Finnair is to begin implementing staff cuts to combat a soaring fuel bill and expects about 500 personnel to be affected.
The airline has not determined the precise nature of the cuts, which are to be the subject of discussions with employee representatives, but says they will include adjustment to temporary and part-time staff, lay-offs and, if necessary, terminations.
It follows forecasts by the Oneworld carrier that its fuel expenditure will rise by €160-180 million ($247-277 million) this year compared with the figure in 2007.
“The price of fuel has risen throughout the first half of the year at a much faster rate than anticipated,” says the airline, which adds it needs to save at least another €50 million to keep its growth plan on track.
Finnair says demand has weakened, particularly on Chinese routes, and this decline has also been evident in European and domestic traffic.
Source: Air Transport Intelligence news