Finnair will cut approximately 90 per cent of its normal capacity, compared to 2019, starting from the beginning of April 2020, the company revealed as it published its second profit warning of 2020.
In a statement accompanying the warning the firm said that this reduction would stay in place, “until the situation improves. This will result in a substantial comparable operating loss in the 2020 financial year.”
Finnair’s first profit warning was published on 28 February, when it said that its comparable operating result in Q1 2020 was expected to be lower compared to Q1 2019, and it withdrew its capacity guidance of 4 per cent growth for 2020.
Due to the extreme circumstances, Finnair will make further significant adjustments to its cost base.
“It is now clear that the coronavirus is by far the biggest crisis in the history of aviation,” says Topi Manner, Finnair’s chief executive “The substantial deterioration of our financial outlook is fully attributable to the coronavirus. At the same time, it has nothing to do with Finnair’s underlying competitiveness, which remains intact.”
Finnair is also implementing a substantial funding plan which includes funding instruments such as available credit lines, sale and leasebacks of unencumbered aircraft and a substantial, market-based pension premium loan. The government of Finland has confirmed to the company that it will actively support Finnair through this exceptional period.