Finland money

Finnair launches €60m savings plan amid back-to-back losses – Famagusta Gazette

Finnish flag carrier Finnair has launched a new cost-cutting plan aimed at saving around 60 million euros (US$63.25 million) as it reported a ninth consecutive quarterly loss on Wednesday.

The need for savings is largely due to the prolonged blockage of Russian airspace.

In his statement, Finnair CEO Topi Manner described the global pandemic and the Ukraine crisis, which led to the closure of Russian airspace, as “two major disruptions of historic proportions”, adding that both had a significant impact during the first quarter of 2022.

The closure of Russian air traffic has had a significant impact on Finnair’s operating environment, particularly affecting air traffic to Asia, which has played an important role in Finnair’s network.

“We will complete the cost savings program while continuing to determine a long-term solution for the closure of Russian airspace,” Manner said.

The savings of €60 million will come on top of the savings of €200 million already achieved. These savings are sought in distribution, aircraft rentals and continuous improvement of operations.

In the first quarter of 2022, Finnair recorded a loss of 132.9 million euros in comparable operating income, which is slightly lower than the same period last year. The company’s turnover increased by 252% to reach 400 million euros.

The CEO noted that despite continued losses, Finnair’s cash position is still stable and the €400 million hybrid loan from the Finnish state supports the company’s balance sheet. (1 euro = 1.06 US dollars) ■