Finnish carrier Finnair posts 1Q loss of euro19 million on 10 percent fall in revenue

Finnair posts 1Q loss of euro19 million

HELSINKI, — Finnair PLC on Tuesday reported a first-quarter net loss of euro18.6 million ($24.4 million) as turnover fell 10 percent, and warned it expects a full-year loss.

The Finnish airline said sales fell to euro516 million ($677 million) in January through March, from euro573 million a year earlier. Last year, it made a net profit of euro3 million in the period.

The national carrier said it expects the global economic downturn will continue to adversely hit its performance and that it will post a full-year loss.

“Our results from the first quarter reflect the situation of the entire airline industry regrettably well,” CEO Jukka Hienonen said. “The potential for profitability has run into sand due to feeble demand and a collapse in price levels.”

All Finnair traffic suffered, including in its traditional growth area Asia, and the airline plans further cuts, including in capacity, Hienonen said.

Finnair employs 9,200, down 2 percent from a year earlier.

The airline is 56 percent government-owned and flies to 50 destinations with a fleet of 60 aircraft. Last year, 8.3 million passengers flew Finnair, down 4 percent from 2007.

On the Net:

www.finnair.com