power to control, an entity is accounted for by using the equity method according to principles set in note 4.4 Investments in associates and joint ventures. If Group does not have power to control nor significant influence in the entity, its ownership interests are classified as financial assets available for sale and accounted for according to principles described in the note 3.2 Financial assets.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-2-3": {
"value": "FinnairPlc consolidated financial statements for 2022 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union, and they comply with the IAS and IFRS standards and respective SIC and IFRIC Interpretations effective on 31 December 2022.",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27791": {
"value": "Plc",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-21-2": {
"value": " Impact of the COVID-19 pandemic and the war in Ukraine on the consolidated financial statementsThe effects of the COVID-19 pandemic and the related travel restrictions on Finnair\u2019s revenue and profitability eased during the financial year 2022 with the exception of the Asian markets, which was reflected in the increase of passenger numbers and load factors in Europe and the United States. The number of passenger kilometers (ASK) offered in 2022 increased clearly from the comparison period and amounted to 31,298 million (12,094 million). Finnair\u2019s revenue increased to 2,356.6 million euro (838.4) and the total number of passengers to 9.1 million (2.9). Although the impact of the pandemic on Finnair\u2019s operations eased during the year, the pandemic\u2019s effects especially in the beginning of the year and the closure of Russian airspace following the war in Ukraine caused the Group\u2019s result for the period to remain considerably negative amounting to -476.2 million euro (-464.3). The Russian airspace closure had a significant impact on the routings and cost of Finnair flights to Asia, in addition to which the market price of jet fuel rose to exceptionally high levels. Profitability was further impacted by write-downs recognized for deferred tax assets and four A330 aircraft totaling to 149.7 million euro. Finnair estimates that the current difficult operating environment, including the closure of Russian airspace, will continue for a longer period and announced its new strategy on September 7, 2022 aiming to improve the weak profitability and strengthen its financial position. The implementation of the new strategy started at the end of 2022, as part of which Finnair recorded a provision of EUR 2.6 million related to a decision to reduce approximately 150 jobs.The group\u2019s equity decreased mainly as a result of the losses generated during the period and totaled to 410.7million euros (475.7). Equity was strengthened by the 400 million euro hybrid loan from the Finnish government, which was converted into a capital loan during the year. The deferred tax asset recognised on the consolidated balance sheet decreased to 80.6 million euros (191.9) as a result of a write-down, resulting from the expected impacts of the Russian airspace closure on Finnair\u2019s taxable future income.Net cash flow from operating activities turned positive due to the improved passenger ticket sales, amountingto 259.0 million euro (-25.3). Following the increase in passenger demand, working capital increased by 152.5 million euro as a result of the increase in ticket liability. Overall, the Group\u2019s liquid funds grew by 225.6 million euro during the financial period, amounting to 1,375.6 million euro (1,150.0) at the end of the year. Further detail on the Group\u2019s financial figures can be found in the following notes: revenue and operating expenses (note 1.2 and 1.3), deferred income and advances received (note 1.2.4), changes in liabilities and equity (notes 3.3 and 3.9) and income taxes (note 5.1).The COVID-19 pandemic and Russia\u2019s war against Ukraine have also impacted the critical accounting estimates and sources of uncertainty used in the preparation of the financial statements. This has been dislosed in more detail in the below section Critical accounting estimates and sources of uncertainty.Climate-related matters in the consolidated financial statementsFinnair\u2019s environmental management is based on the principle of continuous and systematic improvement, and it is committed to the goal of carbon neutral flying by the end 2045, in addition to which it will halve carbon net emissions by 2025 compared to the 2019 level. Finnair\u2019s climate-related targets have been disclosed in more detail in the Report of the Board of Directors and Sustainability Appendix. Finnair expects the climate-related costs to increase significantly over the next 1-5 years, resulting from carbon emission reduction targets and tightening climate legislation. Especially three initiatives included in the EU\u2019s \u2018\u2018Fit for 55\u2019\u2019 legislative package are particularly relevant for the aviation industry: the reform of emissions trading (EU-ETS), the mixing quota for sustainable aircraft fuel (ReFuelEU Aviation) and the proposal to introduce a kerosene tax (energy tax directive). When in force, the new regulation is expected to result in higher costs for Finnair due to more expensive emission allowances, increased consumption of renewable fuel and possible abolition of the aviation fuel tax exemption. Where Finnair considers such costs will be recovered through increase in ticket fares, a corresponding adjustment is added to passenger revenue. In preparing the consolidated financial statements, the expected impacts of the climate related matters on the Group\u2019s results have been considered in the management\u2019s profitability and cash flow forecasts, which are used in impairment testing of non-financial assets and evaluation of the recovery of deferred tax assets.Finnair expects the impact of climate-related matters on the estimated economic life of its fleet to be insignificant, as management is not aware of such regulations at the balance sheet date that would directly prevent or limit the company\u2019s ability to use its current fleet. For example, an unexpected and significant increase in emission costs could, if realized, affect the timing of the planned fleet renewal in the future, but this is not considered likely at the time of the preparation of the financial statements.5.2 Disputes and litigationFinnair reports only cases of which the interest is material and that are not insured. As of 31 December 2022 there were no such disputes pending.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAdditionalInformationExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-55-2": {
"value": "Accounting principlesHow should Finnair\u2019s accounting principles be read?Finnair describes the accounting principles in conjunction with each note with the aim of providing an enhanced understanding of each accounting area. The basis of preparation is described as part of this note at a general level, while the principles more directly related to a specific note are attached to the corresponding note. The Group focuses on describing the accounting choices made within the framework of the prevailing IFRS policy and avoids repeating the actual text of the standard, unless Finnair considers it particularly important to the understanding of the note\u2019s content. The table below shows in which notes the related accounting principles are presented and to which IFRS standard the accounting principle is primarily based on.Accounting principle Note Nr. IFRSSegment reporting Segment information 1.1 IFRS 8Revenue recognition, other income and trade IFRS 15, IFRS 9, receivables Operating income 1.2IFRS 7Provisions and contingent liabilities Provisions 1.3.6 IAS 37Employee benefits and share-based payments Employee benefits 1.3.8 IAS 19, IFRS 2Pensions Pensions 1.3.8.2 IAS 19Tangible and intangible assets Fleet and other fixed assets 2.1 IAS 16, IAS 36, IAS 38Leases Leasing arrangements 2.2 IFRS 16Impairment of assets Depreciation and impairment 2.3 IAS 36Interest income and expenses Financial income and expenses 3.1 IFRS 7, IAS 32Financial assets Financial assets 3.2 IFRS 9, IFRS 7Cash and cash equivalents Financial assets 3.2 IFRS 9, IFRS 7Financial liabilities Financial liabilities 3.3 IFRS 9, IFRS 7Derivative contracts and hedge accounting Derivatives 3.8 IFRS 9, IFRS 7Equity, dividend and treasury shares Equity-related information 3.9 IAS 32, IAS 33Consolidation principles of subsidiaries Subsidiaries 4.2 IFRS 10Non-controlling interests and transactions with non-controlling interests Subsidiaries 4.2 IFRS 10Investments in associates and Investments in associates and joint venturesjoint ventures 4.4 IFRS 11, IAS 28Related party disclosures Related party transactions 4.5 IAS 24Income tax and deferred taxes Income taxes 5.1 IAS 12Presentation of consolidated income statement and balance sheet Finnair\u2019s consolidated income statement includes a subtotal \u2018operating result\u2019 which is not defined in the IAS 1 Presentation of Financial Statements standard. The Group has defined it as the net amount of operating income and expenses, including revenue and other operating income, less operating expenses, such as employee benefits, fuel costs, maintenance expenses and depreciations. Exchange rate differences and realised changes in fair values of derivatives are included in the operating result if they arise from items related to business operations; otherwise, they are recognised in financial items. The operating result excludes financial items, shareof results from associates and joint ventures and income taxes. In the consolidated balance sheet, assets and liabilities are classified as current when they are expected to realise within 12 months or when they are classified as liquid funds or as financial assets or liabilities classified at fair value through profit or loss. Other assets and liabilities are classified as non-current assets or liabilities. Interest-bearing liabilities include loans from financial institutions, bonds, loans taken for aircraft financing (JOLCO-loans & export credit support), lease liabilities and commercial papers. Interest-bearing assets include interest-bearing deposits as well as investments in commercial paper and certificates, bonds and money market funds. Interest-bearing net debt is the net amount of interest-bearing assets and liabilities and cross-currency interest rate swaps that are used for hedging the currency and interest rate risk arising from interest-bearing loans. Segment reportingOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Group\u2019s Executive Board. Segments are defined based on Group\u2019s business areas. Group has one business and reporting segment: Airline business. Revenue recognitionRevenue is recognised when goods or services are delivered. Revenue is measured at fair value of the consideration received or receivable, net of discounts and indirect taxes.Passenger revenue includes sale of flight tickets, and is recognised as revenue when the flight is flown in accordance with the flight traffic program. Recognition of unused tickets as revenue is based on the expected breakage amount of tickets remaining unused in proportion to the pattern of rights exercised by the passenger.Sales price is allocated to a flight ticket and points in Finnair Plus\u2019 Customer Loyalty Program. Finnair loyalty customers can earn Finnair Plus Points from tickets or services purchased, and use the earned points to buy services and products offered by Finnair or its cooperation partners. The points earned are measured at fair value and recognised as a decrease of revenue and debt at the time when the points-earning event (for example, flight is flown) is recognised as revenue. Fair value is measured by taking into account the fair value of those awards that can be purchased with the points and the customer selection between different awards based on historical customer behaviour. In addition, the fair valuation takes into account the expiry of the points. The debt is derecognised when the points are used or expire.Customer compensations for delays or cancellations is a variable consideration in the contract and it is recognised as an adjustment to revenue.Ancillary revenue includes sale of ticket related services, such as advance seat reservations, additional baggage fees as well as different service fees, and sale of goods in the aircraft. The service revenue is recognized when the flight is flown in accordance with the flight traffic program, since it is considered as a contract modification instead of a separate revenue transaction. The sale of goods is recognized when the goods are delivered to the customer. Cargo revenue is recognized when the cargo has been delivered to the customer. Tour operations revenue includes sale of flight and hotel considered as separate performance obligations, which are recognized as the service is delivered.Public subsidies are recognised as other operating income. Trade receivablesFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other operating expenses. Finnair Plus Customer Loyalty ProgramValuation and revenue recognition related to Finnair Plus debt requires management judgment especially related to fair valuation of points and timing of revenue recognition related to points expected to expire. The fair value of the point is defined by allocating the point to award selection based on historical behaviour of customers, after which the fair value of each award is defined. The liability is calculated by taking the total amount of points earned by customers, decreased by the expected expiry of the points. These points are then fair valued as described above, and the result is recognised as liability on the balance sheet. ProvisionsProvisions are recognised when the Group has a present legal or constructive obligation as the result of a past event, the fulfilment of the payment obligation is probable, and a reliable estimate of the amount of the obligation can be made. The amount to be recognised as provision corresponds to the management\u2019s best estimate of the expenses that will be necessary to meet the obligation at the end of the reporting period.In most cases, the Group is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. To fulfil these maintenance obligations, the Group has recognised airframe heavy maintenance, engine performance maintenance, engine life limited part, landing gear, auxiliary power unit and other material maintenance provisions. The provision is defined as a difference between the current condition and redelivery condition of these maintenance components. The provision is accrued based on flight hours flown until the next maintenance event or the redelivery and recognised in the aircraft overhaul costs in the income statement. The provision is reversed at the maintenance event or redelivery. The price of the flight hour depends on the market price development of the maintenance costs. Estimated future cash flows are discounted to the present value. The maintenance market prices are mainly denominated in US dollars, which is why the amount of maintenance provision changes due to currency fluctuation of the dollar.The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost, but these are recognised according to the principles presented above.Restructuring provisions are recognised when the Group has prepared a detailed restructuring plan and has begun to implement the plan or has announced it. 1.3.7 Items affecting comparabilityFinnair uses alternative performance measures in its internal reporting to the chief operative decision maker, or Finnair Executive Board. The figures are referred to in the European Securities Markets Authority (ESMA) Guidelines on Alternative Performance Measures, which Finnair uses to describe its business and financial performance development between periods. The alternative performance measures do not replace IFRS indicators, but shall be read in conjunction with key figures in accordance with IFRS financial statements.Unrealised exchange rate differences of mainly in US dollars denominated aircraft maintenance provisions and unrealised fair value changes of derivatives where hedge accounting is not applied are excluded from comparable operating result. These exchange rate and fair value effects are included in the comparable operating result only when they will realize. In addition, gains and losses on aircraft and other transactions, the impairment of owned A330 aircraft, certain changes in defined benefit pension plans and restructuring costs are not included in the comparable operating result. Share-based paymentsFinnair provides a number of share-based compensation plans for its employees, under which the Group receives services from employees as consideration for share-based payments. Regarding share-based incentive plans for key personnel, the awards are paid only if performance criteria set by the Board of Directors is met. Share-based savings plan for employees (FlyShare) requires the employees to remain in Finnair\u2019s service for the defined period, but payment does not depend on any performance criteria.The total expense for share-based payments is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Share-based payments that are settled net of taxes are considered in their entirety as equity-settled share-based payment transactions. The reward is valued based on the market price of the Finnair share as of the grant date, and recognised as an employee benefit expense over the vesting period with corresponding entry in the equity. Income tax paid to tax authorities on behalf of employee is measured based on the market price of the Finnair share at the delivery date and recognised as a decrease in equity. If the reward includes the portion settled in cash, it is accounted for as a cash-settled transaction. The liability resulting from the cash-settled transactions is measured based on the market price of the Finnair share at the balance sheet date and accrued as an employee benefit expense for service period with corresponding entry in the liabilities until the settlement date.Termination benefitsTermination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to a termination. Group is demonstrably committed when it has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer.Accounting principles related to pension benefits are described in the note 1.3.8.2 Pensions. Items affecting comparability include an impairment of 32.7 million euros related to four owned A330 aircraft, unrealized exchange rate difference of 8.8 million euros related to aircraft maintenance provisions and sales gain of 6.8 million euros on four A321 aircraft. In addition, 2.5 million euros have been recognised in staff and other crew related costs related to the change negotiations ended in November 2022.2022 2021Items Items affecting affecting compara-compara-EUR mill. Reportedbility Comparable Reportedbility ComparableRevenue 2,356.6 2,356.6 838.4 838.4Other operating income 153.5 -6.8 146.7 62.5 -23.3 39.2Operating expensesStaff and other crew related costs -449.6 2.5 -447.1 -229.3 -19.5 -248.9Fuel costs -835.1 -0.9 -836.0 -211.4 0.0 -211.4Capacity rents -102.5 -102.5 -71.3 -71.3Aircraft materials and overhaul -192.4 8.8 -183.6 -117.2 25.5 -91.7Traffic charges -206.5 -206.5 -120.4 -120.4Sales, marketing and distribution costs -103.1 -103.1 -38.1 -38.1Passenger and handling services -348.0 -348.0 -148.0 -148.0Property, IT and other expenses -123.7 0.4 -123.3 -99.7 2.9 -96.8EBITDA 153.2 -149.0Depreciation and impairment -349.8 32.7 -317.1 -319.8 -319.8Operating result -200.6 36.6 -163.9 -454.4 -14.4 -468.9 Defined benefit and defined contribution plansPension plans are classified as defined benefit and defined contribution plans. Payments made into defined contribution pension plans are recognised in the income statement in the period to which the payment applies. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Current service cost is the present value of the post employment benefit, which is earned by the employees during the year and it is recognised as staff and other crew related costs. The liability recognised in the balance sheet in respect of defined pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligations is determined by discounting the estimated future cash flows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. If fair value of plan assets is higher than present value of funded obligations, the net amount is presented as pension assets in the Group\u2019s balance sheet. 2.1 Fleet and other fixed assets Fleet and other fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment loss if applicable. Fleet includes aircraft and aircraft prepayments. The acquisition cost of aircraft is allocated to the aircraft frame, cabin components, engines and maintenace components as separate assets. Maintenance components include heavy maintenance, C-checks, APU (auxiliary power unit) restorations, landing gear overhauls and thrust reversers of aircraft frames, as well as performance restoration and maintenance of life limited parts of engines. Aircraft frames and engines are depreciated over the useful life of the aircraft. The maintenance components are depreciated during the maintenance cycle. Cabin components are depreciated over their expected useful life. Significant modifications of owned or leased aircraft are capitalised as separate items and depreciated over their expected useful life, which in the case of leased aircraft cannot exceed the lease period. Replaced components are derecognised from the balance sheet. Advance payments for aircraft are recorded as fleet fixed assets. Interest costs related to advance payments are capitalised as acquisition cost for the period at which Finnair is financing the manufacturing of the aircraft. Hedging gains or losses related to the fair value changes of firm, USD nominated purchase commitments for aircraft are recognised in advance payments. Advance payments, realised foreign exchange hedges and capitalised interests are recognised as part of the aircraft acquisition cost once the aircraft is delivered and taken to commercial use.Other fixed assets include rotable aircraft spare parts, other fixed assets and their prepayments. Other fixed assets are depreciated during their expected useful life.Intangible assets mainly include computer software and connection fees. Connection fees are not depreciated. Gains and losses on disposal of tangible and intangible assets are included in other operating income and expenses.Useful life and residual valueDepreciation of fleet and other fixed assets is based on the following expected economic lifetimes:New aircraft and engines as well as flight simulators (other equipment) on a straight-line basis as follows:Airbus A350 fleet, over 20 years to a residual value of 10%Airbus A320 and Embraer fleet, over 20 years to a residual value of 10%Airbus A330 fleet, over 18 years to a residual value of 10%Turboprop aircraft (ATR fleet), over 20 years to a residual value of 10%Heavy maintenance, C-checks, APU and landing gear restorations and thrust reversers of aircraft frame, as well as performance maintenance and life limited parts of the engines, on a straight-line basis during the maintenance periodCabin components, over 7\u201320 yearsRotable spare parts and components, over 15 years to a residual value of 0%Buildings, over 10\u201350 years from the time of acquisition to a residual value of 10%Other tangible assets, over 3\u201315 yearsComputer software, over 3\u20138 yearsThe residual values and estimated useful lives of the assets are assessed at each closing date and if they differ significantly from previous estimates, the depreciation periods and residual values are changed accordingly. The useful life of Finnair\u2019s current Airbus A320 fleet was prolonged in 2021 as part of the investment optimizations resulting from the COVID-19 pandemic. As a result, the existing A320 fleet\u2019s aircraft and engines are depreciated over a period of 25-29 years to a residual value of 0%.Assets held for saleNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction, a sale is considered highly probable and expected to take place within the next twelve months. Assets classified as held for sale are stated at the lower of the carrying amount or fair value less cost to sell. Assets classified as held for sale are no longer depreciated.ImpairmentThe Group reviews its fleet and other fixed assets for indication of impairment on each balance sheet date. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. 2.2 Leasing arrangements The Group as lessee Finnair assesses whether a contract that relates to tangible assets is, or contains, a lease in accordance with the IFRS 16. Lease agreements for tangible assets, where the contract conveys the right to use an identified asset for a period of time in exchange for consideration, are classified as leases.The lease term is the non-cancellable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if Finnair is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if Finnair is reasonably certain not to exercise the option.The lease recognition requirements are not applied to short-term leases, where at the commencement date, the lease term is 12 months or less and does not contain a purchase option. Finnair considers the lease period to be the period that is enforceable. Hence, for contracts where the contract term is non-fixed and Finnair has the right to terminate the contract without the permission from the other party with no more than an insignificant penalty and there are no other indications that the contract is enforceable, Finnair classifies these contracts as short-term. The lease recognition requirements are also not applied to leases that are not material to Finnair.For short-term leases and immaterial leases to which these exemptions are applied, the lease payments are recognised as an expense on either a straight-line basis over the lease term, or on another systematic basis if that basis is more representative of the pattern of Finnair\u2019s benefit.At the commencement date of a lease, Finnair recognises both a right-of-use asset and a lease liability.The lease liability is the present value of future lease payments. At Finnair, lease payments for aircraft leases typically contain variable payments that depend on interest rates and indices. The variable payments are included in the measurement of the lease liability from the commencement date of the lease. The right-of-use asset is measured at cost, comprising the amount of the initial measurement of the lease liability;any lease payments made at or before the commencement date, less any incentives received;any initial direct costs incurred by Finnair; and an estimate of costs to be incurred by Finnair in restoring the assets to the condition required by the terms and conditions of the lease.In most cases, Finnair is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. The maintenance costs can be divided into two main groups: 1) costs that are incurred independent of the usage of the aircraft / leasing period and 2) costs that are incurred dependent on the usage of the aircraft / leasing period The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost.Finnair remeasures the lease liability when there is a lease modification that changes the scope of a lease or the consideration for the lease, that was not part of the original terms and conditions of the lease (including changes in lease payments resulting from a change in indices and rates used in variable aircraft lease payments) or when the the likehood of Finnair using a purchase-option is changed. The amount of the remeasurement of the lease liability is generally recognised as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the remaining measurement is recognised in profit or loss.After initial recognition, right-of-use assets are measured at cost less any accumulated depreciations and accumulated impairment losses. The assets are depreciated with a straight-line method from the commencement date to the shorter of end of useful life of the right-of-use asset and the end of lease term. However, if the lease transfers ownership of the asset to Finnair by the end of lease term or if the cost of the right-of-use asset reflects that Finnair will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of useful life of the asset.At Finnair aircraft lease contracts contain the interest rate implicit in the lease, even if the aircraft lease agreements do not clearly define the interest rate implicit in the lease. Since the fair values of the aircraft are provided publicly by third parties, Finnair is able to calculate the implicit interest rate for each qualifying aircraft operating lease. The rate implicit in the lease is defined as the rate that causes the sum of the present value of the lease payments and the present value of the unguaranteed residual value of the underlying asset at the end of the lease to equal the sum of the fair value of the underlying asset and any initial direct costs of the lessor. The implicit interest rate is determined by each aircraft lease contract separately.For other lease contracts, an implicit interest rate cannot be usually determined. The incremental borrowing rate is therefore used and it is determined by each class of assets separately, based on management estimate. Aircraft lease contracts are usually denominated in foreign currency (US dollars) and the foreign currency lease liabilities are revalued at each balance sheet date to the spot rate. The lease payments (lease payments made) are accounted for as repayments of the lease liability and as interest expense.The Group as lessorAgreements, where the Group is the lessor, are accounted for as operating leases, when a substantial part of the risks and rewards of ownership are not transferred to the lessee. The assets leased under operating lease are included in the tangible assets and they are depreciated during their useful life. Depreciation is calculated using the same principles as the tangible assets for own use. Under the provisions of certain aircraft lease agreements, the lessee is required to pay periodic maintenance reserves which accumulate funds for aircraft maintenance. Advances received for maintenance are recognised as liability, which is charged, when maintenance is done. The rents for premises and aircraft are recognised in the income statement as other operating income over the lease term.Agreements, where the Group is the lessor, are accounted for as finance leases, when a substantial part of the risks and rewards of ownership are transferred to the lessee. Finnair recognises assets held under a finance lease in its balance sheet and presents them as a receivable at an amount equal to the net investment of the lease which is equal to the sum of the present values of the lease income it will receive in the future and the unguaranteed residual value.Finnair subleases aircraft and buildings as well as ground equipment from time to time, which are classified either as finance leases or operating leases based on the individual contract terms. A lease is classified on its commencement date and is reassessed only if the lease is amended. At the commencement date, for the subleases, a net investment (lease receivable), equaling to the present value of lease payments and the present value of the unguaranteed residual value, is recognised. The proportion of the right-of-use asset subleased is derecognised from the balance sheet and the difference between the right-of-use asset and the net investment is recognised in the profit or loss, in other operating income and expenses. Subsequently, the lease payments received are accounted for as repayments of the lease receivable and as interest income. Sale and leaseback In sale and leaseback transactions, where Finnair sells and then leases back aircraft, Finnair measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of-use retained by the Group. Accordingly, Finnair recognises only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor. ImpairmentThe Group reviews its leased assets for indication of impairment on each balance sheet date. Impairment loss is recognized if the recoverable amount is below its carrying amount. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. Leasing arrangements Determining the interest rate and lease term used in discounting the lease payments, estimating the redelivery obligations of aircraft leases and the classification of sublease agreements to operating and financial leases require management discretion in interpretation and application of accounting standards. The COVID-19 pandemic or the war in Ukraine and the following closure of Russian airspace did not have a significant impact on the terms of the leasing arrangements of the Group, neither did it significantly increase the amount of discretion related to abovementioned critical accounting estimates and sources of uncertainty. The pandemic or the geopolitical situation did not, for example, have significant impact on the estimated lease terms as extension options are usually not considered in the initial lease term determination. Additionally, the impact of contracts terminated early during the period was not significant. The carrying value of the right-of-use assets are tested for impairment as part of cash generating unit at the balance sheet date. More details is presented in the note 2.3. Impairment testingImpairment testing The Group reviews its fleet, other fixed assets and other non-current assets for indication of impairment on each balance sheet date. The recoverable amount of an asset or a cash generating unit is determined as the higher of value in use and the fair value less cost to sell. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is defined for the cash generating unit, and the impairment is evaluated at the cash generating unit level. Impairment testing of the fleet and other fixed assetsFinnair applies the value in use model as its primary method for determining the recoverable amount of the assets. Preparation of the calculations used for impairment testing requires the use of significant management judgement and estimates, which is why the actual outcome may differ from the current management estimates and assumptions made. The management estimates are based on budgets and forecasts, which already inherently contain some degree of uncertainty, in addition to which the COVID-19-pandemic and Russia\u2019s war against Ukraine in Europe has resulted in increased estimation uncertainty. It is especially difficult to predict the duration of the Russian airspace closure. Also, the price of jet fuel increased significantly during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and costs as well as the changes in the economic and competitive environment are subject to increased uncertainty.In order to consider the increased uncertainty in its estimates and assumptions, the management has considered three different forecast scenarios differing mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. These scenarios, as well as the main identified uncertainties, are discussed in more detail in the beginning of the notes, in the section Board\u2019s assessment of Finnair as a going concern. In order to consider the increased uncertainty of its operating environment in the impairment testing, Finnair is applying the expected cash flow approach which incorporates expectations about all three forecast scenarios instead of relying on just a single, most likely, cash flow estimate. Determination of the probabilities used for each of the senarios are based on the management\u2019s best estimate at the time and require the use of significant management judgement. Finnair has preparared a sensitivity analysis on the key assumptions used in the impairment testing as well as on changes of the EBITDA-margin. Based on the analysis, the value in use calculation is sensitive to changes in the discount rate, terminal growth rate, fuel cost as well as to changes in the EBITDA-margin. Key assumptions used and the related sensitivities are described in more detail below. Interest income and expensesInterest income and expenses are recognised on a time-proportion basis using the effective interest method. Interest expenses related to the financing of significant investments are capitalised as part of the asset acquisition cost and depreciated over the useful life of the asset.More detailed information about financial assets can be found in note 3.2 and about interest bearing liabilities in note 3.3. 3.2 Financial assetsFinancial assetsIn the Group, financial assets have been classified into the following categories according to the IFRS 9 standard \u201cFinancial Instruments\u201d: amortised cost and fair value through profit and loss. The classification is made at the time of the original acquisition based on the objective of the business model and the characteristics of contractual cash flows of the investment, or by applying a fair value option. All purchases and sales of financial assets are recognised on the trade date. Financial assets at fair value through profit and loss include such assets as investments in bonds and money market funds. Financial assets at fair value through profit and loss have mainly been acquired to obtain a gain from short-term changes in market prices. All those derivatives that do not fulfil the conditions for the application of hedge accounting are classified as financial assets at fair value through profit and loss and are valued at fair value in each financial statement. Realised and unrealised gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. Financial assets recognised at fair value through profit and loss, as well as those maturing within 12 months, are included in current assets. In Finnair Group, unquoted shares are valued at their acquisition price in the absence of a reliable fair value.Investments in debt securities are measured at amortised cost, but only when the objective of the business model is to hold the asset to collect the contractual cash flows and the asset\u2019s contractual cash flows represent only payments of principal and interest. Financial assets recognised at amortised cost are valued using the effective interest method. Financial assets valued at amortised cost include trade receivables and security deposits for aircraft operating lease agreements. Due to the nature of short-term receivables and other receivables, their book value is expected to be equal to the fair value.Derecognition of financial assets takes place when the Group has lost its contractual right to receive cash flows or when it has substantially transferred the risks and rewards outside the Group.Impairment of financial assetsFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other expenses in the consolidated income statement. More information on the credit loss provision on trade receivables can be found in note 1.2.3. Receivables related to revenue.The impairment model does not apply to financial investments, such as bonds and money market funds, included in other financial assets as those are measured at fair value through profit and loss under IFRS 9, which already takes into account expected credit losses. With respect to the assets measured at amortised cost, Finnair is actively following such instruments and will recognise impairment through profit and loss if there is evidence of deterioration in credit quality.Cash and cash equivalentsCash and cash equivalents consist of cash reserves and short-term bank deposits with maturity of less than three months. Foreign exchange-denominated items have been converted to euro using the mid-market exchange rates on the closing date.3.3 Financial liabilities Financial liabilitiesFinnair Group\u2019s financial liabilities are classified into two different classes: amortised cost and fair value through profit and loss. Financial liabilities are initially recognised at fair value on the basis of the original consideration received. Transaction costs have been included in the original book value of financial liabilities. Thereafter, all non-derivative financial liabilities are valued at amortised cost using the effective interest method. Financial liabilities are included in long- and short-term liabilities, and they can be interest-bearing or non-interest-bearing. Loans that are due for payment within 12 months are presented in the short-term liabilities. Foreign currency loans are valued at the mid-market exchange rate on the closing date, and translation differences are recognised in the financial items.Accounts payable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.Derecognition of financial liabilities takes place when the Group has fulfilled the contractual obligations. 3.8 Derivatives Derivative contracts and hedge accountingAccording to its risk management policy, Finnair Group uses foreign currency, interest rate and commodity derivatives to reduce the exchange rate, interest rate and commodity risks which arise from the Group\u2019s balance sheet items, foreign currency denominated purchase agreements, anticipated foreign currency denominated purchases and sales as well as future jet fuel purchases. It is the Group\u2019s policy not to enter into derivative financial contracts for speculative purposes.The derivatives are initially recognised as well as subsequently valued at fair value in each financial statement and interim report. The fair values of the derivatives are based on the value at which the instrument could be exchanged between knowledgeable, willing and independent parties, with no compulsion to sell or buy in the sales situation. The fair values of derivatives are determined as follows:The fair values of all derivatives are calculated using the exchange rates, interest rates, volatilities and commodity price quotations on the closing date. The fair values of currency forward contracts are calculated as the present value of future cash flows. The fair values of currency options are calculated using the Black-Scholes option pricing model. The fair values of interest rate swap contracts are calculated as the present value of future cash flows. The fair values of cross-currency interest rate swap contracts are calculated as the present value of future cash flows. The fair values of interest rate options are calculated using generally accepted option valuation models. The fair values of commodity forward contracts are calculated as the present value of future cash flows. The fair values of commodity options are calculated using generally accepted option valuation models.The Group uses credit valuation adjustment for cross-currency interest rate swaps as the maturities of these derivatives are long. The credit valuation adjustment is not done for the rest of the derivatives as the maturities for these are short and the impact would not be material. Credit risk management is described in more detail in note 3.5.Gains and losses arising from changes in the fair value are presented in the financial statements according to the original classification of the derivative. Gains and losses on derivatives qualifying for hedge accounting are recognised in accordance with the nature of the risk being hedged. At inception, derivative contracts are designated as hedges of future cash flows, hedges of the fair value of recognised assets or liabilities and binding purchase contracts (cash flow hedges or fair value hedges) or as derivatives not meeting the hedge accounting criteria or to which hedge accounting is not applied (economic hedges). Hedging of the fair value of net investments of foreign units or embedded derivatives have not been used. At the inception of hedge accounting, Finnair Group documents the economic relationship and the hedge ratio between the hedged item and the hedging instrument, as well as the Group\u2019s risk management objectives and the strategy for the inception of hedging. At the inception of hedging, and at least at the time of each financial statement, the Group documents and assesses the effectiveness of hedge relationships by examining the past and prospective capacity of the hedging instrument to offset changes in the fair value of the hedged item or changes in cash flows. The values of derivatives in a hedging relationship are presented in the balance sheet item Short\u2013term financial asset and liabilities.Finnair Group implements the IFRS hedge accounting principles in the hedging of future cash flows (cash flow hedging). The principles are applied to the price and foreign currency risk of jet fuel, the foreign currency risk of lease payments and the foreign currency risk of highly probable future sales and costs denominated in foreign currencies. The IFRS fair value hedge accounting principles are applied to the hedging of foreign exchange and interest rate risk of aircraft.The change in the fair value of the effective portion of derivative instruments that have been designated and qualify as cash flow hedges are recognised in comprehensive income and presented within equity in the fair value reserve, to the extent that the requirements for the application of hedge accounting have been fulfilled and the hedge is effective. The gains and losses, recognised in the fair value reserve, are transferred to the income statement in the period in which the hedged item is recognised in the income statement. When a hedging instrument expires or is sold, terminated or exercised, or the criteria for cash flow hedge accounting are no longer fulfilled, but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in the hedge reserve and is recognised in accordance with the above policy when the transaction occurs. If the underlying hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in the hedge reserve with respect to the hedging instrument is recognised immediately in the consolidated income statement.The effectiveness of hedging is tested on a quarterly basis. The effective portion of the hedges is recognised in the fair value reserve of other comprehensive income, from which it is transferred to the income statement when the hedged item is realised or, in terms of investments, as an acquisition cost adjustment.Fair value hedging is implemented on firm orders of new aircraft, and in order to hedge the fixed interest rate bond. The binding purchase agreements for new aircraft are treated as firm commitments under IFRS, and therefore, the fair value changes of the hedged part arising from foreign currency movements are recognised in the balance sheet as an asset item, and corresponding gains or losses recognised through profit and loss. Similarly, the fair value of instruments hedging these purchases is presented in the balance sheet as a liability or receivable, and the change in fair value is recognised in profit and loss. The gain or loss related to the effective portion of the interest rate swap, which hedges the fixed interest rate bond, is recognised as financial income or expenses in the income statement. The gain or loss related to the ineffective portion is recognised within other operating income and expenses in the income statement. The change in the fair value attributable to the interest rate risk of the hedged fixed interest rate loans is recognised in the financial expenses in the income statement.If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item, for which the effective interest method is used, is amortized to profit or loss over the period to maturity.Finnair Group uses cross-currency interest rate swaps in the hedging of the interest rate and foreign exchange risks of foreign currency denominated loans. Cross-currency interest rate swaps are excluded from hedge accounting, and therefore the fair value changes are recognised in derivative assets and liabilities in the balance sheet, as well as in the financial income and expenses in the income statement. The fair value changes of the loans are simultaneously recognised in the financial income and expenses. Realised foreign exchange rate differences, as well as interest income and expenses, are recognised in the financial income and expenses against the exchange rate differences and interest income and expenses of the loanFinnair Group uses jet fuel swaps (forward contracts) and options in the hedging of jet fuel price risk. Unrealised gains and losses on derivatives hedging jet fuel, which are designated as cash flow hedges and fulfil the requirements of IFRS hedge accounting, are recognised in the hedging reserve within other comprehensive income. Accrued derivative gains and losses, recognised in shareholders\u2019 equity, are recognised as income or expense in the income statement in the same financial period as the hedged item is recognised in the income statement. If a forecasted cash flow is no longer expected to occur, and as a result the IFRS hedge accounting criteria are not fulfilled, the fair value changes and the accrued gains and losses reported in shareholders\u2019 equity are transferred to the items affecting comparability in the income statement. Changes in the fair value of jet fuel swaps and options excluded from hedge accounting are recognised in fair value changes in derivatives in the income statement, while the realised result is presented in fuel costs. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as the hedging instrument and the hedged item are expected to move in opposite directions because of the same underlying exposure. This is true for all hedge relationships except for the SING consumption hedged with NWE hedges (as described in section 3.5). In that case, the underlying is different, but the underlying hedged item (SING) and the hedge (NWE) have a historical correlation of 0.99. Therefore, it can be classified as a relationship where the underlying and the hedge are economically closely related. Ineffectiveness on fuel derivatives can also arise from timing differences on the notional amount between the hedged instrument and hedged item, significant changes in credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying fuel consumption forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Finnair has established a hedge ratio of 1:1 for hedging relationships.Finnair uses forward contracts and options to hedge its exposure to foreign currency denominated cash flows. The hedges of cash flows denominated in foreign currencies are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. Unrealised gains and losses on hedges of forecasted cash flows qualifying for hedge accounting are recognised in the hedging reserve in OCI, while the change in the fair value of such hedges not qualifying for hedge accounting is recognised in Fair value changes in derivatives and changes in exchange rates of fleet overhauls in the income statement. The change in fair value recognised in the hedging reserve in equity is transferred to the income statement when the hedged transaction is realised. Forward points are included in the hedging instrument and in the hedge relationship. Potential sources of ineffectiveness include changes in the timing of the hedged item, significant changes in the credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying cash flow forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Realised profit or loss on derivatives hedging JPY-denominated operating cash flows is presented in revenue, realised profit or loss on derivatives hedging a group of similar USD costs is proportionally recognised in corresponding expense lines, while profit or loss on derivatives hedging cash flows denominated in other currencies is presented in Other expenses.The hedge ratio is defined as the relationship between the quantity of the hedging instrument and the quantity of the hedged item in terms of their relative weighting. With currency hedging, the hedge ratio is typically 1:1. