Finnair to cut 1,000 jobs as Covid-19 crisis rips through its business
FINNISH flag carrier Finnair plans to eliminate 15 per cent its workforce and push through deeper cost cuts in an effort to survive one of the worst crises in aviation history
FINNISH flag carrier Finnair plans to eliminate 15 per cent its workforce and push through deeper cost cuts in an effort to survive one of the worst crises in aviation history. reports Bloomberg.
The airline will slash 1,000 jobs and lay off 'practically all of its personnel in Finland,' it said. Finnair also raised its 2022 cost-savings target to EUR100 million (US$118 million) from EUR80 million.
'A rapid turn for the better in the pandemic situation is unfortunately not in sight,' said CEO Topi Manner. 'Our revenue has decreased considerably, and that is why we simply must adjust our costs to our new size.'
Finnair has already raised EUR500 million in new capital after travel restrictions caused by Covid-19 grounded more than 90 per cent of its fleet last quarter. It also scrapped a planned dividend and has explored selling as much as EUR200 million in hybrid debt, but still faces bing losses this year.
Some impacts from the pandemic are likely to be longer-term in nature, including remote working and the fallout on business travel, Finnair said. It's trying to find savings in areas like real estate and aircraft leasing. The company also plans to continue streamlining its operations, and to digitise and automate as many customer services as possible.
Finnair reiterated an assumption that it will take another two to three years before traffic recovers to levels seen in 2019.