Disastrous May load factor for Finnair has led the airline to make a decision–it will have to axe 500 staff.
Finnair CEO Jukka Hieonen described May’s figures as “nothing short of gruesome.”
“Disastrous” May meant for Finnair a load factor of 62.4 percent down a massive eight points, forcing the airline’s management to negotiate with its unions to find a way to fend off the losses. A release from Finnair claims that the Helsinki-based carrier is preparing for production cuts “which will affect all traffic types.”
“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 told Business Travel News and Advice.
A report from IFALPA Daily News stated that this year’s fuel bill is expected to rise by €160-180 million compared to last year and a decrease in demand especially on its China routes has resulted in weakening of Finnair’s result making capability.
Citing the release from Finnair, IFALPA stated that the exact nature of the cuts will become apparent during the negotiations, but they are expected to affect approximately 500 staff members. The means used will include the number of temporary staff, part-timing, lay-offs and as a last resort terminations.