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as there is an expectation that the value of the hedging instrument and the value of the hedged item would move in opposite directions because of the common underlying exposure. Changes in the fair value of interest rate derivatives not qualifying for hedge accounting are recognised in financial income and expenses in the income statement. Changes in the fair value as well as realised gain or loss on forward contracts used to hedge foreign currency denominated balance sheet items of Finnair Group are recognised in financial expenses. Changes in the fair value and the realised result of hedges of assets held for sale are recognised in Items affecting comparability. Cost of hedgingAt Finnair, the time value of an option is excluded from the designation of a financial instrument and accounted for as a cost of hedging. Up on initial recognition, Finnair defers any paid premium in the cost of hedging reserve within other comprehensive income. The fair value changes of the time value are recognised in the cost of hedging reserve within other comprehensive income. The premium will be transferred to the consolidated income statement in the same period that the underlying transaction affects the consolidated income statement for transaction-related hedges. As of 31 December 2022, Finnair has deferred premiums only on transaction-related hedges.Impact of COVID-19 to hedge accounting and derivativesDue to the COVID-19 pandemic impacts on Finnair\u2019s underlying business during 2020 and 2021, the hedging operations regarding foreign exchange currencies and jet fuel price risk were impacted. Much lower demand as a result of the COVID-19 pandemic during the year 2020 meant that the amount of underlying risk was significantly reduced from forecasted amounts forcing Finnair to discontinue hedge accounting on the majority of its hedges in foreign exchange and jet fuel that were under hedge accounting. The last discontinued hedging relationships matured during the last quarter of 2021 and the realized gains or losses are shown in financial income and expenses. In the last quarter of 2021 Finnair restarted its hedging program in foreign exchange as well as jet fuel according to the revised risk management policy. The risk management policy was further revised in December 2022. More information about the revised risk management policy can be found in note 3.5.Impact of war in Ukraine to hedging operationsFinnair\u2019s operating environment has become significantly more difficult since the publication of the 2021 financial statements, due to the escalation of the geopolitical situation in Eastern Europe resulting from Russia\u2019s attack against Ukraine. The resulting sanctions, and countersanctions, led to the closure of Russian airspace which has had a significant impact on the routings and operating costs of Finnair\u2019s flights to Asia. Also, the price of jet fuel increased significantly during the financial year and increased the uncertainty. At the same time, the COVID-19 pandemic continues to still have an impact on Finnair\u2019s business, especially in the Asian markets, which is also contributing to the uncertainty relating to the near- and long-term development of its operating environment. The war in Ukraine did not directly impact the hedging operations of Finnair and after publishing the revised strategy the risk management policy was also updated in December 2022. More detailed information about the update can be found from the note 3.5. Critical accounting estimates and sources of uncertaintyFinnair accounts for its cash flow hedges of forecasted foreign currency denominated purchases and sales and future jet fuel purchases in accordance with the IFRS 9. Under the hedge accounting principles, a forecast transaction can be designated as a hedged item only if that transaction is considered as highly probable. The evaluation of probability is based on the management forecasts about the future level of Finnair\u2019s operations and cash flows. Such forecasts require the use of management judgement and assumptions, which inherently contain some degree of uncertainty that is further increased due to the COVID-19-pandemic. Should the expected circumstances or outcome change i the future, the management would need to reassess whether a hedged forecast transaction is still highly likely to occur. This could be the case if, for example, the expected recovery and thus the expected jet fuel consumption levels would not realize as expected. Should the forecast transaction no longer be highly probable, it would no longer qualify as an eligible hedged item and hedge accounting would need to be discontinued. Should it no longer be expected to occur at all, the balance of the cash flow hedge reserve included in other comprehensive income would need to be reclassified to profit or loss. * Positive (negative) fair value of hedging instruments as of 31.12.2022 is presented in the statement of financial position in the item derivative financial instruments within current assets (derivative financial instruments within current liabilities). Uncertainty and discontinued hedging relationships due to the COVID-19 pandemic are visible in the comparison figures. However, during the year 2022 Finnair has resumed normal hedging operations.. Consolidation principles of subsidiariesFinnair Plc\u2019s consolidated financial statements include the parent company Finnair Plc and all of its subsidiaries. Subsidiaries are defined as companies in which Finnair has control. Control exists when Finnair has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Usually Finnair has power over the entity when it owns more than 50% of the votes or where Finnair otherwise has the power to govern the financial and operating policies. The acquired subsidiaries are included in the consolidated financial statements from the day the Group has control, and disposed subsidiaries until the control ceases.Acquired and established companies are accounted for using the acquisition method of accounting. Accordingly, the acquired company\u2019s identifiable assets, liabilities and contingent liabilities are measured at fair value on the date of acquisition. The excess between purchase price and fair value of the Group\u2019s share of the identifiable net assets is recognised as goodwill.All inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless there is evidence of impairment related to the transferred asset. The accounting principles of subsidiaries have been changed to correspond Group\u2019s accounting policies.Non-controlling interest and transactions with non-controlling interestNon-controlling interests are presented within the equity in the Consolidated Balance Sheet, separated from equity attributable to owners of the parent. For each acquisition the non-controlling interest can be recognised either at fair value or at the non-controlling interest\u2019s proportionate share of the acquirer\u2019s net assets. The carrying amount of non-controlling interests is the amount of the interests at initial recognition added with the non-controlling interests\u2019 share of subsequent changes in equity. Associates are companies in which the Group generally holds 20\u201350 per cent of the voting rights or in which the Group has significant influence but in which it does not exercise control. Companies where the Group has joint control with another entity and significant decisions require both parties approval are considered as joint ventures. The Group\u2019s interests in associated companies and jointly controlled entities are accounted for using the equity method. The group has no joint arrangements classified as joint operations in which the group would have rights to shares in the assets or liabilities of the joint ventures and which it would combine with its balance sheet.The investment in associates and joint ventures include goodwill recognized at the time of acquisition. The Group recognises its share of the post-acquisition results in associates and joint ventures in the income statement. When the Group\u2019s share of losses in an associate or a joint venture equals or exceeds its interest in the associate or joint venture, the Group does not recognise further losses, unless it has incurred obligations on behalf of the associate or joint venture.Results from the transactions between the Group and its associates and joint ventures are recognised only to the extent of unrelated investor\u2019s interests in the associates and joint ventures. The Group determines at each reporting date whether there is any objective evidence that the investment in the associates is impaired. In case of such indications, Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value. The impairment is recognised in share of results in associates and joint ventures.Accounting policies of associates or joint ventures have been changed to correspond with the accounting policies adopted by the Group. If financial statements for the period are not available, the share of the profit of certain associated or joint venture companies is included in the consolidated accounts based on the preliminary financial statements or latest available information. The tax expense for the period includes current and deferred tax and adjustments to previous years\u2019 taxation. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or other equity items.Deferred taxes are calculated for temporary differences between accounting and taxation using the valid tax rates for future years at the closing date. Deferred tax asset is recognised to the extent that realisation of the related tax benefit through future profits is probable. Temporary differences arise mainly from sales of tangible assets and depreciation, right-of-use assets, lease liabilities and tax losses. Deferred tax is recognised for foreign subsidiaries\u2019 undistributed earnings only when related tax effects are probable.Deferred tax assets and liabilities are netted when they are levied by the same taxing authority and Finnair has a legally enforceable right to set off the balances. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-67-2": {
"value": "Company informationFinnair Group engages in worldwide air transport operations and supporting services.The Group\u2019s parent company isFinnair Plcwhich is domiciled inHelsinki at the registered address Tietotie 9, VantaaFinlandThe parent company is listed on the NASDAQ OMX Helsinki Stock Exchange. The consolidated financial statements of Finnair Group for the year ended 31 December 2022 were authorized for issue by the Board of Directors of Finnair Plc on 14 February 2023.Under Finland\u2019s Limited Liability Companies Act, shareholders have the option to accept, or reject the financial statements in the Annual General Meeting of the shareholders, which will be held after the publication of the financial statements.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28141": {
"value": "Finnair Group engages in worldwide air transport operations and supporting services.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28148": {
"value": "Finnair Plc",
"dimensions": {
"concept": "ifrs-full:NameOfUltimateParentOfGroup",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28149": {
"value": "Finnair Plc",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28150": {
"value": "Finnair Plc",
"dimensions": {
"concept": "ifrs-full:NameOfParentEntity",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28154": {
"value": "Helsinki ",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28158": {
"value": "Tietotie 9, Vantaa",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28160": {
"value": "Finland",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28161": {
"value": "Finland",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-79-3": {
"value": "The consolidated financial statements of Finnair Group for the year ended 31 December 2022 were authorized for issue by the Board of Directors of Finnair Plc on 14 February 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-85-1": {
"value": "3.3. and information about hedging policies and management of liquidity risk is described in notes 3.5 and 3.8. Finnair had no debt covenants at the end of the financial year 2022.The main identified uncertainties relating to the management estimates relate to the current difficult operating environment caused by the effects of the war in Ukraine, including closure of the Russian airspace, the duration of which cannot be known with certainty at the time of the publication of the financial statements. Also the future development of the already increased jet fuel prices, impact of inflation and possible economic downturn on passenger demand and operating costs as well as the changes in the economic and competitive environment are subject to increased uncertainty. These events are not in the sphere of Finnair management\u2019s influence and the management has been required to apply material judgement relating to the duration of the current geopolitical and economic situation and make estimates about its impact on Finnair\u2019s business and financial performance. Despite of the abovementioned uncertainties, Finnair\u2019s management has at its disposal other mitigating measures that are within the sphere of its influence and with which it believes it will be able to meet its obligations for at least 12 months after the date the financial statements are issued. These include discussions initiated by Finnair with Airbus on options to delay or cancel the two remaining A350s, which according to the current contract are due to arrive in the last quarter of 2024 and the first quarter of 2025. In addition, Finnair is investigating the possibilities of refinancing some of its existing financial arrangements.Considering the above-mentioned circumstances and uncertainties, as well as the already realized and planned measures to mitigate the impacts of the situation, the Board of Directors has concluded that the assessment does not cast significant doubt on the Group\u2019s ability to continue as a going concern and that consequently, the Group continues to adopt the going concern basis of accounting in preparing these consolidated financial statements. The Board of Director\u2019s conclusion is based on the information available as at the date of the issuance of the consolidated financial statements and an assessment conducted based on the information assuming, that the company is able to conduct its adjusted business operations according to the plan and to maintain sufficient financing for period of at least 12 months after the date that the financial statements are issued. The management and the Board of Directors have also considered events and developments taking place after the balance sheet date and concluded that there is no material impact on the scenarios approved by the Board of Directors and the going concern assessment of the Group.Despite the various mitigating measures implemented by Finnair, including the commencement of the strategy implementation, the upcoming months will continue to be significantly affected by the closure of Russian airspace and high jet fuel prices leading to weaker financial performance for a duration that is currently uncertain. Should future events or conditions cause the Group to be unable to continue its operations in accordance with current assessment of the Board of Directors, using the going concern principle may prove to be no longer justified and the carrying values as well as the classification of the Group\u2019s assets and liabilities would have to be adjusted accordingly.Board\u2019s assessment of Finnair as a going concernThe consolidated financial statements have been prepared based on the going concern assumption. The Finnair Board of Directors has assessed the Group\u2019s ability to continue as a going concern based the Group\u2019s ability to meet its obligations as they fall due at least 12 months after the financial statements are issued. The Board of Directors\u2019 assessment is based on Finnair\u2019s new strategy published in September and the management\u2019s latest business plan approved by the Board of Directors. Due to the current uncertainty embedded in the economic environment caused by the pandemic and the war in Ukraine, and the difficulty in forecasting its duration, the Board of Directors have reviewed three different scenarios prepared by the management that cover a period of 36 months from January 2023 to December 2025. The scenarios differ mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. Under all three scenarios, Finnair will be able to meet its obligations as they fall due at least 12 months after the date that the financial statements are issued. Based on the forecast scenarios prepared in connection with the financial statements 2022, revenue and profitability are expected to improve slower than what was estimated at the time of the preparation of the 2021 financial statements due to the negative long-term impacts of the Russian airspace closure in 2022 and increased fuel prices. Under the base case scenario and the more pessimistic scenario, the Russian airspace is expected to remain closed for the foreseeable future whereas under the optimistic scenario, the airspace would open in the second quarter of 2025. In addition, the company estimates that in the most pessimistic scenario, a possible economic downturn will reduce passenger revenues, leading to a somewhat weaker result than the base scenario. Finnair expects it will optimize capacity and network as well as significantly enhance its operations by mid-2024 in accordance with the renewed strategy. It expects to operate at c. 84% capacity in 2023 and c. 88% capacity in 2024 (measured in annual available seat kilometres) as compared to the pre-pandemic levels of 2019 under all of the scenarios. In 2025, the company expects it would operate at c. 93% capacity under the optimistic scenario and at 88% capacity under the other two scenarios. Following the closureof Russian airspace, Finnair no longer estimates to reach its pre-pandemic operational levels during the forecast period due to the optimization of the fleet and flight network in accordance with the updated strategy. The management forecast scenarios are based on estimated development of passenger demand and capacity levels which depend on the development of general economic environment as well as on how long the strong, post-pandemic passenger demand will continue. The unit revenue (RASK) is expected to remain above the 2019 level in all scenarios due to partial capacity limitations of the industry, strengthening of the unit revenuesin line with the strategy and increased fuel costs that are partly reflected in higher ticket prices. At the same time, the reduction in unit costs following the new strategy is estimated to lead to improved profitability. Flight related variable expenses depend on the planned capacity, whereas aircraft maintenance investments are assumed to stay rather constant between all scenarios. In 2022, Finnair continued to safeguard its strong cash position by optimizing investments and costs, adjusting capacity to meet the demand, renegotiating its funding arrangements and by renewing its prior strategy that was heavily relying on flight connections between Europe and Asia. Finnair\u2019s new strategy focuses on building a competitive airline, with the target of reaching the pre-pandemic comparable EBIT level of 5% from mid-2024. As a result of the savings and change negotiations carried out in connection with the strategy implementation in 2022, Finnair announced that it will reduce around 150 jobs worldwide. In order to adjust the operational capacity, Finnair signed crew and aircraft lease agreements with British Airways and Eurowings Discover for a fixed period and started cooperation with Qatar Airways between three Nordic cities and Doha. In addition to the operational measures, the 400-million-euro hybrid loan issued by the Finnish government was converted into an equity capital loan, strengthening the equity capital of the group\u2019s parent company Finnair Plc, in addition to which Finnair reached an agreement to extend the loan term and payment schedule of the 600 million-euro pension premium loan until 2025.As a result of the aforementioned actions, Finnair\u2019s liquidity position remained strong and as at 31 December 2022, the Group held liquid funds of 1.375,6 million euro (1,150.0). The cash funds including other current financial assets (maturity over 3 months) totalled to 1,524.4 million euro (1,265.7). The Group management and the Board ofDirectors continue to pay close attention to the Group\u2019s cash position considering the challenging dynamics in its current operating environment. The maturities of the Group\u2019s interest-bearing liabilities are presented in note ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfUncertaintiesOfEntitysAbilityToContinueAsGoingConcern",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-120-3": {
"value": "Presentation of consolidated income statement and balance sheet Finnair\u2019s consolidated income statement includes a subtotal \u2018operating result\u2019 which is not defined in the IAS 1 Presentation of Financial Statements standard. The Group has defined it as the net amount of operating income and expenses, including revenue and other operating income, less operating expenses, such as employee benefits, fuel costs, maintenance expenses and depreciations. Exchange rate differences and realised changes in fair values of derivatives are included in the operating result if they arise from items related to business operations; otherwise, they are recognised in financial items. The operating result excludes financial items, shareof results from associates and joint ventures and income taxes. In the consolidated balance sheet, assets and liabilities are classified as current when they are expected to realise within 12 months or when they are classified as liquid funds or as financial assets or liabilities classified at fair value through profit or loss. Other assets and liabilities are classified as non-current assets or liabilities. Interest-bearing liabilities include loans from financial institutions, bonds, loans taken for aircraft financing (JOLCO-loans & export credit support), lease liabilities and commercial papers. Interest-bearing assets include interest-bearing deposits as well as investments in commercial paper and certificates, bonds and money market funds. Interest-bearing net debt is the net amount of interest-bearing assets and liabilities and cross-currency interest rate swaps that are used for hedging the currency and interest rate risk arising from interest-bearing loans.1.3.7 Items affecting comparabilityFinnair uses alternative performance measures in its internal reporting to the chief operative decision maker, or Finnair Executive Board. The figures are referred to in the European Securities Markets Authority (ESMA) Guidelines on Alternative Performance Measures, which Finnair uses to describe its business and financial performance development between periods. The alternative performance measures do not replace IFRS indicators, but shall be read in conjunction with key figures in accordance with IFRS financial statements.Unrealised exchange rate differences of mainly in US dollars denominated aircraft maintenance provisions and unrealised fair value changes of derivatives where hedge accounting is not applied are excluded from comparable operating result. These exchange rate and fair value effects are included in the comparable operating result only when they will realize. In addition, gains and losses on aircraft and other transactions, the impairment of owned A330 aircraft, certain changes in defined benefit pension plans and restructuring costs are not included in the comparable operating result.Items affecting comparability include an impairment of 32.7 million euros related to four owned A330 aircraft, unrealized exchange rate difference of 8.8 million euros related to aircraft maintenance provisions and sales gain of 6.8 million euros on four A321 aircraft. In addition, 2.5 million euros have been recognised in staff and other crew related costs related to the change negotiations ended in November 2022.2022 2021Items Items affecting affecting compara-compara-EUR mill. Reportedbility Comparable Reportedbility ComparableRevenue 2,356.6 2,356.6 838.4 838.4Other operating income 153.5 -6.8 146.7 62.5 -23.3 39.2Operating expensesStaff and other crew related costs -449.6 2.5 -447.1 -229.3 -19.5 -248.9Fuel costs -835.1 -0.9 -836.0 -211.4 0.0 -211.4Capacity rents -102.5 -102.5 -71.3 -71.3Aircraft materials and overhaul -192.4 8.8 -183.6 -117.2 25.5 -91.7Traffic charges -206.5 -206.5 -120.4 -120.4Sales, marketing and distribution costs -103.1 -103.1 -38.1 -38.1Passenger and handling services -348.0 -348.0 -148.0 -148.0Property, IT and other expenses -123.7 0.4 -123.3 -99.7 2.9 -96.8EBITDA 153.2 -149.0Depreciation and impairment -349.8 32.7 -317.1 -319.8 -319.8Operating result -200.6 36.6 -163.9 -454.4 -14.4 -468.9",
"dimensions": {
"concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-188-2": {
"value": "Critical accounting estimates and sources of uncertaintyThe preparation of IFRS financial statements requires Group management to make certain estimates, assumptions and judgements in applying the accounting principles that affect the reported amounts of assets and liabilities as well as income and expenses. The application of the accounting policies prescribed by IFRS require making estimates and assumptions relating to the future where the actual outcome may differ from the earlier estimates and assumptions made. In addition, management discretion has to be exercised in applying the accounting principles especially when the IFRS has alternative accounting, valuation or presentation methods. The estimates and assumptions made are based on past experience and management\u2019s best estimate of future events and other factors, that are believed to be reasonable given the current circumstances. The estimates and associated assumptions are continuously evaluated and any changes therein are reflected in the period that the changes occur. Although the negative impacts of the COVID-19 pandemic eased towards the end of the year 2022, Finnair\u2019s operating environment became significantly more difficult due to the escalation of the geopolitical situation in Eastern Europe which resulted from Russia\u2019s attack against Ukraine in February 2022. The resulting sanctions, and countersanctions, led to the closure of Russian airspace which has had negative impact on the routings and operating costs of Finnair flights to Asia. Also, the price of jet fuel increased to exceptionally high level during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and operating costs as well as the changes in the economic and competitive environment are subject to increased uncertainty. Further, even when after the opening of China, there were practically no pandemic-related travel restrictions remaining at the time of the preparation of the financial statements, the uncertainties associated with possible new virus variants and travel restrictions continue to pose a risk to air passenger demand and therefore, to the development of Finnair\u2019s revenue.In order to reflect the increased uncertainty in its estimates and assumptions, Finnair\u2019s management has considered three different forecast scenarios incorporating possible variations of the development of passenger demand and changes in its operating environment based on its best estimate at the time. The scenarios are discussed in more detail in the earlier section of the notes called Board\u2019s assessment of Finnair as a going concern. Further, in order to consider the increased uncertainty also in its impairment testing performed at the year-end, Finnair is using the expected cash flow approach which incorporates expectations about all forecast scenarios instead of relying on just a single, most likely, cash flow estimate.Information about the estimates and judgement exercised by management in applying the Group\u2019s accounting principles and the areas where estimates and judgements have biggest impact on the financial statements are highlighted in the following table Critical accounting estimates and sources of uncertainty. The consolidated financial statements have been prepared on a going concern basis. Assessment of the going concern is made based on management estimates about future events and other information that is available to the management and the Board of Directors at the time of the assessment. The main identified critical estimates and sources of uncertainty related to the assessment are presented earlier in this note in section Board\u2019s assessment of Finnair as going concern. The identified main critical estimates and sources of uncertainty related to separate sections of the financial statements are presented in connection to the financial items considered to be affected and attached to the corresponding note. The table below shows where to find more information about those estimates and uncertainties. Critical accounting estimates and sources of uncertainty Note number NoteFinnair Plus Customer Loyalty Program 1.2 Operating incomeMaintenance reserves of the fleet 1.3.6 ProvisionsPension obligations 1.3.8.2 PensionsLeasing arrangements 2.2 Leasing arrangementsImpairment testing of the fleet and other fixed assets 2.3 Depreciation and impairment Derivative contracts and hedge accounting 3.8 Derivatives Deferred taxes 5.1 Income taxes Maintenance reserves of the fleetThe measurement of aircraft maintenance provisions requires management judgement especially related to the timing of maintenance events and the valuation of maintenance costs occurring in the future. The future maintenance costs and their timing are dependent on, for example, how future traffic plans actually realise, the market price development of maintenance costs and the actual condition of the aircraft at the time of the maintenance event. The ultimate duration of the war in Ukraine may have an impact on the level of future maintenance expenses, which could cause the actual outcome to differ from the estimates currently made. Pension obligationsThe present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Any changes in these assumptions will impact the carrying amount of pension obligations. The note below includes a description of exposure to most significant risks and a sensitivity analysis on impacts of changes in actuarial assumptions. Leasing arrangements Determining the interest rate and lease term used in discounting the lease payments, estimating the redelivery obligations of aircraft leases and the classification of sublease agreements to operating and financial leases require management discretion in interpretation and application of accounting standards. The COVID-19 pandemic or the war in Ukraine and the following closure of Russian airspace did not have a significant impact on the terms of the leasing arrangements of the Group, neither did it significantly increase the amount of discretion related to abovementioned critical accounting estimates and sources of uncertainty. The pandemic or the geopolitical situation did not, for example, have significant impact on the estimated lease terms as extension options are usually not considered in the initial lease term determination. Additionally, the impact of contracts terminated early during the period was not significant. The carrying value of the right-of-use assets are tested for impairment as part of cash generating unit at the balance sheet date. More details is presented in the note 2.3. Sensitivities of the key assumptions and EBITDA-marginThe calculations used in impairment testing require significant use of management estimates and assumptions. The Group has prepared a sensitivity analysis to reflect, how the results of the impairment test would react to changes in key assumptions or EBITDA-margin. The sensitivity analysis considers changes in one assumption at a time, whereby other assumptions are kept unchanged. Results of the sensitivity analysis reflect the sensitivity of the recoverable amount based on the expected cash flow model. The table below shows the changes required to decrease the difference between the recoverable amount and the carrying value of the assets to zero.Critical accounting estimates and sources of uncertaintyFinnair accounts for its cash flow hedges of forecasted foreign currency denominated purchases and sales and future jet fuel purchases in accordance with the IFRS 9. Under the hedge accounting principles, a forecast transaction can be designated as a hedged item only if that transaction is considered as highly probable. The evaluation of probability is based on the management forecasts about the future level of Finnair\u2019s operations and cash flows. Such forecasts require the use of management judgement and assumptions, which inherently contain some degree of uncertainty that is further increased due to the COVID-19-pandemic. Should the expected circumstances or outcome change i the future, the management would need to reassess whether a hedged forecast transaction is still highly likely to occur. This could be the case if, for example, the expected recovery and thus the expected jet fuel consumption levels would not realize as expected. Should the forecast transaction no longer be highly probable, it would no longer qualify as an eligible hedged item and hedge accounting would need to be discontinued. Should it no longer be expected to occur at all, the balance of the cash flow hedge reserve included in other comprehensive income would need to be reclassified to profit or loss. Deferred taxesRecognition of deferred tax asset is based on management estimates and require the use of management judgement in order to assess whether there will be sufficient taxable profits flowing to the company in the future. The expectations used in the calculation are based on the latest management forecasts at the reporting date and use assumptions that are consistent with those used elsewhere in the financial statements. The forecast scenarios have been updated to reflect the renewed strategy announced by Finnair in September. It aims to restore profitability and targets to reach the pre-pandemic comparable operating result level of 5% from mid-2024 onwards. Due to the current uncertainty embedded in the economic environment and the difficulty in forecasting the impact of the war in Ukraine, the management has considered alternative forecast scenarios that differ mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. The scenarios have been discussed in more detail early in the beginning of the notes section under Board\u2019s assessment of Finnair as a going concern. In financial year 2022, deferred tax asset was written down from the taxable losses of 2020-2021, and deferred tax asset from the 2022 loss was not recognized. Finnair expects to be able to use the tax losses remaining on balance sheet in advance of 10 years expiry date under all of the forecast scenarios. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-252-2": {
"value": "Changes in accounting principlesNew and amended IFRS standards and IFRIC interpretationsThe changes in the IFRS standards and IFRIC-interpretations effective from periods beginning 1 January 2022 included mainly amendments or improvements to current standards and did not have material effect on Finnair financial statements. Other standards issued that are effective from periods on or after 1st of January 2023 mainly include amendments and improvements to current standards that are not expected to have a material impact on the Group\u2019s consolidated financial statements.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-252-3": {
"value": "Changes in accounting principlesNew and amended IFRS standards and IFRIC interpretationsThe changes in the IFRS standards and IFRIC-interpretations effective from periods beginning 1 January 2022 included mainly amendments or improvements to current standards and did not have material effect on Finnair financial statements. Other standards issued that are effective from periods on or after 1st of January 2023 mainly include amendments and improvements to current standards that are not expected to have a material impact on the Group\u2019s consolidated financial statements.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-262-2": {
"value": "1 Operating result Operating result includes notes related to revenue and operating result from the point of view of income statement and balance sheet. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-266-2": {
"value": "1.1 Segment information Segment reportingOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Group\u2019s Executive Board. Segments are defined based on Group\u2019s business areas. Group has one business and reporting segment: Airline business. The Finnair Executive Board, defined as the chief operative decision maker according to IFRS 8 Segment reporting, considers the business as one operating segment. Thus, separate segment information is not reported.The revenue by product and geographical area is presented in the note 1.2.1 Revenue by product and traffic area. The division is based on the destination of Finnair flights. Finnair operates international and domestic routes, but the assets are almost solely owned in Finland. The fleet composes the major part of the non-current assets (see note 2.1 Fleet and other fixed assets). The fleet is owned or leased by Finnair\u2019s Finnish subsidiary and the aircraft are operated flexibly across different traffic (geographical) areas. More details about fleet management and ownership can be found in the management report in the section \u201cFleet\u201d.Even though the passenger traffic figures improved from prior year, the negative impact of the COVID-19 pandemic and related travel restrictions was still clearly visible in the figures. Further, the Russian airspace closure had a negative impact on the figures in 2022. During the financial year Finnair transported 9.1 million passengers (2.9), which was 218.9 per cent more than in 2021. Strong cargo demand continued and the revenue of cargo business was record high. The demand for travel services also grew strongly with the lifting of travel restrictions. Finnair continued to control and optimize its costs in all operations. The effects on revenue and operating expenses as well as the related receivables and liabilities are presented in more detail in the following notes 1.2 and 1.3.Due to the wide scale of customers and nature of the business, sales to any individual customer is not material compared to Finnair\u2019s total revenue.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-267-4": {
"value": " Segment reportingOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Group\u2019s Executive Board. Segments are defined based on Group\u2019s business areas. Group has one business and reporting segment: Airline business. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-290-2": {
"value": "1.2 Operating income The operating income section includes both income statement and balance sheet notes that relate to revenue. The aim is to provide a more coherent picture of income related items affecting Finnair\u2019s result and financial position. Trade receivables and deferred income containing mainly prepaid flight tickets and travel tour services are presented in connection with this section, because those are an essential part in revenue recognition. Revenue recognitionRevenue is recognised when goods or services are delivered. Revenue is measured at fair value of the consideration received or receivable, net of discounts and indirect taxes.Passenger revenue includes sale of flight tickets, and is recognised as revenue when the flight is flown in accordance with the flight traffic program. Recognition of unused tickets as revenue is based on the expected breakage amount of tickets remaining unused in proportion to the pattern of rights exercised by the passenger.Sales price is allocated to a flight ticket and points in Finnair Plus\u2019 Customer Loyalty Program. Finnair loyalty customers can earn Finnair Plus Points from tickets or services purchased, and use the earned points to buy services and products offered by Finnair or its cooperation partners. The points earned are measured at fair value and recognised as a decrease of revenue and debt at the time when the points-earning event (for example, flight is flown) is recognised as revenue. Fair value is measured by taking into account the fair value of those awards that can be purchased with the points and the customer selection between different awards based on historical customer behaviour. In addition, the fair valuation takes into account the expiry of the points. The debt is derecognised when the points are used or expire.Customer compensations for delays or cancellations is a variable consideration in the contract and it is recognised as an adjustment to revenue.Ancillary revenue includes sale of ticket related services, such as advance seat reservations, additional baggage fees as well as different service fees, and sale of goods in the aircraft. The service revenue is recognized when the flight is flown in accordance with the flight traffic program, since it is considered as a contract modification instead of a separate revenue transaction. The sale of goods is recognized when the goods are delivered to the customer. Cargo revenue is recognized when the cargo has been delivered to the customer. Tour operations revenue includes sale of flight and hotel considered as separate performance obligations, which are recognized as the service is delivered.Public subsidies are recognised as other operating income. 1.2.1 Revenue by product and traffic area2022The division of revenue by traffic area is based on destination of the Finnair flights.Finnair\u2019s revenue increased significantly when compared to the financial year 2021 due to reduced impact of the COVID-19 pandemic and exceptionally high passenger yields resulting from strong passenger demand and restricted capacity. Despite the increase in total revenues, the negative impact of the COVID-19 pandemic and closure of the Russian airspace was still reflected in the passenger numbers especially on the Asian routes.Share, % of North Unallo-revenue by EUR mill. AsiaAtlantic Europe Domesticcated TotalproductPassenger revenue 425.0 244.3 897.9 128.2 15.3 1,710.7 72.6Ancillary and retail revenue 19.4 12.8 37.6 5.4 48.0 123.2 5.2Cargo 227.1 82.6 46.3 0.4 -4.1 352.3 15.0Travel services 7.6 0.3 161.7 0.5 0.2 170.3 7.2Total 679.2 340.0 1,143.6 134.4 59.4 2,356.6Share, % of revenue by traffic area 28.8 14.4 48.5 5.7 2.520211.2.2 Revenue by currencyThe hedging policies against foreign exhange rate fluctuations are described in note 3.5 Management of financial risks.Share, % of North Unallo-revenue by EUR mill. AsiaAtlantic Europe Domesticcated TotalproductPassenger revenue 75.3 38.6 243.6 60.3 3.0 420.8 50.2Ancillary and retail revenue 9.7 1.8 10.7 2.5 19.4 44.1 5.3Cargo 236.3 49.8 35.9 0.2 12.6 334.7 39.9Travel services 1.5 0.0 35.8 1.3 0.0 38.7 4.6Total 322.8 90.2 326.0 64.4 35.0 838.4Share, % of revenue by traffic area 38.5 10.8 38.9 7.7 4.2EUR mill. 2022 2021EUR 1,381.5 387.3USD 180.4 38.1SEK 99.4 29.5JPY 96.7 76.0KRW 52.3 39.8CNY 43.7 57.5Other currencies 502.5 210.2Total 2,356.6 838.4",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-297-4": {
"value": " Revenue recognitionRevenue is recognised when goods or services are delivered. Revenue is measured at fair value of the consideration received or receivable, net of discounts and indirect taxes.Passenger revenue includes sale of flight tickets, and is recognised as revenue when the flight is flown in accordance with the flight traffic program. Recognition of unused tickets as revenue is based on the expected breakage amount of tickets remaining unused in proportion to the pattern of rights exercised by the passenger.Sales price is allocated to a flight ticket and points in Finnair Plus\u2019 Customer Loyalty Program. Finnair loyalty customers can earn Finnair Plus Points from tickets or services purchased, and use the earned points to buy services and products offered by Finnair or its cooperation partners. The points earned are measured at fair value and recognised as a decrease of revenue and debt at the time when the points-earning event (for example, flight is flown) is recognised as revenue. Fair value is measured by taking into account the fair value of those awards that can be purchased with the points and the customer selection between different awards based on historical customer behaviour. In addition, the fair valuation takes into account the expiry of the points. The debt is derecognised when the points are used or expire.Customer compensations for delays or cancellations is a variable consideration in the contract and it is recognised as an adjustment to revenue.Ancillary revenue includes sale of ticket related services, such as advance seat reservations, additional baggage fees as well as different service fees, and sale of goods in the aircraft. The service revenue is recognized when the flight is flown in accordance with the flight traffic program, since it is considered as a contract modification instead of a separate revenue transaction. The sale of goods is recognized when the goods are delivered to the customer. Cargo revenue is recognized when the cargo has been delivered to the customer. Tour operations revenue includes sale of flight and hotel considered as separate performance obligations, which are recognized as the service is delivered.Public subsidies are recognised as other operating income. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-321-2": {
"value": " Trade receivablesFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other operating expenses. 1.2.3 Receivables related to revenueMost of the accrued income represents contract assets, for which Finnair has met the performance requirement prior to receiving payment from customers and these have not yet been recognized as trade receivables. Contract assets mainly include accrued income related to cargo sales and receivables from airlines involved in the Siberian Joint Business on flights between Europe and Japan, and the Atlantic Joint Business on flights between Europe and North America.The fair value of trade receivables does not materially differ from balance sheet value.During the financial year, the Group recognised credit losses in total of 0.2 million euros (1.5). Trade receivables do not contain significant credit risk because of the diversified customer base. The maximum exposure to credit risk at the reporting date equals to the total carrying amount of trade receivables. The Group does not hold any collateral as security related to trade receivables.Trade receivables by currencyEUR mill. 2022 2021Trade receivables 89.4 68.2Accrued income 45.5 42.7Total 134.9 110.92022 2021Aging analysis Trade Probability Expected Trade Probability Expected of trade receivables, of not uncollectible, receivables, of not uncollectible, receivablesEUR mill.collecting, %EUR mill.EUR mill.collecting, %EUR mill.Not overdue 87.1 0.5% 0.4 67.7 0.7% 0.5Overdue less than 60 days 0.2 19.7% 0.0 0.1 5.9% 0.0Overdue more than 60 days 2.1 6.3% 0.1 0.4 1.4% 0.0Total 89.4 0.7% 0.6 68.2 0.7% 0.5EUR mill. 2022 2021EUR 52.6 19.3NOK 6.2 4.4USD 5.2 4.3GBP 3.7 2.3SEK 3.3 2.8KRW 3.2 5.2JPY 3.1 5.0THB 2.7 11.4SGD 2.1 2.6HKD 1.7 3.7CNY 0.8 4.1Other currencies 4.7 3.0Total 89.4 68.2",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-321-4": {
"value": " Trade receivablesFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other operating expenses. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-329-3": {
"value": "Finnair Plus Customer Loyalty ProgramValuation and revenue recognition related to Finnair Plus debt requires management judgment especially related to fair valuation of points and timing of revenue recognition related to points expected to expire. The fair value of the point is defined by allocating the point to award selection based on historical behaviour of customers, after which the fair value of each award is defined. The liability is calculated by taking the total amount of points earned by customers, decreased by the expected expiry of the points. These points are then fair valued as described above, and the result is recognised as liability on the balance sheet. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCustomerLoyaltyProgrammesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-356-3": {
"value": "During the financial year, the Group recognised credit losses in total of 0.2 million euros (1.5). Trade receivables do not contain significant credit risk because of the diversified customer base. The maximum exposure to credit risk at the reporting date equals to the total carrying amount of trade receivables. The Group does not hold any collateral as security related to trade receivables.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-361-2": {
"value": "1.2.4 Deferred income and advances receivedMost of the deferred income and advances received represents contract liabilities, for which payments have been received from customers before the performance obligation is discharged by Finnair.Deferred income and advances received includes prepaid flight tickets and package tours for which the departure date is in the future. The Finnair Plus liability is related to Finnair\u2019s customer loyalty program, and equals the fair value of the accumulated, unused Finnair Plus points. Other items mainly include gift voucher liabilities and liabilities to airlines involved in the Siberian Joint Business on flights between Europe and Japan, and the Atlantic Joint Business on flights between Europe and North America.Deferred revenue on ticket sales and advances received for tour operations increased significantly as a result of the lifting of travel restrictions and the strong increase in passenger demand.EUR mill. 2022 2021Deferred revenue on ticket sales 356.4 202.7Loyalty program Finnair Plus 51.3 55.1Advances received for tour operations 27.9 15.2Other items 16.4 18.1Total 452.0 291.1",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-377-2": {
"value": "1.2.5 Other operating incomeOther operating income increased when compared to financial year 2021 mainly due to agreed wet lease arrangements with British Airways and Eurowings Discover in which Finnair leases out aircraft and crew for a fixed period of time.Public subsidies received due to COVID-19 pandemic increased compared to previous year mainly because of a support received for uncovered fixed expenses. Overall, the amount of subsidies was not material.EUR mill. 2022 2021Lease income 118.8 23.0Sales gains on fixed assets 6.8 23.3Other income 27.9 16.2Total 153.5 62.5",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-377-3": {
"value": "1.2.5 Other operating incomeOther operating income increased when compared to financial year 2021 mainly due to agreed wet lease arrangements with British Airways and Eurowings Discover in which Finnair leases out aircraft and crew for a fixed period of time.Public subsidies received due to COVID-19 pandemic increased compared to previous year mainly because of a support received for uncovered fixed expenses. Overall, the amount of subsidies was not material.EUR mill. 2022 2021Lease income 118.8 23.0Sales gains on fixed assets 6.8 23.3Other income 27.9 16.2Total 153.5 62.5",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-383-2": {
"value": "1.3 Operating expenses The operating expenses section includes the income statement and balance sheet notes related to operating expenses, aiming to provide a better overview of business operations and related expenses. Maintenance provisions of leased aircraft that inherently relate to aircraft overhaul costs are included in this operating expenses section. Also accrued expenses, such as liabilities related to jet fuel and traffic charges, are presented in this section. In addition, items related to employee benefits are presented at the end of this section in a separate note 1.3.8. Employee benefits. It includes the different forms of benefits received by Finnair employees, including share-based payments and pensions, their effect on staff costs and balance sheet as well as information on management remuneration. Although Finnair continued with the cost adjustment measures due to the effects of the closure of Russian airspace and the COVID-19 pandemic also in 2022, the Group\u2019s operating expenses increased as compared to the prior year due to increased operational volumes and exceptionally high fuel prices.1.3.1 Operating expenses by currencyThe hedging policies against foreign exchange rate fluctuations are described in note 3.5 Management of financial risks.1.3.2 Passenger and handling servicesPassenger and handling costs (including also tour operation expenses related to e.g., hotels) were driven up by the increased volumes, especially in passenger traffic.1.3.3 Property, IT and other expensesProperty, IT and other expenses mainly consist of fixed costs.Audit feesThe auditor\u2019s fees of KPMG Oy Ab included fees of 466 thousand euro (332) for audit services and 127 thousand euro (15) for auditor\u2019s statements. Non-audit services to Finnair Group entities were 3 thousand euro (1).EUR mill. 2022 2021EUR 1,490.1 930.6USD 1,092.3 364.0Other currencies 128.3 60.8Total 2,710.6 1,355.3EUR mill. 2022 2021Ground and cargo handling expenses 158.3 93.6Expenses for tour operations 88.9 21.5Catering expenses 45.0 9.5Other passenger services 55.8 23.4Total 348.0 148.0EUR mill. 2022 2021IT expenses 63.9 55.1Property expenses 20.6 15.9Other expenses 39.2 28.7Total 123.7 99.7EUR mill. 2022 2021Auditor's fees 0.6 0.3Tax advisingOther fees 0.0 0.0Total 0.6 0.32.3 Depreciation and impairmentDepreciationDepreciation of assets is determined based on their expected useful life or maintenance cycle and residual value. The depreciation for all assets is calculated using straight-line method. The depreciation is started when the asset is available for use. Depreciation is ceased when the asset is either classified as held for sale or derecognised. The useful life and residual value for assets are described in more detail in the note 2.1. Depreciation and impairment include both planned depreciations on fixed assets as well as impairment. The depreciation of own fleet decreased and the depreciation of right-of-use fleet increased in 2022 mainly as a result of the four A350 sale and leaseback transactions executed in 2021. An impairment of 32.7 million euro was recognized in 2022 related to four A330 aircraft because of the closureof Russian airspace and the prolonged flight times to many Asian destinations. EUR mill. 2022 2021Amortisation of intangible assets 3.1 7.6Depreciation of own fleet 120.9 155.7Depreciation of right-of-use fleet 156.0 123.2Depreciation of other tangible assets 15.8 12.9Depreciation of other right-of-use assets 21.3 18.5Amortisation and depreciation 317.1 317.8Impairment of assets 32.7 2.0Impairment 32.7 2.0Total depreciation and impairment in income statement 349.8 319.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-406-3": {
