Finnair has announced it will reduce its fleet, cut costs and seek to build a geographically more balanced network by increasing cooperation with partner airlines, in a new plan to return to profitability.
Finnair has been looking for new commercially-feasible routes since the closure of Russian airspace due to the war in Ukraine cutting off its previously lucrative Asian connections.
The company, headed for a third annual loss in a row, has said it needs a new strategy to address the impact of the war in Ukraine and high fuel prices.
Finnair’s chief executive Topi Manner said to Reuters: “Now we need to get along without the geographic competitive advantage and adapt to the reality that geography has changed, the Russian airspace is closed.”
To adapt, Finnair will seek to reduce costs in order to enter new, more competitive markets such as the Middle East where there is less regulation, Manner said.
The cost savings include reductions to Finnair’s fleet, to be decided later according to demand, Mr Manner said.
Finnair said it would aim to build a more balanced network connecting Europe to Asia, India and the Middle East, and North America via its home hub Helsinki.
