Finnair is seeking cost cuts of over 100 million euros in addition to previous cost-cut measures of 100 million euros. Of the additional target, 70 million euros are to be aimed at staff costs being emphasized on next year. Finnair’s turnover has fallen since the beginning of the year by almost 15% because of a reduction in scheduled traffic and a fall in the average ticket price. The aim is for a 15% improvement in productivity. Discussions with labour unions about ways of increasing productivity will be continued. No decisions about new YT talks (official terms of employment negotiations) have been made.
At present Finnair is continuing to implement the cost efficiency program launched last year, about half of which was directed towards staff costs. Based on this plan, over 6,000 employees will be placed on varying periods of unpaid leave this year. The average layoff period is two weeks. In addition, Finnair has reduced nearly 600 employees.
