Finland’s flag carrier has announced a major cost-cutting initiative. Officials from Finnair said that the airline is aiming to slash costs by EUR 140 million over the next two years in order to fund new aircraft and to make the carrier more competitive.
No word has yet been given on the effect the scheme could have on the company’s workforce.
Finnair chief executive Mika Vehvilainen said in a statement, “While we achieved a profitable result in the most recent quarter, Finnair is still a long way from reaching its long-term profit target of six percent operating profit margin. High fuel prices, tightening competition and cost savings measures implemented by our competitors urge further measures from us,” Reuters reports.
The firm said that the cuts would help to fund a fleet upgrade valued at EUR 1.2 billion. Over the next several years, the company plans to buy five new Airbus 321 ER jets, as well as an undisclosed number of Airbus 350 XWB aircraft, according to reports.
The news came on Friday alongside the release of third-quarter figures, which revealed a rise in underlying profits to EUR 49 million, up seven per cent from the same period in 2011.
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