Finnair cuts 500 jobs due to falling demand

Finnair announced that it will cut services on its routes and is also preparing to cut up to 500 jobs as a result of a significant decline in demand.

The Finnish airline will be among Europe’s first to cut back as a result of skyrocketing fuel prices, but follows the lead of significant cuts experienced across the airline industry in the US.

The carrier issued a profit warning recently, and May’s traffic numbers further substantiated the decline, with the proportion of seats sold in May down to 65%, as compared with 72% in May of 007.

A spokesman for Finnair reported: “Demand has decreased and this has accelerated at such a rate in past weeks that, together with the price of fuel, Finnair’s profit-making capability has significantly weakened.”

Finnair operates services from Manchester and Heathrow to Helsinki, with onward flights to numerous destinations in west, south-east and east Asia. It is a member of the Oneworld airline alliance. The carrier provided no detail on route reductions, but did say cuts would impact “all traffic types”.

A spokesman added: “Demand has dropped especially on Chinese routes and on European and domestic traffic.”