Finnish flag carrier Finnair has announced its plans to cut up to 1,000 jobs, approximately 15 per cent of its total workforce, and introduce a number of cost-cutting measures, as it continues to navigate the COVID-19 pandemic and global travel crisis.
In addition to permanent job cuts, the airline also intends to introduce mass temporary layoffs or stand-downs across “practically all” of its 6,200-strong workforce.
Finnair also intends to hike its annual cost-savings target to 100 million euros for 2022, up from 80 million, aiming to cut costs in numerous areas including IT, real estate, aircraft leasing and sales.
Chief executive Topi Manner said: “A rapid turn for the better in the pandemic situation is unfortunately not in sight. Our revenue has decreased significantly due to the COVID-19 pandemic, and some of the main factors driving that decline appear to be persisting longer than initially expected.”
Manner also noted that the rising prominence of remote working, and subsequent drop off in business travel is likely to persist longer than previously expected, which will continue to impact revenue.
On Tuesday, the airline also announced that it had finalised a sale-and-leaseback deal for one of its newest Airbus A350 aircraft, providing much needed immediate liquidity “in excess of 100 million euros”, according to Finnair.
The Finnish airline, like many, reported a second-quarter loss, and expects a similar result in the third quarter.
It also reportedly raised 501 million euros last month, off the back of a rights issue, and has secured state and bank guarantees for a further 600 million euros in loans.
