Loss-Making Finnair Seeks Savings To Offset Losses In Asian Traffic
Finland's national carrier Finnair FIA1S.HE has said that it will seek to cut €60 million from annual costs permanently after it posted a ninth consecutive quarterly loss and said that 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.
First-Quarter Operating Loss
Finnair's first-quarter operating loss widened to €164.9 million from €149.1 million a year earlier.