Finnair turnover grows but profits fall
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The national carrier of Finland, Finnair, has published its six month results, with revenues up 2.6% to EUR609.7 million however it posted reduced second quarter profits and cut its full year outlook.
The firm blamed a weak Japanese yen but insisted it was on the road to recovery.
“The operational result for the period under review is disappointing,” said Pekka Vauramo CEO Finnair. “It underlines the necessity of the measures we have taken to improve our business operations and customer service over the past few years and the need to continue those measures. At the same time, we will need to utilise the opportunities offered to us by the growing market.”
News agency Reuters reported that the markets reacted badly to the news, with Finnair’s share price falling 7%, to EUR2.99 – compromising the increases achieved over the last year.
Profits were announced at EUR6.1, falling from EUR16.2 a year before.
“Last October we set a target of achieving additional cost reductions of EUR60 million,” Vauramo continued. “We must now continue to implement a more agile structure and renew the wage structures and earnings models. Part of the supplementary cost-reduction target can be achieved by streamlining operations, but accomplishing the target in full will require an improvement in labour productivity. We must now find, in a dialogue with personnel, solutions and the will to make changes.”
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