On 28 October 2020, Finnair announced that it has pending authority approval processes relating to certain amendments to the terms of Finnair pension funds and that it will publish a separate release in this regard, if needed.
New amendments to the terms of Finnair pension fund have now been approved. The amendments relate to pension index increment removals and are expected to have a positive one-off impact on Finnair's operating result in Q4 2020. The impact is not booked in the comparable operating result but will be reported as an item affecting comparability and is, therefore, booked in the operating result. The amendments have no immediate cash flow impact, but the impact is deferred to future years. The amendments form a part of Finnair’s rebuild measures with which the company aims to ensure its competitiveness in the post-pandemic market.
The positive one-off impact of the amendments is netted by Finnair pilots’ early retirement announcements, which have a negative impact on Finnair’s result, and which are similarly reported as an item affecting comparability in Q4. In total, the positive impact of these items is 48 million euros.
The company announced on 28 October 2020 that the previous amendments to the terms of Finnair pension fund will have a positive one-off impact of 85 million euros on Q4 operating result. Therefore, the total positive net impact of the previous and new amendments as well as pilots’ early retirement is 133 million euros on Q4 operating result.