Finnair sees difficult times ahead as losses double

HELSINKI, Feb 5, 2010 (AFP) - Finnair said Friday its losses doubled in 2009 despite a slight better fourth quarter performance and warned of difficult times ahead.

The Finnish carrier said it lost 102 million euros (139.5 dollars) in 2009 after a net loss of 46.3 million euros in 2008.

For the October-December period, it narrowed its net loss to 36.6 million euros from 45 million euros in the same period a year earlier.

The company said 2009 had been a difficult year and the whole airline industry, with the company hurt by a sharp fall in demand and price competition which caused sales to drop 18.5 percent.

In the three months to December, sales dropped 20.9 percent from a year earlier.

"The early part of 2010 still appears to be difficult for Finnair and for the entire transport sector," CEO Mika Vehvilaeinen said, adding that "domestic demand shows no sign of recovery and it seems that the fall in prices will continue in early 2010."

The CEO noted, however, that there were "evident" signs of recovery in corporate travel and cargo demand from abroad even if the business was "still subject to strong price pressure."

The global financial crisis has savaged the airline industry, with ticket prices and passenger numbers falling, prompting Finnair to cut routes and staff.

It said Friday its 200 million euro cost-cutting plan delivered savings of just over 100 million euros in 2009.

Shares in Finnair were down 2.11 percent to 3.70 euros on a Helsinki Stock Exchange down 1.56 percent at 1030 GMT.



© 2010 AFP

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