Interest rate risk
In order to manage interest rate risks, the Group's loans and investments are diversified into fixed and variable interest-rate instruments, yet so that most of the Group's interest-bearing loans have fixed interest rates. At the end of financial year 2003, the average interest rate on the Group's interest-bearing loans was 3.42%. Finnair invests most of its cash reserves in the money market for terms of less than 12 months. |