Finnair starts to plan a EUR 20 million cost-efficiency programme

Finnair Plc                 Stock Exchange Release                  17 August 2016 at 9:01 am EET

Finnair’s performance has been on an upward path now for almost two years. The foundation for this was laid with the savings programmes conducted in 2011–2014, after which Finnair’s result has also been supported by material decline in fuel expenses and improving ancillary and retail sales.

Sustainable improvement in profitability is a prerequisite for Finnair’s accelerated growth strategy announced in spring 2016.

Finnair wants to ensure profitable growth also in an environment of elevated market uncertainty, and therefore it continues to review the efficiency of its activities. The target is to achieve permanent savings through various efficiency-improvement measures, amounting to EUR 20 million annually by the end of June 2017.

”In order to be able to invest in growth and continue on our chosen path, we must ensure that our unit costs continue to decline. With that in mind, we are now proactively taking steps to deliberate together with our personnel about the measures we could utilise to improve our result and sustain the preconditions for the implementation of our growth strategy”, states CEO Pekka Vauramo.

Finnair expects to finalise the plans on the main areas of the cost-efficiency programme during the next few months.

Finnair Plc
Communications

Further information:
Finnair communications, tel. +358 9 818 4020, comms(a)finnair.com

Distribution:
Nasdaq Helsinki
Principal media

Finnair is a network airline specialising in passenger and cargo traffic between Asia and Europe. Helsinki’s geographical location gives Finnair a competitive advantage, since the fastest connections between many European destinations and Asian megacities fly over Finland. Finnair’s vision is to offer its passengers a unique Nordic experience, and its mission is to offer the smoothest, fastest connections in the northern hemisphere via Helsinki and the best network to the world from its home markets. Finnair is the only Nordic carrier with a 4-star Skytrax ranking and a member of the oneworld alliance. In 2015, Finnair’s revenues amounted to EUR 2,255 million and it had a personnel of 4,800 at the year-end. Finnair Plc’s shares are quoted on Nasdaq Helsinki.