“Gruesome†May figures and nose-diving load factors will prompt Finnair to cut 500 staff jobs.
In what the airline’s chief executive officer Jukka Hieonen described as a “disastrous†month, with a 62.4% load factor – down eight points, May saw the board negotiating with unions on how to rationalise the losses.
“To ensure the company’s growth strategy, we need additional cuts of at least €50m [approximately US$78 million] per year and we have begun discussions with our personnel to map out savings targets,†Finnair senior vice president human resources Anssi Komulainen has said.
Hieonen simply described the situation as “nothing short of gruesomeâ€.
It is expected that the Helsinki-based airline’s fuel bill will rise by up to €180 million for 2008 compared to last year.
By Dinah Hatch