"value": "1.3.3 Property, IT and other expensesProperty, IT and other expenses mainly consist of fixed costs.EUR mill. 2022 2021IT expenses 63.9 55.1Property expenses 20.6 15.9Other expenses 39.2 28.7Total 123.7 99.7",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-409-3": {
"value": "Audit feesThe auditor\u2019s fees of KPMG Oy Ab included fees of 466 thousand euro (332) for audit services and 127 thousand euro (15) for auditor\u2019s statements. Non-audit services to Finnair Group entities were 3 thousand euro (1).EUR mill. 2022 2021Auditor's fees 0.6 0.3Tax advisingOther fees 0.0 0.0Total 0.6 0.3",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-412-2": {
"value": "1.3.4 Inventories and other current assetsCredit card acquirer holdbacks relate to cash funds from passenger ticket sales that are held by credit card processors.EUR mill. 2022 2021Credit card acquirer holdbacks 57.0Inventories 31.1 21.0Aircraft materials and overhaul 7.4 7.8Jet fuels 6.6 3.4Capacity rent receivables 6.4 6.7VAT receivables 2.1 1.2Interest and other financial items 1.5 1.1Receivables from sublease contracts 0.3 8.0Other items 9.5 6.6Total 122.0 55.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-412-3": {
"value": "1.3.4 Inventories and other current assetsCredit card acquirer holdbacks relate to cash funds from passenger ticket sales that are held by credit card processors.EUR mill. 2022 2021Credit card acquirer holdbacks 57.0Inventories 31.1 21.0Aircraft materials and overhaul 7.4 7.8Jet fuels 6.6 3.4Capacity rent receivables 6.4 6.7VAT receivables 2.1 1.2Interest and other financial items 1.5 1.1Receivables from sublease contracts 0.3 8.0Other items 9.5 6.6Total 122.0 55.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-412-4": {
"value": "1.3.4 Inventories and other current assetsCredit card acquirer holdbacks relate to cash funds from passenger ticket sales that are held by credit card processors.EUR mill. 2022 2021Credit card acquirer holdbacks 57.0Inventories 31.1 21.0Aircraft materials and overhaul 7.4 7.8Jet fuels 6.6 3.4Capacity rent receivables 6.4 6.7VAT receivables 2.1 1.2Interest and other financial items 1.5 1.1Receivables from sublease contracts 0.3 8.0Other items 9.5 6.6Total 122.0 55.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-415-2": {
"value": "1.3.5 Other liabilitiesEUR mill. 2022 2021Jet fuel and traffic charges 50.9 49.8Passenger and handling services 34.8 29.6Aircraft materials and overhaul 14.0 10.0Sales, marketing and distribution cost accruals 13.8 7.3Interest and other financial items 9.0 15.7Other items 21.9 15.8Total 144.4 128.1",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-415-3": {
"value": "1.3.5 Other liabilitiesEUR mill. 2022 2021Jet fuel and traffic charges 50.9 49.8Passenger and handling services 34.8 29.6Aircraft materials and overhaul 14.0 10.0Sales, marketing and distribution cost accruals 13.8 7.3Interest and other financial items 9.0 15.7Other items 21.9 15.8Total 144.4 128.1",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-423-2": {
"value": "1.3.6 Provisions ProvisionsProvisions are recognised when the Group has a present legal or constructive obligation as the result of a past event, the fulfilment of the payment obligation is probable, and a reliable estimate of the amount of the obligation can be made. The amount to be recognised as provision corresponds to the management\u2019s best estimate of the expenses that will be necessary to meet the obligation at the end of the reporting period.In most cases, the Group is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. To fulfil these maintenance obligations, the Group has recognised airframe heavy maintenance, engine performance maintenance, engine life limited part, landing gear, auxiliary power unit and other material maintenance provisions. The provision is defined as a difference between the current condition and redelivery condition of these maintenance components. The provision is accrued based on flight hours flown until the next maintenance event or the redelivery and recognised in the aircraft overhaul costs in the income statement. The provision is reversed at the maintenance event or redelivery. The price of the flight hour depends on the market price development of the maintenance costs. Estimated future cash flows are discounted to the present value. The maintenance market prices are mainly denominated in US dollars, which is why the amount of maintenance provision changes due to currency fluctuation of the dollar.The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost, but these are recognised according to the principles presented above.Restructuring provisions are recognised when the Group has prepared a detailed restructuring plan and has begun to implement the plan or has announced it. Maintenance reserves of the fleetThe measurement of aircraft maintenance provisions requires management judgement especially related to the timing of maintenance events and the valuation of maintenance costs occurring in the future. The future maintenance costs and their timing are dependent on, for example, how future traffic plans actually realise, the market price development of maintenance costs and the actual condition of the aircraft at the time of the maintenance event. The ultimate duration of the war in Ukraine may have an impact on the level of future maintenance expenses, which could cause the actual outcome to differ from the estimates currently made. Non-current aircraft maintenance provisions are expected to be used by 2034.On balance sheet, non-current provisions and other liabilities 186.4 million euro (200.7) includes, in addition to provisions, other non-current liabilities 6.3 million euro (14.7), which mainly consist of received lease deposits. Long-term incentives for the Executive Board and other personnel, which are expected to be paid during the third quarter of 2023, were transferred to current liabilities.Aircraft Aircraft maintenance Other maintenance Other EUR mill.provisionprovisions 2022provisionprovisions 2021Provision at the beginning of period 195.9 3.8 199.8 162.8 13.0 175.8Provision for the period 56.1 4.8 60.9 32.0 1.9 33.9Provision used -16.6 -2.6 -19.2 -12.7 -9.0 -21.8Provision reversed -3.1 -1.0 -4.2 -1.3 -2.1 -3.4Provision for right-of-use assets redelivery -0.9 -0.9 2.2 2.2Unwinding of discount 6.4 6.4 1.4 1.4Exchange rate differences 8.8 8.8 11.7 11.7Total 246.7 5.0 251.7 195.9 3.8 199.8Of which non-current 178.7 1.4 180.1 184.6 1.4 186.0Of which current 68.0 3.6 71.7 11.3 2.5 13.8Total 246.7 5.0 251.7 195.9 3.8 199.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-424-4": {
"value": " ProvisionsProvisions are recognised when the Group has a present legal or constructive obligation as the result of a past event, the fulfilment of the payment obligation is probable, and a reliable estimate of the amount of the obligation can be made. The amount to be recognised as provision corresponds to the management\u2019s best estimate of the expenses that will be necessary to meet the obligation at the end of the reporting period.In most cases, the Group is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. To fulfil these maintenance obligations, the Group has recognised airframe heavy maintenance, engine performance maintenance, engine life limited part, landing gear, auxiliary power unit and other material maintenance provisions. The provision is defined as a difference between the current condition and redelivery condition of these maintenance components. The provision is accrued based on flight hours flown until the next maintenance event or the redelivery and recognised in the aircraft overhaul costs in the income statement. The provision is reversed at the maintenance event or redelivery. The price of the flight hour depends on the market price development of the maintenance costs. Estimated future cash flows are discounted to the present value. The maintenance market prices are mainly denominated in US dollars, which is why the amount of maintenance provision changes due to currency fluctuation of the dollar.The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost, but these are recognised according to the principles presented above.Restructuring provisions are recognised when the Group has prepared a detailed restructuring plan and has begun to implement the plan or has announced it. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-456-3": {
"value": "On balance sheet, non-current provisions and other liabilities 186.4 million euro (200.7) includes, in addition to provisions, other non-current liabilities 6.3 million euro (14.7), which mainly consist of received lease deposits. Long-term incentives for the Executive Board and other personnel, which are expected to be paid during the third quarter of 2023, were transferred to current liabilities.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-473-2": {
"value": "1.3.8 Employee benefits1.3.8.1 Employee benefit expenses and share-based payments Share-based paymentsFinnair provides a number of share-based compensation plans for its employees, under which the Group receives services from employees as consideration for share-based payments. Regarding share-based incentive plans for key personnel, the awards are paid only if performance criteria set by the Board of Directors is met. Share-based savings plan for employees (FlyShare) requires the employees to remain in Finnair\u2019s service for the defined period, but payment does not depend on any performance criteria.The total expense for share-based payments is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Share-based payments that are settled net of taxes are considered in their entirety as equity-settled share-based payment transactions. The reward is valued based on the market price of the Finnair share as of the grant date, and recognised as an employee benefit expense over the vesting period with corresponding entry in the equity. Income tax paid to tax authorities on behalf of employee is measured based on the market price of the Finnair share at the delivery date and recognised as a decrease in equity. If the reward includes the portion settled in cash, it is accounted for as a cash-settled transaction. The liability resulting from the cash-settled transactions is measured based on the market price of the Finnair share at the balance sheet date and accrued as an employee benefit expense for service period with corresponding entry in the liabilities until the settlement date.Termination benefitsTermination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to a termination. Group is demonstrably committed when it has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer.Accounting principles related to pension benefits are described in the note 1.3.8.2 Pensions. Staff and other crew related costsAt Finnair, the total salary of personnel consists of fixed pay, allowances, short- and long-term incentives, fringe benefits and other personnel benefits. The total amount of short-term incentives excluding social security costs recognised for 2022 were 9.2 million euro (5.8).In 2020, Finnair established a new long-term Rebuild incentive program for the personnel. As part of the program, employee can earn a cash reward equaling to one month base salary, when the targets set by the Board of Directors are met. A maximum of two months\u2019 base salary can be paid when targets are exceeded. The possible reward is paid during third quarter 2023. The program is available to those employee groups which have agreed to actions related to staff cost savings. In 2022, the cost recognised for the Rebuild incentive established for personnel was 0.3 million euro (3.8) excluding social security costs. The performance criteria are the same as those of the Rebuild incentive plan established for the Executive Board, which is described in the section Share-based payments of this note.Staff and other crew related costs include one-off personnel related restructuring costs of 2.5 million euro. In 2021, the one-off items included a 19.5 million euro positive effect mainly consisting of amendmends made to the collective labour agreement relating to a curtailment of occupational disability pensions and withdrawn pilots\u2019 early retirement announcements.Transfer to Personnel FundFinnair has a Personnel Fund that is owned and controlled by the personnel. A share of Finnair\u2019s profits is allocated to the fund. The share of profit allocated to the fund is determined based on the targets set by the Board of Directors. The participants of the performance share plan (LTI) are not members of the Personnel Fund. Personnel Fund is obliged to invest part of the bonus in Finnair Plc\u2019s shares. In 2022 and 2021, no profit was allocated to the fund because the set performance criteria were not met.Liabilities related to employee benefitsEUR mill. 2022 2021Wages and salaries 297.3 185.8Defined contribution schemes 55.4 30.1Defined benefit schemes 11.4 -6.6Pension expenses total 66.8 23.4Other social expenses 31.6 0.6Salaries, pension and social costs 395.7 209.9Operative staff related costs 27.6 8.3Leased and outsourced crew 19.0 7.2Other personnel related costs 7.3 3.9Total 449.6 229.3EUR mill. 2022 2021Holiday payments 66.8 47.0Other employee related accrued expenses 44.4 27.4Liabilities related to employee benefits 111.2 74.4Other employee related accrued expenses mainly include witholding tax and accrued expenses related to social security costs and remunerations. Other non-current liabilities include the Rebuild incentives of 0.0 million euro (7.8). In addition, restructuring provisions related to termination benefits (see note 1.3.6 Provisions) amounted to 2.3 million euro (1.1).Management remunerationThe President and CEO and Executive Board remuneration* Statutory pensions include Finnair\u2019s share of the payment to Finnish statutory \u201cTyel\u201d pension plan.Management remuneration is presented on an accrual basis. Share-based payments include LTI plans and employee share savings plans and are recognised over the vesting period until the end of the lock-up period, according to IFRS 2. Therefore the costs accrued and recognised for the financial year include effects from several share-based payment plans independent of when the shares are delivered. Management has not been provided any other long-term incentives in addition to share-based payments.During 2022 and 2021, the CEO and Executive Board were not paid holiday bonus.In conjunction with the rights offering in 2020, the EU commission set restrictions to CEO and Executive Board remuneration covering years 2020-2022. The restrictions cover variable compensation payouts and any changes to fixed compensation during the years 2020-2022. As a result, the Board of Directors decided to cancel the 2018-2020, 2019-2021 and 2020-2022 LTI plans as well as the 2020-2022 STI plan for the CEO and Executive Board. A new share-based long-term Rebuild incentive program was established for the CEO and Executive Board for the period 7/2020-6/2023.The voluntary pension plans of one member of the Executive Board have been arranged through a Finnish pension insurance company. The retirement age for this member of the Executive Board is 63 years. The plan is a defined contribution plan.More information on share-based payment schemes can be found later in this note and in a separate Remuneration report as well as on company website.Remuneration paid to Board of DirectorsThe remuneration of the Board of Directors is presented on an accrual basis. The compensation paid to the members of the Board of Directors include annual remuneration and meeting compensation. The members of the Board of Directors are entitled to a compensation for travel expenses in accordance with Finnair\u2019s general travel rules. In addition, the members of the Board of Directors and their spouses have a limited right to use staff tickets in accordance with Finnair\u2019s staff ticket rules. These tickets constitute taxable income in Finland and are reported as fringe benefits in the table above.Share-based paymentsThe note below provides description and information on effects of the Group\u2019s share-based incentive schemes. More information on share-based personnel bonus schemes can be found in Remuneration report.Performance share plan for key personnel (LTI)Finnair\u2019s share-based incentive plan is a performance-based, annually commencing long-term incentive (LTI) arrangement, and the commencement of each new plan is subject to a separate decision made by Finnair\u2019s Board of Directors. The purpose of these plans is to encourage the management to work to increase long-term Compensation paid Fixed Meeting Fringe for board service, EUR Total 2022remunerationcompensationbenefits Total 2021Board of Directors 416,222 282,900 129,600 3,722 372,233Alahuhta-Kasko Tiina 43,500 30,300 13,200Barrington Colm, until 7 April 2022 12,975 8,175 4,800Brewer Montie 54,300 32,700 21,600Erlund Jukka 43,729 32,700 10,800 229Jakosuo-Jansson Hannele 46,167 32,700 13,200 267Karvinen Jouko 80,627 63,000 14,400 3,227Kjellberg Henrik 51,900 30,300 21,600Large Simon, from 7 April 2022 onwards 39,525 22,725 16,800Strandberg Maija 43,500 30,300 13,200President President and CEO Executive and CEO Executive Thousand eurosTopi MannerBoard Total 2022Topi MannerBoard Total 2021Fixed pay 734 1,712 2,446 736 1,817 2,553Fringe benefits 20 105 125 21 129 150Share-based payments 287 789 1,076 469 941 1,409Pensions (statutory)* 124 298 421 120 310 430Pensions (voluntary, defined contribution) 20 20 20 20Total 1,165 2,923 4,088 1,346 3,217 4,563shareholder value. The Finnish Government\u2019s guidance regarding the remuneration of executive management and key individuals have been taken into consideration when designing the plans.In all ongoing LTI plans, the members of Finnair\u2019s Executive Board are expected to accumulate their share ownership in Finnair until it corresponds to their annual gross base salary and thereafter retain it for as long as they are members of the Executive Board.The potential reward will be delivered in Finnair shares. The shares are delivered to the participants during the year following the performance period, except for the Rebuild incentive where the performance period ends in June 2023 and the reward is delivered in the same year.The target levels and maximum levels set for the criteria are based on the long-term strategic objectives set by the company\u2019s Board of Directors. Criteria are monitored against the performance on a quarterly basis. The performance criteria of the plan for 2019-2021 were met at 54% level while the target was at 100% and the maximum earning level at 200%. In the comparison period, the performance criteria applied to the 2018-2020 plan was met at 22% level.The expense recognised for 2022 amounted to 0.9 million euros (1.7). The amount expected to be transferred to the tax authority to settle the employee\u2019s tax obligation is 3.0 million euros (5.3). The cost related to share-based payments is recognised in staff and other crew related costs and unrestricted equity funds, except the cash-settled portion of the Rebuild incentive plan in liabilities related to employee benefits.Rebuild incentive plan 7/2020-6/2023In 2020, a new Rebuild incentive plan for CEO and Executive Board was launched. The program contains a three-year performance period (7/2020\u20136/2023) and it is designed to contain only this one plan. The potential share rewards will be delivered to the participants in a pre-determined proportion of shares and cash after the end of the performance period and the rewards are at the participants\u2019 free disposal after delivery. If the combined value of incentive rewards in 2023 exceeds 120% of executive\u2019s annual salary, the exceeding part is deferred to coming years so that the combined incentive payout in any year does not exceed 120% of the executive\u2019s annual base salary. The total expense for the plan is recognised over the vesting period, which is three years. The grant date is at the beginning of performance period and the compensation is measured in shares.The payout opportunity is defined in the beginning of each plan in relation to the participants annual base salary. If the performance criteria set for the plan are met at the target level, the incentive paid in Finnair shares to the President and CEO or other member of the Executive Board participating in the plans will be a total of 180% of the participant\u2019s annual base salary. If the performance criteria set for the plan are met at the maximum level, the incentive paid in Finnair shares will be a total of 360% of the participant\u2019s annual base salary.The amount corresponding to tax payable at the time of payment is first deducted from the gross reward defined as shares. The net reward is delivered in a combination of cash and shares in a proportion decided by the Board of Directors.The performance criteria are set for the whole 3-year period as well as for three 12-month mid-term periods:\u2022 7/2020\u20136/2021: comparable EBITDA, gearing, lost-time injury frequency and CO emissions (measured 2through fuel efficiency),\u2022 7/2021\u20136/2022: comparable EBIT, revenue, employee retention and CO emissions (measured through 2fuel efficiency) as well as\u2022 7/2022\u20136/2023: comparable EBITDA, net promoter score (NPS), lost-time injury frequency and employee retention.The criteria for the whole 3-year period, is cash flow from operating activities which functions as a multiplier (0-2) for the whole program. This means that the threshold level needs to be reached in order for any reward to be paid.Other incentive plansThere are two LTI plans ongoing (2020\u20132022 and 2021\u20132023). The annually commencing performance share plans retain the three-year performance period. The potential share rewards will be delivered to the participants in one tranche after the performance period and they are at the participants\u2019 free disposal after delivery. In conjunction with the rights offering in 2020, according to the restrictions set by EU commission, the Board of Directors decided to cancel the 2018\u20132020, 2019\u20132021 and 2020\u20132022 LTI plans for the CEO and Executive Board. In 2022, no new LTI program was launched due to continuous business environment changes caused by the war in Ukraine. The total expense for the plans is recognised over the vesting period, which is three years. The grant date is at the beginning of performance period and the compensation is measured in shares.The payout opportunity is defined as a fixed share amount in the beginning of each plan in relation to the participants annual base salary. Therefore, changes in the share price during the performance period impacts the value of the payout opportunity. If the performance criteria set for the plan are met at the target level, the incentive paid in Finnair shares to the President and CEO or other member of the Executive Board participating in the plans will be 20% of the participant\u2019s annual base salary. If the performance criteria set for the plan are met at the maximum level, the incentive paid in Finnair shares will be 60% of the participant\u2019s annual base salary.The maximum level for incentives for other key personnel is 20\u201350% of the person\u2019s annual base salary. As a result of the rights issue in 2020, the share allocations for the ongoing 2018\u20132020, 2019\u20132021 and 2020\u20132022 plans were adjusted 5.5-fold in order for the earning opportunities to retain their value.The maximum combined value of all variable compensation (including both short- and long-term incentives) paid to an individual participant in any given calendar year may not exceed 120% of the participant\u2019s annual gross base salary. The amounts of shares paid are stated before tax. The number of shares delivered will be deducted by an amount corresponding to the income tax and transfer tax payable for the incentive at the time of payment.The performance criteria applied to the plans are:\u2022 2019\u20132021 plan: earnings per share (EPS, 50% weight), revenue growth (16.7% weight) and unit cost with constant currencies and fuel price (CASK, 33.3% weight),\u2022 2020\u20132022 plan: earnings per share (EPS, 50% weight) and unit cost with constant currencies and fuel price (CASK, 50% weight) as well as\u2022 2021\u20132023 plan: earnings per share (EPS, 45% weight), unit cost with constant currencies and fuel price (CASK, 45% weight) and fuel efficiency (10% weight).* Grant price until plan granted on 7 February 2020 has been adjusted by a bonus element included in the rights issue in 2020.** As a result of the rights issue in 2020, the share allocations for the ongoing 2018\u20132020, 2019\u20132021 and 2020\u20132022 plans were adjusted 5.5-fold in order for the earning opportunities to retain their value. These plans were cancelled for the CEO and Executive Board.FlyShare employee share savings plan 2013 onwardsFinnair offers an annually commencing share savings plan for its employees. Commencing of each plan is subject to the decision of Finnair\u2019s Board of Directors. The first plan commenced in 2013, and for the time being there are two plans ongoing. In 2022, Finnair\u2019s Board of Directors decided to terminate commencing the new FlyShare programs as a part of savings program.Rebuild 2019\u20132021 2020\u201320222020\u20132023 2021\u20132023 TotalGrant date 14 Feb 2019 7 Feb 2020 9 Oct 2020 26 Jan 2021Grant price, euros* 1.1914 1.0478 0.3948 0.6250Number of persons at the end of the reporting year 0 36 10 57Expenses recognised for the financial year, LTI\u2019s total (million euros) 0.1 0.0 1.2 -0.4 0.9of which share-settled (net of taxes) 0.1 0.0 1.1 -0.4 0.7of which cash-settled 0.2 0.2Liability related to LTI\u2019s total 0.8 0.8Shares granted, million shares 0.2** 1.1** 18.0 6.5 25.8Each plan consists of one year savings period followed by two year lock-up period. Through the plan, each eligible Finnair employee is offered the opportunity to save part of his or her salary to be invested in Finnair shares. The maximum monthly savings are 8% and the minimum 2% of each participant\u2019s gross base salary per month. Shares are purchased with the accumulated savings at the market price quarterly, after the release of Finnair\u2019s interim reports.The plan lasts for three years, and Finnair awards each participating employee with one share for each two shares purchased and held at the end of three-year period. The awarded bonus and additional shares are taxable income for the recipient. The number of shares delivered will be deducted by an amount corresponding to the income tax and transfer tax payable for the shares at the time of payment. The cost related to additional shares delivered is recognised as expense during vesting period. The expense recognised for FlyShare employee share saving plans in 2022 amounted to 0.9 million euros (1.3). The amount expected to be transferred to the tax authority to settle the employee\u2019s tax obligation is 0.9 million euros (1.0). The cost related to employee share saving plans is recognised in staff and other crew related costs and unrestricted equity funds.1.3.8.2 Pensions Defined benefit and defined contribution plansPension plans are classified as defined benefit and defined contribution plans. Payments made into defined contribution pension plans are recognised in the income statement in the period to which the payment applies. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Current service cost is the present value of the post employment benefit, which is earned by the employees during the year and it is recognised as staff and other crew related costs. The liability recognised in the balance sheet in respect of defined pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligations is determined by discounting the estimated future cash flows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. If fair value of plan assets is higher than present value of funded obligations, the net amount is presented as pension assets in the Group\u2019s balance sheet. Pension obligationsThe present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Any changes in these assumptions will impact the carrying amount of pension obligations. The note below includes a description of exposure to most significant risks and a sensitivity analysis on impacts of changes in actuarial assumptions. Description of pension plans at FinnairThe statutory pension cover of the employees of the Group\u2019s Finnish companies has been arranged in a Finnish pension insurance company. The statutory pension cover is a defined contribution plan. The Group\u2019s foreign sales offices and subsidiaries have various defined contribution plans that comply with local rules and practices. CEO has no supplementary pension plan. The supplementary defined contribution pension plan of one member of the Executive Board is arranged in a pension insurance company. The retirement age for this member is 63 years.Other supplementary pension cover of the Group\u2019s domestic companies has been arranged mainly in the Finnair Pension Fund, in which the pension schemes are defined benefit plans. These pension plans cover old age supplementary pensions and disability pensions exceeding the pension cover under the Employment Pensions Act. The survivors\u2019 pensions under the supplementary pension cover applies on a limited basis to pensioners who have retired on 1 January 2005 at the latest, as well as to recipients of benefits previously in accordance with Finnair Plc\u2019s survivor\u2019s pension rules who transferred to the pension fund on 31 December 2015. The Pension Fund\u2019s old age and occupational disability pension scheme has been closed to other employees since 1 February 1992 and to pilots since 1 January 2010. After this, pilots have only been covered by the occupational disability pension scheme if they have not switched to another work offered by the employer. The pension fund as a whole has been closed on 31 May 2021.Old age pensions of pilots recruited in 2015 or later are defined contribution schemes arranged in a life insurance company. Supplementary pension cover has also vested pension right on a limited basis and the retirement age of the pension fund\u2019s vested pension is tied to a change in the retirement age under the Employment Pensions Act that came into force in 2017 or an event under disability pension cover under the Employment Pensions Act. Beginning from 2021, the earnings or supplementary pensions payable on which the pension fund\u2019s defined benefit supplementary pension cover is based are not adjusted by the pension index increment. The supplementary pension liability of the pension fund is fully covered in accordance with Finnish legislation. In addition, approximately 500 Finnair pilots have the right to a separate defined contribution supplementary pension arranged in a life insurance company after reaching the age of 55 years in addition to the pension fund\u2019s defined benefit old age pension cover, if the pilot continues to work as pilot over the age of 55 years and retires from his/her job.Exposure to most significant risksVolatility of plan assets: Some of the plan assets are invested in equities which causes volatility but are in the longrun expected to provide higher returns than corporate bonds. The discount rate of plan obligations is defined based on the interest rates of corporate bonds.Changes in bond yield: A decrease in corporate bond yields increases plan obligations due to the fact that the pension obligation is discounted to net present value with a rate that is based on corporate bond rates. This increase in plan obligations is partially mitigated by a corresponding increase in the value of corporate bonds in plan assets.Life expectancy: The most significant part of the provided pension benefits relate to old age pensions. Therefore, an increase in the life expectancy rate results in an increase of plan obligations.Defined benefit pension plansEUR mill. 2022 2021Items recognised in the income statementCurrent service costs 6.2 8.3Past service cost 5.3 -1.8Amendments 0.0Settlements and curtailments -0.1 -13.1Service cost total, recognised in staff costs 11.4 -6.6Net interest expenses and foreign exchange differences -0.6 -0.2Total included in the income statement 10.8 -6.8Amounts recognised through other comprehensive incomeExperience adjustment on plan obligation 1.5 5.4Changes in financial actuarial assumptions -86.4 -17.0Changes in demographic actuarial assumptions 0.2Net return on plan assets 34.9 -31.6Amounts recognised through other comprehensive income total -49.9 -43.0Number of persons involved, pension fund 4,258 4,364Number of persons involved, other defined benefit plans 53 52Items recognised in the balance sheetPension assets 120.0 million euro (80.9) includes 119.7 million euro (78.9) related to defined benefit plans insured through the pension fund and 0.4 million euro (2.0) related to other defined benefit plans. Pension obligations includes 0.7 million euro (0.7) related to other defined benefit plans. The change during 2022 mainly is due to change in discounting rate and net return on plan assets.Changes in pension obligationsChanges in plan assetsPlan assets are comprised as followsPlan assets of the pension fund include Finnair Plc shares with a fair value of 0.6 million euros (0.9) and buildings used by the Group with a fair value of 13.0 million euros (12.8).Defined benefit plans: principal actuarial assumptionsSensitivity analysisThe sensitivity analysis describes the effect of a change in actuarial assumptions on the net defined benefit obligation. The analyses are based on the change in the assumption while holding all other assumptions constant. The method used is the same as that which has been applied when measuring the defined benefit obligation recognised in the balance sheet.Sensitivity analysis on principal actuarial assumptionsAccording to Finnish legislation, the pension fund needs to be fully funded. Finnair does not expect to pay contributions to the pension fund in 2023. The duration of defined benefit obligation is 8 years. The duration is calculated by using a discount rate of 3.69%.EUR mill. 2022 2021Fair value of pension obligations at 1 January 361.2 405.5Current service costs 5.7 7.7Past service cost 5.3 -1.8Settlements and curtailments -0.5 -13.2Amendments -0.1Interest expenses and foreign exchange differences 2.3 1.6Expense recognised in income statement 12.8 -5.9Changes in actuarial assumptions -86.4 -16.8Experience adjustment on plan obligation 1.5 5.4Remeasurements recognised through OCI -84.9 -11.4Benefits paid -24.8 -27.1Net present value of pension obligations 264.4 361.2EUR mill. 2022 2021Fair value of plan assets at 1 January 441.4 435.8Administration expenses -0.5 -0.6Settlements and curtailments -0.4 -0.2Amendments -0.1Interest income and foreign exchange differences 2.9 1.7Items recognised through profit and loss 2.0 0.9Acturial gain (loss) on plan assets -34.9 31.6Items recognised through OCI -34.9 31.6Contributions paid 0.0 0.1Benefits paid -24.8 -27.1Fair value of plan assets at 31 December 383.7 441.4% 2022 2021Listed shares 12.2 17.8Debt instruments 59.7 55.1Property 24.2 23.0Other 3.9 4.1Total 100.0 100.0% 2022 2021Discount rate % 3.69% 0.74%Annual rate of future salary increases % 0.60% 1.80%Future pension increases % 0.00% 0.00%Estimated remaining years of service 8 8Impact when Impact when increase in decrease in Change in assumption, assumption, Actuarial assumptionassumptionEUR mill. %EUR mill. %Discount rate % 0.25% -5.0 -1.9% 5.2 2.0%Annual rate of future salary increases % 0.25% 1.3 0.5% -1.2 -0.5%Life expectancy at birth 1 year 5.2 2.0%EUR mill. 2022 2021Pension Pension Pension Pension assetsobligationsassetsobligationsPresent value of funded obligations -263.2 -1.1 -359.8 -1.4Fair value of plan assets 383.3 0.5 440.7 0.7Pension assets (+) / pension obligations (-) in the balance sheet 120.0 -0.7 80.9 -0.74.5 Related party transactionsRelated parties of the Finnair group includes its subsidiaries, management (the Board of Directors, the President and CEO and the Executive Board), their close family members and companies controlled by them or their close family members, associated companies and joint ventures, Finnair pension fund and Finnair Group sickness fund. Subsidiaries are listed in the note 4.2 and associates and joint ventures in note 4.4. Related party transactions include such operations that are not eliminated in the group\u2019s consolidated financial statement.The State of Finland which has control over Finnair owns 55.9% (55.9%) of Finnair\u2019s shares. All the transactions with other government owned companies and other related parties are on arm\u2019s length basis, and are on similar terms than transactions carried out with independent parties.The following transactions have taken place with related party entities:Employee benefits and non-current receivables from pension fund are related to defined benefit pension plans in Finnair pension fund. These are described more detailed in the note 1.3.8.2. Management remuneration is presented in note 1.3.8. Management has not been granted any loans and there have not been any other transactions with management.More information on associated companies and joint ventures can be found in the note 4.4.Finnair pension fundThe Finnair pension fund in Finland is a stand-alone legal entity which mainly provides additional pension coverage to Finnair\u2019s personnel in the form of defined benefit plan, and manages related pension assets. The assets include Finnair\u2019s shares representing 0.1% (0.1%) of the company\u2019s outstanding shares. Real estate and premises owned by the pension fund have been mainly leased to Finnair. In 2022 and 2021 Finnair did not pay any contributions to the fund. Pension asset was 119.7 million euros (78.9) at the end of the financial year.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-475-3": {
"value": " Share-based paymentsFinnair provides a number of share-based compensation plans for its employees, under which the Group receives services from employees as consideration for share-based payments. Regarding share-based incentive plans for key personnel, the awards are paid only if performance criteria set by the Board of Directors is met. Share-based savings plan for employees (FlyShare) requires the employees to remain in Finnair\u2019s service for the defined period, but payment does not depend on any performance criteria.The total expense for share-based payments is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Share-based payments that are settled net of taxes are considered in their entirety as equity-settled share-based payment transactions. The reward is valued based on the market price of the Finnair share as of the grant date, and recognised as an employee benefit expense over the vesting period with corresponding entry in the equity. Income tax paid to tax authorities on behalf of employee is measured based on the market price of the Finnair share at the delivery date and recognised as a decrease in equity. If the reward includes the portion settled in cash, it is accounted for as a cash-settled transaction. The liability resulting from the cash-settled transactions is measured based on the market price of the Finnair share at the balance sheet date and accrued as an employee benefit expense for service period with corresponding entry in the liabilities until the settlement date.Share-based paymentsThe note below provides description and information on effects of the Group\u2019s share-based incentive schemes. More information on share-based personnel bonus schemes can be found in Remuneration report.Performance share plan for key personnel (LTI)Finnair\u2019s share-based incentive plan is a performance-based, annually commencing long-term incentive (LTI) arrangement, and the commencement of each new plan is subject to a separate decision made by Finnair\u2019s Board of Directors. The purpose of these plans is to encourage the management to work to increase long-term shareholder value. The Finnish Government\u2019s guidance regarding the remuneration of executive management and key individuals have been taken into consideration when designing the plans.In all ongoing LTI plans, the members of Finnair\u2019s Executive Board are expected to accumulate their share ownership in Finnair until it corresponds to their annual gross base salary and thereafter retain it for as long as they are members of the Executive Board.The potential reward will be delivered in Finnair shares. The shares are delivered to the participants during the year following the performance period, except for the Rebuild incentive where the performance period ends in June 2023 and the reward is delivered in the same year.The target levels and maximum levels set for the criteria are based on the long-term strategic objectives set by the company\u2019s Board of Directors. Criteria are monitored against the performance on a quarterly basis. The performance criteria of the plan for 2019-2021 were met at 54% level while the target was at 100% and the maximum earning level at 200%. In the comparison period, the performance criteria applied to the 2018-2020 plan was met at 22% level.The expense recognised for 2022 amounted to 0.9 million euros (1.7). The amount expected to be transferred to the tax authority to settle the employee\u2019s tax obligation is 3.0 million euros (5.3). The cost related to share-based payments is recognised in staff and other crew related costs and unrestricted equity funds, except the cash-settled portion of the Rebuild incentive plan in liabilities related to employee benefits.Rebuild incentive plan 7/2020-6/2023In 2020, a new Rebuild incentive plan for CEO and Executive Board was launched. The program contains a three-year performance period (7/2020\u20136/2023) and it is designed to contain only this one plan. The potential share rewards will be delivered to the participants in a pre-determined proportion of shares and cash after the end of the performance period and the rewards are at the participants\u2019 free disposal after delivery. If the combined value of incentive rewards in 2023 exceeds 120% of executive\u2019s annual salary, the exceeding part is deferred to coming years so that the combined incentive payout in any year does not exceed 120% of the executive\u2019s annual base salary. The total expense for the plan is recognised over the vesting period, which is three years. The grant date is at the beginning of performance period and the compensation is measured in shares.The payout opportunity is defined in the beginning of each plan in relation to the participants annual base salary. If the performance criteria set for the plan are met at the target level, the incentive paid in Finnair shares to the President and CEO or other member of the Executive Board participating in the plans will be a total of 180% of the participant\u2019s annual base salary. If the performance criteria set for the plan are met at the maximum level, the incentive paid in Finnair shares will be a total of 360% of the participant\u2019s annual base salary.The amount corresponding to tax payable at the time of payment is first deducted from the gross reward defined as shares. The net reward is delivered in a combination of cash and shares in a proportion decided by the Board of Directors.The performance criteria are set for the whole 3-year period as well as for three 12-month mid-term periods:\u2022 7/2020\u20136/2021: comparable EBITDA, gearing, lost-time injury frequency and CO emissions (measured 2through fuel efficiency),\u2022 7/2021\u20136/2022: comparable EBIT, revenue, employee retention and CO emissions (measured through 2fuel efficiency) as well as\u2022 7/2022\u20136/2023: comparable EBITDA, net promoter score (NPS), lost-time injury frequency and employee retention.The criteria for the whole 3-year period, is cash flow from operating activities which functions as a multiplier (0-2) for the whole program. This means that the threshold level needs to be reached in order for any reward to be paid.Other incentive plansThere are two LTI plans ongoing (2020\u20132022 and 2021\u20132023). The annually commencing performance share plans retain the three-year performance period. The potential share rewards will be delivered to the participants in one tranche after the performance period and they are at the participants\u2019 free disposal after delivery. In conjunction with the rights offering in 2020, according to the restrictions set by EU commission, the Board of Directors decided to cancel the 2018\u20132020, 2019\u20132021 and 2020\u20132022 LTI plans for the CEO and Executive Board. In 2022, no new LTI program was launched due to continuous business environment changes caused by the war in Ukraine. The total expense for the plans is recognised over the vesting period, which is three years. The grant date is at the beginning of performance period and the compensation is measured in shares.The payout opportunity is defined as a fixed share amount in the beginning of each plan in relation to the participants annual base salary. Therefore, changes in the share price during the performance period impacts the value of the payout opportunity. If the performance criteria set for the plan are met at the target level, the incentive paid in Finnair shares to the President and CEO or other member of the Executive Board participating in the plans will be 20% of the participant\u2019s annual base salary. If the performance criteria set for the plan are met at the maximum level, the incentive paid in Finnair shares will be 60% of the participant\u2019s annual base salary.The maximum level for incentives for other key personnel is 20\u201350% of the person\u2019s annual base salary. As a result of the rights issue in 2020, the share allocations for the ongoing 2018\u20132020, 2019\u20132021 and 2020\u20132022 plans were adjusted 5.5-fold in order for the earning opportunities to retain their value.The maximum combined value of all variable compensation (including both short- and long-term incentives) paid to an individual participant in any given calendar year may not exceed 120% of the participant\u2019s annual gross base salary. The amounts of shares paid are stated before tax. The number of shares delivered will be deducted by an amount corresponding to the income tax and transfer tax payable for the incentive at the time of payment.The performance criteria applied to the plans are:\u2022 2019\u20132021 plan: earnings per share (EPS, 50% weight), revenue growth (16.7% weight) and unit cost with constant currencies and fuel price (CASK, 33.3% weight),\u2022 2020\u20132022 plan: earnings per share (EPS, 50% weight) and unit cost with constant currencies and fuel price (CASK, 50% weight) as well as\u2022 2021\u20132023 plan: earnings per share (EPS, 45% weight), unit cost with constant currencies and fuel price (CASK, 45% weight) and fuel efficiency (10% weight).* Grant price until plan granted on 7 February 2020 has been adjusted by a bonus element included in the rights issue in 2020.** As a result of the rights issue in 2020, the share allocations for the ongoing 2018\u20132020, 2019\u20132021 and 2020\u20132022 plans were adjusted 5.5-fold in order for the earning opportunities to retain their value. These plans were cancelled for the CEO and Executive Board.FlyShare employee share savings plan 2013 onwardsFinnair offers an annually commencing share savings plan for its employees. Commencing of each plan is subject to the decision of Finnair\u2019s Board of Directors. The first plan commenced in 2013, and for the time being there are two plans ongoing. In 2022, Finnair\u2019s Board of Directors decided to terminate commencing the new FlyShare programs as a part of savings program.Rebuild 2019\u20132021 2020\u201320222020\u20132023 2021\u20132023 TotalGrant date 14 Feb 2019 7 Feb 2020 9 Oct 2020 26 Jan 2021Grant price, euros* 1.1914 1.0478 0.3948 0.6250Number of persons at the end of the reporting year 0 36 10 57Expenses recognised for the financial year, LTI\u2019s total (million euros) 0.1 0.0 1.2 -0.4 0.9of which share-settled (net of taxes) 0.1 0.0 1.1 -0.4 0.7of which cash-settled 0.2 0.2Liability related to LTI\u2019s total 0.8 0.8Shares granted, million shares 0.2** 1.1** 18.0 6.5 25.8Each plan consists of one year savings period followed by two year lock-up period. Through the plan, each eligible Finnair employee is offered the opportunity to save part of his or her salary to be invested in Finnair shares. The maximum monthly savings are 8% and the minimum 2% of each participant\u2019s gross base salary per month. Shares are purchased with the accumulated savings at the market price quarterly, after the release of Finnair\u2019s interim reports.The plan lasts for three years, and Finnair awards each participating employee with one share for each two shares purchased and held at the end of three-year period. The awarded bonus and additional shares are taxable income for the recipient. The number of shares delivered will be deducted by an amount corresponding to the income tax and transfer tax payable for the shares at the time of payment. The cost related to additional shares delivered is recognised as expense during vesting period. The expense recognised for FlyShare employee share saving plans in 2022 amounted to 0.9 million euros (1.3). The amount expected to be transferred to the tax authority to settle the employee\u2019s tax obligation is 0.9 million euros (1.0). The cost related to employee share saving plans is recognised in staff and other crew related costs and unrestricted equity funds.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-475-5": {
"value": " Share-based paymentsFinnair provides a number of share-based compensation plans for its employees, under which the Group receives services from employees as consideration for share-based payments. Regarding share-based incentive plans for key personnel, the awards are paid only if performance criteria set by the Board of Directors is met. Share-based savings plan for employees (FlyShare) requires the employees to remain in Finnair\u2019s service for the defined period, but payment does not depend on any performance criteria.The total expense for share-based payments is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Share-based payments that are settled net of taxes are considered in their entirety as equity-settled share-based payment transactions. The reward is valued based on the market price of the Finnair share as of the grant date, and recognised as an employee benefit expense over the vesting period with corresponding entry in the equity. Income tax paid to tax authorities on behalf of employee is measured based on the market price of the Finnair share at the delivery date and recognised as a decrease in equity. If the reward includes the portion settled in cash, it is accounted for as a cash-settled transaction. The liability resulting from the cash-settled transactions is measured based on the market price of the Finnair share at the balance sheet date and accrued as an employee benefit expense for service period with corresponding entry in the liabilities until the settlement date.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-491-4": {
"value": "Termination benefitsTermination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to a termination. Group is demonstrably committed when it has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer.Accounting principles related to pension benefits are described in the note 1.3.8.2 Pensions. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-674-4": {
"value": " Defined benefit and defined contribution plansPension plans are classified as defined benefit and defined contribution plans. Payments made into defined contribution pension plans are recognised in the income statement in the period to which the payment applies. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Current service cost is the present value of the post employment benefit, which is earned by the employees during the year and it is recognised as staff and other crew related costs. The liability recognised in the balance sheet in respect of defined pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligations is determined by discounting the estimated future cash flows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. If fair value of plan assets is higher than present value of funded obligations, the net amount is presented as pension assets in the Group\u2019s balance sheet. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-761-2": {
