Finnish airline Finnair reports 2Q net loss of $37 million on 21 percent fall in revenue

Finnair reports 2Q net loss of $37 million

HELSINKI — Finnair PLC on Friday reported a second-quarter net loss of euro26 million ($37 million) as the airline’s chief executive announced that he is resigning in what he called “crisis” conditions.

President and CEO Jukka Hienonen said he is resigning because he is not satisfied with the pace of change in the airline during the current challenging times and partly blamed unions.

The Finnish national carrier said net loss in April through June was euro26 million, down from a net profit of euro13 million a year earlier. Revenue fell more than 21 percent in the period to euro427 million ($613 million).

The company’s stock plunged 4 percent to euro4.10 ($5.89) in early trading in Helsinki.

“Our sector is facing its deepest crisis,” Hienonen said. “Finnair, too, has suffered from the fall of average prices caused by the decline in air travel. Turnover has been undermined by reduced demand and weaker price levels.”

Finnair said that Hienonen will continue as president and CEO until a replacement is found during his six-month period of notice.

In June, Finnair said it will double a savings program to euro200 million — with most of the new cuts aimed at personnel costs — as the economic downturn continues to hit air travel worldwide.

Finnair flies to 50 destinations with a fleet of 63 aircraft. Last year, 8.3 million passengers flew Finnair, down 4 percent from 2007.

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On the Net:

www.finnair.com