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Loss-making Finnair seeks savings to offset losses in Asian traffic

Finnair reports ninth consecutive losing quarter
Finnair reports ninth consecutive losing quarter Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
Published on Updated
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HELSINKI -Finland's national carrier Finnair on Wednesday said it will seek to cut 60 million euros ($64 million) from annual costs permanently after it posted a ninth consecutive quarterly loss and said it expects further losses in the second quarter.

Finnair relies on connection flights to Asia and had hoped to be closer to normal operating conditions following the COVID-19 pandemic in the second half of the year.

Instead the company continues to face prolonged Asian travel restrictions and the Russian airspace closure cutting off its shortcut routes to Asia.

"We are now preparing for a prolonged Russian airspace closure," CEO Topi Manner said in a statement adding the airline's network now focused on connections to the west and South Asia.

After resorting to leasing out aircraft and crew to other airlines, Finnair said almost 80% of its capacity would be deployed during the summer season.

Finnair's first-quarter operating loss widened to 164.9 million euros ($175.6 million) from 149.1 million euros a year earlier.

($1 = 0.9392 euros)

($1 = 0.9412 euros)

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