"value": "2 Fleet and other fixed assets and leasing arrangements Fleet and other fixed assets and leasing arrangements includes notes particularly related to the aircraft fleet. Notes related to the aircraft operated by the Group are combined in this section so that the general view of the fleet is easier to understand. In addition to owned aircraft, the notes cover leased aircraft under different kinds of aircraft lease arrangements. The assets owned and leased by Finnair consist mostly of aircraft operated by Finnair and Norra. In 2022, the number of owned aircraft was 37 (41) and leased 43 (43). Finnair sold four owned A321 aircraft during 2022. Due to the easing of the impacts of the COVID-19 pandemic, as at the balance sheet date, 79 out of Finnair\u2019s 80 aircraft recognized in fixed assets were operative. The remaining one aircraft is expected to return to service during first quarter of 2023.Fleet in Finnair balance sheet2.1 Fleet and other fixed assets Fleet and other fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment loss if applicable. Fleet includes aircraft and aircraft prepayments. The acquisition cost of aircraft is allocated to the aircraft frame, cabin components, engines and maintenace components as separate assets. Maintenance components include heavy maintenance, C-checks, APU (auxiliary power unit) restorations, landing gear overhauls and thrust reversers of aircraft frames, as well as performance restoration and maintenance of life limited parts of engines. Aircraft frames and engines are depreciated over the useful life of the aircraft. The maintenance components are depreciated during the maintenance cycle. Cabin components are depreciated over their expected useful life. Significant modifications of owned or leased aircraft are capitalised as separate items and depreciated over their expected useful life, which in the case of leased aircraft cannot exceed the lease period. Replaced components are derecognised from the balance sheet. Advance payments for aircraft are recorded as fleet fixed assets. Interest costs related to advance payments are capitalised as acquisition cost for the period at which Finnair is financing the manufacturing of the aircraft. Hedging gains or losses related to the fair value changes of firm, USD nominated purchase commitments for aircraft are recognised in advance payments. Advance payments, realised foreign exchange hedges and capitalised interests are recognised as part of the aircraft acquisition cost once the aircraft is delivered and taken to commercial use.Other fixed assets include rotable aircraft spare parts, other fixed assets and their prepayments. Other fixed assets are depreciated during their expected useful life.Intangible assets mainly include computer software and connection fees. Connection fees are not depreciated. Gains and losses on disposal of tangible and intangible assets are included in other operating income and expenses.Useful life and residual valueDepreciation of fleet and other fixed assets is based on the following expected economic lifetimes:New aircraft and engines as well as flight simulators (other equipment) on a straight-line basis as follows:Airbus A350 fleet, over 20 years to a residual value of 10%Airbus A320 and Embraer fleet, over 20 years to a residual value of 10%Airbus A330 fleet, over 18 years to a residual value of 10%Turboprop aircraft (ATR fleet), over 20 years to a residual value of 10%Heavy maintenance, C-checks, APU and landing gear restorations and thrust reversers of aircraft frame, as well as performance maintenance and life limited parts of the engines, on a straight-line basis during the maintenance periodCabin components, over 7\u201320 yearsRotable spare parts and components, over 15 years to a residual value of 0%Buildings, over 10\u201350 years from the time of acquisition to a residual value of 10%Other tangible assets, over 3\u201315 yearsComputer software, over 3\u20138 yearsThe residual values and estimated useful lives of the assets are assessed at each closing date and if they differ significantly from previous estimates, the depreciation periods and residual values are changed accordingly. The useful life of Finnair\u2019s current Airbus A320 fleet was prolonged in 2021 as part of the investment optimizations resulting from the COVID-19 pandemic. As a result, the existing A320 fleet\u2019s aircraft and engines are depreciated over a period of 25-29 years to a residual value of 0%.Assets held for saleNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction, a sale is considered highly probable and expected to take place within the next twelve months. Assets classified as held for sale are stated at the lower of the carrying amount or fair value less cost to sell. Assets classified as held for sale are no longer depreciated.ImpairmentThe Group reviews its fleet and other fixed assets for indication of impairment on each balance sheet date. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. EUR mill. 2022 2021 ChangeAdvances paid for aircraft 111.2 127.7 -16.5Owned aircraft 783.6 818.6 -35.0Right-of-use fleet 932.9 1,025.3 -92.4Fleet total 1,827.6 1,971.6 -143.9Fleet sublease receivables 10.0 -10.0Fleet lease liabilities 1,164.4 1,204.6 -40.2Depreciation for the period of owned aircraft -120.9 -155.7 34.8Depreciation for the period of right-of-use fleet -156.0 -123.2 -32.8Impairment for the period related to owned aircraft -32.7 -1.5 -31.2Assets held for sale (fleet) 18.5 -18.5Fleet 2022Additions to fleet in 2022 relate mainly to cabin renewal investments of Finnair\u2019s widebody aircraft. An impairment of 32.7 million euro related to four owned A330 aircraft was recognized during the financial year resulting from the impacts of the closure of Russian airspace. Impairment for the financial year is presented in more detail in the note 2.3 Depreciation and impairment. Currency hedging of aircraft acquisitions is described in the notes 3.5 Management of financial risks and 3.8 Derivatives. Fleet 2021Other fixed assets 2022In addition to the aircraft rotable parts included in the other fixed assets, Finnair\u2019s inventories include non-rotable aircraft parts amounting to 24.4 million euro (16.9). EUR mill. Aircraft Advances TotalAcquisition cost 1 Jan 2022 1,749.4 127.7 1,877.1Additions 69.1 12.2 81.2Disposals -39.5 -39.5Currency hedging of aircraft acquisitions 20.4 20.4Reclassifications 49.2 -49.2 0.0Transfer to assets held for saleAcquisition cost 31 Dec 2022 1,828.1 111.2 1,939.3Accumulated depreciation and impairment 1 Jan 2022 -930.8 -930.8Disposals 39.5 39.5Transfer to assets held for saleReclassifications 0.4 0.4Depreciation for the financial year -120.9 -120.9Impairment for the financial year -32.7 -32.7Accumulated depreciation and impairment 31 Dec 2022 -1,044.5 -1,044.5Book value 31 Dec 2022 783.6 111.2 894.8EUR mill. Aircraft Advances TotalAcquisition cost 1 Jan 2021 2,358.7 117.7 2,476.3Additions 13.7 55.6 69.3Disposals -425.2 -425.2Currency hedging of aircraft acquisitions -22.6 -22.6Reclassifications -1.3 -22.9 -24.2Transfer to assets held for sale -196.5 -196.5Acquisition cost 31 Dec 2021 1,749.4 127.7 1,877.1Accumulated depreciation and impairment 1 Jan 2021 -1,036.1 -1,036.1Disposals 84.5 84.5Transfer to assets held for sale 178.0 178.0Depreciation for the financial year -155.7 -155.7Impairment for the financial year -1.5 -1.5Accumulated depreciation and impairment 31 Dec 2021 -930.8 -930.8Book value 31 Dec 2021 818.6 127.7 946.3Aircraft rotable Buildings Other Intangible EUR mill.partsand landequipmentassets Advances TotalAcquisition cost 1 Jan 2022 34.2 74.5 119.5 47.8 0.8 276.7Additions 2.3 4.4 0.2 0.4 7.2Disposals -1.1 -1.4 -7.9 -10.5Reclassifications 0.1 0.6 -0.8 0.0Transfers to/from assets held for sale 0.0 0.1 0.0Acquisition cost 31 Dec 2022 35.3 74.5 122.5 40.7 0.4 273.4Accumulated depreciation and impairment 1 Jan 2022 -19.2 -10.8 -41.9 -42.5 -114.4Disposals 1.0 0.9 7.9 9.8Transfer to/from assets held for sale 0.3 0.3ReclassificationsDepreciation for the financial year -4.5 -1.8 -9.5 -3.1 -18.9Accumulated depreciation and impairment 31 Dec 2022 -22.3 -12.7 -50.5 -37.7 0.0 -123.3Book value 31 Dec 2022 12.9 61.8 72.0 3.0 0.4 150.1Other fixed assets 2021Capitalised borrowing costsIn 2022 borrowing costs of 1.8 million euro (1.4) were capitalised in tangible assets related to the Airbus A350 investment program. Finnair uses the effective interest rate to calculate the capitalised borrowing costs, that represents the costs of the loans used to finance the investment. The average yearly interest rate in 2022 was 4.19% (3.66%). The general borrowings used to fund the acquisition of capital assets are included in the calculation of the capitalisation rate. Assets and liabilities held for saleFinnair had no assets classified as held for sale at the end of the financial year 2022. In 2021, the assets held for sale related to four A321 aircraft which were sold during 2022.Pledged assets and other restrictions on fixed assetsFinnair does not have fixed assets pledged as a security for bank loans. Fleet assets include three A350 aircraft financed with JOLCO-loans and one A350 aircraft where the legal title is transferred to Finnair after loans are repaid. More details on these arrangements are presented in the note 3.3. Financial liabilities. Investment commitmentsInvestment commitments as at the end of the year totalled 366.1 million euro (355.3) and it includes firm aircraft orders, other aircraft related investments as well as committed maintenance investments. Out of the total investment commitments, 62.1 million euro is expected to take place within the next 12 months and 304.0 million euro during the following 1-5 years. The amount of the total commitments fluctuates between the order and the delivery date of the aircraft mainly due to EUR/USD exchange rate changes and escalation clauses included in airline purchase agreements. The exact amount of the commitments in relation to each aircraft is only known at the time of the delivery.2.2 Leasing arrangements The Group as lessee Finnair assesses whether a contract that relates to tangible assets is, or contains, a lease in accordance with the IFRS 16. Lease agreements for tangible assets, where the contract conveys the right to use an identified asset for a period of time in exchange for consideration, are classified as leases.The lease term is the non-cancellable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if Finnair is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if Finnair is reasonably certain not to exercise the option.The lease recognition requirements are not applied to short-term leases, where at the commencement date, the lease term is 12 months or less and does not contain a purchase option. Finnair considers the lease period to be the period that is enforceable. Hence, for contracts where the contract term is non-fixed and Finnair has the right to terminate the contract without the permission from the other party with no more than an insignificant penalty and there are no other indications that the contract is enforceable, Finnair classifies these contracts as short-term. The lease recognition requirements are also not applied to leases that are not material to Finnair.For short-term leases and immaterial leases to which these exemptions are applied, the lease payments are recognised as an expense on either a straight-line basis over the lease term, or on another systematic basis if that basis is more representative of the pattern of Finnair\u2019s benefit.At the commencement date of a lease, Finnair recognises both a right-of-use asset and a lease liability.The lease liability is the present value of future lease payments. At Finnair, lease payments for aircraft leases typically contain variable payments that depend on interest rates and indices. The variable payments are included in the measurement of the lease liability from the commencement date of the lease. The right-of-use asset is measured at cost, comprising the amount of the initial measurement of the lease liability;any lease payments made at or before the commencement date, less any incentives received;any initial direct costs incurred by Finnair; and an estimate of costs to be incurred by Finnair in restoring the assets to the condition required by the terms and conditions of the lease.In most cases, Finnair is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. The maintenance costs can be divided into two main groups: 1) costs that are incurred independent of the usage of the aircraft / leasing period and 2) costs that are incurred dependent on the usage of the aircraft / leasing period The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost.Finnair remeasures the lease liability when there is a lease modification that changes the scope of a lease or the consideration for the lease, that was not part of the original terms and conditions of the lease (including changes in lease payments resulting from a change in indices and rates used in variable aircraft lease payments) or when the the likehood of Finnair using a purchase-option is changed. The amount of the remeasurement of the lease liability is generally recognised as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the remaining measurement is recognised in profit or loss.After initial recognition, right-of-use assets are measured at cost less any accumulated depreciations and accumulated impairment losses. The assets are depreciated with a straight-line method from the commencement date to the shorter of end of useful life of the right-of-use asset and the end of lease term. However, if the lease transfers ownership of the Aircraft rotable Buildings Other Intangible EUR mill.partsand landequipmentassets Advances TotalAcquisition cost 1 Jan 2021 33.9 75.6 116.0 55.3 7.2 288.0Additions 1.4 0.0 4.5 1.3 0.2 7.4Disposals -0.9 -1.1 -4.9 -4.0 -10.8Reclassifications 0.0 3.9 -4.8 -6.6 -7.6Transfer to assets held for sale -0.3 -0.1 -0.3Acquisition cost 31 Dec 2021 34.2 74.5 119.5 47.8 0.8 276.7Accumulated depreciation and impairment 1 Jan 2021 -17.3 -9.8 -33.4 -42.3 -102.8Disposals 0.6 0.6 0.2 4.0 5.4Reclassifications 3.9 3.9Depreciation for the financial year -2.5 -1.6 -8.7 -8.1 -21.0Accumulated depreciation and impairment 31 Dec 2021 -19.2 -10.8 -41.9 -42.5 0.0 -114.4Book value 31 Dec 2021 15.0 63.7 77.6 5.2 0.8 162.3Aircraft Advances TotalEUR mill. 2022 2021 2022 2021 2022 2021Book value 1 Jan 8.8 18.6 2.7 2.8 11.5 21.4Additions 1.8 1.4 1.8 1.4Disposals -10.6 0.0 -10.6Reclassifications -1.5 0.0 -1.5Depreciation -0.5 0.8 -0.5 0.8Book value 31 Dec 8.3 8.8 4.5 2.7 12.8 11.5asset to Finnair by the end of lease term or if the cost of the right-of-use asset reflects that Finnair will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of useful life of the asset.At Finnair aircraft lease contracts contain the interest rate implicit in the lease, even if the aircraft lease agreements do not clearly define the interest rate implicit in the lease. Since the fair values of the aircraft are provided publicly by third parties, Finnair is able to calculate the implicit interest rate for each qualifying aircraft operating lease. The rate implicit in the lease is defined as the rate that causes the sum of the present value of the lease payments and the present value of the unguaranteed residual value of the underlying asset at the end of the lease to equal the sum of the fair value of the underlying asset and any initial direct costs of the lessor. The implicit interest rate is determined by each aircraft lease contract separately.For other lease contracts, an implicit interest rate cannot be usually determined. The incremental borrowing rate is therefore used and it is determined by each class of assets separately, based on management estimate. Aircraft lease contracts are usually denominated in foreign currency (US dollars) and the foreign currency lease liabilities are revalued at each balance sheet date to the spot rate. The lease payments (lease payments made) are accounted for as repayments of the lease liability and as interest expense.The Group as lessorAgreements, where the Group is the lessor, are accounted for as operating leases, when a substantial part of the risks and rewards of ownership are not transferred to the lessee. The assets leased under operating lease are included in the tangible assets and they are depreciated during their useful life. Depreciation is calculated using the same principles as the tangible assets for own use. Under the provisions of certain aircraft lease agreements, the lessee is required to pay periodic maintenance reserves which accumulate funds for aircraft maintenance. Advances received for maintenance are recognised as liability, which is charged, when maintenance is done. The rents for premises and aircraft are recognised in the income statement as other operating income over the lease term.Agreements, where the Group is the lessor, are accounted for as finance leases, when a substantial part of the risks and rewards of ownership are transferred to the lessee. Finnair recognises assets held under a finance lease in its balance sheet and presents them as a receivable at an amount equal to the net investment of the lease which is equal to the sum of the present values of the lease income it will receive in the future and the unguaranteed residual value.Finnair subleases aircraft and buildings as well as ground equipment from time to time, which are classified either as finance leases or operating leases based on the individual contract terms. A lease is classified on its commencement date and is reassessed only if the lease is amended. At the commencement date, for the subleases, a net investment (lease receivable), equaling to the present value of lease payments and the present value of the unguaranteed residual value, is recognised. The proportion of the right-of-use asset subleased is derecognised from the balance sheet and the difference between the right-of-use asset and the net investment is recognised in the profit or loss, in other operating income and expenses. Subsequently, the lease payments received are accounted for as repayments of the lease receivable and as interest income. Sale and leaseback In sale and leaseback transactions, where Finnair sells and then leases back aircraft, Finnair measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of-use retained by the Group. Accordingly, Finnair recognises only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor. ImpairmentThe Group reviews its leased assets for indication of impairment on each balance sheet date. Impairment loss is recognized if the recoverable amount is below its carrying amount. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. Leasing arrangements Determining the interest rate and lease term used in discounting the lease payments, estimating the redelivery obligations of aircraft leases and the classification of sublease agreements to operating and financial leases require management discretion in interpretation and application of accounting standards. The COVID-19 pandemic or the war in Ukraine and the following closure of Russian airspace did not have a significant impact on the terms of the leasing arrangements of the Group, neither did it significantly increase the amount of discretion related to abovementioned critical accounting estimates and sources of uncertainty. The pandemic or the geopolitical situation did not, for example, have significant impact on the estimated lease terms as extension options are usually not considered in the initial lease term determination. Additionally, the impact of contracts terminated early during the period was not significant. The carrying value of the right-of-use assets are tested for impairment as part of cash generating unit at the balance sheet date. More details is presented in the note 2.3. Right-of-use assets 2022The changes in contracts relate to changes either in the scope, or consideration, of leases. Right-of-use assets 2021Lease liabilitiesThe Group leases aircraft, premises and other fixed assets, for which the lease liability is recorded on the balance sheet. The lease agreements have different terms of renewal and include index-linked terms and conditions. The Group was operating 43 leased aircraft at the end of the year with lease agreements of differenttenors. The leased aircraft, that Finnair is subleasing to other operators and which are classified as finance leases are shown in the table below.Buildings Other EUR mill. Aircraftand landequipment TotalBook value 1 Jan 2022 1,025.3 123.0 33.4 1,181.7Additions 0.0 0.5 9.0 9.5Changes in contracts 63.5 3.8 -3.0 64.3Depreciation for the financial year -156.0 -13.3 -8.0 -177.3Book value 31 Dec 2022 932.9 114.0 31.4 1,078.2Buildings Other EUR mill. Aircraftand landequipment TotalBook value 1 Jan 2021 772.5 133.8 11.2 917.5Additions 346.9 1.4 32.2 380.6Changes in contracts 29.0 1.0 -4.7 25.3Depreciation for the financial year -123.2 -13.2 -5.3 -141.6Book value 31 Dec 2021 1,025.3 123.0 33.4 1,181.7Aircraft Buildings and land Other equipmentEUR mill. 2022 2021 2022 2021 2022 2021less than one year 183.0 157.2 12.2 12.6 7.4 7.01\u20135 years 605.5 602.7 41.1 43.1 22.3 19.9more than 5 years 375.9 444.6 80.8 86.8 2.5 6.8Total 1,164.4 1,204.6 134.1 142.6 32.2 33.8Finance lease receivables, Group as lessor Finnair had no aircraft related finance lease receivables at the end of 2022 as the sublease contracts for aircraft classified earlier as finance leases were reclassified as operating leases due to contract modifications. Leasing arrangements in profit and lossOperating expenses include costs related to short-term and capacity based rental agreements, that are not material for the Group or do not contain a lease according to IFRS 16, and are therefore not recognised in the balance sheet. In the income statement, the short-term wet leases and variable purchase traffic and cargo capacity rents are included in capacity rents and the short-term office rents are included in property, IT and other expenses. Gains related to sale and leaseback transactions are recorded in other operating income in profit and loss. Total cash outflow relating to leases was -376.7 million euro (-284.2).Off-balance sheet lease commitments, Group as lesseeOff-balance sheet lease commitments are short-term lease agreements and other lease agreements for which the underlying asset is of low value or contracts that do not contain a lease according to IFRS 16. Therefore, these contracts are not recognised as right-of-use assets and lease liabilities in the balance sheet. The most significant item in the premises rents is the right-to-use a test cell, which is excluded from the lease liabilty on the basis that it is not for the exclusive use of Finnair. Other rents include IT equipment leases, that are not material.Off-balance sheet lease receivables, Group as lessorThe Group has leased 15 owned aircraft as well as premises with irrevocable lease agreements. Additionally, Finnair has subleased 9 aircraft classified as operating leases. These agreements have different terms of renewal and other index-linked terms and conditions. 2.3 Depreciation and impairmentDepreciationDepreciation of assets is determined based on their expected useful life or maintenance cycle and residual value. The depreciation for all assets is calculated using straight-line method. The depreciation is started when the asset is available for use. Depreciation is ceased when the asset is either classified as held for sale or derecognised. The useful life and residual value for assets are described in more detail in the note 2.1. Depreciation and impairment include both planned depreciations on fixed assets as well as impairment. The depreciation of own fleet decreased and the depreciation of right-of-use fleet increased in 2022 mainly as a result of the four A350 sale and leaseback transactions executed in 2021. An impairment of 32.7 million euro was recognized in 2022 related to four A330 aircraft because of the closureof Russian airspace and the prolonged flight times to many Asian destinations. Aircraft Buildings and landEUR mill. 2022 2021 2022 2021less than 12 months 7.6 0.3 0.413\u201324 months 2.4 0.3 0.325\u201336 months 0.3 0.337\u201348 months 0.0 0.349\u201360 months 0.0 0.0more than 60 months 0.1 0.1Total 10.0 1.1 1.4EUR mill. 2022 2021Depreciation expense of right-of-use assets -177.3 -141.6Interest expense on lease liabilities -80.1 -62.7Interest income on sublease receivables 0.1 1.6Exchange rate changes of lease liabilities -76.1 -75.5Hedging result of lease liabilities 19.1 16.3Short-term wet leases -28.4 -6.5Short-term office rents -3.2 -3.2Variable purchase traffic and cargo capacity rents -74.0 -65.0Gains and losses on sale and leaseback transactions 14.4Total -419.9 -322.2Premises rents Other rentsEUR mill. 2022 2021 2022 2021less than one year 2.5 2.3 1.5 1.51\u20135 years 5.5 6.3 0.9 0.9more than 5 years 6.7 6.9Total 14.7 15.5 2.4 2.4Aircraft Buildings and landEUR mill. 2022 2021 2022 2021less than 12 months 23.5 19.4 2.1 1.813\u201324 months 23.5 15.4 2.1 1.825\u201336 months 23.5 6.2 2.1 1.837\u201348 months 23.5 6.2 2.1 1.849\u201360 months 11.3 6.2 1.8 1.5more than 60 months 3.8 1.6 2.5 2.0Total 109.0 55.1 12.7 10.8EUR mill. 2022 2021Amortisation of intangible assets 3.1 7.6Depreciation of own fleet 120.9 155.7Depreciation of right-of-use fleet 156.0 123.2Depreciation of other tangible assets 15.8 12.9Depreciation of other right-of-use assets 21.3 18.5Amortisation and depreciation 317.1 317.8Impairment of assets 32.7 2.0Impairment 32.7 2.0Total depreciation and impairment in income statement 349.8 319.8Impairment testingImpairment testing The Group reviews its fleet, other fixed assets and other non-current assets for indication of impairment on each balance sheet date. The recoverable amount of an asset or a cash generating unit is determined as the higher of value in use and the fair value less cost to sell. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is defined for the cash generating unit, and the impairment is evaluated at the cash generating unit level. Impairment testing of the fleet and other fixed assetsFinnair applies the value in use model as its primary method for determining the recoverable amount of the assets. Preparation of the calculations used for impairment testing requires the use of significant management judgement and estimates, which is why the actual outcome may differ from the current management estimates and assumptions made. The management estimates are based on budgets and forecasts, which already inherently contain some degree of uncertainty, in addition to which the COVID-19-pandemic and Russia\u2019s war against Ukraine in Europe has resulted in increased estimation uncertainty. It is especially difficult to predict the duration of the Russian airspace closure. Also, the price of jet fuel increased significantly during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and costs as well as the changes in the economic and competitive environment are subject to increased uncertainty.In order to consider the increased uncertainty in its estimates and assumptions, the management has considered three different forecast scenarios differing mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. These scenarios, as well as the main identified uncertainties, are discussed in more detail in the beginning of the notes, in the section Board\u2019s assessment of Finnair as a going concern. In order to consider the increased uncertainty of its operating environment in the impairment testing, Finnair is applying the expected cash flow approach which incorporates expectations about all three forecast scenarios instead of relying on just a single, most likely, cash flow estimate. Determination of the probabilities used for each of the senarios are based on the management\u2019s best estimate at the time and require the use of significant management judgement. Finnair has preparared a sensitivity analysis on the key assumptions used in the impairment testing as well as on changes of the EBITDA-margin. Based on the analysis, the value in use calculation is sensitive to changes in the discount rate, terminal growth rate, fuel cost as well as to changes in the EBITDA-margin. Key assumptions used and the related sensitivities are described in more detail below. During the fiscal year 2022, Finnair has reviewed quarterly whether indications for impairment exist. Finnair considers the various adverse economic and business implications relating to the COVID-19 pandemic and the closure of the Russian airspace following the war in Ukraine as indications of possible impairment and therefore, impairment test has been carried out as at the balance sheet date. Such indicators include the unprecedented global market disruptions caused by the pandemic and the war in Ukraine as well as their negative impacts on the Group\u2019s operating environment, financial performance, and capacity utilization. Impairment review is carried out at the level of a cash-generating unit (\u2018CGU\u2019). Finnair is a network carrier with highly integrated fleet operations and it considers all its fleet (including right-of-use fleet) and other closely related assets as one CGU. Intangible assets with indefinite useful life have been identified to belong to the aircraft CGU for impairment testing purposes. At year-end 2022, the amount of other intangible assets with indefinite useful life in Finnair\u2019s balance sheet totaled to 1.4 million euro (1.4). Assets that are held for sale are excluded from CGU and reviewed separately for impairment. The cash generating unit has been tested for impairment using the value in use model based on which the recoverable amount of the CGU exceeds its carrying value at the balance sheet date. The recoverable amount of the CGU as at 31.12.2022 was 2,059.2 million euros (2,748.6) based on expected cash flow approach as described below, and the carrying value of the assets was 1 ,635.0 million euros (2,155.8).The value in use measurement is based on a discounted cash flow model where the cash flow projections are based on Finnair\u2019s strategy approved by the Board of Directors and a management forecast covering a five-year period. The cash flow projections beyond the five-year period are based on the management\u2019s long-term growth assumptions. In order to consider the increased uncertainty caused by the Russia\u2019s war in Ukraine, Finnair is utilizing the expected cash flow approach which is using multiple, probability-weighted cash flow projections based on three different forecast scenarios prepared by the management. The scenarios and probabilities allocated to each scenario have been reviewed and approved by the Board of Directors. When determining the probabilities, the management has considered, in particular, the heightened uncertainty surrounding a possible economic downturn as well as the uncertainty related to the duration of the Russian airspace closure. In the base scenario, which is considered to have a probability of 50%, the Russian airspace would remain closed for the foreseeable future. In the more pessimistic scenario, which is considered to have a probability of 30%, the Russian airspace is also estimated to remain closed until the foreseeable future and additionally, a possible economic downturn to have a negative impact on passenger revenues. In the optimistic scenario, which is considered to have a probability of 20%, Finnair estimates that the Russian airspace would open by mid-2025. Finnair expects it will optimize its fleet and network in all three scenarios as well as enhance its operations in accordance with the renewed strategy during the years 2022\u20132024.Key assumptions used in impairment reviewKey assumptions used in the impairment review are presented in the table above. The assumptions are the same for all scenarios except for the long-term growth rate. The long-term growth rate in the optimistic scenario is 2.8% and in the base scenario and the more pessimistic scenario 2.5%. The long-term growth rate of the expected cash flow model is 2.6% which is presented in the table. The discount rate used is based on the weighted average cost of capital (WACC), which reflects the market assessment of the time value of money and the risks specific to Finnair\u2019s business. Both pre-tax and post-tax discount rates are presented above.The estimated business growth is based on the management\u2019s best estimate at the time of the prepration of the financial statements and depends the duration of the Russian airspace closure, as well as the development of market demand and environment. The estimates are benchmarked against external information sources when available, such as long-term average growth estimates for the industry. Fuel price is based on the hedge-weighted fuel price based on the forward curve, estimated fuel consumption based on planned flights and the historical data of fuel consumption for each aircraft type. Sensitivities of the key assumptions and EBITDA-marginThe calculations used in impairment testing require significant use of management estimates and assumptions. The Group has prepared a sensitivity analysis to reflect, how the results of the impairment test would react to changes in key assumptions or EBITDA-margin. The sensitivity analysis considers changes in one assumption at a time, whereby other assumptions are kept unchanged. Results of the sensitivity analysis reflect the sensitivity of the recoverable amount based on the expected cash flow model. The table below shows the changes required to decrease the difference between the recoverable amount and the carrying value of the assets to zero.Dec 31, 2022 Dec 31, 2021Discount rate (post-tax long-term weighted average cost of capital), % 8.5 7.7Discount rate (pre-tax, derived from the long-term weighted average cost of capital), % 9.9 8.8Long-term growth rate, % 2.6 2.8Fuel cost range per ton (USD) 952-1015 768\u2013864Dec 31, 2022 Dec 31, 2021EBITDA margin % -1.0 %-p -1.1 %-pDiscount rate % +1.5 %-p +1.4 %-pTerminal growth rate % -2.1 %-p -1.5 %-pFuel cost, % change in cost level +3 % +4 %",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-761-3": {
"value": "2 Fleet and other fixed assets and leasing arrangements Fleet and other fixed assets and leasing arrangements includes notes particularly related to the aircraft fleet. Notes related to the aircraft operated by the Group are combined in this section so that the general view of the fleet is easier to understand. In addition to owned aircraft, the notes cover leased aircraft under different kinds of aircraft lease arrangements. The assets owned and leased by Finnair consist mostly of aircraft operated by Finnair and Norra. In 2022, the number of owned aircraft was 37 (41) and leased 43 (43). Finnair sold four owned A321 aircraft during 2022. Due to the easing of the impacts of the COVID-19 pandemic, as at the balance sheet date, 79 out of Finnair\u2019s 80 aircraft recognized in fixed assets were operative. The remaining one aircraft is expected to return to service during first quarter of 2023.Fleet in Finnair balance sheetEUR mill. 2022 2021 ChangeAdvances paid for aircraft 111.2 127.7 -16.5Owned aircraft 783.6 818.6 -35.0Right-of-use fleet 932.9 1,025.3 -92.4Fleet total 1,827.6 1,971.6 -143.9Fleet sublease receivables 10.0 -10.0Fleet lease liabilities 1,164.4 1,204.6 -40.2Depreciation for the period of owned aircraft -120.9 -155.7 34.8Depreciation for the period of right-of-use fleet -156.0 -123.2 -32.8Impairment for the period related to owned aircraft -32.7 -1.5 -31.2Assets held for sale (fleet) 18.5 -18.5Additions to fleet in 2022 relate mainly to cabin renewal investments of Finnair\u2019s widebody aircraft. An impairment of 32.7 million euro related to four owned A330 aircraft was recognized during the financial year resulting from the impacts of the closure of Russian airspace. Impairment for the financial year is presented in more detail in the note 2.3 Depreciation and impairment. Currency hedging of aircraft acquisitions is described in the notes 3.5 Management of financial risks and 3.8 Derivatives. In addition to the aircraft rotable parts included in the other fixed assets, Finnair\u2019s inventories include non-rotable aircraft parts amounting to 24.4 million euro (16.9). 2.2 Leasing arrangements The Group as lessee Finnair assesses whether a contract that relates to tangible assets is, or contains, a lease in accordance with the IFRS 16. Lease agreements for tangible assets, where the contract conveys the right to use an identified asset for a period of time in exchange for consideration, are classified as leases.The lease term is the non-cancellable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if Finnair is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if Finnair is reasonably certain not to exercise the option.The lease recognition requirements are not applied to short-term leases, where at the commencement date, the lease term is 12 months or less and does not contain a purchase option. Finnair considers the lease period to be the period that is enforceable. Hence, for contracts where the contract term is non-fixed and Finnair has the right to terminate the contract without the permission from the other party with no more than an insignificant penalty and there are no other indications that the contract is enforceable, Finnair classifies these contracts as short-term. The lease recognition requirements are also not applied to leases that are not material to Finnair.For short-term leases and immaterial leases to which these exemptions are applied, the lease payments are recognised as an expense on either a straight-line basis over the lease term, or on another systematic basis if that basis is more representative of the pattern of Finnair\u2019s benefit.At the commencement date of a lease, Finnair recognises both a right-of-use asset and a lease liability.The lease liability is the present value of future lease payments. At Finnair, lease payments for aircraft leases typically contain variable payments that depend on interest rates and indices. The variable payments are included in the measurement of the lease liability from the commencement date of the lease. The right-of-use asset is measured at cost, comprising the amount of the initial measurement of the lease liability;any lease payments made at or before the commencement date, less any incentives received;any initial direct costs incurred by Finnair; and an estimate of costs to be incurred by Finnair in restoring the assets to the condition required by the terms and conditions of the lease.In most cases, Finnair is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. The maintenance costs can be divided into two main groups: 1) costs that are incurred independent of the usage of the aircraft / leasing period and 2) costs that are incurred dependent on the usage of the aircraft / leasing period The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost.Finnair remeasures the lease liability when there is a lease modification that changes the scope of a lease or the consideration for the lease, that was not part of the original terms and conditions of the lease (including changes in lease payments resulting from a change in indices and rates used in variable aircraft lease payments) or when the the likehood of Finnair using a purchase-option is changed. The amount of the remeasurement of the lease liability is generally recognised as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the remaining measurement is recognised in profit or loss.After initial recognition, right-of-use assets are measured at cost less any accumulated depreciations and accumulated impairment losses. The assets are depreciated with a straight-line method from the commencement date to the shorter of end of useful life of the right-of-use asset and the end of lease term. However, if the lease transfers ownership of the asset to Finnair by the end of lease term or if the cost of the right-of-use asset reflects that Finnair will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of useful life of the asset.At Finnair aircraft lease contracts contain the interest rate implicit in the lease, even if the aircraft lease agreements do not clearly define the interest rate implicit in the lease. Since the fair values of the aircraft are provided publicly by third parties, Finnair is able to calculate the implicit interest rate for each qualifying aircraft operating lease. The rate implicit in the lease is defined as the rate that causes the sum of the present value of the lease payments and the present value of the unguaranteed residual value of the underlying asset at the end of the lease to equal the sum of the fair value of the underlying asset and any initial direct costs of the lessor. The implicit interest rate is determined by each aircraft lease contract separately.For other lease contracts, an implicit interest rate cannot be usually determined. The incremental borrowing rate is therefore used and it is determined by each class of assets separately, based on management estimate. Aircraft lease contracts are usually denominated in foreign currency (US dollars) and the foreign currency lease liabilities are revalued at each balance sheet date to the spot rate. The lease payments (lease payments made) are accounted for as repayments of the lease liability and as interest expense.The Group as lessorAgreements, where the Group is the lessor, are accounted for as operating leases, when a substantial part of the risks and rewards of ownership are not transferred to the lessee. The assets leased under operating lease are included in the tangible assets and they are depreciated during their useful life. Depreciation is calculated using the same principles as the tangible assets for own use. Under the provisions of certain aircraft lease agreements, the lessee is required to pay periodic maintenance reserves which accumulate funds for aircraft maintenance. Advances received for maintenance are recognised as liability, which is charged, when maintenance is done. The rents for premises and aircraft are recognised in the income statement as other operating income over the lease term.Agreements, where the Group is the lessor, are accounted for as finance leases, when a substantial part of the risks and rewards of ownership are transferred to the lessee. Finnair recognises assets held under a finance lease in its balance sheet and presents them as a receivable at an amount equal to the net investment of the lease which is equal to the sum of the present values of the lease income it will receive in the future and the unguaranteed residual value.Finnair subleases aircraft and buildings as well as ground equipment from time to time, which are classified either as finance leases or operating leases based on the individual contract terms. A lease is classified on its commencement date and is reassessed only if the lease is amended. At the commencement date, for the subleases, a net investment (lease receivable), equaling to the present value of lease payments and the present value of the unguaranteed residual value, is recognised. The proportion of the right-of-use asset subleased is derecognised from the balance sheet and the difference between the right-of-use asset and the net investment is recognised in the profit or loss, in other operating income and expenses. Subsequently, the lease payments received are accounted for as repayments of the lease receivable and as interest income. Sale and leaseback In sale and leaseback transactions, where Finnair sells and then leases back aircraft, Finnair measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of-use retained by the Group. Accordingly, Finnair recognises only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor. ImpairmentThe Group reviews its leased assets for indication of impairment on each balance sheet date. Impairment loss is recognized if the recoverable amount is below its carrying amount. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. Leasing arrangements Determining the interest rate and lease term used in discounting the lease payments, estimating the redelivery obligations of aircraft leases and the classification of sublease agreements to operating and financial leases require management discretion in interpretation and application of accounting standards. The COVID-19 pandemic or the war in Ukraine and the following closure of Russian airspace did not have a significant impact on the terms of the leasing arrangements of the Group, neither did it significantly increase the amount of discretion related to abovementioned critical accounting estimates and sources of uncertainty. The pandemic or the geopolitical situation did not, for example, have significant impact on the estimated lease terms as extension options are usually not considered in the initial lease term determination. Additionally, the impact of contracts terminated early during the period was not significant. The carrying value of the right-of-use assets are tested for impairment as part of cash generating unit at the balance sheet date. More details is presented in the note 2.3. Right-of-use assets 2022The changes in contracts relate to changes either in the scope, or consideration, of leases. Right-of-use assets 2021Lease liabilitiesThe Group leases aircraft, premises and other fixed assets, for which the lease liability is recorded on the balance sheet. The lease agreements have different terms of renewal and include index-linked terms and conditions. The Group was operating 43 leased aircraft at the end of the year with lease agreements of differenttenors. The leased aircraft, that Finnair is subleasing to other operators and which are classified as finance leases are shown in the table below.Buildings Other EUR mill. Aircraftand landequipment TotalBook value 1 Jan 2022 1,025.3 123.0 33.4 1,181.7Additions 0.0 0.5 9.0 9.5Changes in contracts 63.5 3.8 -3.0 64.3Depreciation for the financial year -156.0 -13.3 -8.0 -177.3Book value 31 Dec 2022 932.9 114.0 31.4 1,078.2Buildings Other EUR mill. Aircraftand landequipment TotalBook value 1 Jan 2021 772.5 133.8 11.2 917.5Additions 346.9 1.4 32.2 380.6Changes in contracts 29.0 1.0 -4.7 25.3Depreciation for the financial year -123.2 -13.2 -5.3 -141.6Book value 31 Dec 2021 1,025.3 123.0 33.4 1,181.7Aircraft Buildings and land Other equipmentEUR mill. 2022 2021 2022 2021 2022 2021less than one year 183.0 157.2 12.2 12.6 7.4 7.01\u20135 years 605.5 602.7 41.1 43.1 22.3 19.9more than 5 years 375.9 444.6 80.8 86.8 2.5 6.8Total 1,164.4 1,204.6 134.1 142.6 32.2 33.8Finance lease receivables, Group as lessor Finnair had no aircraft related finance lease receivables at the end of 2022 as the sublease contracts for aircraft classified earlier as finance leases were reclassified as operating leases due to contract modifications. Leasing arrangements in profit and lossOperating expenses include costs related to short-term and capacity based rental agreements, that are not material for the Group or do not contain a lease according to IFRS 16, and are therefore not recognised in the balance sheet. In the income statement, the short-term wet leases and variable purchase traffic and cargo capacity rents are included in capacity rents and the short-term office rents are included in property, IT and other expenses. Gains related to sale and leaseback transactions are recorded in other operating income in profit and loss. Total cash outflow relating to leases was -376.7 million euro (-284.2).Off-balance sheet lease commitments, Group as lesseeOff-balance sheet lease commitments are short-term lease agreements and other lease agreements for which the underlying asset is of low value or contracts that do not contain a lease according to IFRS 16. Therefore, these contracts are not recognised as right-of-use assets and lease liabilities in the balance sheet. The most significant item in the premises rents is the right-to-use a test cell, which is excluded from the lease liabilty on the basis that it is not for the exclusive use of Finnair. Other rents include IT equipment leases, that are not material.Off-balance sheet lease receivables, Group as lessorThe Group has leased 15 owned aircraft as well as premises with irrevocable lease agreements. Additionally, Finnair has subleased 9 aircraft classified as operating leases. These agreements have different terms of renewal and other index-linked terms and conditions. Aircraft Buildings and landEUR mill. 2022 2021 2022 2021less than 12 months 7.6 0.3 0.413\u201324 months 2.4 0.3 0.325\u201336 months 0.3 0.337\u201348 months 0.0 0.349\u201360 months 0.0 0.0more than 60 months 0.1 0.1Total 10.0 1.1 1.4EUR mill. 2022 2021Depreciation expense of right-of-use assets -177.3 -141.6Interest expense on lease liabilities -80.1 -62.7Interest income on sublease receivables 0.1 1.6Exchange rate changes of lease liabilities -76.1 -75.5Hedging result of lease liabilities 19.1 16.3Short-term wet leases -28.4 -6.5Short-term office rents -3.2 -3.2Variable purchase traffic and cargo capacity rents -74.0 -65.0Gains and losses on sale and leaseback transactions 14.4Total -419.9 -322.2Premises rents Other rentsEUR mill. 2022 2021 2022 2021less than one year 2.5 2.3 1.5 1.51\u20135 years 5.5 6.3 0.9 0.9more than 5 years 6.7 6.9Total 14.7 15.5 2.4 2.4Aircraft Buildings and landEUR mill. 2022 2021 2022 2021less than 12 months 23.5 19.4 2.1 1.813\u201324 months 23.5 15.4 2.1 1.825\u201336 months 23.5 6.2 2.1 1.837\u201348 months 23.5 6.2 2.1 1.849\u201360 months 11.3 6.2 1.8 1.5more than 60 months 3.8 1.6 2.5 2.0Total 109.0 55.1 12.7 10.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-774-4": {
"value": "2.1 Fleet and other fixed assets Fleet and other fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment loss if applicable. Fleet includes aircraft and aircraft prepayments. The acquisition cost of aircraft is allocated to the aircraft frame, cabin components, engines and maintenace components as separate assets. Maintenance components include heavy maintenance, C-checks, APU (auxiliary power unit) restorations, landing gear overhauls and thrust reversers of aircraft frames, as well as performance restoration and maintenance of life limited parts of engines. Aircraft frames and engines are depreciated over the useful life of the aircraft. The maintenance components are depreciated during the maintenance cycle. Cabin components are depreciated over their expected useful life. Significant modifications of owned or leased aircraft are capitalised as separate items and depreciated over their expected useful life, which in the case of leased aircraft cannot exceed the lease period. Replaced components are derecognised from the balance sheet. Advance payments for aircraft are recorded as fleet fixed assets. Interest costs related to advance payments are capitalised as acquisition cost for the period at which Finnair is financing the manufacturing of the aircraft. Hedging gains or losses related to the fair value changes of firm, USD nominated purchase commitments for aircraft are recognised in advance payments. Advance payments, realised foreign exchange hedges and capitalised interests are recognised as part of the aircraft acquisition cost once the aircraft is delivered and taken to commercial use.Other fixed assets include rotable aircraft spare parts, other fixed assets and their prepayments. Other fixed assets are depreciated during their expected useful life.Intangible assets mainly include computer software and connection fees. Connection fees are not depreciated. Gains and losses on disposal of tangible and intangible assets are included in other operating income and expenses.Useful life and residual valueDepreciation of fleet and other fixed assets is based on the following expected economic lifetimes:New aircraft and engines as well as flight simulators (other equipment) on a straight-line basis as follows:Airbus A350 fleet, over 20 years to a residual value of 10%Airbus A320 and Embraer fleet, over 20 years to a residual value of 10%Airbus A330 fleet, over 18 years to a residual value of 10%Turboprop aircraft (ATR fleet), over 20 years to a residual value of 10%Heavy maintenance, C-checks, APU and landing gear restorations and thrust reversers of aircraft frame, as well as performance maintenance and life limited parts of the engines, on a straight-line basis during the maintenance periodCabin components, over 7\u201320 yearsRotable spare parts and components, over 15 years to a residual value of 0%Buildings, over 10\u201350 years from the time of acquisition to a residual value of 10%Other tangible assets, over 3\u201315 yearsComputer software, over 3\u20138 yearsThe residual values and estimated useful lives of the assets are assessed at each closing date and if they differ significantly from previous estimates, the depreciation periods and residual values are changed accordingly. The useful life of Finnair\u2019s current Airbus A320 fleet was prolonged in 2021 as part of the investment optimizations resulting from the COVID-19 pandemic. As a result, the existing A320 fleet\u2019s aircraft and engines are depreciated over a period of 25-29 years to a residual value of 0%.Assets held for saleNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction, a sale is considered highly probable and expected to take place within the next twelve months. Assets classified as held for sale are stated at the lower of the carrying amount or fair value less cost to sell. Assets classified as held for sale are no longer depreciated.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-795-5": {
"value": "Useful life and residual valueDepreciation of fleet and other fixed assets is based on the following expected economic lifetimes:New aircraft and engines as well as flight simulators (other equipment) on a straight-line basis as follows:Airbus A350 fleet, over 20 years to a residual value of 10%Airbus A320 and Embraer fleet, over 20 years to a residual value of 10%Airbus A330 fleet, over 18 years to a residual value of 10%Turboprop aircraft (ATR fleet), over 20 years to a residual value of 10%Heavy maintenance, C-checks, APU and landing gear restorations and thrust reversers of aircraft frame, as well as performance maintenance and life limited parts of the engines, on a straight-line basis during the maintenance periodCabin components, over 7\u201320 yearsRotable spare parts and components, over 15 years to a residual value of 0%Buildings, over 10\u201350 years from the time of acquisition to a residual value of 10%Other tangible assets, over 3\u201315 yearsComputer software, over 3\u20138 yearsThe residual values and estimated useful lives of the assets are assessed at each closing date and if they differ significantly from previous estimates, the depreciation periods and residual values are changed accordingly. The useful life of Finnair\u2019s current Airbus A320 fleet was prolonged in 2021 as part of the investment optimizations resulting from the COVID-19 pandemic. As a result, the existing A320 fleet\u2019s aircraft and engines are depreciated over a period of 25-29 years to a residual value of 0%.DepreciationDepreciation of assets is determined based on their expected useful life or maintenance cycle and residual value. The depreciation for all assets is calculated using straight-line method. The depreciation is started when the asset is available for use. Depreciation is ceased when the asset is either classified as held for sale or derecognised. The useful life and residual value for assets are described in more detail in the note 2.1. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-815-5": {
