Finnair lowered (07-Oct-2011) its 2H2011 earnings forecast due to a fourth quarter that will be weaker than previously anticipated, according to forward indicators. Despite a profitable third quarter, the airline expects a “slightly negative” profit in the second half. Finnair still expects the second half performance to be stronger than the first half result. The downward revision reflects poor forward bookings for business travel, which have been weaker than expected following the European holiday season, and the airline does not expect those bookings to pick up significantly during the fourth quarter due to global economic uncertainty.
Finnair: “The cost savings and structural change programme we’ve started is even more crucial for us due to the weaker outlook for the rest of the year. Together with Finnair employees, we will turn over every stone to achieve those savings. Finnair is strongly committed to carrying out needed structural changes in addition to the more immediate cost savings necessary to improve financial performance,” Mika Vehviläinen, CEO. Source: Company statement, 07-Oct-2011.