Finnair is to cut staff as a result of the high oil prices and a drop in demand.
The Finnish national carrier said that its fuel bill this year will most likely grow by Eur160-180 million compared with the previous year.
It will also begin negotiations with is personnel in accordance with the Act on Co-operation within Undertakings. The company is preparing for cuts in production, which will affect all traffic types. The exact nature of the cuts will become apparent during the negotiations, but they are expected to affect approximately 500 staff members. The means used will include adjusting the number of temporary staff, part-timing, lay-offs and as a last resort, terminations.
“To ensure the company’s growth strategy, we need additional cuts of at least Eur50 million per year and we have begun discussions with our personnel to map out savings targets,” says Finnair SVP Human Resources Anssi Komulainen.
Demand has decreased and this decrease has accelerated at such a rate in the past weeks that together with the price development of fuel, Finnair’s result-making capability has significantly weakened. Demand has dropped especially on Chinese routes and it is also reflected on European and domestic traffic.