Finnair blames euro for weak Q3 results, looks to Asia

Finnish airline Finnair blamed the strength of the euro against Asian currencies for a fall in quarterly net profit and sales, in results on Friday. The company, which turned in a net profit for the third quarter of 17 million euros ($21.4 million), marking a 38-percent fall from the equivalent figure last year, was also gloomy about the outlook.
Sales fell by 2.2 percent to 623 million euros, because the euro was strong against the currencies of key Asian markets, the airline said. The airline has high hopes for its business operating routes between Asia and Europe. But Finnair warned that for the whole of this year, the operating figure would show a big loss because of delays in negotiations with staff on cost-cutting, and unfavourable market conditions.
It expected sales for the year to fall significantly. The price of shares in Finnair was down 2.03 percent to 2.41 euros on the Helsinki stock exchange. Finnair has already opened talks with employees with a view to cutting costs, and has reached agreements with pilots and cabin crew which it expects to generate savings of 35 million euros per year. At the end of September, the company had already realised savings of 189 million euros out of a total target of 200 million euros, it said, intending to cut costs by the end of the year to the level in 2010.