Finnair cost-cutting softens Q1 loss

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Personnel and maintenance cost savings helped Finnair cut its first-quarter pre-tax loss by 24% to €18.7 million ($24.3 million).

Revenue kinked up by 0.2% to €593 million.

By the end of March, the Finnish flag carrier had realised €119 million of a €140 million target set for a cost-cutting programme it launched in August 2011. It is now undertaking consultations on restructuring of its Technical Services division.

In October 2012, the airline initiated a programme targeting an additional €60 million of savings in personnel costs. "Our objective is to achieve the level of Finnish market wages and labour costs in the industry, primarily by implementing changes to wage structures and working hours," it says.

As part of its unchanged outlook, Finnair expects its 2013 operational result to show a profit. It has reaffirmed its aim to double revenue from Asian traffic by 2020.

Incoming chief executive Pekka Vauramo takes the reins on 3 June.