Finnair reports annual net loss of 116 million dollars

Feb 9, 2012, 11:13 GMT

Helsinki - Finnair on Thursday said its annual net loss quadrupled to 87.5 million euros (116 million dollars) for 2011 as a result of high fuel costs and the economic crisis, and announced it was seeking a joint venture partner to expand in the Nordic region.

A year ago, the Finnish flag carrier reported a net loss of 22.8 million euros.

Turnover increased by 11.6 per cent year-on-year to 2.25 billion euros.

'Unfortunately the increased fuel price and global uncertainties more than offset our progress in cost savings,' chief executive Mika Vehvilainen said.

Unlike in previous recessions, fuel prices have not declined as much because of growing demand in emerging economies and uncertainty in the Middle East, he said.

The group has introduced saving measures as part of its overall plan to reduce costs by 140 million euros by 2014, and said it expects savings of 80 million euros to be achieved by the end of 2012.

The carrier said it would continue to focus on its Asian network, while the possible joint venture would be geared towards European destinations.

Vehvilainen said the joint venture was necessary since 'competition in our industry has tightened so that the continuous development of both cost competitiveness and quality require specialisation and large-scale cooperation.'

Finnair said it flew 8 million passengers in the year, up 12 per cent on 2010.

The carrier had some 7,500 employees at the end of the year, about 100 fewer than in 2010.

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