Finnair is continuing its aggressive programme to reduce costs with a deal to sell a 60% stake in Finnair Gateway Restaurants to Gourmet Nova.

The deal follows hard on the heels of the sale of tour operator Fintours, to the Thomson Travel Group, as it offloads non-core activities. Chief executive Keijo Suila says that actions taken will stop the earnings slide, but that more has to be done.

Included in the cutbacks are expected to be a rationalisation of the route network, a reduction in the number of employees and ticket price increases.

Figures released in late November for the six months ending 30 September highlighted the extent of the problem, with operating profit on flight operations falling by 55.2%, compared with the previous year.

Operating costs rose by 9.5% Increased fuel prices, the abolition of duty-free sales within the EU and the strong US dollar were contributory factors.

Source: Flight International