Finnair to cut 1,000 jobs as virus rips through its business

Finland’s national carrier Finnair Oyj plans to eliminate as much as 15% of its workforce and push through deeper cost cuts in an effort to survive one of the worst crises in aviation history. The airline will slash a maximum of 1,000 jobs and lay off “practically all of its personnel in Finland,” it said on Tuesday. Finnair also raised its 2022 cost-savings target to E100m ($118m) from E80m. Its shares rose as much as 8.5% in Helsinki, as investors welcomed the airline’s focus on saving money. “A rapid turn for the better in the pandemic situation is unfortunately not in sight,” CEO Topi Manner said. “Our revenue has decreased considerably, and that is why we simply must adjust our costs to our new size.” Finnair has already raised E500m in new capital after travel restrictions caused by Covid-19 grounded more than 90% of its fleet last quarter. It also scrapped a planned dividend and has explored selling as much as E200m in hybrid debt. Even so, it’s headed for a substantial loss this year. <br/>