"value": "Assets held for saleNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction, a sale is considered highly probable and expected to take place within the next twelve months. Assets classified as held for sale are stated at the lower of the carrying amount or fair value less cost to sell. Assets classified as held for sale are no longer depreciated.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-820-4": {
"value": "ImpairmentThe Group reviews its fleet and other fixed assets for indication of impairment on each balance sheet date. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. ImpairmentThe Group reviews its leased assets for indication of impairment on each balance sheet date. Impairment loss is recognized if the recoverable amount is below its carrying amount. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. Impairment testingImpairment testing The Group reviews its fleet, other fixed assets and other non-current assets for indication of impairment on each balance sheet date. The recoverable amount of an asset or a cash generating unit is determined as the higher of value in use and the fair value less cost to sell. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is defined for the cash generating unit, and the impairment is evaluated at the cash generating unit level. Impairment testing of the fleet and other fixed assetsFinnair applies the value in use model as its primary method for determining the recoverable amount of the assets. Preparation of the calculations used for impairment testing requires the use of significant management judgement and estimates, which is why the actual outcome may differ from the current management estimates and assumptions made. The management estimates are based on budgets and forecasts, which already inherently contain some degree of uncertainty, in addition to which the COVID-19-pandemic and Russia\u2019s war against Ukraine in Europe has resulted in increased estimation uncertainty. It is especially difficult to predict the duration of the Russian airspace closure. Also, the price of jet fuel increased significantly during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and costs as well as the changes in the economic and competitive environment are subject to increased uncertainty.In order to consider the increased uncertainty in its estimates and assumptions, the management has considered three different forecast scenarios differing mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. These scenarios, as well as the main identified uncertainties, are discussed in more detail in the beginning of the notes, in the section Board\u2019s assessment of Finnair as a going concern. In order to consider the increased uncertainty of its operating environment in the impairment testing, Finnair is applying the expected cash flow approach which incorporates expectations about all three forecast scenarios instead of relying on just a single, most likely, cash flow estimate. Determination of the probabilities used for each of the senarios are based on the management\u2019s best estimate at the time and require the use of significant management judgement. Finnair has preparared a sensitivity analysis on the key assumptions used in the impairment testing as well as on changes of the EBITDA-margin. Based on the analysis, the value in use calculation is sensitive to changes in the discount rate, terminal growth rate, fuel cost as well as to changes in the EBITDA-margin. Key assumptions used and the related sensitivities are described in more detail below. Impairment of financial assetsFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other expenses in the consolidated income statement. More information on the credit loss provision on trade receivables can be found in note 1.2.3. Receivables related to revenue.The impairment model does not apply to financial investments, such as bonds and money market funds, included in other financial assets as those are measured at fair value through profit and loss under IFRS 9, which already takes into account expected credit losses. With respect to the assets measured at amortised cost, Finnair is actively following such instruments and will recognise impairment through profit and loss if there is evidence of deterioration in credit quality.* Positive (negative) fair value of hedging instruments as of 31.12.2022 is presented in the statement of financial position in the item derivative financial instruments within current assets (derivative financial instruments within current liabilities). Uncertainty and discontinued hedging relationships due to the COVID-19 pandemic are visible in the comparison figures. However, during the year 2022 Finnair has resumed normal hedging operations..",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-820-5": {
"value": "ImpairmentThe Group reviews its fleet and other fixed assets for indication of impairment on each balance sheet date. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. ImpairmentThe Group reviews its leased assets for indication of impairment on each balance sheet date. Impairment loss is recognized if the recoverable amount is below its carrying amount. The recoverable amount is defined for a cash generating unit, and the need for impairment is evaluated at the cash generating unit level. The recoverable amount is determined as the higher of the asset\u2019s fair value less costs to sell or its value in use. The value in use is based on the present value of the expected net future cash flows obtainable from the asset or cash-generating unit. Individual assets are excluded from the cash generating unit if they no longer are held for service or are intended to be sold, and are tested for impairment based on their fair value less costs to sell. Impairment testing, including the critical accounting estimates and sources of uncertainty inherent in the calculations, is described in more detail in note 2.3. Impairment testingImpairment testing The Group reviews its fleet, other fixed assets and other non-current assets for indication of impairment on each balance sheet date. The recoverable amount of an asset or a cash generating unit is determined as the higher of value in use and the fair value less cost to sell. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is defined for the cash generating unit, and the impairment is evaluated at the cash generating unit level. Impairment testing of the fleet and other fixed assetsFinnair applies the value in use model as its primary method for determining the recoverable amount of the assets. Preparation of the calculations used for impairment testing requires the use of significant management judgement and estimates, which is why the actual outcome may differ from the current management estimates and assumptions made. The management estimates are based on budgets and forecasts, which already inherently contain some degree of uncertainty, in addition to which the COVID-19-pandemic and Russia\u2019s war against Ukraine in Europe has resulted in increased estimation uncertainty. It is especially difficult to predict the duration of the Russian airspace closure. Also, the price of jet fuel increased significantly during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and costs as well as the changes in the economic and competitive environment are subject to increased uncertainty.In order to consider the increased uncertainty in its estimates and assumptions, the management has considered three different forecast scenarios differing mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. These scenarios, as well as the main identified uncertainties, are discussed in more detail in the beginning of the notes, in the section Board\u2019s assessment of Finnair as a going concern. In order to consider the increased uncertainty of its operating environment in the impairment testing, Finnair is applying the expected cash flow approach which incorporates expectations about all three forecast scenarios instead of relying on just a single, most likely, cash flow estimate. Determination of the probabilities used for each of the senarios are based on the management\u2019s best estimate at the time and require the use of significant management judgement. Finnair has preparared a sensitivity analysis on the key assumptions used in the impairment testing as well as on changes of the EBITDA-margin. Based on the analysis, the value in use calculation is sensitive to changes in the discount rate, terminal growth rate, fuel cost as well as to changes in the EBITDA-margin. Key assumptions used and the related sensitivities are described in more detail below. * Positive (negative) fair value of hedging instruments as of 31.12.2022 is presented in the statement of financial position in the item derivative financial instruments within current assets (derivative financial instruments within current liabilities). Uncertainty and discontinued hedging relationships due to the COVID-19 pandemic are visible in the comparison figures. However, during the year 2022 Finnair has resumed normal hedging operations..",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-845-3": {
"value": "Capitalised borrowing costsIn 2022 borrowing costs of 1.8 million euro (1.4) were capitalised in tangible assets related to the Airbus A350 investment program. Finnair uses the effective interest rate to calculate the capitalised borrowing costs, that represents the costs of the loans used to finance the investment. The average yearly interest rate in 2022 was 4.19% (3.66%). The general borrowings used to fund the acquisition of capital assets are included in the calculation of the capitalisation rate. Aircraft Advances TotalEUR mill. 2022 2021 2022 2021 2022 2021Book value 1 Jan 8.8 18.6 2.7 2.8 11.5 21.4Additions 1.8 1.4 1.8 1.4Disposals -10.6 0.0 -10.6Reclassifications -1.5 0.0 -1.5Depreciation -0.5 0.8 -0.5 0.8Book value 31 Dec 8.3 8.8 4.5 2.7 12.8 11.5",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-851-3": {
"value": "Assets and liabilities held for saleFinnair had no assets classified as held for sale at the end of the financial year 2022. In 2021, the assets held for sale related to four A321 aircraft which were sold during 2022.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-858-3": {
"value": "Investment commitmentsInvestment commitments as at the end of the year totalled 366.1 million euro (355.3) and it includes firm aircraft orders, other aircraft related investments as well as committed maintenance investments. Out of the total investment commitments, 62.1 million euro is expected to take place within the next 12 months and 304.0 million euro during the following 1-5 years. The amount of the total commitments fluctuates between the order and the delivery date of the aircraft mainly due to EUR/USD exchange rate changes and escalation clauses included in airline purchase agreements. The exact amount of the commitments in relation to each aircraft is only known at the time of the delivery.3.4 Contingent liabilitiesEUR mill. 2022 2021Guarantees on behalf of group companies 52.5 51.0Total 52.5 51.0",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-858-4": {
"value": "Investment commitmentsInvestment commitments as at the end of the year totalled 366.1 million euro (355.3) and it includes firm aircraft orders, other aircraft related investments as well as committed maintenance investments. Out of the total investment commitments, 62.1 million euro is expected to take place within the next 12 months and 304.0 million euro during the following 1-5 years. The amount of the total commitments fluctuates between the order and the delivery date of the aircraft mainly due to EUR/USD exchange rate changes and escalation clauses included in airline purchase agreements. The exact amount of the commitments in relation to each aircraft is only known at the time of the delivery.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-866-5": {
"value": "2.2 Leasing arrangements The Group as lessee Finnair assesses whether a contract that relates to tangible assets is, or contains, a lease in accordance with the IFRS 16. Lease agreements for tangible assets, where the contract conveys the right to use an identified asset for a period of time in exchange for consideration, are classified as leases.The lease term is the non-cancellable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if Finnair is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if Finnair is reasonably certain not to exercise the option.The lease recognition requirements are not applied to short-term leases, where at the commencement date, the lease term is 12 months or less and does not contain a purchase option. Finnair considers the lease period to be the period that is enforceable. Hence, for contracts where the contract term is non-fixed and Finnair has the right to terminate the contract without the permission from the other party with no more than an insignificant penalty and there are no other indications that the contract is enforceable, Finnair classifies these contracts as short-term. The lease recognition requirements are also not applied to leases that are not material to Finnair.For short-term leases and immaterial leases to which these exemptions are applied, the lease payments are recognised as an expense on either a straight-line basis over the lease term, or on another systematic basis if that basis is more representative of the pattern of Finnair\u2019s benefit.At the commencement date of a lease, Finnair recognises both a right-of-use asset and a lease liability.The lease liability is the present value of future lease payments. At Finnair, lease payments for aircraft leases typically contain variable payments that depend on interest rates and indices. The variable payments are included in the measurement of the lease liability from the commencement date of the lease. The right-of-use asset is measured at cost, comprising the amount of the initial measurement of the lease liability;any lease payments made at or before the commencement date, less any incentives received;any initial direct costs incurred by Finnair; and an estimate of costs to be incurred by Finnair in restoring the assets to the condition required by the terms and conditions of the lease.In most cases, Finnair is obliged to return leased aircraft and their engines according to the redelivery condition set in the lease agreement. If at the time of redelivery, the condition of the aircraft and its engines differs from the agreed redelivery condition, Finnair needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor. The maintenance costs can be divided into two main groups: 1) costs that are incurred independent of the usage of the aircraft / leasing period and 2) costs that are incurred dependent on the usage of the aircraft / leasing period The final check and painting required at redelivery are considered unavoidable maintenance costs that realise when the aircraft is redelivered to the lessor, irrespective of the time or flight hours. The counterpart of the provision is recorded in the book value of the right-of-use asset at the commencement of the lease. Respectively, costs depending on the usage of the aircraft are not considered as part of the right-of-use asset cost.Finnair remeasures the lease liability when there is a lease modification that changes the scope of a lease or the consideration for the lease, that was not part of the original terms and conditions of the lease (including changes in lease payments resulting from a change in indices and rates used in variable aircraft lease payments) or when the the likehood of Finnair using a purchase-option is changed. The amount of the remeasurement of the lease liability is generally recognised as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the remaining measurement is recognised in profit or loss.After initial recognition, right-of-use assets are measured at cost less any accumulated depreciations and accumulated impairment losses. The assets are depreciated with a straight-line method from the commencement date to the shorter of end of useful life of the right-of-use asset and the end of lease term. However, if the lease transfers ownership of the asset to Finnair by the end of lease term or if the cost of the right-of-use asset reflects that Finnair will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of useful life of the asset.At Finnair aircraft lease contracts contain the interest rate implicit in the lease, even if the aircraft lease agreements do not clearly define the interest rate implicit in the lease. Since the fair values of the aircraft are provided publicly by third parties, Finnair is able to calculate the implicit interest rate for each qualifying aircraft operating lease. The rate implicit in the lease is defined as the rate that causes the sum of the present value of the lease payments and the present value of the unguaranteed residual value of the underlying asset at the end of the lease to equal the sum of the fair value of the underlying asset and any initial direct costs of the lessor. The implicit interest rate is determined by each aircraft lease contract separately.For other lease contracts, an implicit interest rate cannot be usually determined. The incremental borrowing rate is therefore used and it is determined by each class of assets separately, based on management estimate. Aircraft lease contracts are usually denominated in foreign currency (US dollars) and the foreign currency lease liabilities are revalued at each balance sheet date to the spot rate. The lease payments (lease payments made) are accounted for as repayments of the lease liability and as interest expense.The Group as lessorAgreements, where the Group is the lessor, are accounted for as operating leases, when a substantial part of the risks and rewards of ownership are not transferred to the lessee. The assets leased under operating lease are included in the tangible assets and they are depreciated during their useful life. Depreciation is calculated using the same principles as the tangible assets for own use. Under the provisions of certain aircraft lease agreements, the lessee is required to pay periodic maintenance reserves which accumulate funds for aircraft maintenance. Advances received for maintenance are recognised as liability, which is charged, when maintenance is done. The rents for premises and aircraft are recognised in the income statement as other operating income over the lease term.Agreements, where the Group is the lessor, are accounted for as finance leases, when a substantial part of the risks and rewards of ownership are transferred to the lessee. Finnair recognises assets held under a finance lease in its balance sheet and presents them as a receivable at an amount equal to the net investment of the lease which is equal to the sum of the present values of the lease income it will receive in the future and the unguaranteed residual value.Finnair subleases aircraft and buildings as well as ground equipment from time to time, which are classified either as finance leases or operating leases based on the individual contract terms. A lease is classified on its commencement date and is reassessed only if the lease is amended. At the commencement date, for the subleases, a net investment (lease receivable), equaling to the present value of lease payments and the present value of the unguaranteed residual value, is recognised. The proportion of the right-of-use asset subleased is derecognised from the balance sheet and the difference between the right-of-use asset and the net investment is recognised in the profit or loss, in other operating income and expenses. Subsequently, the lease payments received are accounted for as repayments of the lease receivable and as interest income. Sale and leaseback In sale and leaseback transactions, where Finnair sells and then leases back aircraft, Finnair measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of-use retained by the Group. Accordingly, Finnair recognises only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor. Leasing arrangements Determining the interest rate and lease term used in discounting the lease payments, estimating the redelivery obligations of aircraft leases and the classification of sublease agreements to operating and financial leases require management discretion in interpretation and application of accounting standards. The COVID-19 pandemic or the war in Ukraine and the following closure of Russian airspace did not have a significant impact on the terms of the leasing arrangements of the Group, neither did it significantly increase the amount of discretion related to abovementioned critical accounting estimates and sources of uncertainty. The pandemic or the geopolitical situation did not, for example, have significant impact on the estimated lease terms as extension options are usually not considered in the initial lease term determination. Additionally, the impact of contracts terminated early during the period was not significant. The carrying value of the right-of-use assets are tested for impairment as part of cash generating unit at the balance sheet date. More details is presented in the note 2.3. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1009-4": {
"value": "2.3 Depreciation and impairmentDepreciationDepreciation of assets is determined based on their expected useful life or maintenance cycle and residual value. The depreciation for all assets is calculated using straight-line method. The depreciation is started when the asset is available for use. Depreciation is ceased when the asset is either classified as held for sale or derecognised. The useful life and residual value for assets are described in more detail in the note 2.1. Depreciation and impairment include both planned depreciations on fixed assets as well as impairment. The depreciation of own fleet decreased and the depreciation of right-of-use fleet increased in 2022 mainly as a result of the four A350 sale and leaseback transactions executed in 2021. An impairment of 32.7 million euro was recognized in 2022 related to four A330 aircraft because of the closureof Russian airspace and the prolonged flight times to many Asian destinations. EUR mill. 2022 2021Amortisation of intangible assets 3.1 7.6Depreciation of own fleet 120.9 155.7Depreciation of right-of-use fleet 156.0 123.2Depreciation of other tangible assets 15.8 12.9Depreciation of other right-of-use assets 21.3 18.5Amortisation and depreciation 317.1 317.8Impairment of assets 32.7 2.0Impairment 32.7 2.0Total depreciation and impairment in income statement 349.8 319.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1009-5": {
"value": "2.3 Depreciation and impairmentDepreciationDepreciation of assets is determined based on their expected useful life or maintenance cycle and residual value. The depreciation for all assets is calculated using straight-line method. The depreciation is started when the asset is available for use. Depreciation is ceased when the asset is either classified as held for sale or derecognised. The useful life and residual value for assets are described in more detail in the note 2.1. Depreciation and impairment include both planned depreciations on fixed assets as well as impairment. The depreciation of own fleet decreased and the depreciation of right-of-use fleet increased in 2022 mainly as a result of the four A350 sale and leaseback transactions executed in 2021. An impairment of 32.7 million euro was recognized in 2022 related to four A330 aircraft because of the closureof Russian airspace and the prolonged flight times to many Asian destinations. EUR mill. 2022 2021Amortisation of intangible assets 3.1 7.6Depreciation of own fleet 120.9 155.7Depreciation of right-of-use fleet 156.0 123.2Depreciation of other tangible assets 15.8 12.9Depreciation of other right-of-use assets 21.3 18.5Amortisation and depreciation 317.1 317.8Impairment of assets 32.7 2.0Impairment 32.7 2.0Total depreciation and impairment in income statement 349.8 319.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1015-6": {
"value": "Depreciation and impairment include both planned depreciations on fixed assets as well as impairment. The depreciation of own fleet decreased and the depreciation of right-of-use fleet increased in 2022 mainly as a result of the four A350 sale and leaseback transactions executed in 2021. An impairment of 32.7 million euro was recognized in 2022 related to four A330 aircraft because of the closureof Russian airspace and the prolonged flight times to many Asian destinations. EUR mill. 2022 2021Amortisation of intangible assets 3.1 7.6Depreciation of own fleet 120.9 155.7Depreciation of right-of-use fleet 156.0 123.2Depreciation of other tangible assets 15.8 12.9Depreciation of other right-of-use assets 21.3 18.5Amortisation and depreciation 317.1 317.8Impairment of assets 32.7 2.0Impairment 32.7 2.0Total depreciation and impairment in income statement 349.8 319.8Impairment testingImpairment testing The Group reviews its fleet, other fixed assets and other non-current assets for indication of impairment on each balance sheet date. The recoverable amount of an asset or a cash generating unit is determined as the higher of value in use and the fair value less cost to sell. Impairment loss is recognized if an asset\u2019s recoverable amount is below its carrying amount. The recoverable amount is defined for the cash generating unit, and the impairment is evaluated at the cash generating unit level. Impairment testing of the fleet and other fixed assetsFinnair applies the value in use model as its primary method for determining the recoverable amount of the assets. Preparation of the calculations used for impairment testing requires the use of significant management judgement and estimates, which is why the actual outcome may differ from the current management estimates and assumptions made. The management estimates are based on budgets and forecasts, which already inherently contain some degree of uncertainty, in addition to which the COVID-19-pandemic and Russia\u2019s war against Ukraine in Europe has resulted in increased estimation uncertainty. It is especially difficult to predict the duration of the Russian airspace closure. Also, the price of jet fuel increased significantly during the year, in addition to which the future fuel price development, impact of inflation on passenger demand and costs as well as the changes in the economic and competitive environment are subject to increased uncertainty.In order to consider the increased uncertainty in its estimates and assumptions, the management has considered three different forecast scenarios differing mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. These scenarios, as well as the main identified uncertainties, are discussed in more detail in the beginning of the notes, in the section Board\u2019s assessment of Finnair as a going concern. In order to consider the increased uncertainty of its operating environment in the impairment testing, Finnair is applying the expected cash flow approach which incorporates expectations about all three forecast scenarios instead of relying on just a single, most likely, cash flow estimate. Determination of the probabilities used for each of the senarios are based on the management\u2019s best estimate at the time and require the use of significant management judgement. Finnair has preparared a sensitivity analysis on the key assumptions used in the impairment testing as well as on changes of the EBITDA-margin. Based on the analysis, the value in use calculation is sensitive to changes in the discount rate, terminal growth rate, fuel cost as well as to changes in the EBITDA-margin. Key assumptions used and the related sensitivities are described in more detail below. During the fiscal year 2022, Finnair has reviewed quarterly whether indications for impairment exist. Finnair considers the various adverse economic and business implications relating to the COVID-19 pandemic and the closure of the Russian airspace following the war in Ukraine as indications of possible impairment and therefore, impairment test has been carried out as at the balance sheet date. Such indicators include the unprecedented global market disruptions caused by the pandemic and the war in Ukraine as well as their negative impacts on the Group\u2019s operating environment, financial performance, and capacity utilization. Impairment review is carried out at the level of a cash-generating unit (\u2018CGU\u2019). Finnair is a network carrier with highly integrated fleet operations and it considers all its fleet (including right-of-use fleet) and other closely related assets as one CGU. Intangible assets with indefinite useful life have been identified to belong to the aircraft CGU for impairment testing purposes. At year-end 2022, the amount of other intangible assets with indefinite useful life in Finnair\u2019s balance sheet totaled to 1.4 million euro (1.4). Assets that are held for sale are excluded from CGU and reviewed separately for impairment. The cash generating unit has been tested for impairment using the value in use model based on which the recoverable amount of the CGU exceeds its carrying value at the balance sheet date. The recoverable amount of the CGU as at 31.12.2022 was 2,059.2 million euros (2,748.6) based on expected cash flow approach as described below, and the carrying value of the assets was 1 ,635.0 million euros (2,155.8).The value in use measurement is based on a discounted cash flow model where the cash flow projections are based on Finnair\u2019s strategy approved by the Board of Directors and a management forecast covering a five-year period. The cash flow projections beyond the five-year period are based on the management\u2019s long-term growth assumptions. In order to consider the increased uncertainty caused by the Russia\u2019s war in Ukraine, Finnair is utilizing the expected cash flow approach which is using multiple, probability-weighted cash flow projections based on three different forecast scenarios prepared by the management. The scenarios and probabilities allocated to each scenario have been reviewed and approved by the Board of Directors. When determining the probabilities, the management has considered, in particular, the heightened uncertainty surrounding a possible economic downturn as well as the uncertainty related to the duration of the Russian airspace closure. In the base scenario, which is considered to have a probability of 50%, the Russian airspace would remain closed for the foreseeable future. In the more pessimistic scenario, which is considered to have a probability of 30%, the Russian airspace is also estimated to remain closed until the foreseeable future and additionally, a possible economic downturn to have a negative impact on passenger revenues. In the optimistic scenario, which is considered to have a probability of 20%, Finnair estimates that the Russian airspace would open by mid-2025. Finnair expects it will optimize its fleet and network in all three scenarios as well as enhance its operations in accordance with the renewed strategy during the years 2022\u20132024.Key assumptions used in impairment reviewKey assumptions used in the impairment review are presented in the table above. The assumptions are the same for all scenarios except for the long-term growth rate. The long-term growth rate in the optimistic scenario is 2.8% and in the base scenario and the more pessimistic scenario 2.5%. The long-term growth rate of the expected cash flow model is 2.6% which is presented in the table. The discount rate used is based on the weighted average cost of capital (WACC), which reflects the market assessment of the time value of money and the risks specific to Finnair\u2019s business. Both pre-tax and post-tax discount rates are presented above.The estimated business growth is based on the management\u2019s best estimate at the time of the prepration of the financial statements and depends the duration of the Russian airspace closure, as well as the development of market demand and environment. The estimates are benchmarked against external information sources when available, such as long-term average growth estimates for the industry. Fuel price is based on the hedge-weighted fuel price based on the forward curve, estimated fuel consumption based on planned flights and the historical data of fuel consumption for each aircraft type. Sensitivities of the key assumptions and EBITDA-marginThe calculations used in impairment testing require significant use of management estimates and assumptions. The Group has prepared a sensitivity analysis to reflect, how the results of the impairment test would react to changes in key assumptions or EBITDA-margin. The sensitivity analysis considers changes in one assumption at a time, whereby other assumptions are kept unchanged. Results of the sensitivity analysis reflect the sensitivity of the recoverable amount based on the expected cash flow model. The table below shows the changes required to decrease the difference between the recoverable amount and the carrying value of the assets to zero.Dec 31, 2022 Dec 31, 2021Discount rate (post-tax long-term weighted average cost of capital), % 8.5 7.7Discount rate (pre-tax, derived from the long-term weighted average cost of capital), % 9.9 8.8Long-term growth rate, % 2.6 2.8Fuel cost range per ton (USD) 952-1015 768\u2013864Dec 31, 2022 Dec 31, 2021EBITDA margin % -1.0 %-p -1.1 %-pDiscount rate % +1.5 %-p +1.4 %-pTerminal growth rate % -2.1 %-p -1.5 %-pFuel cost, % change in cost level +3 % +4 %",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1109-2": {
"value": "3 Capital structure and financing costs3.1 Financial income and expensesThe notes related to financial assets, liabilities and equity have been gathered into the capital structure and financing costs-section in order to give a better overview of the Group\u2019s financial position. The note \u00b4Earnings per share\u00b4 has been added to the equity section.3.2 Financial assetsFinancial assetsIn the Group, financial assets have been classified into the following categories according to the IFRS 9 standard \u201cFinancial Instruments\u201d: amortised cost and fair value through profit and loss. The classification is made at the time of the original acquisition based on the objective of the business model and the characteristics of contractual cash flows of the investment, or by applying a fair value option. All purchases and sales of financial assets are recognised on the trade date. Financial assets at fair value through profit and loss include such assets as investments in bonds and money market funds. Financial assets at fair value through profit and loss have mainly been acquired to obtain a gain from short-term changes in market prices. All those derivatives that do not fulfil the conditions for the application of hedge accounting are classified as financial assets at fair value through profit and loss and are valued at fair value in each financial statement. Realised and unrealised gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. Financial assets recognised at fair value through profit and loss, as well as those maturing within 12 months, are included in current assets. In Finnair Group, unquoted shares are valued at their acquisition price in the absence of a reliable fair value.Investments in debt securities are measured at amortised cost, but only when the objective of the business model is to hold the asset to collect the contractual cash flows and the asset\u2019s contractual cash flows represent only payments of principal and interest. Financial assets recognised at amortised cost are valued using the effective interest method. Financial assets valued at amortised cost include trade receivables and security deposits for aircraft operating lease agreements. Due to the nature of short-term receivables and other receivables, their book value is expected to be equal to the fair value.Derecognition of financial assets takes place when the Group has lost its contractual right to receive cash flows or when it has substantially transferred the risks and rewards outside the Group.Impairment of financial assetsFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other expenses in the consolidated income statement. More information on the credit loss provision on trade receivables can be found in note 1.2.3. Receivables related to revenue.The impairment model does not apply to financial investments, such as bonds and money market funds, included in other financial assets as those are measured at fair value through profit and loss under IFRS 9, which already takes into account expected credit losses. With respect to the assets measured at amortised cost, Finnair is actively following such instruments and will recognise impairment through profit and loss if there is evidence of deterioration in credit quality.3.2.1 Other current financial assetsAs of 31 December 2022, investments in instruments issued by unrated counterparties mostly include investmentsin money market funds (EUR 690.8 million euro).The Group\u2019s financial asset investments and risk management policy are described in more detail in note 3.5 Management of financial risks. The IFRS classifications and fair values of the financial assets are presented in Note 3.6 Classification of financial assets and liabilities.3.3 Financial liabilities Financial liabilitiesFinnair Group\u2019s financial liabilities are classified into two different classes: amortised cost and fair value through profit and loss. Financial liabilities are initially recognised at fair value on the basis of the original consideration received. Transaction costs have been included in the original book value of financial liabilities. Thereafter, all non-derivative financial liabilities are valued at amortised cost using the effective interest method. Financial liabilities are included in long- and short-term liabilities, and they can be interest-bearing or non-interest-bearing. Loans that are due for payment within 12 months are presented in the short-term liabilities. Foreign currency loans are valued at the mid-market exchange rate on the closing date, and translation differences are recognised in the financial items.Accounts payable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.Derecognition of financial liabilities takes place when the Group has fulfilled the contractual obligations. Non-current liabilitiesFinnair\u2019s interest-bearing liabilies decreased slightly during the financial year 2022. The most significant financing transactions during 2022 were the withdrawal of the 400 million euro capital loan from the Finnish State and the refinancing of the 600 million euro pension premium loan during the last quarter of 2022. Non-interest-bearing liabilities mainly include leases and maintenance reserves related to the aircraft leased to other airlines.The Group\u2019s JOLCO loans and other include the JOLCO loans (Japanese Operating Lease with Call Option) for three A350 aircraft and export credit support for one A350 aircraft. Export credit support is a debt arrangement to finance aircraft. The transactions are treated as loans and owned aircraft in Finnair\u2019s accounting. Non-interest-bearing liabilities mainly include leases and maintenance reserves related to the aircraft leased to other airlines.Current interest-bearing liabilitiesJOLCO loans and other include the JOLCO loans (Japanese Operating Lease with Call Option) for three A350 aircraft and export credit support for one A350 aircraft. The transactions are treated as loans and owned aircraft in Finnair\u2019s accounting.EUR mill. 2022 2021Loans from financial institutions, non-current 399.2 299.7JOLCO loans and other 261.3 289.4Bonds 397.9 397.2Lease liabilities 1,128.0 1,204.1Interest-bearing liabilities total 2,186.4 2,190.3Non-interest-bearing liabilities 6.3 6.3Total 2,192.7 2,196.6EUR mill. 2022 2021Loans from financial institutions, current 199.6 299.8JOLCO loans and other 40.4 43.1Bonds 98.9Lease liabilities 202.7 176.9Total 442.7 618.6Fair value Book valueInterest-bearing liabilities, EUR in millions 2022 2021 2022 2021Non-current interest-bearing liabilitiesLease liabilities 1204.1 1,204.1 1128.0 1,204.1Loans from financial institutions 305.6 299.7 399.2 299.7Bonds 298.0 406.2 397.9 397.2JOLCO loans and other 164.4 289.4 261.3 289.4Total 1,896.0 2,199.4 2,186.4 2,190.3Current interest-bearing liabilitiesLease liabilities 202.7 176.9 202.7 176.9Loans from financial institutions 207.3 299.8 199.6 299.8Bonds 98.9 98.9JOLCO loans and other 53.0 43.1 40.4 43.1Total 462.9 618.7 442.7 618.6EUR mill. 2022 2021Commercial paper, certificates and bonds 47.8 19.0Money market funds 690.8 512.4Total 738.6 531.4Ratings of counterpartiesBetter than AA 11.0BBB 12.0 5.0BB 2.0Unrated 713.7 526.4Total 738.6 531.4Fair values of interest-bearing liabilities (excluding lease liabilities) have been calculated by discounting the expected cash flows using the market interest rate and company\u2019s credit risk premium at the reporting date. Fair value of bonds has been calculated by using the quoted price of reporting date (75.5).The interest rate re-fixing period is three months for variable interest loans and six months for variable interest lease liabilities. The bonds maturing do not include the amortised cost of 2.1 million paid in 2021 and due on 2025.JOLCO loans do not include the amortised cost of 3.1 million euros paid on 2016 and due in 2025 and loans from financial institutions do not include 1.2 million euros paid as an arrangement fee from the pension premium loan in 2022. Therefore, the total amount of interest-bearing financial liabilities differs from the book value by the amount equal to the amortised costs. Also, Finnair has refinanced the 600 million euro pension premium loan during last quarter of 2022. The loan has an amortization schedule of four 100 million euro and one 200 million euro instalments. The first instalment is due during the second quarter of 2023 and the second one is due during the second quarter of 2023.The minimum lease payments, discount values and present values of lease liabilities are presented in note 2.2 Leasing arrangements.The currency mix of interest-bearing liabilities is as follows:The weighted average effective interest rate on interest-bearing liabilities was 4.0% (3.8%).Interest rate re-fixing period of interest-bearing liabilitiesMaturity dates of interest-bearing financial liabilities 31 Dec 2022 EUR mill. 2023 2024 2025 2026 2027 Later TotalJOLCO loans and other, fixed interest 26.0 13.0 39.0JOLCO loans and other, variable interest 40.4 41.8 89.0 33.0 10.3 51.2 265.8Loans from financial institutions, variable interest 200.0 200.0 200.0 600.0Bonds, fixed interest 400.0 400.0Lease liabilities, fixed interest 144.4 148.0 150.0 104.6 86.3 353.7 987.0Lease liabilities, variable interest 58.2 61.0 51.5 32.9 34.6 105.5 343.7Interest-bearing financial liabilities total 443.1 450.8 916.5 183.6 131.2 510.4 2,635.5Payments from currency derivatives 809.4 809.4Income from currency derivatives -792.1 -8.7 -800.8Commodity derivatives 4.4 0.2 4.6Trade payables and other liabilities 234.7 234.7Interest payments 121.4 98.9 69.5 39.9 29.8 92.8 452.3Total 820.9 541.2 986.0 223.5 160.9 603.2 3,335.7Maturity dates of interest-bearing financial liabilities 31 Dec 2021 EUR mill. 2022 2023 2024 2025 2026 Later TotalJOLCO loans and other, fixed interest 14.0 0.0 42.1JOLCO loans and other, variable interest 43.1 38.2 39.4 83.8 31.1 57.9 293.5Loans from financial institutions, variable interest 300.0 0.0 600.0Bonds, fixed interest 0.0 498.9Lease liabilities, fixed interest 133.8 135.9 137.5 138.4 95.4 416.7 1,057.7Lease liabilities, variable interest 43.0 44.6 46.5 40.6 26.8 121.6 323.3Interest-bearing financial liabilities total 618.9 518.7 223.4 690.9 167.3 596.2 2,815.5Payments from currency derivatives 490.2 0.0 490.2Income from currency derivatives -506.2 -1.9 -512.0Commodity derivatives -3.8 -0.1 -3.9Trade payables and other liabilities 181.5 181.5Interest payments 104.8 91.0 70.8 57.1 33.5 107.8 465.1Total 885.4 607.8 290.4 748.0 200.8 704.0 3,436.4Short-term Long-term Short-term Long-term borrowingsborrowingslease liabilitieslease liabilities TotalTotal liabilities from financing activities, 1 January 2021 51.5 1,111.0 135.6 880.6 2,178.7Repayments 0.2 -154.9 -146.8 -301.6Additions 0.0 400.0 2.5 437.0 839.5Decreases -2.8 -2.8Foreign exchange adjustments 21.2 10.4 64.5 96.1Reclassification between short-term and long-term liabilities 390.0 -390.0 28.4 -28.4 0.0Other non-cash movements -1.1 0.0 0.0 -1.1Total liabilities from financing activities, 31 December 2021 441.7 986.2 176.9 1,204.1 2,808.9EUR mill. 2022 2021EUR 1,170.7 1,291.6USD 1,418.7 1,468.1JPY 39.6 49.2HKD 0.1 0.0SGD 0.0 0.1INR 0.0 0.02,629.1 2,808.9Short-Long-Short-term Long-term term lease term lease borrowingsborrowingsliabilitiesliabilities TotalTotal liabilities from financing activities, 1 January 2022 441.7 986.2 178.9 1,204.1 2,808.9Repayments 0.0 -144.0 -193.4 -337.4Acquisitions 3.9 69.2 73.1Decreases -5.7 -5.7Foreign exchange adjustments 14.4 9.1 66.5 90.0Reclassification between short-term and long-term liabilities 201.3 201.3 12.8 -12.8 0.0Other non-cash movements -0.4 0.6 0.2Total liabilities from financing activities, 31 December 2022 240.0 1,058.4 202.7 1,128.0 2,629.12022 2021Up to 6 months 23.6% 21.0%6\u201312 months 3.9% 10.7%1\u20135 years 43.2% 38.5%More than 5 years 29.3% 29.9%Total 100.0% 100.0%State aid relating to Finnair\u2019s refinancingState aid in pension premium loan and rights offering The European Commission has concluded that the State of Finland\u2019s guarantee of Finnair\u2019s pension premium loan up to EUR 540 million, which was approved by the European Commission on 18 May 2020, and the State of Finland\u2019s participation in the rights offering are so closely linked that they must be regarded as an overall transaction that constitutes State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union. Under the Commission\u2019s decision, the Company has agreed to certain conditions following the offering, which include, among other things, a ban on acquisitions, restricting the Company from acquiring a stake of more than 10 per cent in competitors or other operators in the same line of business, including upstream or downstream operations for a period of three years from the offering. As a result of the restrictions based on the Commission\u2019s decision, the remuneration of each member of Finnair\u2019s management will not go beyond the fixed part of his/her remuneration on 31 December 2019. For persons becoming members of the management on or after the rights issue, the applicable limit of the remuneration for such new member will be benchmarked to the remuneration of comparable managerial positions and areas of responsibility in Finnair applied on 31 December 2019. Finnair will not pay bonuses and other variable or comparable remuneration elements during the three fiscal years 2020\u20132022 to the members of the management. Further, Finnair is committed to publishing information about the use of the aid received within 12 months from the date of the offering and thereafter periodically every 12 months, for a period of three years. In particular, this should include information on how the company\u2019s use of the aid received supports its activities in line with EU objectives and national obligations linked to the green and digital transformation, including the EU objective of climate neutrality by 2050. The EU Commission\u2019s competition authority approved the extension of the 540-million-euro guarantee related to the pension premium loan on 20 June 2022. The extended guarantee is in force until the second quarter of 2026.State aid in hybrid loan and conversion to capital loanFinnair and the State of Finland signed an agreement on 17 March 2021 on a hybrid loan of maximum 400 million euros to support Finnair. The decision was made by the Plenary Session of the Government on 18 February 2021. The arrangement has the approval of the EU Commission\u2019s competition authority in line with the European Union\u2019s state aid rules. Of the credit limit, approximately 350 million euros can be used by Finnair based on the state aid decision made by the Commission on 12 March 2021. Finnair is able to access the funds, if its cash or equity position would drop below the limits defined in the facility\u2019s terms and conditions.The EU Commission\u2019s competition authority approved the remaining, approximately 50-million-euro share of the hybrid loan facility on 10 February 2022. Therefore, the whole 400-million-euro hybrid loan facility is at the company\u2019s disposal according to the terms and conditions of the facility.On 22 June 2022, Finnair withdrew 290 million euros of hybrid bond, which was converted into capital loan on 30 June 2022 based on the decision of the States Council. The EU Commission\u2019s competition authority approved the conversion of the hybrid loan facility into capital loan on 20 June 2022. More information about the capital loan can be found in note 3.9.On 2 September 2022 Finnair withdrew the remaining 110 million euros of the available capital loan. After the withdrawal the total withdrawn amount is 400 million euro meaning that the capital loan is now fully withdrawn. State aid in pension premium loan extensionThe EU Commission\u2019s competition authority approved the extension of the 540-million-euro guarantee related to the pension premium loan on 20 June 2022. The pension premium loan maturity is extended until 2025 and the repayment schedule is amended so that the company will amortise the loan by 100 million euros every 6 months.However, the remaining two 100-million-euro tranches will be paid in full on 15 May 2025. In accordance with the loan terms, the pension premium loan is required to have a guarantee. The guarantee is granted by the State of Finland and a commercial bank.Sensitivity analysis of the fair value reserveIf the price of Jet fuel CIF NWE had been 10 per cent higher, the balance of the reserve would have been 16.1 million euro (2.6) higher. Correspondingly, a 10 per cent weaker Jet fuel CIF NWE price would have reduced the reserve by 17.6 million euro (2.6). In terms of the US dollar, a 10 per cent weaker level would have lowered the balance of the fair value reserve by 25.4 million euro (3.3) and a 10 per cent stronger dollar would have had a positive impact of 25.4 million euro (3.3). In terms of Japanese yen, a 10 per cent stronger yen would have had a negative impact of 2.6 million euro (0.5), and a 10 per cent weaker level would have increased the balance of thefair value reserve by 2.6 million euro (0.5). The effect of change in interests to the fair value reserve in own equity is not material. The enclosed sensitivity figures do not take into account any change in deferred tax liability (tax assets).3.6 Classification of financial assets and liabilitiesHedge Fair value accounting through profit Amortised EUR mill.itemsand losscost Book value31 Dec 2021Financial assetsReceivables 3.7 3.7Other financial assets 738.6 738.6Trade receivables and other receivables 256.9 256.9Derivatives 8.6 14.9 23.5Cash and cash equivalents 785.8 785.8Book value total 8.6 753.5 1,046.3 1,808.5Fair value total 8.6 753.5 1,406.3 1,808.5Financial liabilitiesInterest-bearing liabilities 1,298.5 1,298.5Lease liabilities 1,330.7 1,330.7Derivatives 33.1 3.5 36.7Trade payables and other liabilities 234.7 234.7Book value total 33.1 3.5 2,863.8 2,900.5Fair value total 33.1 3.5 2,358.9 2,395.6Hedge Fair value accounting through profit Amortised EUR mill.itemsand losscost Book value31 Dec 2021Financial assetsReceivables 3.3 3.3Other financial assets 531.4 531.4Trade receivables and other receivables 166.7 166.7Derivatives 13.7 12.4 26.1Cash and cash equivalents 734.3 734.3Book value total 13.7 543.8 904.3 1,461.8Fair value total 13.7 543.8 904.3 1,461.8Financial liabilitiesInterest-bearing liabilities 1,427.9 1,427.9Lease liabilities 1,381.0 1,381.0Derivatives 0.3 0.1 0.4Trade payables and other liabilities 234.7 234.7Book value total 0.3 0.1 3,043.6 3,044.0Fair value total 0.3 0.1 3,052.7 3,053.1In this note interest rate derivatives (currency and interest-rate swaps) are included in derivatives. Item Receivables mainly includes USD-denominated security deposits for leased aircraft. Trade payables and other liabilities include trade payables as well as other interest-bearing and non-interest-bearing liabilities.Derivatives are valued at fair value, with further details in the fair value hierarchy. Financial assets valued at fair value are money market funds (fair value hierarchy level 1) and bonds, or commercial papers (fair value hierarchy level 2). Receivables are mainly current and the book value is equivalent to the fair value, because the discount effect is not significant. Pension premium loan and issued bond make the most significant part of the loans valued at amortised cost. Breakdown of fair values of financial liabilities is presented in note 3.3. The valuation principles of financial assets and liabilities are outlined in the accounting principles. 3.7 Offsetting financial assets and liabilitiesFor the above financial assets and liabilities, subject to enforceable master netting arrangements or similar arrangements, each agreement between the Group and the counterparty allows net settlement of the relevant financial assets and liabilities when both parties choose to settle on a net basis. In the absence of such mutual decision, financial assets and liabilities will be settled on a gross basis. However, each party of the master netting agreement, or similar agreement, will have the option to settle on a net basis in the event of default of the other party. Depending on the terms of each agreement, an event of default includes failure by a party to make a payment when due, failure by a party to perform any obligation required by the agreement (other than payment), if such failure is not remedied within periods of 30 to 60 days after notice of such failure is given to the party, or bankruptcy.EUR mill. 2022 2021Derivative assets gross amounts 23.5 26.1Amounts of financial assets presented in the balance sheet 23.5 26.1Enforceable master netting agreement -21.2 -0.4Derivative assets net amount 2.3 25.7EUR mill. 2022 2021Derivative liabilities gross amounts -36.7 -0.4Amounts of financial liabilities presented in the balance sheet -36.7 -0.4Enforceable master netting agreement 21.2 0.4Derivative liabilites net amount -15.5 0.0",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1109-3": {
