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Finnair Q3 loss widens 15 percent

Finnair Q3 loss widens 15 percent

Finland's national carrier Finnair PLC reported Thursday its third-quarter net loss widened by 15 percent as the recession hurt demand, and said it "still has a long way to go" before being competitive.
The ⁈illion ($30.6 million) loss compared with a net loss of ⁈lion in the same period in 2008. Net sales in the July-September period were down almost 22 percent at ⁈llion, from ⁈year earlier, the airline said.
Outgoing President and CEO Jukka Hienonen described the result as being in line with predictions, "even though it did not meet, by any means, our targets." He gave a grim outlook.
"Clearly lower demand for business travel and the consequent decline in the average price have cut revenues by more than a fifth," Hienonen said. "Aircraft are flying with fairly reasonable passenger load factors, but the steep fall in the average price is eroding profitability."
The company has embarked on several cost-cutting programs and has negotiated with personnel about possible wage cuts to help the airline in the current challenging times.
Hienonen, who in August announced he was resigning because he is not satisfied with the pace of change in the airline, said Finnair still faces challenges.
"Finnair still has a long way to go before its corporate structures and the operating conditions they create are sustainably competitive," he said.
In June, Finnair said it will double a savings program to ⁈llion _ with most of the new cuts aimed at personnel costs _ as the economic downturn continues to hit air travel worldwide.
Finnair flies to 50 destinations with a fleet of 63 aircraft. Last year, 8.3 million passengers flew Finnair, down 4 percent from 2007.
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On the Net:
http://www.finnair.com


Updated : 2021-05-06 21:59 GMT+08:00