Finnair is planing a cut of 1,000 job to the airline crews and airports, the aircraft says, although flying crews will stay in trailer lights ‘until further notice.
The airline will cut a maximum of 1,000 jobs and lay off “virtually all of its staff in Finland,” it said Tuesday. Finnair has also increased its cost savings target for 2022 to € 100 million (S $ 161.6 million) from € 80 million.
“A quick turnaround for the better in the pandemic situation is sadly not in sight,” said CEO Topi Manner. “Our revenues have dropped considerably and that is why we simply have to adjust our costs to our new size.” Some impacts of the pandemic are likely to be long-term in nature, including remote working and its effect on business travel, Finnair said. He is trying to find savings in areas such as real estate and aircraft rental. It also plans to continue streamlining its operations and digitizing and automating its customers’ processes.
Finnish national carrier Finnair announced on Tuesday, August 25, plans to cut 1,000 jobs, or 15% of its workforce, amid dire warnings about the economic impact of the coronavirus.
“A quick turn for the better in the pandemic situation is sadly not in sight,” CEO Topi Manner said in a statement.
“Our revenues have dropped significantly and that is why we simply have to adapt our costs to our new size,” Manner said.
Meanwhile, Scandinavian rival SAS posted a large loss in third-quarter profit as cost-cutting measures, including some 4,800 job cuts, failed to offset the huge drop in air traffic.
The 1,000 job cuts at Finnair will not apply to cabin and cockpit crew, the airline said, although the flight crew will remain on leave “until further notice.”
The vast majority of its 6,700 employees are currently on layoffs.
In addition to job cuts, the carrier will make other structural changes and on Tuesday updated its savings target from 80 million euros (94 million dollars) to 100 million euros.