"value": "3 Capital structure and financing costsInterest income and expensesInterest income and expenses are recognised on a time-proportion basis using the effective interest method. Interest expenses related to the financing of significant investments are capitalised as part of the asset acquisition cost and depreciated over the useful life of the asset.More detailed information about financial assets can be found in note 3.2 and about interest bearing liabilities in note 3.3. In the effectiveness testing of the Group\u2019s hedge accounting, both cash flow and fair value hedging were found to be effective at year end 2022. Thus, as in the comparison year 2021, no inefficiency is included in the financial items for 2022. The COVID-19 pandemic has impacted Finnair\u2019s business negatively both in 2021 and 2022Additionally, the war in Ukraine impacted the year 2022 negatively. As a result of the negative impacts, in the comparison year figures the discontinuation of the application of hedge accounting to the majority of hedges related to jet fuel price risk and foreign exchange risk is visible. The discontinued hedges are shown in profit and loss instead of other compherensive income. The remaining discontinued hedges matured during the last quarter of 2021. In 2022 Finnair has resumed normal hedging operations. Financial income and expenses includean identical amount of profit and loss for fair value hedging instruments and for hedged items resulting from the hedged risk.In 2022, foreign exchange gains and losses recognised in financial expenses consist of a net realised exchange gain of 20.5 million euro and a net unrealised exchange loss of 59.3 million euro which were mostly caused by strenghtening of US dollar relative to euro. During the year 2022, 1.8 million euros of interest expense was capitalised in connection with the A350 investment program (1.4). More information about the capitalised interest can be found in note 2.1 Fleet and other fixed assets.Other financial expenses include for example guarantee fees as well as interest and penalties related to taxes.EUR mill. 2022 2021Financial income from discontinued hedges 11.6Interest income on leases 0.1 1.6Gains on investment instruments held at FVPL 3.7 -0.4Interest from assets held at amortised cost 2.7 0.0Other interest income 0.0 0.0Other financial income 0.1 0.0Dividend income 0.0 0.0Financial income total 6.5 12.8Financial expenses for discontinued hedges -5.2Interest on leases -80.1 -62.7Other financial expenses -29.7 -24.2Interest expenses for liabilities measured at amortised cost -28.1 -25.7Financial expenses total -137.9 -117.8Foreign exchange gains and losses -38.8 -22.5Financial expenses, net -170.2 -127.5",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1109-4": {
"value": "3 Capital structure and financing costs3.5 Management of financial risksPrinciples of financial risk managementThe nature of Finnair Group\u2019s business operations exposes the company to a variety of financial risks: foreign exchange, interest rate, credit, liquidity and commodity price risks. The Group\u2019s policy is to limit the uncertainty caused by such risks on cash flow, financial performance, balance sheet items and equity.The management of financial risks is based on the risk management policy prepared by the Financial Risk Steering Committee and approved by the Board of Directors. The policy specifies the minimum and maximum levels permitted for each type of risk. Financial risk management is directed and supervised by the Financial Risk Steering Committee. Practical implementation of the risk management policy and risk management have been centralized to the parent company\u2019s treasury department.For the management of foreign exchange, interest rate and jet fuel the company uses different derivative instruments, such as forward contracts, swaps and options. At inception, derivatives are designated as hedges of highly probable cash flows (cash flow hedges), hedges of firm orders (hedges of the fair value of firm commitments) or as financial derivatives where the hedging relationship does not qualify for hedge accounting (economic hedges). Finnair Group implements cash flow hedging through foreign exchange hedging of highly probable forecasted sales and costs denominated in foreign currencies and jet fuel price risk, in accordance with the hedge accounting principles of IFRS 9. Hedge accounting compliant fair value hedges of Finnair Group consist of interest rate hedges of the issued bond and fair value hedges of firm aircraft purchase commitments. Fuel price risk in flight operationsFuel price risk means the cash flow and financial performance uncertainty arising from fuel price fluctuations.Finnair hedges against jet fuel price fluctuations using jet fuel forward contracts and options. The Jet Fuel CIF Cargoes NWE index is used as the underlying asset of jet fuel derivatives, since over 65 per cent of Finnair\u2019s fuel purchase contracts are based on the benchmark price index for Northwest Europe jet fuel deliveries.Finnair applies the principle of time-diversification in its fuel hedging. According to the risk management policy, the hedging horizon is one year. The risk management policy states that hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. Due to hedging, the fuel cost per period is not as low as the spot-based price when prices fall, but when spot prices rise, the fuel cost rises more slowly. The hedges of jet fuel consumption are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. During 2022, Finnair has hedged the jet fuel price risk in its entirety, withoutseparating it into underlying risk components, such as crude oil price risk. However, Finnair has used proxy hedging for certain layer components of its jet fuel consumption, as described below. In the hedging of jet fuel price risk, Finnair Group designates layer components of its jet fuel consumption as hedged items. The layer components are defined as jet fuel consumption linked to different jet fuel price benchmarks. The first layer is defined as jet fuel purchases based on the Jet Fuel CIF Cargoes NWE index, with consumption linked to other price benchmarks, notably Cargoes FOB Singapore, representing other layers. Since the Jet Fuel CIF Cargoes NWE index is used as the underlying of all jet fuel derivatives, they are designated as proxy hedges for consumption based on other price benchmarks. Therefore, ineffectiveness may arise if the correlation between the NWE index and the price benchmark for the underlying consumption is not high enough for the fair value changes in the hedged item and the hedging instrument to be exactly offsetting. Any ineffectiveness resulting from overhedging or insufficient correlation is recognised in fair value changes in derivatives and changes in exchange rates of fleet overhauls.Update in financial risk managementDuring the year 2022 Finnair returned to normal hedging operations despite the increased uncertainty to Finnair\u2019s operations caused by the COVID-19 pandemic and the war in Ukraine. Finnair increased the hedging ratios in jet fuel and foreign exchange steadily during the year 2022 and revised the risk management policy during the the last quarter of 2022. The risk management policy was updated so that hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. The hedging period is 12 months.The average hedged price of the instruments hedging highly probable jet fuel purchases is calculated by taking into account only the hedging (bought) leg of collar option structures, and therefore represents the least favorable hedged rate. The most favorable rate, calculated by including only the sold leg of collar option structures, is 879.04 US dollars per tonne for NWE consumption. Options excluded from hedge accounting are excluded.At the end of the financial year, Finnair had hedged 41 per cent of its forecasted fuel purchases for the first six months of 2023 and 21 per cent of the purchases for the second half of the year. In the financial year 2022, fuel used in flight operations accounted for approximately 35 per cent of Group\u2019s turnover. At the end of the financial year, the forecast for 2023 is approximately 33 per cent of the Group\u2019s turnover. On the closing date, a 10 per cent rise in the market price of jet fuel \u2013 excluding hedging activity \u2013 increases annual fuel costs by an estimated 80 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent rise in the market price of jet fuel lowers the operating profit by around 64 million euro. Foreign exchange riskForeign exchange risk means the uncertainty in cash flows and financial performance arising from exchange rate fluctuations. Finnair Group\u2019s foreign exchange risk mainly arises from fuel purchases, aircraft lease liabilities, acquisition and divestment of aircraft, aircraft maintenance, overflight royalties and foreign currency revenue. About 59 per cent of the Group\u2019s revenue is denominated in euros. The most important foreign revenue currencies are the Japanese yen (4 per cent, percentage of revenue), the Chinese yuan (2 per cent), the US dollar (8 per cent) and the Swedish krona (4 per cent). Approximately 45 per cent Group\u2019s operating costs are denominated in foreign currencies. The most important purchasing currency is the US dollar, which accounts for approximately 41 per cent of all operating costs. The most significant US dollar-denominated expense is fuel costs. The largest investments \u2013 aircraft and their spare parts \u2013 are also mainly made in US dollars.The risk management policy divides the foreign exchange position into three parts, namely exposure to forecasted cash flows, balance sheet position and investment position. The cash flow exposure mainly consists of sales denominated in a number of different currencies and US dollar-denominated expenses. Forecasted jet fuel purchases, aircraft materials and overhaul expenses and traffic charges form a group of similar items that are hedged with the same hedging instrument. The purpose of currency risk hedging \u2013 for cash flow exposure \u2013 is to reduce the volatility of cash flows and the comparable operating result due to fluctuating currency prices. This is done using a layered hedging strategy for the two biggest sources of currency risk and utilising diversification benefits of the portfolio of various currencies. The contracts are timed to mature when the cash flows from operating expenses are expected to be settled. The hedging limits are set only for the main contributors to currency risk: the Japanese yen and the US dollar basket consisting of the US dollar and the Hong Kong dollar. For both of these, the hedging horizon is one year, which is divided into four three-month periods. hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. The investment position includes all foreign currency denominated aircraft investments for which a binding purchase agreement has been signed as well as commitments for sale and leaseback transactions in the next four years. According to its risk management policy, Finnair Group hedges 50\u2013100% of its aircraft investment exposure. New hedges of investments in aircraft are made as an IFRS 9 fair value hedge of a firm commitment.Balance sheet exposure consists of foreign currency denominated financial assets and liabilities, as well as other foreign currency denominated balance sheet items, such as provisions, trade receivables, trade payables and assets held for sale. Finnair Group has a target hedging ratio of 80% for net positions foreign currency denominated financial assets and financial liabilities exceeding 10 MEUR. The target ratio is reviewed quarterly. Maximum hedge ratio for balance sheet position is 100% and minimum is 0%. At the end of the financial year, Finnair had a hedge level for net operating cash flows of 36 per cent in the USD-basket and 32 per cent in JPY for the coming 12 months. On the closing date \u2013 excluding hedges \u2013 a 10 per cent strengthening of the US dollar against the euro has a negative impact on the 12-month result of around 74 million euro and a 10 per cent weakening of the Japanese yen against the euro has a negative impact on 12-month of around 8 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent strengthening of the US dollar weakens the result by around 48 million euro and a 10 per cent weakening of the Japanese yen weakens the result by around 5 million euro. In the above numbers, the USD-basket risk includes the Hong Kong dollar, which historical correlation with the US dollar is high. The hedge levels for balance sheet position at the end of the financial year were 70 per cent for USD and 90 per cent for Japanese yen. On the closing date \u2013 excluding hedges \u2013 a 10 per cent strengthening of the US dollar against the euro has a negative impact on the result of around 142 million euro and a 10 per cent strengthening of the Japanese yen against the euro has a negative impact of around 5 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent strengthening of the US dollar weakens the result by around 43 million euro and a 10 per cent strengthening of the Japanese yen weakens the result by around 0.5 million euro.MaturityTiming of the notional Hedged price Notional amount and hedged price$/tonne(tonnes)Under 1 year 1 to 2 years31 December 2022Jet fuel consumption priced with NWE index 1,042.9 358,000 338,000 20,000 Jet fuel consumption priced with SING index31 December 2021Jet fuel consumption priced with NWE index 625.0 68,000 66,000 2,000 Jet fuel consumption priced with SING index - - - Cross-currency interest rate swaps are included in the nominal amount calculation.The average exchange rate of the instruments hedging highly probable forecasted sales and purchases denominated in foreign currencies is calculated by taking into account only the hedging (bought) leg of collar option structures, and therefore represents the least favorable hedged rate. The most favorable rate, calculatedby including only the sold leg of collar option structures, is 1.14 for USD contracts and 119.60 for JPY instruments.Interest rate riskInterest rate risk means the cash flow, financial performance and balance sheet uncertainty arising from interestrate fluctuations.In Finnair Group, the interest rate risk is measured using the interest rate re-fixing period. If necessary, interest rate derivatives are used to adjust the interest rate re-fixing period. According to the risk management policy, the mandate for the investment portfolio\u2019s interest rate re-fixing period is 0\u201312 months and for interest-bearing liabilities 36\u201372 months. On the closing date, the investment portfolio\u2019s interest rate re-fixing period was approximately 1 month and approximately 48 months for interest-bearing liabilities. On the closing date, a one percentage point rise in interest rates increases the annual interest income of the investment portfolio by approximately 13.8 million euros and the interest expenses of the loan portfolio by approximately 3.4 million euros. The situation as of December 31 2021 is a reasonable representation of conditions throughout the year given the current market environment.Future lease agreements expose the group to interest rate risk, as the interest rate is one component of the lease price. The interest rate is fixed when the lease payments start. If necessary, the group can hedge this exposure with cash flow hedges.Cross-currency interest rate swaps are included in the nominal amount calculation. Finnair has not entered into any interest rate derivatives on which it is paying a fixed rate.Credit riskThe Group is exposed to counterparty risk when investing its cash reserves and when using derivative instruments. The credit risk is managed by only making contracts with financially sound domestic and foreign banks, financial institutions and brokers, within the framework of the risk management policy for counterparty risk limits. Liquid assets are also invested in money market funds, bonds and commercial papers issued by conservatively selected companies, according to company-specific limits. This way, risk exposure to any single counterparty is not significant. Changes in the fair value of Group loans arises from changes in FX and interest rates, not from credit risk. The Group\u2019s credit risk exposure arises from other current financial assets presented in note 3.2.1, cash and cash equivalents presented in note 3.2.2, trade receivables presented in note 1.2.3 and derivatives presented in note 3.8.Foreign exchange investment exposure EUR mill. 31 December 2022 USDNet investment position -320.8Net hedges of investment position 183.7Weighted average exchange rate of hedging instruments against the euro 1.01Foreign exchange exposure from investment position after hedging -137.1Foreign exchange P&L exposure EUR mill. 31 December 2021 JPY USD-basketNet forecasted operating cash flows, next 12M 223.8 -705.6Net operating cash flow hedges, next 12M -5.0 57.0Weighted average exchange rate of hedging instruments against the euro 121.09 1.14Foreign exchange exposure from operating cash flows after hedging, next 12M 218.8 -648.6Foreign exchange balance sheet exposure EUR mill. 31 December 2021 JPY USDNet balance sheet items -53.0 -1,134.0Net hedges of balance sheet items 49.9 500.5Weighted average exchange rate of hedging instruments against the euro 130.26 1.17Foreign exchange exposure from balance sheet items after hedging -3.1 -633.5Foreign exchange investment exposure EUR mill. 31 December 2021 USDNet investment position -273.9Net hedges of investment position 162.9Weighted average exchange rate of hedging instruments against the euro 1.20Foreign exchange exposure from investment position after hedging -111.0Timing of the notional and hedged price rangeMaturityNotional amount Less than 31.12.2022(gross)1 year 1 to 2 years 2 to 4 yearsInterest rate derivatives 253.1 164.9 88.1 0.0Foreign exchange balance sheet exposure EUR mill. 31 December 2022 JPY USDNet balance sheet items -43.8 -988.5Net hedges of balance sheet items 38.9 564.1Weighted average exchange rate of hedging instruments against the euro 141.36 1.10Foreign exchange exposure from balance sheet items after hedging -4.9 -424.5Foreign exchange P&L exposure EUR mill. 31 December 2022 JPY USD-basketNet forecasted operating cash flows, next 12m 83.4 -707.1Net operating cash flow hedges, next 12m -26.2 258.5Weighted average exchange rate of hedging instruments against the euro 141.05 1.05Foreign exchange exposure from operating cash flows after hedging, next 12M 57.1 -448.7MaturityTiming of the notional Notional amount Less than EUR mill. 31 December 2022(gross)1 year 1 to 2 years 2 to 4 yearsUSD 994.1 905.9 88.1 0.0JPY 65.1 65.1Liquidity riskThe goal of the Finnair Group is to maintain good liquidity. Liquidity is ensured by cash reserves, bank account limits, liquid money market investments and committed credit facilities. Counterparties of groups\u2019 long term loans are solid financial institutions with good reputations.The war in Ukraine or the COVID-19 pandemic has not had a direct impact on the basic principles of Finnair\u2019s liquidity risk management. However, due to the continued uncertainty in 2022 Finnair has kept relatively high liquidity levels. The liquidity was kept on high levels mainly through new financing as well as refinancing maturingdebt. The most significant financing transactions during the year 2022 were the withdrawal of the 400 million euro capital loan during the second and third quarter of 2022 and the refinancing of the 600 million euro pension premium loan during the last quarter of the 2022. The Group\u2019s cash funds were 1,524.4 million euro at the end of financial year 2022. Finnair Plc has a domestic commercial paper program of 200 million euro, which was not in use as of the closing date.Capital managementThe aim of Finnair\u2019s capital management is to secure access to the capital markets at all times despite the volatile business environment, as well as to support future business development. Through maintaining an optimal capital structure the Group also aims to minimize the cost of capital and maximize the return on capital employed. The capital structure is influenced via, for example, dividend distribution and share issues. The Group can vary and adjust the level of dividends paid to shareholders, the amount of capital returned to them or the number of new shares issued. The Group can also decide on sales of asset items in order to reduce debt. The aim of Finnair\u00b4s dividend policy is to pay on average at least one third of the earnings per share as dividends during an economic cycle.The COVID-19 pandemic as well as the war in Ukraine still impact Finnair\u2019s business and operating enviroment and therefore the balance sheet and capital structure. During the year 2022 Finnair strengthened the capital structure by withdrawing the 400 million euro capital loan, which according to the terms and conditions of the facility is considered to be equity. The development of the Group\u2019s capital structure is continuously monitored using the adjusted gearing ratio. When calculating adjusted gearing, adjusted interest-bearing net debt is divided by the amount of shareholders\u2019 equity. The Group\u2019s adjusted gearing at the end of 2022 was 266.4 per cent (321.8).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1109-5": {
"value": "3 Capital structure and financing costs3.9 Equity-related information Shareholders\u2019 equityThe nominal value of shares had been recognised in the share capital before an amendment to the Articles of Association registered on 22 March 2007. Share issue profit and gains on sale of own shares had been recognised in other restricted funds before the change in the Limited Liability Company Act in 2006.The subscription proceeds from the 2007 share issue less transaction costs after taxes as well as share-based payments according to IFRS 2 have been recognised in the unrestricted equity funds.The rights issue proceeds from 2020 less the transaction costs has been recognized in the unrestricted equity funds Hedging reserve and other OCI items include changes in the fair value of derivative instruments used in cash-flow hedging, in addition to actuarial gains and losses related to defined benefit pension plans, cost of hedging and translation differences.The acquisition cost of repurchased owned shares less transaction costs after taxes is charged to equity until the shares are cancelled or reissued. The consideration received for sale or issue of own shares is included in equity.The dividend proposed by the Board of Directors is not deducted from distributable equity until approved at the Annual General Meeting. The hybrid bond is recognised in equity. It is unsecured and subordinated to all senior debt. The hybrid bond does not confer shareholders\u2019 rights, nor does it dilute the holdings of shareholders. Finnair is not required to redeem the hybrid bond at any time and they are not redeemable on demand of the holders of the hybrid bond. Interest expenses are debited from retained earnings on cash basis net of tax. In the calculation of earnings per share, interest expenses for the hybrid bond are included in the earnings for the financial year.The capital loan is recognised in equity. In the calculation of earnings per share, interest expenses and other fees for the capital loan are included in the earnings for the financial year.Macroeconomic factors continue to be a key driver of air transportation demand, as there has historically been a strong correlation between air travel and the development of macroeconomic factors such as GDP. Due to this correlation, aviation is an industry which is highly sensitive to global economic cycles and reacts quickly to external disruptions, seasonal variations and economic trends, as the global COVID-19 pandemic and the war in Ukraine have demonstrated. Finnair Plc\u2019s share capital, paid in its entirety and registered in the trade register, was at 75,442,904.30 euros at the end of 2021 and 2022. The shares have no nominal value. During the year 2022, Finnair transferred a total of 902,093 shares to FlyShare participants and a total of 119,737 shares to participants in Finnair\u2019s share-based incentive scheme 2019\u20132021.Group\u2019s hedging reserve and other OCI items*Forward and option contracts hedging forecasted sales and purchases denominated in foreign currencies are hedges of a group of similar hedged items, and the amounts reclassified from OCI to P&L are proportionally allocated to different cost lines based on the realised cost amounts. Amounts reclassified to revenue and different cost lines are specified in the table \u201cDerivatives realised through profit or loss\u201d in note 3.8.Maturity dates of fair values recognised in the hedging reserveHybrid bondShareholders\u2019 equity (after equity belonging to the owners) includes a 200 million euro hybrid bond that was issued during the third quarter of 2020. The hybrid bond coupon is fixed at 10.25 per cent per year for the first three years, and thereafter fixed, at 15.25 per cent per year. Finnair can postpone interest payment if it does not Number of shares 2022 2021Number of outstanding shares in the beginning of the financial year 1,405,980,132 1,407,230,605Purchase of own shares -1,800,000Shares granted from the share-bonus scheme 2018\u20132020 36,903Shares granted from the share-bonus scheme 2019\u20132021 119,737Shares granted from FlyShare employee share savings plans 902,093 512,624Number of outstanding shares at the end of the financial year 1,407,001,962 1,407,980,132Own shares held by the parent company 399,303 1,421,133Total number of shares at the end of the financial year 1,407,401,265 1,407,401,265Line item Unrealised Discontinued affected in Amounts gains and hedges profit or loss reclassified losses reclassified Change in because of to profit or recognised to financial accounting the reclassi-EUR mill. 2022lossin OCIexpensesprinciples 2021ficationJet fuel price hedging -5.9 -21.3 11.6 3.9 Fuel costsJet fuel currency hedging Fuel costsLease Hedging of lease payments paymentsfor aircraftRevenue Operating cash flow and cost hedging -7.3 -9.7 1.6 0.7lines*Hedging of interest Lease related to future payments lease payments -3.6 0.7 -4.3for aircraftThe actuarial gains and losses of defined benefit plan 70.4 49.9 20.5Translation differencesCost of hedging reserve 3.3 3.3 0.0Tax effect -14.1 -9.9 -4.2Total 42.8 -30.3 56.5 0.0 0.0 16.6EUR mill. 2023 2024 2025 2026 2027 Later TotalJet fuel price hedging -5.5 -0.4 -5.9Operating cash flow hedging -7.3 -7.3Hedging of interest related to future lease payments -0.7 -0.7 -0.7 -0.7 -0.7 -3.6The actuarial gains and losses of defined benefit plan 70.4 70.4Cost of hedging reserve 3.3 3.3Tax effect -14.7 0.2 0.1 0.1 0.1 -14.1Total 45.5 -0.9 -0.6 -0.6 -0.6 0.0 42.8distribute dividends or any other equity to its shareholders. The bond has no maturity date, but the company has the right to redeem it in three years and on every interest payment date thereafter. The overall hybrid bond net position recognised in equity is 198 million euro, due to issuing expenses. The hybrid bond is unsecured and in a weaker preference position than promissory notes. A holder of hybrid bond notes has no shareholder rights.Capital loanDuring the second and third quarter of 2022 Finnair has withdrawn a 400 million euro capital loan. The capital loan does not have a determined maturity date, and it can be repaid in accordance with the Limited Liability Companies Act and terms and conditions specified in the capital loan agreement. Finnair can pay accrued interest and other payments from the loan if the conditions and the rules of the Limited Liability Companies Act are met. The interest accrued on the capital loan has not been recorded as an expense. The overall capital loan net position recognised in equity is 400 million euro.Earnings per shareThe basic earnings per share figure is calculated by dividing the result for the financial year attributable to the parent company\u2019s shareholders by the weighted average number of shares outstanding during the financial year. The result for the financial year is adjusted for the after-tax amounts of hybrid bond interests and capital loan interests and other fees regardless of payment date, as well as transaction costs of the new hybrid bond issued and premium paid, when a hybrid bond is redeemed. When calculating the earnings per share adjusted for dilution, the weighted average of the number of shares takes into account the diluting effect resulting from the conversion into shares all potentially diluting shares. Finnair has not granted any options.DividendThe Board of Directors proposes to the Annual General Meeting that no dividend is paid for 2022. In accordance with the proposal of the Board of Directors, the Annual General Meeting on 7 April 2022 resolved that no dividend be paid based on the balance sheet adopted for the year 2021.Finnair Plc\u2019s distributable equity EUR mill. 2022 2021Result for the financial year, EUR mill. -476.2 -464.3Hybrid bond interest, EUR mill. -20.5 -20.5Capital loan cost, EUR mil. -15.9Tax effect 7.3 4.1Adjusted result for the financial year -505.3 -480.7Weighted average number of shares, mill. Pcs 1,406.8 1,406.1Basic earnings per share, EUR -0.36 -0.34Diluted earnings per share, EUR -0.36 -0.34Effect of own shares, EUR 0.00 0.00EUR mill. 2022Hedging reserve -9.9Unrestricted equity funds 772.9Retained earnings -698.7Received grants -6.0Result for the financial year -350.2Distributable equity total -291.9",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1114-3": {
"value": "Interest income and expensesInterest income and expenses are recognised on a time-proportion basis using the effective interest method. Interest expenses related to the financing of significant investments are capitalised as part of the asset acquisition cost and depreciated over the useful life of the asset.More detailed information about financial assets can be found in note 3.2 and about interest bearing liabilities in note 3.3. In the effectiveness testing of the Group\u2019s hedge accounting, both cash flow and fair value hedging were found to be effective at year end 2022. Thus, as in the comparison year 2021, no inefficiency is included in the financial items for 2022. The COVID-19 pandemic has impacted Finnair\u2019s business negatively both in 2021 and 2022Additionally, the war in Ukraine impacted the year 2022 negatively. As a result of the negative impacts, in the comparison year figures the discontinuation of the application of hedge accounting to the majority of hedges related to jet fuel price risk and foreign exchange risk is visible. The discontinued hedges are shown in profit and loss instead of other compherensive income. The remaining discontinued hedges matured during the last quarter of 2021. In 2022 Finnair has resumed normal hedging operations. Financial income and expenses includean identical amount of profit and loss for fair value hedging instruments and for hedged items resulting from the hedged risk.In 2022, foreign exchange gains and losses recognised in financial expenses consist of a net realised exchange gain of 20.5 million euro and a net unrealised exchange loss of 59.3 million euro which were mostly caused by strenghtening of US dollar relative to euro. During the year 2022, 1.8 million euros of interest expense was capitalised in connection with the A350 investment program (1.4). More information about the capitalised interest can be found in note 2.1 Fleet and other fixed assets.Other financial expenses include for example guarantee fees as well as interest and penalties related to taxes.EUR mill. 2022 2021Financial income from discontinued hedges 11.6Interest income on leases 0.1 1.6Gains on investment instruments held at FVPL 3.7 -0.4Interest from assets held at amortised cost 2.7 0.0Other interest income 0.0 0.0Other financial income 0.1 0.0Dividend income 0.0 0.0Financial income total 6.5 12.8Financial expenses for discontinued hedges -5.2Interest on leases -80.1 -62.7Other financial expenses -29.7 -24.2Interest expenses for liabilities measured at amortised cost -28.1 -25.7Financial expenses total -137.9 -117.8Foreign exchange gains and losses -38.8 -22.5Financial expenses, net -170.2 -127.5",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1114-4": {
"value": "Interest income and expensesInterest income and expenses are recognised on a time-proportion basis using the effective interest method. Interest expenses related to the financing of significant investments are capitalised as part of the asset acquisition cost and depreciated over the useful life of the asset.More detailed information about financial assets can be found in note 3.2 and about interest bearing liabilities in note 3.3. In the effectiveness testing of the Group\u2019s hedge accounting, both cash flow and fair value hedging were found to be effective at year end 2022. Thus, as in the comparison year 2021, no inefficiency is included in the financial items for 2022. The COVID-19 pandemic has impacted Finnair\u2019s business negatively both in 2021 and 2022Additionally, the war in Ukraine impacted the year 2022 negatively. As a result of the negative impacts, in the comparison year figures the discontinuation of the application of hedge accounting to the majority of hedges related to jet fuel price risk and foreign exchange risk is visible. The discontinued hedges are shown in profit and loss instead of other compherensive income. The remaining discontinued hedges matured during the last quarter of 2021. In 2022 Finnair has resumed normal hedging operations. Financial income and expenses includean identical amount of profit and loss for fair value hedging instruments and for hedged items resulting from the hedged risk.In 2022, foreign exchange gains and losses recognised in financial expenses consist of a net realised exchange gain of 20.5 million euro and a net unrealised exchange loss of 59.3 million euro which were mostly caused by strenghtening of US dollar relative to euro. During the year 2022, 1.8 million euros of interest expense was capitalised in connection with the A350 investment program (1.4). More information about the capitalised interest can be found in note 2.1 Fleet and other fixed assets.Other financial expenses include for example guarantee fees as well as interest and penalties related to taxes.EUR mill. 2022 2021Financial income from discontinued hedges 11.6Interest income on leases 0.1 1.6Gains on investment instruments held at FVPL 3.7 -0.4Interest from assets held at amortised cost 2.7 0.0Other interest income 0.0 0.0Other financial income 0.1 0.0Dividend income 0.0 0.0Financial income total 6.5 12.8Financial expenses for discontinued hedges -5.2Interest on leases -80.1 -62.7Other financial expenses -29.7 -24.2Interest expenses for liabilities measured at amortised cost -28.1 -25.7Financial expenses total -137.9 -117.8Foreign exchange gains and losses -38.8 -22.5Financial expenses, net -170.2 -127.5",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1114-6": {
"value": "Interest income and expensesInterest income and expenses are recognised on a time-proportion basis using the effective interest method. Interest expenses related to the financing of significant investments are capitalised as part of the asset acquisition cost and depreciated over the useful life of the asset.More detailed information about financial assets can be found in note 3.2 and about interest bearing liabilities in note 3.3. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1114-7": {
"value": "Interest income and expensesInterest income and expenses are recognised on a time-proportion basis using the effective interest method. Interest expenses related to the financing of significant investments are capitalised as part of the asset acquisition cost and depreciated over the useful life of the asset.More detailed information about financial assets can be found in note 3.2 and about interest bearing liabilities in note 3.3. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1137-3": {
"value": "3.2 Financial assetsFinancial assetsIn the Group, financial assets have been classified into the following categories according to the IFRS 9 standard \u201cFinancial Instruments\u201d: amortised cost and fair value through profit and loss. The classification is made at the time of the original acquisition based on the objective of the business model and the characteristics of contractual cash flows of the investment, or by applying a fair value option. All purchases and sales of financial assets are recognised on the trade date. Financial assets at fair value through profit and loss include such assets as investments in bonds and money market funds. Financial assets at fair value through profit and loss have mainly been acquired to obtain a gain from short-term changes in market prices. All those derivatives that do not fulfil the conditions for the application of hedge accounting are classified as financial assets at fair value through profit and loss and are valued at fair value in each financial statement. Realised and unrealised gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. Financial assets recognised at fair value through profit and loss, as well as those maturing within 12 months, are included in current assets. In Finnair Group, unquoted shares are valued at their acquisition price in the absence of a reliable fair value.Investments in debt securities are measured at amortised cost, but only when the objective of the business model is to hold the asset to collect the contractual cash flows and the asset\u2019s contractual cash flows represent only payments of principal and interest. Financial assets recognised at amortised cost are valued using the effective interest method. Financial assets valued at amortised cost include trade receivables and security deposits for aircraft operating lease agreements. Due to the nature of short-term receivables and other receivables, their book value is expected to be equal to the fair value.Derecognition of financial assets takes place when the Group has lost its contractual right to receive cash flows or when it has substantially transferred the risks and rewards outside the Group.Impairment of financial assetsFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other expenses in the consolidated income statement. More information on the credit loss provision on trade receivables can be found in note 1.2.3. Receivables related to revenue.The impairment model does not apply to financial investments, such as bonds and money market funds, included in other financial assets as those are measured at fair value through profit and loss under IFRS 9, which already takes into account expected credit losses. With respect to the assets measured at amortised cost, Finnair is actively following such instruments and will recognise impairment through profit and loss if there is evidence of deterioration in credit quality.3.2.1 Other current financial assetsAs of 31 December 2022, investments in instruments issued by unrated counterparties mostly include investmentsin money market funds (EUR 690.8 million euro).The Group\u2019s financial asset investments and risk management policy are described in more detail in note 3.5 Management of financial risks. The IFRS classifications and fair values of the financial assets are presented in Note 3.6 Classification of financial assets and liabilities.EUR mill. 2022 2021Commercial paper, certificates and bonds 47.8 19.0Money market funds 690.8 512.4Total 738.6 531.4Ratings of counterpartiesBetter than AA 11.0BBB 12.0 5.0BB 2.0Unrated 713.7 526.4Total 738.6 531.4",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1137-5": {
"value": "3.2 Financial assetsFinancial assetsIn the Group, financial assets have been classified into the following categories according to the IFRS 9 standard \u201cFinancial Instruments\u201d: amortised cost and fair value through profit and loss. The classification is made at the time of the original acquisition based on the objective of the business model and the characteristics of contractual cash flows of the investment, or by applying a fair value option. All purchases and sales of financial assets are recognised on the trade date. Financial assets at fair value through profit and loss include such assets as investments in bonds and money market funds. Financial assets at fair value through profit and loss have mainly been acquired to obtain a gain from short-term changes in market prices. All those derivatives that do not fulfil the conditions for the application of hedge accounting are classified as financial assets at fair value through profit and loss and are valued at fair value in each financial statement. Realised and unrealised gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. Financial assets recognised at fair value through profit and loss, as well as those maturing within 12 months, are included in current assets. In Finnair Group, unquoted shares are valued at their acquisition price in the absence of a reliable fair value.Investments in debt securities are measured at amortised cost, but only when the objective of the business model is to hold the asset to collect the contractual cash flows and the asset\u2019s contractual cash flows represent only payments of principal and interest. Financial assets recognised at amortised cost are valued using the effective interest method. Financial assets valued at amortised cost include trade receivables and security deposits for aircraft operating lease agreements. Due to the nature of short-term receivables and other receivables, their book value is expected to be equal to the fair value.Derecognition of financial assets takes place when the Group has lost its contractual right to receive cash flows or when it has substantially transferred the risks and rewards outside the Group.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1137-6": {
"value": "3.2 Financial assetsFinancial assetsIn the Group, financial assets have been classified into the following categories according to the IFRS 9 standard \u201cFinancial Instruments\u201d: amortised cost and fair value through profit and loss. The classification is made at the time of the original acquisition based on the objective of the business model and the characteristics of contractual cash flows of the investment, or by applying a fair value option. All purchases and sales of financial assets are recognised on the trade date. Financial assets at fair value through profit and loss include such assets as investments in bonds and money market funds. Financial assets at fair value through profit and loss have mainly been acquired to obtain a gain from short-term changes in market prices. All those derivatives that do not fulfil the conditions for the application of hedge accounting are classified as financial assets at fair value through profit and loss and are valued at fair value in each financial statement. Realised and unrealised gains and losses arising from changes in fair value are recognised in the income statement in the period in which they arise. Financial assets recognised at fair value through profit and loss, as well as those maturing within 12 months, are included in current assets. In Finnair Group, unquoted shares are valued at their acquisition price in the absence of a reliable fair value.Investments in debt securities are measured at amortised cost, but only when the objective of the business model is to hold the asset to collect the contractual cash flows and the asset\u2019s contractual cash flows represent only payments of principal and interest. Financial assets recognised at amortised cost are valued using the effective interest method. Financial assets valued at amortised cost include trade receivables and security deposits for aircraft operating lease agreements. Due to the nature of short-term receivables and other receivables, their book value is expected to be equal to the fair value.Derecognition of financial assets takes place when the Group has lost its contractual right to receive cash flows or when it has substantially transferred the risks and rewards outside the Group.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1160-6": {
"value": "Impairment of financial assetsFinnair Group recognises impairment provisions based on lifetime expected credit losses from trade receivables in accordance with IFRS 9. Finnair has chosen to apply a simplified credit loss matrix for trade receivables as trade receivables do not have a significant financing component. Accordingly, the credit loss allowance is measured at an amount equal to the lifetime expected credit losses. The expected credit loss model is forward-looking, and expected default rates are based on historical realised credit losses. The lifetime expected credit loss allowance is calculated using the gross carrying amount of outstanding trade receivables in each aging bucket and an expected default rate. The changes in expected credit losses are recognised in other expenses in the consolidated income statement. More information on the credit loss provision on trade receivables can be found in note 1.2.3. Receivables related to revenue.The impairment model does not apply to financial investments, such as bonds and money market funds, included in other financial assets as those are measured at fair value through profit and loss under IFRS 9, which already takes into account expected credit losses. With respect to the assets measured at amortised cost, Finnair is actively following such instruments and will recognise impairment through profit and loss if there is evidence of deterioration in credit quality.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1174-2": {
"value": "Cash and cash equivalentsCash and cash equivalents consist of cash reserves and short-term bank deposits with maturity of less than three months. Foreign exchange-denominated items have been converted to euro using the mid-market exchange rates on the closing date.3.2.2 Cash and cash equivalentsThe items include cash and bank deposits realised on demand. Foreign currency cash and bank deposits have been valued using the closing date mid-market exchange rates. The reconciliation of cash and cash equivalents is illustrated in the notes of the consolidated cash flow statement.EUR mill. 2022 2021Cash and bank deposits 785.8 734.3Total 785.8 734.3",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1174-4": {
"value": "Cash and cash equivalentsCash and cash equivalents consist of cash reserves and short-term bank deposits with maturity of less than three months. Foreign exchange-denominated items have been converted to euro using the mid-market exchange rates on the closing date.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1189-4": {
"value": "3.3 Financial liabilities Financial liabilitiesFinnair Group\u2019s financial liabilities are classified into two different classes: amortised cost and fair value through profit and loss. Financial liabilities are initially recognised at fair value on the basis of the original consideration received. Transaction costs have been included in the original book value of financial liabilities. Thereafter, all non-derivative financial liabilities are valued at amortised cost using the effective interest method. Financial liabilities are included in long- and short-term liabilities, and they can be interest-bearing or non-interest-bearing. Loans that are due for payment within 12 months are presented in the short-term liabilities. Foreign currency loans are valued at the mid-market exchange rate on the closing date, and translation differences are recognised in the financial items.Accounts payable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.Derecognition of financial liabilities takes place when the Group has fulfilled the contractual obligations. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1246-3": {
"value": "State aid relating to Finnair\u2019s refinancingState aid in pension premium loan and rights offering The European Commission has concluded that the State of Finland\u2019s guarantee of Finnair\u2019s pension premium loan up to EUR 540 million, which was approved by the European Commission on 18 May 2020, and the State of Finland\u2019s participation in the rights offering are so closely linked that they must be regarded as an overall transaction that constitutes State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union. Under the Commission\u2019s decision, the Company has agreed to certain conditions following the offering, which include, among other things, a ban on acquisitions, restricting the Company from acquiring a stake of more than 10 per cent in competitors or other operators in the same line of business, including upstream or downstream operations for a period of three years from the offering. As a result of the restrictions based on the Commission\u2019s decision, the remuneration of each member of Finnair\u2019s management will not go beyond the fixed part of his/her remuneration on 31 December 2019. For persons becoming members of the management on or after the rights issue, the applicable limit of the remuneration for such new member will be benchmarked to the remuneration of comparable managerial positions and areas of responsibility in Finnair applied on 31 December 2019. Finnair will not pay bonuses and other variable or comparable remuneration elements during the three fiscal years 2020\u20132022 to the members of the management. Further, Finnair is committed to publishing information about the use of the aid received within 12 months from the date of the offering and thereafter periodically every 12 months, for a period of three years. In particular, this should include information on how the company\u2019s use of the aid received supports its activities in line with EU objectives and national obligations linked to the green and digital transformation, including the EU objective of climate neutrality by 2050. The EU Commission\u2019s competition authority approved the extension of the 540-million-euro guarantee related to the pension premium loan on 20 June 2022. The extended guarantee is in force until the second quarter of 2026.State aid in hybrid loan and conversion to capital loanFinnair and the State of Finland signed an agreement on 17 March 2021 on a hybrid loan of maximum 400 million euros to support Finnair. The decision was made by the Plenary Session of the Government on 18 February 2021. The arrangement has the approval of the EU Commission\u2019s competition authority in line with the European Union\u2019s state aid rules. Of the credit limit, approximately 350 million euros can be used by Finnair based on the state aid decision made by the Commission on 12 March 2021. Finnair is able to access the funds, if its cash or equity position would drop below the limits defined in the facility\u2019s terms and conditions.The EU Commission\u2019s competition authority approved the remaining, approximately 50-million-euro share of the hybrid loan facility on 10 February 2022. Therefore, the whole 400-million-euro hybrid loan facility is at the company\u2019s disposal according to the terms and conditions of the facility.On 22 June 2022, Finnair withdrew 290 million euros of hybrid bond, which was converted into capital loan on 30 June 2022 based on the decision of the States Council. The EU Commission\u2019s competition authority approved the conversion of the hybrid loan facility into capital loan on 20 June 2022. More information about the capital loan can be found in note 3.9.On 2 September 2022 Finnair withdrew the remaining 110 million euros of the available capital loan. After the withdrawal the total withdrawn amount is 400 million euro meaning that the capital loan is now fully withdrawn. State aid in pension premium loan extensionThe EU Commission\u2019s competition authority approved the extension of the 540-million-euro guarantee related to the pension premium loan on 20 June 2022. The pension premium loan maturity is extended until 2025 and the repayment schedule is amended so that the company will amortise the loan by 100 million euros every 6 months.However, the remaining two 100-million-euro tranches will be paid in full on 15 May 2025. In accordance with the loan terms, the pension premium loan is required to have a guarantee. The guarantee is granted by the State of Finland and a commercial bank.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1277-3": {
"value": "3.4 Contingent liabilitiesEUR mill. 2022 2021Guarantees on behalf of group companies 52.5 51.0Total 52.5 51.0",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1297-3": {
"value": "Fuel price risk in flight operationsFuel price risk means the cash flow and financial performance uncertainty arising from fuel price fluctuations.Finnair hedges against jet fuel price fluctuations using jet fuel forward contracts and options. The Jet Fuel CIF Cargoes NWE index is used as the underlying asset of jet fuel derivatives, since over 65 per cent of Finnair\u2019s fuel purchase contracts are based on the benchmark price index for Northwest Europe jet fuel deliveries.Finnair applies the principle of time-diversification in its fuel hedging. According to the risk management policy, the hedging horizon is one year. The risk management policy states that hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. Due to hedging, the fuel cost per period is not as low as the spot-based price when prices fall, but when spot prices rise, the fuel cost rises more slowly. The hedges of jet fuel consumption are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. During 2022, Finnair has hedged the jet fuel price risk in its entirety, withoutseparating it into underlying risk components, such as crude oil price risk. However, Finnair has used proxy hedging for certain layer components of its jet fuel consumption, as described below. In the hedging of jet fuel price risk, Finnair Group designates layer components of its jet fuel consumption as hedged items. The layer components are defined as jet fuel consumption linked to different jet fuel price benchmarks. The first layer is defined as jet fuel purchases based on the Jet Fuel CIF Cargoes NWE index, with consumption linked to other price benchmarks, notably Cargoes FOB Singapore, representing other layers. Since the Jet Fuel CIF Cargoes NWE index is used as the underlying of all jet fuel derivatives, they are designated as proxy hedges for consumption based on other price benchmarks. Therefore, ineffectiveness may arise if the correlation between the NWE index and the price benchmark for the underlying consumption is not high enough for the fair value changes in the hedged item and the hedging instrument to be exactly offsetting. Any ineffectiveness resulting from overhedging or insufficient correlation is recognised in fair value changes in derivatives and changes in exchange rates of fleet overhauls.Update in financial risk managementDuring the year 2022 Finnair returned to normal hedging operations despite the increased uncertainty to Finnair\u2019s operations caused by the COVID-19 pandemic and the war in Ukraine. Finnair increased the hedging ratios in jet fuel and foreign exchange steadily during the year 2022 and revised the risk management policy during the the last quarter of 2022. The risk management policy was updated so that hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. The hedging period is 12 months.The average hedged price of the instruments hedging highly probable jet fuel purchases is calculated by taking into account only the hedging (bought) leg of collar option structures, and therefore represents the least favorable hedged rate. The most favorable rate, calculated by including only the sold leg of collar option structures, is 879.04 US dollars per tonne for NWE consumption. Options excluded from hedge accounting are excluded.At the end of the financial year, Finnair had hedged 41 per cent of its forecasted fuel purchases for the first six months of 2023 and 21 per cent of the purchases for the second half of the year. In the financial year 2022, fuel used in flight operations accounted for approximately 35 per cent of Group\u2019s turnover. At the end of the financial year, the forecast for 2023 is approximately 33 per cent of the Group\u2019s turnover. On the closing date, a 10 per cent rise in the market price of jet fuel \u2013 excluding hedging activity \u2013 increases annual fuel costs by an estimated 80 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent rise in the market price of jet fuel lowers the operating profit by around 64 million euro. Foreign exchange riskForeign exchange risk means the uncertainty in cash flows and financial performance arising from exchange rate fluctuations. Finnair Group\u2019s foreign exchange risk mainly arises from fuel purchases, aircraft lease liabilities, acquisition and divestment of aircraft, aircraft maintenance, overflight royalties and foreign currency revenue. About 59 per cent of the Group\u2019s revenue is denominated in euros. The most important foreign revenue currencies are the Japanese yen (4 per cent, percentage of revenue), the Chinese yuan (2 per cent), the US dollar (8 per cent) and the Swedish krona (4 per cent). Approximately 45 per cent Group\u2019s operating costs are denominated in foreign currencies. The most important purchasing currency is the US dollar, which accounts for approximately 41 per cent of all operating costs. The most significant US dollar-denominated expense is fuel costs. The largest investments \u2013 aircraft and their spare parts \u2013 are also mainly made in US dollars.The risk management policy divides the foreign exchange position into three parts, namely exposure to forecasted cash flows, balance sheet position and investment position. The cash flow exposure mainly consists of sales denominated in a number of different currencies and US dollar-denominated expenses. Forecasted jet fuel purchases, aircraft materials and overhaul expenses and traffic charges form a group of similar items that are hedged with the same hedging instrument. The purpose of currency risk hedging \u2013 for cash flow exposure \u2013 is to reduce the volatility of cash flows and the comparable operating result due to fluctuating currency prices. This is done using a layered hedging strategy for the two biggest sources of currency risk and utilising diversification benefits of the portfolio of various currencies. The contracts are timed to mature when the cash flows from operating expenses are expected to be settled. The hedging limits are set only for the main contributors to currency risk: the Japanese yen and the US dollar basket consisting of the US dollar and the Hong Kong dollar. For both of these, the hedging horizon is one year, which is divided into four three-month periods. hedging ratio must be increased during each quarter of the year, so that for the first three months of the hedging period the hedge ratio is approximately between 60 per cent and 90 per cent, with target ratio being 75 per cent. Thereafter, lower hedge ratio limits apply for each quarter. The investment position includes all foreign currency denominated aircraft investments for which a binding purchase agreement has been signed as well as commitments for sale and leaseback transactions in the next four years. According to its risk management policy, Finnair Group hedges 50\u2013100% of its aircraft investment exposure. New hedges of investments in aircraft are made as an IFRS 9 fair value hedge of a firm commitment.Balance sheet exposure consists of foreign currency denominated financial assets and liabilities, as well as other foreign currency denominated balance sheet items, such as provisions, trade receivables, trade payables and assets held for sale. Finnair Group has a target hedging ratio of 80% for net positions foreign currency denominated financial assets and financial liabilities exceeding 10 MEUR. The target ratio is reviewed quarterly. Maximum hedge ratio for balance sheet position is 100% and minimum is 0%. At the end of the financial year, Finnair had a hedge level for net operating cash flows of 36 per cent in the USD-basket and 32 per cent in JPY for the coming 12 months. On the closing date \u2013 excluding hedges \u2013 a 10 per cent strengthening of the US dollar against the euro has a negative impact on the 12-month result of around 74 million euro and a 10 per cent weakening of the Japanese yen against the euro has a negative impact on 12-month of around 8 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent strengthening of the US dollar weakens the result by around 48 million euro and a 10 per cent weakening of the Japanese yen weakens the result by around 5 million euro. In the above numbers, the USD-basket risk includes the Hong Kong dollar, which historical correlation with the US dollar is high. The hedge levels for balance sheet position at the end of the financial year were 70 per cent for USD and 90 per cent for Japanese yen. On the closing date \u2013 excluding hedges \u2013 a 10 per cent strengthening of the US dollar against the euro has a negative impact on the result of around 142 million euro and a 10 per cent strengthening of the Japanese yen against the euro has a negative impact of around 5 million euro. On the closing date \u2013 taking hedging into account \u2013 a 10 per cent strengthening of the US dollar weakens the result by around 43 million euro and a 10 per cent strengthening of the Japanese yen weakens the result by around 0.5 million euro.MaturityTiming of the notional Hedged price Notional amount and hedged price$/tonne(tonnes)Under 1 year 1 to 2 years31 December 2022Jet fuel consumption priced with NWE index 1,042.9 358,000 338,000 20,000 Jet fuel consumption priced with SING index31 December 2021Jet fuel consumption priced with NWE index 625.0 68,000 66,000 2,000 Jet fuel consumption priced with SING index - - - Cross-currency interest rate swaps are included in the nominal amount calculation.The average exchange rate of the instruments hedging highly probable forecasted sales and purchases denominated in foreign currencies is calculated by taking into account only the hedging (bought) leg of collar option structures, and therefore represents the least favorable hedged rate. The most favorable rate, calculatedby including only the sold leg of collar option structures, is 1.14 for USD contracts and 119.60 for JPY instruments.Interest rate riskInterest rate risk means the cash flow, financial performance and balance sheet uncertainty arising from interestrate fluctuations.In Finnair Group, the interest rate risk is measured using the interest rate re-fixing period. If necessary, interest rate derivatives are used to adjust the interest rate re-fixing period. According to the risk management policy, the mandate for the investment portfolio\u2019s interest rate re-fixing period is 0\u201312 months and for interest-bearing liabilities 36\u201372 months. On the closing date, the investment portfolio\u2019s interest rate re-fixing period was approximately 1 month and approximately 48 months for interest-bearing liabilities. On the closing date, a one percentage point rise in interest rates increases the annual interest income of the investment portfolio by approximately 13.8 million euros and the interest expenses of the loan portfolio by approximately 3.4 million euros. The situation as of December 31 2021 is a reasonable representation of conditions throughout the year given the current market environment.Future lease agreements expose the group to interest rate risk, as the interest rate is one component of the lease price. The interest rate is fixed when the lease payments start. If necessary, the group can hedge this exposure with cash flow hedges.Cross-currency interest rate swaps are included in the nominal amount calculation. Finnair has not entered into any interest rate derivatives on which it is paying a fixed rate.Foreign exchange investment exposure EUR mill. 31 December 2022 USDNet investment position -320.8Net hedges of investment position 183.7Weighted average exchange rate of hedging instruments against the euro 1.01Foreign exchange exposure from investment position after hedging -137.1Foreign exchange P&L exposure EUR mill. 31 December 2021 JPY USD-basketNet forecasted operating cash flows, next 12M 223.8 -705.6Net operating cash flow hedges, next 12M -5.0 57.0Weighted average exchange rate of hedging instruments against the euro 121.09 1.14Foreign exchange exposure from operating cash flows after hedging, next 12M 218.8 -648.6Foreign exchange balance sheet exposure EUR mill. 31 December 2021 JPY USDNet balance sheet items -53.0 -1,134.0Net hedges of balance sheet items 49.9 500.5Weighted average exchange rate of hedging instruments against the euro 130.26 1.17Foreign exchange exposure from balance sheet items after hedging -3.1 -633.5Foreign exchange investment exposure EUR mill. 31 December 2021 USDNet investment position -273.9Net hedges of investment position 162.9Weighted average exchange rate of hedging instruments against the euro 1.20Foreign exchange exposure from investment position after hedging -111.0Timing of the notional and hedged price rangeMaturityNotional amount Less than 31.12.2022(gross)1 year 1 to 2 years 2 to 4 yearsInterest rate derivatives 253.1 164.9 88.1 0.0Foreign exchange balance sheet exposure EUR mill. 31 December 2022 JPY USDNet balance sheet items -43.8 -988.5Net hedges of balance sheet items 38.9 564.1Weighted average exchange rate of hedging instruments against the euro 141.36 1.10Foreign exchange exposure from balance sheet items after hedging -4.9 -424.5Foreign exchange P&L exposure EUR mill. 31 December 2022 JPY USD-basketNet forecasted operating cash flows, next 12m 83.4 -707.1Net operating cash flow hedges, next 12m -26.2 258.5Weighted average exchange rate of hedging instruments against the euro 141.05 1.05Foreign exchange exposure from operating cash flows after hedging, next 12M 57.1 -448.7MaturityTiming of the notional Notional amount Less than EUR mill. 31 December 2022(gross)1 year 1 to 2 years 2 to 4 yearsUSD 994.1 905.9 88.1 0.0JPY 65.1 65.1",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1431-3": {
"value": "Credit riskThe Group is exposed to counterparty risk when investing its cash reserves and when using derivative instruments. The credit risk is managed by only making contracts with financially sound domestic and foreign banks, financial institutions and brokers, within the framework of the risk management policy for counterparty risk limits. Liquid assets are also invested in money market funds, bonds and commercial papers issued by conservatively selected companies, according to company-specific limits. This way, risk exposure to any single counterparty is not significant. Changes in the fair value of Group loans arises from changes in FX and interest rates, not from credit risk. The Group\u2019s credit risk exposure arises from other current financial assets presented in note 3.2.1, cash and cash equivalents presented in note 3.2.2, trade receivables presented in note 1.2.3 and derivatives presented in note 3.8.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1449-3": {
"value": "Liquidity riskThe goal of the Finnair Group is to maintain good liquidity. Liquidity is ensured by cash reserves, bank account limits, liquid money market investments and committed credit facilities. Counterparties of groups\u2019 long term loans are solid financial institutions with good reputations.The war in Ukraine or the COVID-19 pandemic has not had a direct impact on the basic principles of Finnair\u2019s liquidity risk management. However, due to the continued uncertainty in 2022 Finnair has kept relatively high liquidity levels. The liquidity was kept on high levels mainly through new financing as well as refinancing maturingdebt. The most significant financing transactions during the year 2022 were the withdrawal of the 400 million euro capital loan during the second and third quarter of 2022 and the refinancing of the 600 million euro pension premium loan during the last quarter of the 2022. The Group\u2019s cash funds were 1,524.4 million euro at the end of financial year 2022. Finnair Plc has a domestic commercial paper program of 200 million euro, which was not in use as of the closing date.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1461-3": {
"value": "Capital managementThe aim of Finnair\u2019s capital management is to secure access to the capital markets at all times despite the volatile business environment, as well as to support future business development. Through maintaining an optimal capital structure the Group also aims to minimize the cost of capital and maximize the return on capital employed. The capital structure is influenced via, for example, dividend distribution and share issues. The Group can vary and adjust the level of dividends paid to shareholders, the amount of capital returned to them or the number of new shares issued. The Group can also decide on sales of asset items in order to reduce debt. The aim of Finnair\u00b4s dividend policy is to pay on average at least one third of the earnings per share as dividends during an economic cycle.The COVID-19 pandemic as well as the war in Ukraine still impact Finnair\u2019s business and operating enviroment and therefore the balance sheet and capital structure. During the year 2022 Finnair strengthened the capital structure by withdrawing the 400 million euro capital loan, which according to the terms and conditions of the facility is considered to be equity. The development of the Group\u2019s capital structure is continuously monitored using the adjusted gearing ratio. When calculating adjusted gearing, adjusted interest-bearing net debt is divided by the amount of shareholders\u2019 equity. The Group\u2019s adjusted gearing at the end of 2022 was 266.4 per cent (321.8).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1488-3": {
"value": "Hedge Fair value accounting through profit Amortised EUR mill.itemsand losscost Book value31 Dec 2021Financial assetsReceivables 3.7 3.7Other financial assets 738.6 738.6Trade receivables and other receivables 256.9 256.9Derivatives 8.6 14.9 23.5Cash and cash equivalents 785.8 785.8Book value total 8.6 753.5 1,046.3 1,808.5Fair value total 8.6 753.5 1,406.3 1,808.5Financial liabilitiesInterest-bearing liabilities 1,298.5 1,298.5Lease liabilities 1,330.7 1,330.7Derivatives 33.1 3.5 36.7Trade payables and other liabilities 234.7 234.7Book value total 33.1 3.5 2,863.8 2,900.5Fair value total 33.1 3.5 2,358.9 2,395.6Hedge Fair value accounting through profit Amortised EUR mill.itemsand losscost Book value31 Dec 2021Financial assetsReceivables 3.3 3.3Other financial assets 531.4 531.4Trade receivables and other receivables 166.7 166.7Derivatives 13.7 12.4 26.1Cash and cash equivalents 734.3 734.3Book value total 13.7 543.8 904.3 1,461.8Fair value total 13.7 543.8 904.3 1,461.8Financial liabilitiesInterest-bearing liabilities 1,427.9 1,427.9Lease liabilities 1,381.0 1,381.0Derivatives 0.3 0.1 0.4Trade payables and other liabilities 234.7 234.7Book value total 0.3 0.1 3,043.6 3,044.0Fair value total 0.3 0.1 3,052.7 3,053.1Fair value hierarchy of financial assets and liabilities valued at fair valueFair values at the end of the reporting periodDuring the financial year, no significant transfers took place between fair value hierarchy Levels 1 and 2.The fair values of hierarchy Level 1 are fully based on quoted (unadjusted) prices in active markets of the same assets and liabilities.The fair values of Level 2 instruments are, to a significant extent, based on input data other than the quoted prices included in Level 1, but still mainly based on directly observable data (price) or indirectly observable data (derived from price) for the particular asset or liability.On the other hand, the fair values of Level 3 instruments are based on asset or liability input data that is not based on observable market information (unobservable inputs). The fair values are based on confirmations supplied by counterparties, based on generally accepted valuation models.EUR mill. 31 Dec 2022 Level 1 Level 2AssetsFinancial assets at fair valueSecurities held for trading 738.6 690.8 47.8DerivativesCurrency and interest rate swaps and options 13.5 13.5Currency derivatives 0.5 0.5 - of which in cash flow hedge accounting 0.1 0.1Commodity derivatives 9.5 9.5 - of which in cash flow hedge accounting 8.6 8.6Total 762.1 690.8 71.3LiabilitiesFinancial liabilities at fair valueDerivativesCurrency and interest rate swaps and options 2.8 2.8Currency derivatives 19.8 19.8 - of which in fair value hedge accounting 11.6 11.6 - of which in cash flow hedge accounting 7.4 7.4Commodity derivatives 14.1 14.1 - of which in cash flow hedge accounting 14.1 14.1Total 36.7 36.7",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1511-3": {
"value": "For the above financial assets and liabilities, subject to enforceable master netting arrangements or similar arrangements, each agreement between the Group and the counterparty allows net settlement of the relevant financial assets and liabilities when both parties choose to settle on a net basis. In the absence of such mutual decision, financial assets and liabilities will be settled on a gross basis. However, each party of the master netting agreement, or similar agreement, will have the option to settle on a net basis in the event of default of the other party. Depending on the terms of each agreement, an event of default includes failure by a party to make a payment when due, failure by a party to perform any obligation required by the agreement (other than payment), if such failure is not remedied within periods of 30 to 60 days after notice of such failure is given to the party, or bankruptcy.EUR mill. 2022 2021Derivative assets gross amounts 23.5 26.1Amounts of financial assets presented in the balance sheet 23.5 26.1Enforceable master netting agreement -21.2 -0.4Derivative assets net amount 2.3 25.7EUR mill. 2022 2021Derivative liabilities gross amounts -36.7 -0.4Amounts of financial liabilities presented in the balance sheet -36.7 -0.4Enforceable master netting agreement 21.2 0.4Derivative liabilites net amount -15.5 0.0",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1519-2": {
"value": "3.8 Derivatives Derivative contracts and hedge accountingAccording to its risk management policy, Finnair Group uses foreign currency, interest rate and commodity derivatives to reduce the exchange rate, interest rate and commodity risks which arise from the Group\u2019s balance sheet items, foreign currency denominated purchase agreements, anticipated foreign currency denominated purchases and sales as well as future jet fuel purchases. It is the Group\u2019s policy not to enter into derivative financial contracts for speculative purposes.The derivatives are initially recognised as well as subsequently valued at fair value in each financial statement and interim report. The fair values of the derivatives are based on the value at which the instrument could be exchanged between knowledgeable, willing and independent parties, with no compulsion to sell or buy in the sales situation. The fair values of derivatives are determined as follows:The fair values of all derivatives are calculated using the exchange rates, interest rates, volatilities and commodity price quotations on the closing date. The fair values of currency forward contracts are calculated as the present value of future cash flows. The fair values of currency options are calculated using the Black-Scholes option pricing model. The fair values of interest rate swap contracts are calculated as the present value of future cash flows. The fair values of cross-currency interest rate swap contracts are calculated as the present value of future cash flows. The fair values of interest rate options are calculated using generally accepted option valuation models. The fair values of commodity forward contracts are calculated as the present value of future cash flows. The fair values of commodity options are calculated using generally accepted option valuation models.The Group uses credit valuation adjustment for cross-currency interest rate swaps as the maturities of these derivatives are long. The credit valuation adjustment is not done for the rest of the derivatives as the maturities for these are short and the impact would not be material. Credit risk management is described in more detail in note 3.5.Gains and losses arising from changes in the fair value are presented in the financial statements according to the original classification of the derivative. Gains and losses on derivatives qualifying for hedge accounting are recognised in accordance with the nature of the risk being hedged. At inception, derivative contracts are designated as hedges of future cash flows, hedges of the fair value of recognised assets or liabilities and binding purchase contracts (cash flow hedges or fair value hedges) or as derivatives not meeting the hedge accounting criteria or to which hedge accounting is not applied (economic hedges). Hedging of the fair value of net investments of foreign units or embedded derivatives have not been used. At the inception of hedge accounting, Finnair Group documents the economic relationship and the hedge ratio between the hedged item and the hedging instrument, as well as the Group\u2019s risk management objectives and the strategy for the inception of hedging. At the inception of hedging, and at least at the time of each financial statement, the Group documents and assesses the effectiveness of hedge relationships by examining the past and prospective capacity of the hedging instrument to offset changes in the fair value of the hedged item or changes in cash flows. The values of derivatives in a hedging relationship are presented in the balance sheet item Short\u2013term financial asset and liabilities.Finnair Group implements the IFRS hedge accounting principles in the hedging of future cash flows (cash flow hedging). The principles are applied to the price and foreign currency risk of jet fuel, the foreign currency risk of lease payments and the foreign currency risk of highly probable future sales and costs denominated in foreign currencies. The IFRS fair value hedge accounting principles are applied to the hedging of foreign exchange and interest rate risk of aircraft.The change in the fair value of the effective portion of derivative instruments that have been designated and qualify as cash flow hedges are recognised in comprehensive income and presented within equity in the fair value reserve, to the extent that the requirements for the application of hedge accounting have been fulfilled and the hedge is effective. The gains and losses, recognised in the fair value reserve, are transferred to the income statement in the period in which the hedged item is recognised in the income statement. When a hedging instrument expires or is sold, terminated or exercised, or the criteria for cash flow hedge accounting are no longer fulfilled, but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in the hedge reserve and is recognised in accordance with the above policy when the transaction occurs. If the underlying hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in the hedge reserve with respect to the hedging instrument is recognised immediately in the consolidated income statement.The effectiveness of hedging is tested on a quarterly basis. The effective portion of the hedges is recognised in the fair value reserve of other comprehensive income, from which it is transferred to the income statement when the hedged item is realised or, in terms of investments, as an acquisition cost adjustment.Fair value hedging is implemented on firm orders of new aircraft, and in order to hedge the fixed interest rate bond. The binding purchase agreements for new aircraft are treated as firm commitments under IFRS, and therefore, the fair value changes of the hedged part arising from foreign currency movements are recognised in the balance sheet as an asset item, and corresponding gains or losses recognised through profit and loss. Similarly, the fair value of instruments hedging these purchases is presented in the balance sheet as a liability or receivable, and the change in fair value is recognised in profit and loss. The gain or loss related to the effective portion of the interest rate swap, which hedges the fixed interest rate bond, is recognised as financial income or expenses in the income statement. The gain or loss related to the ineffective portion is recognised within other operating income and expenses in the income statement. The change in the fair value attributable to the interest rate risk of the hedged fixed interest rate loans is recognised in the financial expenses in the income statement.If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item, for which the effective interest method is used, is amortized to profit or loss over the period to maturity.Finnair Group uses cross-currency interest rate swaps in the hedging of the interest rate and foreign exchange risks of foreign currency denominated loans. Cross-currency interest rate swaps are excluded from hedge accounting, and therefore the fair value changes are recognised in derivative assets and liabilities in the balance sheet, as well as in the financial income and expenses in the income statement. The fair value changes of the loans are simultaneously recognised in the financial income and expenses. Realised foreign exchange rate differences, as well as interest income and expenses, are recognised in the financial income and expenses against the exchange rate differences and interest income and expenses of the loanFinnair Group uses jet fuel swaps (forward contracts) and options in the hedging of jet fuel price risk. Unrealised gains and losses on derivatives hedging jet fuel, which are designated as cash flow hedges and fulfil the requirements of IFRS hedge accounting, are recognised in the hedging reserve within other comprehensive income. Accrued derivative gains and losses, recognised in shareholders\u2019 equity, are recognised as income or expense in the income statement in the same financial period as the hedged item is recognised in the income statement. If a forecasted cash flow is no longer expected to occur, and as a result the IFRS hedge accounting criteria are not fulfilled, the fair value changes and the accrued gains and losses reported in shareholders\u2019 equity are transferred to the items affecting comparability in the income statement. Changes in the fair value of jet fuel swaps and options excluded from hedge accounting are recognised in fair value changes in derivatives in the income statement, while the realised result is presented in fuel costs. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as the hedging instrument and the hedged item are expected to move in opposite directions because of the same underlying exposure. This is true for all hedge relationships except for the SING consumption hedged with NWE hedges (as described in section 3.5). In that case, the underlying is different, but the underlying hedged item (SING) and the hedge (NWE) have a historical correlation of 0.99. Therefore, it can be classified as a relationship where the underlying and the hedge are economically closely related. Ineffectiveness on fuel derivatives can also arise from timing differences on the notional amount between the hedged instrument and hedged item, significant changes in credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying fuel consumption forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Finnair has established a hedge ratio of 1:1 for hedging relationships.Finnair uses forward contracts and options to hedge its exposure to foreign currency denominated cash flows. The hedges of cash flows denominated in foreign currencies are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. Unrealised gains and losses on hedges of forecasted cash flows qualifying for hedge accounting are recognised in the hedging reserve in OCI, while the change in the fair value of such hedges not qualifying for hedge accounting is recognised in Fair value changes in derivatives and changes in exchange rates of fleet overhauls in the income statement. The change in fair value recognised in the hedging reserve in equity is transferred to the income statement when the hedged transaction is realised. Forward points are included in the hedging instrument and in the hedge relationship. Potential sources of ineffectiveness include changes in the timing of the hedged item, significant changes in the credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying cash flow forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Realised profit or loss on derivatives hedging JPY-denominated operating cash flows is presented in revenue, realised profit or loss on derivatives hedging a group of similar USD costs is proportionally recognised in corresponding expense lines, while profit or loss on derivatives hedging cash flows denominated in other currencies is presented in Other expenses.The hedge ratio is defined as the relationship between the quantity of the hedging instrument and the quantity of the hedged item in terms of their relative weighting. With currency hedging, the hedge ratio is typically 1:1. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as there is an expectation that the value of the hedging instrument and the value of the hedged item would move in opposite directions because of the common underlying exposure. Changes in the fair value of interest rate derivatives not qualifying for hedge accounting are recognised in financial income and expenses in the income statement. Changes in the fair value as well as realised gain or loss on forward contracts used to hedge foreign currency denominated balance sheet items of Finnair Group are recognised in financial expenses. Changes in the fair value and the realised result of hedges of assets held for sale are recognised in Items affecting comparability. Cost of hedgingAt Finnair, the time value of an option is excluded from the designation of a financial instrument and accounted for as a cost of hedging. Up on initial recognition, Finnair defers any paid premium in the cost of hedging reserve within other comprehensive income. The fair value changes of the time value are recognised in the cost of hedging reserve within other comprehensive income. The premium will be transferred to the consolidated income statement in the same period that the underlying transaction affects the consolidated income statement for transaction-related hedges. As of 31 December 2022, Finnair has deferred premiums only on transaction-related hedges.Impact of COVID-19 to hedge accounting and derivativesDue to the COVID-19 pandemic impacts on Finnair\u2019s underlying business during 2020 and 2021, the hedging operations regarding foreign exchange currencies and jet fuel price risk were impacted. Much lower demand as a result of the COVID-19 pandemic during the year 2020 meant that the amount of underlying risk was significantly reduced from forecasted amounts forcing Finnair to discontinue hedge accounting on the majority of its hedges in foreign exchange and jet fuel that were under hedge accounting. The last discontinued hedging relationships matured during the last quarter of 2021 and the realized gains or losses are shown in financial income and expenses. In the last quarter of 2021 Finnair restarted its hedging program in foreign exchange as well as jet fuel according to the revised risk management policy. The risk management policy was further revised in December 2022. More information about the revised risk management policy can be found in note 3.5.Impact of war in Ukraine to hedging operationsFinnair\u2019s operating environment has become significantly more difficult since the publication of the 2021 financial statements, due to the escalation of the geopolitical situation in Eastern Europe resulting from Russia\u2019s attack against Ukraine. The resulting sanctions, and countersanctions, led to the closure of Russian airspace which has had a significant impact on the routings and operating costs of Finnair\u2019s flights to Asia. Also, the price of jet fuel increased significantly during the financial year and increased the uncertainty. At the same time, the COVID-19 pandemic continues to still have an impact on Finnair\u2019s business, especially in the Asian markets, which is also contributing to the uncertainty relating to the near- and long-term development of its operating environment. The war in Ukraine did not directly impact the hedging operations of Finnair and after publishing the revised strategy the risk management policy was also updated in December 2022. More detailed information about the update can be found from the note 3.5. Critical accounting estimates and sources of uncertaintyFinnair accounts for its cash flow hedges of forecasted foreign currency denominated purchases and sales and future jet fuel purchases in accordance with the IFRS 9. Under the hedge accounting principles, a forecast transaction can be designated as a hedged item only if that transaction is considered as highly probable. The evaluation of probability is based on the management forecasts about the future level of Finnair\u2019s operations and cash flows. Such forecasts require the use of management judgement and assumptions, which inherently contain some degree of uncertainty that is further increased due to the COVID-19-pandemic. Should the expected circumstances or outcome change i the future, the management would need to reassess whether a hedged forecast transaction is still highly likely to occur. This could be the case if, for example, the expected recovery and thus the expected jet fuel consumption levels would not realize as expected. Should the forecast transaction no longer be highly probable, it would no longer qualify as an eligible hedged item and hedge accounting would need to be discontinued. Should it no longer be expected to occur at all, the balance of the cash flow hedge reserve included in other comprehensive income would need to be reclassified to profit or loss. Hedged items in hedge relationshipsRatings of derivative counterpartiesDerivatives realised through profit and loss2022 2021Positive Negative Positive Negative Nominal fair fair Fair net Nominal fair fair Fair net EUR mill.valuevaluesvaluesvaluevaluevaluesvaluesvalueCurrency derivativesJet fuel currency hedgingOperational cash flow hedging (forward contracts) 284.7 0.1 -7.4 -7.3 57.4 0.8 -0.1 0.7Operational cash flow hedging, bought options 4.5 0.0 0.0Operational cash flow hedging, sold options 4.3 0.0 0.0Fair value hedging of aircraft acquisitions 183.7 -11.6 -11.6 162.9 8.8 8.8Hedging of lease paymentsHedge accounting items total 468.4 0.1 -19.0 -18.9 229.2 9.6 -0.1 9.5Balance sheet hedging (forward contracts) 337.7 0.4 -0.7 -0.3 270.1 0.1 -0.1 0.0Items outside hedge accounting total 337.7 0.4 -0.7 -0.3 270.1 0.1 -0.1 0.0Currency derivatives total 806.1 0.5 -19.8 -19.3 499.3 9.7 -0.2 9.5Commodity derivativesJet fuel forward contracts, tonnes 209,000 3.4 -6.0 -2.5 68,000 4.1 -0.2 3.9Bought options, jet fuel, tonnes 149,000 4.9 -0.2 4.8Sold options, jet fuel, tonnes 149,000 0.2 -7.9 -7.8Hedge accounting items total 8.6 -14.1 -5.6 4.1 -0.2 3.9Bought options, jet fuel, tonnes 149,000 0.9 0.9Items outside hedge accounting total 0.9 0.9Commodity derivatives total 9.5 -14.1 -4.6 4.1 -0.2 3.9Cross currency interest rate swaps 253.1 13.5 -2.8 10.7 280.3 12.3 12.3Items outside hedge accounting total 253.1 13.5 -2.8 10.7 280.3 12.3 12.3Interest rate derivatives total 253.1 13.5 -2.8 10.7 280.3 12.3 12.3Derivatives total * 23.5 -36.7 -13.2 26.1 -0.4 25.7Changes in Accumulated Changes in fair value of amount of fair value Line item fair value of the hedging hedge adjustments in the the hedged instrument included in the statement item used for used for Carrying amount of carrying amount of of financial calculating calculating the hedged itemthe hedged itemposition in hedge inef-hedge inef-which the fectiveness, fectiveness, hedged item previous 12 previous 12 is includedmonthsmonths31 December 2022 Assets Liabilities Assets LiabilitiesCash flow hedgesJet fuel price risk- Forecasted jet fuel purchases -191.3 21.7Foreign exchange risk- Forecasted sales and purchases -59.3 2.5Fair value hedgesForeign exchange riskNon-current - Aircraft acquisitions 11.6 11.6assets -17.0 7.9EUR mill. 2022 2021Better than A 0.7 9.1A -11.9 16.6BBB 0.0Total -13.2 25.7EUR mill. 2022 2021Jet fuel hedging Fuel costs 21.3 7.6Operational cash flow hedging Fuel costs 8.4 -4.2Operational cash flow hedging Aircraft materials and overhaul 0.4 -0.2Operational cash flow hedging Traffic charges 0.5 -1.0Operational cash flow hedging Revenue 0.3 2.4Expenses of hedge accounting items total 31.0 4.5Discontinued Jet fuel hedging Financial expenses -26.5Balance sheet hedging Financial expenses 16.6 15.5Discontinued foreign currency hedging Financial expenses 3.4Cross-currency interest rate swaps Financial expenses 5.5 2.3Expenses of items outside hedge accounting total 18.9 -5.3Maturity dates of fair values recognised in the hedging reserveEUR mill. 2023 2024 2025 2026 2027 Later TotalJet fuel price hedging -5.5 -0.4 -5.9Operating cash flow hedging -7.3 -7.3Hedging of interest related to future lease payments -0.7 -0.7 -0.7 -0.7 -0.7 -3.6The actuarial gains and losses of defined benefit plan 70.4 70.4Cost of hedging reserve 3.3 3.3Tax effect -14.7 0.2 0.1 0.1 0.1 -14.1Total 45.5 -0.9 -0.6 -0.6 -0.6 0.0 42.8",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1519-4": {
"value": "3.8 Derivatives Derivative contracts and hedge accountingAccording to its risk management policy, Finnair Group uses foreign currency, interest rate and commodity derivatives to reduce the exchange rate, interest rate and commodity risks which arise from the Group\u2019s balance sheet items, foreign currency denominated purchase agreements, anticipated foreign currency denominated purchases and sales as well as future jet fuel purchases. It is the Group\u2019s policy not to enter into derivative financial contracts for speculative purposes.The derivatives are initially recognised as well as subsequently valued at fair value in each financial statement and interim report. The fair values of the derivatives are based on the value at which the instrument could be exchanged between knowledgeable, willing and independent parties, with no compulsion to sell or buy in the sales situation. The fair values of derivatives are determined as follows:The fair values of all derivatives are calculated using the exchange rates, interest rates, volatilities and commodity price quotations on the closing date. The fair values of currency forward contracts are calculated as the present value of future cash flows. The fair values of currency options are calculated using the Black-Scholes option pricing model. The fair values of interest rate swap contracts are calculated as the present value of future cash flows. The fair values of cross-currency interest rate swap contracts are calculated as the present value of future cash flows. The fair values of interest rate options are calculated using generally accepted option valuation models. The fair values of commodity forward contracts are calculated as the present value of future cash flows. The fair values of commodity options are calculated using generally accepted option valuation models.The Group uses credit valuation adjustment for cross-currency interest rate swaps as the maturities of these derivatives are long. The credit valuation adjustment is not done for the rest of the derivatives as the maturities for these are short and the impact would not be material. Credit risk management is described in more detail in note 3.5.Gains and losses arising from changes in the fair value are presented in the financial statements according to the original classification of the derivative. Gains and losses on derivatives qualifying for hedge accounting are recognised in accordance with the nature of the risk being hedged. At inception, derivative contracts are designated as hedges of future cash flows, hedges of the fair value of recognised assets or liabilities and binding purchase contracts (cash flow hedges or fair value hedges) or as derivatives not meeting the hedge accounting criteria or to which hedge accounting is not applied (economic hedges). Hedging of the fair value of net investments of foreign units or embedded derivatives have not been used. At the inception of hedge accounting, Finnair Group documents the economic relationship and the hedge ratio between the hedged item and the hedging instrument, as well as the Group\u2019s risk management objectives and the strategy for the inception of hedging. At the inception of hedging, and at least at the time of each financial statement, the Group documents and assesses the effectiveness of hedge relationships by examining the past and prospective capacity of the hedging instrument to offset changes in the fair value of the hedged item or changes in cash flows. The values of derivatives in a hedging relationship are presented in the balance sheet item Short\u2013term financial asset and liabilities.Finnair Group implements the IFRS hedge accounting principles in the hedging of future cash flows (cash flow hedging). The principles are applied to the price and foreign currency risk of jet fuel, the foreign currency risk of lease payments and the foreign currency risk of highly probable future sales and costs denominated in foreign currencies. The IFRS fair value hedge accounting principles are applied to the hedging of foreign exchange and interest rate risk of aircraft.The change in the fair value of the effective portion of derivative instruments that have been designated and qualify as cash flow hedges are recognised in comprehensive income and presented within equity in the fair value reserve, to the extent that the requirements for the application of hedge accounting have been fulfilled and the hedge is effective. The gains and losses, recognised in the fair value reserve, are transferred to the income statement in the period in which the hedged item is recognised in the income statement. When a hedging instrument expires or is sold, terminated or exercised, or the criteria for cash flow hedge accounting are no longer fulfilled, but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in the hedge reserve and is recognised in accordance with the above policy when the transaction occurs. If the underlying hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in the hedge reserve with respect to the hedging instrument is recognised immediately in the consolidated income statement.The effectiveness of hedging is tested on a quarterly basis. The effective portion of the hedges is recognised in the fair value reserve of other comprehensive income, from which it is transferred to the income statement when the hedged item is realised or, in terms of investments, as an acquisition cost adjustment.Fair value hedging is implemented on firm orders of new aircraft, and in order to hedge the fixed interest rate bond. The binding purchase agreements for new aircraft are treated as firm commitments under IFRS, and therefore, the fair value changes of the hedged part arising from foreign currency movements are recognised in the balance sheet as an asset item, and corresponding gains or losses recognised through profit and loss. Similarly, the fair value of instruments hedging these purchases is presented in the balance sheet as a liability or receivable, and the change in fair value is recognised in profit and loss. The gain or loss related to the effective portion of the interest rate swap, which hedges the fixed interest rate bond, is recognised as financial income or expenses in the income statement. The gain or loss related to the ineffective portion is recognised within other operating income and expenses in the income statement. The change in the fair value attributable to the interest rate risk of the hedged fixed interest rate loans is recognised in the financial expenses in the income statement.If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item, for which the effective interest method is used, is amortized to profit or loss over the period to maturity.Finnair Group uses cross-currency interest rate swaps in the hedging of the interest rate and foreign exchange risks of foreign currency denominated loans. Cross-currency interest rate swaps are excluded from hedge accounting, and therefore the fair value changes are recognised in derivative assets and liabilities in the balance sheet, as well as in the financial income and expenses in the income statement. The fair value changes of the loans are simultaneously recognised in the financial income and expenses. Realised foreign exchange rate differences, as well as interest income and expenses, are recognised in the financial income and expenses against the exchange rate differences and interest income and expenses of the loanFinnair Group uses jet fuel swaps (forward contracts) and options in the hedging of jet fuel price risk. Unrealised gains and losses on derivatives hedging jet fuel, which are designated as cash flow hedges and fulfil the requirements of IFRS hedge accounting, are recognised in the hedging reserve within other comprehensive income. Accrued derivative gains and losses, recognised in shareholders\u2019 equity, are recognised as income or expense in the income statement in the same financial period as the hedged item is recognised in the income statement. If a forecasted cash flow is no longer expected to occur, and as a result the IFRS hedge accounting criteria are not fulfilled, the fair value changes and the accrued gains and losses reported in shareholders\u2019 equity are transferred to the items affecting comparability in the income statement. Changes in the fair value of jet fuel swaps and options excluded from hedge accounting are recognised in fair value changes in derivatives in the income statement, while the realised result is presented in fuel costs. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as the hedging instrument and the hedged item are expected to move in opposite directions because of the same underlying exposure. This is true for all hedge relationships except for the SING consumption hedged with NWE hedges (as described in section 3.5). In that case, the underlying is different, but the underlying hedged item (SING) and the hedge (NWE) have a historical correlation of 0.99. Therefore, it can be classified as a relationship where the underlying and the hedge are economically closely related. Ineffectiveness on fuel derivatives can also arise from timing differences on the notional amount between the hedged instrument and hedged item, significant changes in credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying fuel consumption forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Finnair has established a hedge ratio of 1:1 for hedging relationships.Finnair uses forward contracts and options to hedge its exposure to foreign currency denominated cash flows. The hedges of cash flows denominated in foreign currencies are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. Unrealised gains and losses on hedges of forecasted cash flows qualifying for hedge accounting are recognised in the hedging reserve in OCI, while the change in the fair value of such hedges not qualifying for hedge accounting is recognised in Fair value changes in derivatives and changes in exchange rates of fleet overhauls in the income statement. The change in fair value recognised in the hedging reserve in equity is transferred to the income statement when the hedged transaction is realised. Forward points are included in the hedging instrument and in the hedge relationship. Potential sources of ineffectiveness include changes in the timing of the hedged item, significant changes in the credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying cash flow forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Realised profit or loss on derivatives hedging JPY-denominated operating cash flows is presented in revenue, realised profit or loss on derivatives hedging a group of similar USD costs is proportionally recognised in corresponding expense lines, while profit or loss on derivatives hedging cash flows denominated in other currencies is presented in Other expenses.The hedge ratio is defined as the relationship between the quantity of the hedging instrument and the quantity of the hedged item in terms of their relative weighting. With currency hedging, the hedge ratio is typically 1:1. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as there is an expectation that the value of the hedging instrument and the value of the hedged item would move in opposite directions because of the common underlying exposure. Changes in the fair value of interest rate derivatives not qualifying for hedge accounting are recognised in financial income and expenses in the income statement. Changes in the fair value as well as realised gain or loss on forward contracts used to hedge foreign currency denominated balance sheet items of Finnair Group are recognised in financial expenses. Changes in the fair value and the realised result of hedges of assets held for sale are recognised in Items affecting comparability. Cost of hedgingAt Finnair, the time value of an option is excluded from the designation of a financial instrument and accounted for as a cost of hedging. Up on initial recognition, Finnair defers any paid premium in the cost of hedging reserve within other comprehensive income. The fair value changes of the time value are recognised in the cost of hedging reserve within other comprehensive income. The premium will be transferred to the consolidated income statement in the same period that the underlying transaction affects the consolidated income statement for transaction-related hedges. As of 31 December 2022, Finnair has deferred premiums only on transaction-related hedges.Impact of COVID-19 to hedge accounting and derivativesDue to the COVID-19 pandemic impacts on Finnair\u2019s underlying business during 2020 and 2021, the hedging operations regarding foreign exchange currencies and jet fuel price risk were impacted. Much lower demand as a result of the COVID-19 pandemic during the year 2020 meant that the amount of underlying risk was significantly reduced from forecasted amounts forcing Finnair to discontinue hedge accounting on the majority of its hedges in foreign exchange and jet fuel that were under hedge accounting. The last discontinued hedging relationships matured during the last quarter of 2021 and the realized gains or losses are shown in financial income and expenses. In the last quarter of 2021 Finnair restarted its hedging program in foreign exchange as well as jet fuel according to the revised risk management policy. The risk management policy was further revised in December 2022. More information about the revised risk management policy can be found in note 3.5.Impact of war in Ukraine to hedging operationsFinnair\u2019s operating environment has become significantly more difficult since the publication of the 2021 financial statements, due to the escalation of the geopolitical situation in Eastern Europe resulting from Russia\u2019s attack against Ukraine. The resulting sanctions, and countersanctions, led to the closure of Russian airspace which has had a significant impact on the routings and operating costs of Finnair\u2019s flights to Asia. Also, the price of jet fuel increased significantly during the financial year and increased the uncertainty. At the same time, the COVID-19 pandemic continues to still have an impact on Finnair\u2019s business, especially in the Asian markets, which is also contributing to the uncertainty relating to the near- and long-term development of its operating environment. The war in Ukraine did not directly impact the hedging operations of Finnair and after publishing the revised strategy the risk management policy was also updated in December 2022. More detailed information about the update can be found from the note 3.5. Critical accounting estimates and sources of uncertaintyFinnair accounts for its cash flow hedges of forecasted foreign currency denominated purchases and sales and future jet fuel purchases in accordance with the IFRS 9. Under the hedge accounting principles, a forecast transaction can be designated as a hedged item only if that transaction is considered as highly probable. The evaluation of probability is based on the management forecasts about the future level of Finnair\u2019s operations and cash flows. Such forecasts require the use of management judgement and assumptions, which inherently contain some degree of uncertainty that is further increased due to the COVID-19-pandemic. Should the expected circumstances or outcome change i the future, the management would need to reassess whether a hedged forecast transaction is still highly likely to occur. This could be the case if, for example, the expected recovery and thus the expected jet fuel consumption levels would not realize as expected. Should the forecast transaction no longer be highly probable, it would no longer qualify as an eligible hedged item and hedge accounting would need to be discontinued. Should it no longer be expected to occur at all, the balance of the cash flow hedge reserve included in other comprehensive income would need to be reclassified to profit or loss. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1519-5": {
"value": "3.8 Derivatives Derivative contracts and hedge accountingAccording to its risk management policy, Finnair Group uses foreign currency, interest rate and commodity derivatives to reduce the exchange rate, interest rate and commodity risks which arise from the Group\u2019s balance sheet items, foreign currency denominated purchase agreements, anticipated foreign currency denominated purchases and sales as well as future jet fuel purchases. It is the Group\u2019s policy not to enter into derivative financial contracts for speculative purposes.The derivatives are initially recognised as well as subsequently valued at fair value in each financial statement and interim report. The fair values of the derivatives are based on the value at which the instrument could be exchanged between knowledgeable, willing and independent parties, with no compulsion to sell or buy in the sales situation. The fair values of derivatives are determined as follows:The fair values of all derivatives are calculated using the exchange rates, interest rates, volatilities and commodity price quotations on the closing date. The fair values of currency forward contracts are calculated as the present value of future cash flows. The fair values of currency options are calculated using the Black-Scholes option pricing model. The fair values of interest rate swap contracts are calculated as the present value of future cash flows. The fair values of cross-currency interest rate swap contracts are calculated as the present value of future cash flows. The fair values of interest rate options are calculated using generally accepted option valuation models. The fair values of commodity forward contracts are calculated as the present value of future cash flows. The fair values of commodity options are calculated using generally accepted option valuation models.The Group uses credit valuation adjustment for cross-currency interest rate swaps as the maturities of these derivatives are long. The credit valuation adjustment is not done for the rest of the derivatives as the maturities for these are short and the impact would not be material. Credit risk management is described in more detail in note 3.5.Gains and losses arising from changes in the fair value are presented in the financial statements according to the original classification of the derivative. Gains and losses on derivatives qualifying for hedge accounting are recognised in accordance with the nature of the risk being hedged. At inception, derivative contracts are designated as hedges of future cash flows, hedges of the fair value of recognised assets or liabilities and binding purchase contracts (cash flow hedges or fair value hedges) or as derivatives not meeting the hedge accounting criteria or to which hedge accounting is not applied (economic hedges). Hedging of the fair value of net investments of foreign units or embedded derivatives have not been used. At the inception of hedge accounting, Finnair Group documents the economic relationship and the hedge ratio between the hedged item and the hedging instrument, as well as the Group\u2019s risk management objectives and the strategy for the inception of hedging. At the inception of hedging, and at least at the time of each financial statement, the Group documents and assesses the effectiveness of hedge relationships by examining the past and prospective capacity of the hedging instrument to offset changes in the fair value of the hedged item or changes in cash flows. The values of derivatives in a hedging relationship are presented in the balance sheet item Short\u2013term financial asset and liabilities.Finnair Group implements the IFRS hedge accounting principles in the hedging of future cash flows (cash flow hedging). The principles are applied to the price and foreign currency risk of jet fuel, the foreign currency risk of lease payments and the foreign currency risk of highly probable future sales and costs denominated in foreign currencies. The IFRS fair value hedge accounting principles are applied to the hedging of foreign exchange and interest rate risk of aircraft.The change in the fair value of the effective portion of derivative instruments that have been designated and qualify as cash flow hedges are recognised in comprehensive income and presented within equity in the fair value reserve, to the extent that the requirements for the application of hedge accounting have been fulfilled and the hedge is effective. The gains and losses, recognised in the fair value reserve, are transferred to the income statement in the period in which the hedged item is recognised in the income statement. When a hedging instrument expires or is sold, terminated or exercised, or the criteria for cash flow hedge accounting are no longer fulfilled, but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in the hedge reserve and is recognised in accordance with the above policy when the transaction occurs. If the underlying hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in the hedge reserve with respect to the hedging instrument is recognised immediately in the consolidated income statement.The effectiveness of hedging is tested on a quarterly basis. The effective portion of the hedges is recognised in the fair value reserve of other comprehensive income, from which it is transferred to the income statement when the hedged item is realised or, in terms of investments, as an acquisition cost adjustment.Fair value hedging is implemented on firm orders of new aircraft, and in order to hedge the fixed interest rate bond. The binding purchase agreements for new aircraft are treated as firm commitments under IFRS, and therefore, the fair value changes of the hedged part arising from foreign currency movements are recognised in the balance sheet as an asset item, and corresponding gains or losses recognised through profit and loss. Similarly, the fair value of instruments hedging these purchases is presented in the balance sheet as a liability or receivable, and the change in fair value is recognised in profit and loss. The gain or loss related to the effective portion of the interest rate swap, which hedges the fixed interest rate bond, is recognised as financial income or expenses in the income statement. The gain or loss related to the ineffective portion is recognised within other operating income and expenses in the income statement. The change in the fair value attributable to the interest rate risk of the hedged fixed interest rate loans is recognised in the financial expenses in the income statement.If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item, for which the effective interest method is used, is amortized to profit or loss over the period to maturity.Finnair Group uses cross-currency interest rate swaps in the hedging of the interest rate and foreign exchange risks of foreign currency denominated loans. Cross-currency interest rate swaps are excluded from hedge accounting, and therefore the fair value changes are recognised in derivative assets and liabilities in the balance sheet, as well as in the financial income and expenses in the income statement. The fair value changes of the loans are simultaneously recognised in the financial income and expenses. Realised foreign exchange rate differences, as well as interest income and expenses, are recognised in the financial income and expenses against the exchange rate differences and interest income and expenses of the loanFinnair Group uses jet fuel swaps (forward contracts) and options in the hedging of jet fuel price risk. Unrealised gains and losses on derivatives hedging jet fuel, which are designated as cash flow hedges and fulfil the requirements of IFRS hedge accounting, are recognised in the hedging reserve within other comprehensive income. Accrued derivative gains and losses, recognised in shareholders\u2019 equity, are recognised as income or expense in the income statement in the same financial period as the hedged item is recognised in the income statement. If a forecasted cash flow is no longer expected to occur, and as a result the IFRS hedge accounting criteria are not fulfilled, the fair value changes and the accrued gains and losses reported in shareholders\u2019 equity are transferred to the items affecting comparability in the income statement. Changes in the fair value of jet fuel swaps and options excluded from hedge accounting are recognised in fair value changes in derivatives in the income statement, while the realised result is presented in fuel costs. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as the hedging instrument and the hedged item are expected to move in opposite directions because of the same underlying exposure. This is true for all hedge relationships except for the SING consumption hedged with NWE hedges (as described in section 3.5). In that case, the underlying is different, but the underlying hedged item (SING) and the hedge (NWE) have a historical correlation of 0.99. Therefore, it can be classified as a relationship where the underlying and the hedge are economically closely related. Ineffectiveness on fuel derivatives can also arise from timing differences on the notional amount between the hedged instrument and hedged item, significant changes in credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying fuel consumption forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Finnair has established a hedge ratio of 1:1 for hedging relationships.Finnair uses forward contracts and options to hedge its exposure to foreign currency denominated cash flows. The hedges of cash flows denominated in foreign currencies are treated as cash flow hedges in accounting, in accordance with the hedge accounting principles of IFRS 9. Unrealised gains and losses on hedges of forecasted cash flows qualifying for hedge accounting are recognised in the hedging reserve in OCI, while the change in the fair value of such hedges not qualifying for hedge accounting is recognised in Fair value changes in derivatives and changes in exchange rates of fleet overhauls in the income statement. The change in fair value recognised in the hedging reserve in equity is transferred to the income statement when the hedged transaction is realised. Forward points are included in the hedging instrument and in the hedge relationship. Potential sources of ineffectiveness include changes in the timing of the hedged item, significant changes in the credit risk of parties to the hedging relationship and changes in the total amount of the hedged item, for instance if the underlying cash flow forecast is not accurate enough, that can result in overhedging. However, as Finnair usually hedges less than 100% of its exposure, the risk of overhedging is insignificant. Realised profit or loss on derivatives hedging JPY-denominated operating cash flows is presented in revenue, realised profit or loss on derivatives hedging a group of similar USD costs is proportionally recognised in corresponding expense lines, while profit or loss on derivatives hedging cash flows denominated in other currencies is presented in Other expenses.The hedge ratio is defined as the relationship between the quantity of the hedging instrument and the quantity of the hedged item in terms of their relative weighting. With currency hedging, the hedge ratio is typically 1:1. For forward and option contracts, an economic relationship exists between the hedged item and the hedging instrument as there is an expectation that the value of the hedging instrument and the value of the hedged item would move in opposite directions because of the common underlying exposure. Changes in the fair value of interest rate derivatives not qualifying for hedge accounting are recognised in financial income and expenses in the income statement. Changes in the fair value as well as realised gain or loss on forward contracts used to hedge foreign currency denominated balance sheet items of Finnair Group are recognised in financial expenses. Changes in the fair value and the realised result of hedges of assets held for sale are recognised in Items affecting comparability. Cost of hedgingAt Finnair, the time value of an option is excluded from the designation of a financial instrument and accounted for as a cost of hedging. Up on initial recognition, Finnair defers any paid premium in the cost of hedging reserve within other comprehensive income. The fair value changes of the time value are recognised in the cost of hedging reserve within other comprehensive income. The premium will be transferred to the consolidated income statement in the same period that the underlying transaction affects the consolidated income statement for transaction-related hedges. As of 31 December 2022, Finnair has deferred premiums only on transaction-related hedges.Impact of COVID-19 to hedge accounting and derivativesDue to the COVID-19 pandemic impacts on Finnair\u2019s underlying business during 2020 and 2021, the hedging operations regarding foreign exchange currencies and jet fuel price risk were impacted. Much lower demand as a result of the COVID-19 pandemic during the year 2020 meant that the amount of underlying risk was significantly reduced from forecasted amounts forcing Finnair to discontinue hedge accounting on the majority of its hedges in foreign exchange and jet fuel that were under hedge accounting. The last discontinued hedging relationships matured during the last quarter of 2021 and the realized gains or losses are shown in financial income and expenses. In the last quarter of 2021 Finnair restarted its hedging program in foreign exchange as well as jet fuel according to the revised risk management policy. The risk management policy was further revised in December 2022. More information about the revised risk management policy can be found in note 3.5.Impact of war in Ukraine to hedging operationsFinnair\u2019s operating environment has become significantly more difficult since the publication of the 2021 financial statements, due to the escalation of the geopolitical situation in Eastern Europe resulting from Russia\u2019s attack against Ukraine. The resulting sanctions, and countersanctions, led to the closure of Russian airspace which has had a significant impact on the routings and operating costs of Finnair\u2019s flights to Asia. Also, the price of jet fuel increased significantly during the financial year and increased the uncertainty. At the same time, the COVID-19 pandemic continues to still have an impact on Finnair\u2019s business, especially in the Asian markets, which is also contributing to the uncertainty relating to the near- and long-term development of its operating environment. The war in Ukraine did not directly impact the hedging operations of Finnair and after publishing the revised strategy the risk management policy was also updated in December 2022. More detailed information about the update can be found from the note 3.5. Critical accounting estimates and sources of uncertaintyFinnair accounts for its cash flow hedges of forecasted foreign currency denominated purchases and sales and future jet fuel purchases in accordance with the IFRS 9. Under the hedge accounting principles, a forecast transaction can be designated as a hedged item only if that transaction is considered as highly probable. The evaluation of probability is based on the management forecasts about the future level of Finnair\u2019s operations and cash flows. Such forecasts require the use of management judgement and assumptions, which inherently contain some degree of uncertainty that is further increased due to the COVID-19-pandemic. Should the expected circumstances or outcome change i the future, the management would need to reassess whether a hedged forecast transaction is still highly likely to occur. This could be the case if, for example, the expected recovery and thus the expected jet fuel consumption levels would not realize as expected. Should the forecast transaction no longer be highly probable, it would no longer qualify as an eligible hedged item and hedge accounting would need to be discontinued. Should it no longer be expected to occur at all, the balance of the cash flow hedge reserve included in other comprehensive income would need to be reclassified to profit or loss. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1722-3": {
"value": "Hybrid bondShareholders\u2019 equity (after equity belonging to the owners) includes a 200 million euro hybrid bond that was issued during the third quarter of 2020. The hybrid bond coupon is fixed at 10.25 per cent per year for the first three years, and thereafter fixed, at 15.25 per cent per year. Finnair can postpone interest payment if it does not distribute dividends or any other equity to its shareholders. The bond has no maturity date, but the company has the right to redeem it in three years and on every interest payment date thereafter. The overall hybrid bond net position recognised in equity is 198 million euro, due to issuing expenses. The hybrid bond is unsecured and in a weaker preference position than promissory notes. A holder of hybrid bond notes has no shareholder rights.Capital loanDuring the second and third quarter of 2022 Finnair has withdrawn a 400 million euro capital loan. The capital loan does not have a determined maturity date, and it can be repaid in accordance with the Limited Liability Companies Act and terms and conditions specified in the capital loan agreement. Finnair can pay accrued interest and other payments from the loan if the conditions and the rules of the Limited Liability Companies Act are met. The interest accrued on the capital loan has not been recorded as an expense. The overall capital loan net position recognised in equity is 400 million euro.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSubordinatedLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1722-4": {
"value": "Hybrid bondShareholders\u2019 equity (after equity belonging to the owners) includes a 200 million euro hybrid bond that was issued during the third quarter of 2020. The hybrid bond coupon is fixed at 10.25 per cent per year for the first three years, and thereafter fixed, at 15.25 per cent per year. Finnair can postpone interest payment if it does not distribute dividends or any other equity to its shareholders. The bond has no maturity date, but the company has the right to redeem it in three years and on every interest payment date thereafter. The overall hybrid bond net position recognised in equity is 198 million euro, due to issuing expenses. The hybrid bond is unsecured and in a weaker preference position than promissory notes. A holder of hybrid bond notes has no shareholder rights.Capital loanDuring the second and third quarter of 2022 Finnair has withdrawn a 400 million euro capital loan. The capital loan does not have a determined maturity date, and it can be repaid in accordance with the Limited Liability Companies Act and terms and conditions specified in the capital loan agreement. Finnair can pay accrued interest and other payments from the loan if the conditions and the rules of the Limited Liability Companies Act are met. The interest accrued on the capital loan has not been recorded as an expense. The overall capital loan net position recognised in equity is 400 million euro.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1741-3": {
"value": "Earnings per shareThe basic earnings per share figure is calculated by dividing the result for the financial year attributable to the parent company\u2019s shareholders by the weighted average number of shares outstanding during the financial year. The result for the financial year is adjusted for the after-tax amounts of hybrid bond interests and capital loan interests and other fees regardless of payment date, as well as transaction costs of the new hybrid bond issued and premium paid, when a hybrid bond is redeemed. When calculating the earnings per share adjusted for dilution, the weighted average of the number of shares takes into account the diluting effect resulting from the conversion into shares all potentially diluting shares. Finnair has not granted any options.EUR mill. 2022 2021Result for the financial year, EUR mill. -476.2 -464.3Hybrid bond interest, EUR mill. -20.5 -20.5Capital loan cost, EUR mil. -15.9Tax effect 7.3 4.1Adjusted result for the financial year -505.3 -480.7Weighted average number of shares, mill. Pcs 1,406.8 1,406.1Basic earnings per share, EUR -0.36 -0.34Diluted earnings per share, EUR -0.36 -0.34Effect of own shares, EUR 0.00 0.00",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1749-3": {
"value": "DividendThe Board of Directors proposes to the Annual General Meeting that no dividend is paid for 2022. In accordance with the proposal of the Board of Directors, the Annual General Meeting on 7 April 2022 resolved that no dividend be paid based on the balance sheet adopted for the year 2021.Finnair Plc\u2019s distributable equity EUR mill. 2022Hedging reserve -9.9Unrestricted equity funds 772.9Retained earnings -698.7Received grants -6.0Result for the financial year -350.2Distributable equity total -291.9",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1774-2": {
"value": "4.2 Subsidiaries Consolidation principles of subsidiariesFinnair Plc\u2019s consolidated financial statements include the parent company Finnair Plc and all of its subsidiaries. Subsidiaries are defined as companies in which Finnair has control. Control exists when Finnair has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Usually Finnair has power over the entity when it owns more than 50% of the votes or where Finnair otherwise has the power to govern the financial and operating policies. The acquired subsidiaries are included in the consolidated financial statements from the day the Group has control, and disposed subsidiaries until the control ceases.Acquired and established companies are accounted for using the acquisition method of accounting. Accordingly, the acquired company\u2019s identifiable assets, liabilities and contingent liabilities are measured at fair value on the date of acquisition. The excess between purchase price and fair value of the Group\u2019s share of the identifiable net assets is recognised as goodwill.All inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless there is evidence of impairment related to the transferred asset. The accounting principles of subsidiaries have been changed to correspond Group\u2019s accounting policies.Non-controlling interest and transactions with non-controlling interestNon-controlling interests are presented within the equity in the Consolidated Balance Sheet, separated from equity attributable to owners of the parent. For each acquisition the non-controlling interest can be recognised either at fair value or at the non-controlling interest\u2019s proportionate share of the acquirer\u2019s net assets. The carrying amount of non-controlling interests is the amount of the interests at initial recognition added with the non-controlling interests\u2019 share of subsequent changes in equity. SubsidiariesBalticport O\u00fc was liquidated on 18 May 2022.4.3 Acquisitions and divestmentsThere were no business acquisitions or divestments in 2022. In 2021, Finnair sold its 49.5% share of Suomen Ilmailuopisto Oy to the city of Pori and to the Government of Finland. Group Group Name of the companyownership % Name of the companyownership %Finnair Cargo Oy, Finland 100.0 Amadeus Finland Oy, Finland 95.0Oy Aurinkomatkat - Suntours Ltd Ab, Finnair Aircraft Finance Oy, Finland 100.0Finland 100.0Finnair Technical Services Oy, Finland 100.0 Aurinko O\u00fc, Estonia 100.0Finnair Engine Services Oy, Finland 100.0 Matkayhtym\u00e4 Oy, Finland 100.0Finnair Kitchen Oy, Finland 100.0 FTS Financial Services Oy, Finland 100.0Kiinteist\u00f6 Oy Lentokonehuolto, Finland 100.0 Finnair Business Services O\u00fc, Estonia 100.0Northport Oy, Finland 100.0",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1775-4": {
"value": " Consolidation principles of subsidiariesFinnair Plc\u2019s consolidated financial statements include the parent company Finnair Plc and all of its subsidiaries. Subsidiaries are defined as companies in which Finnair has control. Control exists when Finnair has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Usually Finnair has power over the entity when it owns more than 50% of the votes or where Finnair otherwise has the power to govern the financial and operating policies. The acquired subsidiaries are included in the consolidated financial statements from the day the Group has control, and disposed subsidiaries until the control ceases.Acquired and established companies are accounted for using the acquisition method of accounting. Accordingly, the acquired company\u2019s identifiable assets, liabilities and contingent liabilities are measured at fair value on the date of acquisition. The excess between purchase price and fair value of the Group\u2019s share of the identifiable net assets is recognised as goodwill.All inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless there is evidence of impairment related to the transferred asset. The accounting principles of subsidiaries have been changed to correspond Group\u2019s accounting policies.Non-controlling interest and transactions with non-controlling interestNon-controlling interests are presented within the equity in the Consolidated Balance Sheet, separated from equity attributable to owners of the parent. For each acquisition the non-controlling interest can be recognised either at fair value or at the non-controlling interest\u2019s proportionate share of the acquirer\u2019s net assets. The carrying amount of non-controlling interests is the amount of the interests at initial recognition added with the non-controlling interests\u2019 share of subsequent changes in equity. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1803-2": {
"value": "4.4 Investments in associates and joint ventures Associates are companies in which the Group generally holds 20\u201350 per cent of the voting rights or in which the Group has significant influence but in which it does not exercise control. Companies where the Group has joint control with another entity and significant decisions require both parties approval are considered as joint ventures. The Group\u2019s interests in associated companies and jointly controlled entities are accounted for using the equity method. The group has no joint arrangements classified as joint operations in which the group would have rights to shares in the assets or liabilities of the joint ventures and which it would combine with its balance sheet.The investment in associates and joint ventures include goodwill recognized at the time of acquisition. The Group recognises its share of the post-acquisition results in associates and joint ventures in the income statement. When the Group\u2019s share of losses in an associate or a joint venture equals or exceeds its interest in the associate or joint venture, the Group does not recognise further losses, unless it has incurred obligations on behalf of the associate or joint venture.Results from the transactions between the Group and its associates and joint ventures are recognised only to the extent of unrelated investor\u2019s interests in the associates and joint ventures. The Group determines at each reporting date whether there is any objective evidence that the investment in the associates is impaired. In case of such indications, Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value. The impairment is recognised in share of results in associates and joint ventures.Accounting policies of associates or joint ventures have been changed to correspond with the accounting policies adopted by the Group. If financial statements for the period are not available, the share of the profit of certain associated or joint venture companies is included in the consolidated accounts based on the preliminary financial statements or latest available information. The Group\u2019s share of the result, asset items and liabilities of associates and joint ventures is presented below.There were no changes in 2022. During 2021, Finnair sold its 49.5% share of Suomen Ilmailuopisto Oy. More information on transactions with associated companies and joint ventures can be found in the note 4.5 Related party transactions.Information on the Group\u2019s associates and joint ventures 31 Dec 2022Information on the Group\u2019s associates and joint ventures 31 Dec 2021The result of associated companies and joint ventures for 2022 was 0.5 (2.1) million euros, of which Finnair\u2019s share was 0.0 (0.0) million euros.Nordic Regional Airlines ABNordic Regional Airlines AB (Norra) operates mainly purchased traffic for Finnair. The owners (Finnair 40% and Danish Air Transport 60%) have joint control over the entity. In the balance sheet of Finnair, Norra has been classified as a joint venture.EUR mill. 2022 2021At the beginning of the financial year 0.0 2.5Disposals -2.4At the end of the financial year 0.0 0.0EUR mill. Domicile Assets Liabilities Revenue Profit/Loss Holding %Nordic Regional Airlines AB Sweden 133.9 134.2 77.1 0.5 40.00EUR mill. Domicile Assets Liabilities Revenue Profit/Loss Holding %Nordic Regional Airlines AB Sweden 98.0 97.3 70.3 2.1 40.00",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1803-3": {
"value": "4.4 Investments in associates and joint ventures Associates are companies in which the Group generally holds 20\u201350 per cent of the voting rights or in which the Group has significant influence but in which it does not exercise control. Companies where the Group has joint control with another entity and significant decisions require both parties approval are considered as joint ventures. The Group\u2019s interests in associated companies and jointly controlled entities are accounted for using the equity method. The group has no joint arrangements classified as joint operations in which the group would have rights to shares in the assets or liabilities of the joint ventures and which it would combine with its balance sheet.The investment in associates and joint ventures include goodwill recognized at the time of acquisition. The Group recognises its share of the post-acquisition results in associates and joint ventures in the income statement. When the Group\u2019s share of losses in an associate or a joint venture equals or exceeds its interest in the associate or joint venture, the Group does not recognise further losses, unless it has incurred obligations on behalf of the associate or joint venture.Results from the transactions between the Group and its associates and joint ventures are recognised only to the extent of unrelated investor\u2019s interests in the associates and joint ventures. The Group determines at each reporting date whether there is any objective evidence that the investment in the associates is impaired. In case of such indications, Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value. The impairment is recognised in share of results in associates and joint ventures.Accounting policies of associates or joint ventures have been changed to correspond with the accounting policies adopted by the Group. If financial statements for the period are not available, the share of the profit of certain associated or joint venture companies is included in the consolidated accounts based on the preliminary financial statements or latest available information. The Group\u2019s share of the result, asset items and liabilities of associates and joint ventures is presented below.There were no changes in 2022. During 2021, Finnair sold its 49.5% share of Suomen Ilmailuopisto Oy. More information on transactions with associated companies and joint ventures can be found in the note 4.5 Related party transactions.Information on the Group\u2019s associates and joint ventures 31 Dec 2022Information on the Group\u2019s associates and joint ventures 31 Dec 2021The result of associated companies and joint ventures for 2022 was 0.5 (2.1) million euros, of which Finnair\u2019s share was 0.0 (0.0) million euros.Nordic Regional Airlines ABNordic Regional Airlines AB (Norra) operates mainly purchased traffic for Finnair. The owners (Finnair 40% and Danish Air Transport 60%) have joint control over the entity. In the balance sheet of Finnair, Norra has been classified as a joint venture.EUR mill. 2022 2021At the beginning of the financial year 0.0 2.5Disposals -2.4At the end of the financial year 0.0 0.0EUR mill. Domicile Assets Liabilities Revenue Profit/Loss Holding %Nordic Regional Airlines AB Sweden 133.9 134.2 77.1 0.5 40.00EUR mill. Domicile Assets Liabilities Revenue Profit/Loss Holding %Nordic Regional Airlines AB Sweden 98.0 97.3 70.3 2.1 40.00",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1804-5": {
"value": " Associates are companies in which the Group generally holds 20\u201350 per cent of the voting rights or in which the Group has significant influence but in which it does not exercise control. Companies where the Group has joint control with another entity and significant decisions require both parties approval are considered as joint ventures. The Group\u2019s interests in associated companies and jointly controlled entities are accounted for using the equity method. The group has no joint arrangements classified as joint operations in which the group would have rights to shares in the assets or liabilities of the joint ventures and which it would combine with its balance sheet.The investment in associates and joint ventures include goodwill recognized at the time of acquisition. The Group recognises its share of the post-acquisition results in associates and joint ventures in the income statement. When the Group\u2019s share of losses in an associate or a joint venture equals or exceeds its interest in the associate or joint venture, the Group does not recognise further losses, unless it has incurred obligations on behalf of the associate or joint venture.Results from the transactions between the Group and its associates and joint ventures are recognised only to the extent of unrelated investor\u2019s interests in the associates and joint ventures. The Group determines at each reporting date whether there is any objective evidence that the investment in the associates is impaired. In case of such indications, Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value. The impairment is recognised in share of results in associates and joint ventures.Accounting policies of associates or joint ventures have been changed to correspond with the accounting policies adopted by the Group. If financial statements for the period are not available, the share of the profit of certain associated or joint venture companies is included in the consolidated accounts based on the preliminary financial statements or latest available information. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1837-3": {
"value": "4.5 Related party transactionsRelated parties of the Finnair group includes its subsidiaries, management (the Board of Directors, the President and CEO and the Executive Board), their close family members and companies controlled by them or their close family members, associated companies and joint ventures, Finnair pension fund and Finnair Group sickness fund. Subsidiaries are listed in the note 4.2 and associates and joint ventures in note 4.4. Related party transactions include such operations that are not eliminated in the group\u2019s consolidated financial statement.The State of Finland which has control over Finnair owns 55.9% (55.9%) of Finnair\u2019s shares. All the transactions with other government owned companies and other related parties are on arm\u2019s length basis, and are on similar terms than transactions carried out with independent parties.The following transactions have taken place with related party entities:Employee benefits and non-current receivables from pension fund are related to defined benefit pension plans in Finnair pension fund. These are described more detailed in the note 1.3.8.2. Management remuneration is presented in note 1.3.8. Management has not been granted any loans and there have not been any other transactions with management.More information on associated companies and joint ventures can be found in the note 4.4.Finnair pension fundThe Finnair pension fund in Finland is a stand-alone legal entity which mainly provides additional pension coverage to Finnair\u2019s personnel in the form of defined benefit plan, and manages related pension assets. The assets include Finnair\u2019s shares representing 0.1% (0.1%) of the company\u2019s outstanding shares. Real estate and premises owned by the pension fund have been mainly leased to Finnair. In 2022 and 2021 Finnair did not pay any contributions to the fund. Pension asset was 119.7 million euros (78.9) at the end of the financial year.EUR mill. 2022 2021Sales of goods and servicesAssociates and joint ventures 25.7 18.2Pension fund 0.3 0.1Sickness fund 0.0 0.2Employee benefitsPension fund 11.2 -7.4Sickness fund 0.6 0.6CEO and Executive Board 4.1 4.6The Board of Directors 0.4 0.4Purchases of goods and servicesAssociates and joint ventures 78.2 73.0Pension fund 2.0 2.0Financial income and expensesAssociates and joint ventures 1.6Pension fund 0.6 0.1ReceivablesAssociates and joint ventures 6.4 17.0Pension fund 119.9 78.9LiabilitiesAssociates and joint ventures 4.3 6.1",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1855-2": {
"value": "5.1 Income taxes The tax expense for the period includes current and deferred tax and adjustments to previous years\u2019 taxation. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or other equity items.Deferred taxes are calculated for temporary differences between accounting and taxation using the valid tax rates for future years at the closing date. Deferred tax asset is recognised to the extent that realisation of the related tax benefit through future profits is probable. Temporary differences arise mainly from sales of tangible assets and depreciation, right-of-use assets, lease liabilities and tax losses. Deferred tax is recognised for foreign subsidiaries\u2019 undistributed earnings only when related tax effects are probable.Deferred tax assets and liabilities are netted when they are levied by the same taxing authority and Finnair has a legally enforceable right to set off the balances. Income taxesEUR mill. 2022 2021Taxes for the financial yearCurrent taxAdjustments recognised for current tax of prior periodsDeferred taxes -105.4 117.6Total -105.4 117.6The reconciliation of income taxes to theoretical tax cost calculated at Finnish tax rateEUR mill. 2022 2021Result before taxes -370.7 -581.9Taxes calculated using the Finnish tax rate 20% 74.1 116.4Different tax rates of foreign subsidiaries 0.1 0.0Tax-exempt income 0.4 1.3Non-deductible expenses -3.9 -0.2Non-capitalized tax loss carryforwards -33.9Non-capitalized temporary differences -25.2Write-down of deferred tax on taxable losses 2020-2021 -117.0Adjustments recognised for taxes of prior periods 0.0 0.1Income taxes total -105.4 117.6",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1855-3": {
"value": "5.1 Income taxes The tax expense for the period includes current and deferred tax and adjustments to previous years\u2019 taxation. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or other equity items.Deferred taxes are calculated for temporary differences between accounting and taxation using the valid tax rates for future years at the closing date. Deferred tax asset is recognised to the extent that realisation of the related tax benefit through future profits is probable. Temporary differences arise mainly from sales of tangible assets and depreciation, right-of-use assets, lease liabilities and tax losses. Deferred tax is recognised for foreign subsidiaries\u2019 undistributed earnings only when related tax effects are probable.Deferred tax assets and liabilities are netted when they are levied by the same taxing authority and Finnair has a legally enforceable right to set off the balances. Deferred taxesRecognition of deferred tax asset is based on management estimates and require the use of management judgement in order to assess whether there will be sufficient taxable profits flowing to the company in the future. The expectations used in the calculation are based on the latest management forecasts at the reporting date and use assumptions that are consistent with those used elsewhere in the financial statements. The forecast scenarios have been updated to reflect the renewed strategy announced by Finnair in September. It aims to restore profitability and targets to reach the pre-pandemic comparable operating result level of 5% from mid-2024 onwards. Due to the current uncertainty embedded in the economic environment and the difficulty in forecasting the impact of the war in Ukraine, the management has considered alternative forecast scenarios that differ mainly in regard to impacts of a possible economic downturn as well as the estimated duration of the Russian airspace closure. The scenarios have been discussed in more detail early in the beginning of the notes section under Board\u2019s assessment of Finnair as a going concern. In financial year 2022, deferred tax asset was written down from the taxable losses of 2020-2021, and deferred tax asset from the 2022 loss was not recognized. Finnair expects to be able to use the tax losses remaining on balance sheet in advance of 10 years expiry date under all of the forecast scenarios. Deferred tax assets and liabilitiesThe Group has evaluated the nature and classification of deferred tax assets. Based on the evaluation, deferred tax assets and liabilities levied by the same taxing authority met the requirements for offset eligibility in accordance with IAS 12 standard. The deferred tax assets and liabilities are shown net on the balance sheet.Changes in deferred taxes during 2022:Finnair\u2019s taxable result continued to be highly negative in year 2022 as a result of the impact of the war in Ukraine and the COVID-19 pandemic on its operations and financial performance. Finnair has not recognized deferred tax assets arising from the losses of financial year 2022 and temporary differences, and tax losses of 2020-2021 were written down due to the significant uncertainty caused by the closure of the Russian airspace. The Group has recognized a deferred tax asset of 80.6 million euros (191.9).The forecast scenarios and their expected probabilities have been updated to reflect the renewed strategy announced by Finnair in September. It aims to restore profitability and targets to reach the pre-pandemic comparable operating result level of 5% from mid-2024 onwards. Based on these forecast scenarios and their expected probabilities, the company\u2019s Board of Directors expects that after the write-down of 117 million euros of the deferred tax asset recognized in the second quarter, the remaining deferred tax asset of 99 million euros, corresponding to taxable losses of approximately 497 million euros from financial years 2020 and 2021, which will expire in 2030 and 2031, can be utilized after the implementation of the new strategy. The write-down corresponds to tax losses of approximately 585 million euros from financial years 2020 and 2021, which will expire in 2030 and 2031.Deferred tax assets of financial year 2022 were not recognized for the estimated tax losses of approximately 169 million euros, which will expire in 2032, and temporary differences of 140 million euros, which have no expiry date. Temporary differences include the lease contract related losses of 64 million euros mainly derived from exchange rate differences, the interest expenses under the limitation of the right to deduct interest amounting to 57 million euros and the valuation of derivatives at fair value 13 million euros. The deferred tax asset is recognized up to the amount where it is probable that future taxable income will be generated against which the temporary difference can be utilized, also taking into account the tax planning methods available to Finnair relating to accumulated tax depreciations. The Board\u2019s assessment of the future taxable profit is based on the latest forecasts scenarios which are described in more detail in note Board\u2019s assessment of Finnair as a going concern and note 2.3 Depreciation and impairment.Distributing retained earnings of foreign subsidiaries as dividends would cause a tax effect of 0.3 million euros (0.3).Changes in deferred taxes during 2021:Recognised Recognised in in the income shareholders\u2019 EUR mill. 2021statementequity 2022Deferred tax assetsConfirmed losses 216.6 -122.8 93.7Leases 42.8 0.0 42.8Valuation of derivatives at fair value 0.9 -0.9 0.0Other temporary differences 16.9 -3.4 4.1 17.6Total 277.1 -126.2 3.2 154.1Netted from deferred tax liabilities -85.2 20.8 -9.1 -73.5Deferred tax assets in balance sheet 191.9 -105.4 -5.8 80.6Recognised Recognised in in the income shareholders\u2019 EUR mill. 2021statementequity 2022Deferred tax liabilitiesDefined benefit pension plans -16.1 2.2 -10.0 -24.0Property, plant and equipment -68.2 18.6 -49.5Valuation of derivatives at fair value -0.9 0.9 0.0Total -85.2 20.8 -9.1 -73.5Netted from deferred tax assets 85.2 -20.8 9.1 73.5Deferred tax liabilities in balance sheet 0.0 0.0 0.0 0.0Recognised Recognised in in the income shareholders\u2019 EUR mill. 2020statementequity 2021Deferred tax assetsConfirmed losses 141.5 75.1 216.6Leases 17.1 25.7 42.8Valuation of derivatives at fair value 6.0 -5.1 0.9Other temporary differences 10.3 2.4 4.1 16.9Total 174.8 103.3 -1.0 277.1Netted from deferred tax liabilities -90.0 14.3 -9.5 -85.2Deferred tax assets in balance sheet 84.8 117.6 -10.5 191.9Recognised Recognised in in the income shareholders\u2019 EUR mill. 2020statementequity 2021Deferred tax liabilitiesDefined benefit pension plans -6.2 -1.4 -8.6 -16.1Property, plant and equipment -83.9 15.7 -68.2Valuation of derivatives at fair value -0.9 -0.9Total -90.0 14.3 -9.5 -85.2Netted from deferred tax assets 90.0 -14.3 9.5 85.2Deferred tax liabilities in balance sheet 0.0 0.0 0.0 0.0",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1856-5": {
"value": " The tax expense for the period includes current and deferred tax and adjustments to previous years\u2019 taxation. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or other equity items.Deferred taxes are calculated for temporary differences between accounting and taxation using the valid tax rates for future years at the closing date. Deferred tax asset is recognised to the extent that realisation of the related tax benefit through future profits is probable. Temporary differences arise mainly from sales of tangible assets and depreciation, right-of-use assets, lease liabilities and tax losses. Deferred tax is recognised for foreign subsidiaries\u2019 undistributed earnings only when related tax effects are probable.Deferred tax assets and liabilities are netted when they are levied by the same taxing authority and Finnair has a legally enforceable right to set off the balances. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1856-6": {
"value": " The tax expense for the period includes current and deferred tax and adjustments to previous years\u2019 taxation. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or other equity items.Deferred taxes are calculated for temporary differences between accounting and taxation using the valid tax rates for future years at the closing date. Deferred tax asset is recognised to the extent that realisation of the related tax benefit through future profits is probable. Temporary differences arise mainly from sales of tangible assets and depreciation, right-of-use assets, lease liabilities and tax losses. Deferred tax is recognised for foreign subsidiaries\u2019 undistributed earnings only when related tax effects are probable.Deferred tax assets and liabilities are netted when they are levied by the same taxing authority and Finnair has a legally enforceable right to set off the balances. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-1935-2": {
"value": "5.3 Events after the closing dateFinnair signed agreements to terminate two of its A320-aircraft lease contracts and one A321-aircraft lease contract and to acquire the aircraft to its own possession. The purchase of the aircraft is expected to have a positive impact on Finnair\u2019s profitability over the next few years. One of the transactions took place in February 2023 and the other two transactions are expected to take place during March 2023. The transactions will have a negative impact of around 50 million euro on the Group\u2019s cash flow during the first quarter of 2023. The purchase of the leased aircraft is not expected to have a material impact on the Group\u2019s profit or balance sheet due to simultaneous release of the related maintenance liabilities, in connection with the lease termination. After the financial year-end, Finnair and British Airways agreed to continue their cooperation where Finnair will lease four A320 aircraft with crew to be operated in British Airways\u2019 European routes starting from 24 March 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:213800SB6EOB8SSK9W63",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}