Home Economy Finnair set to cut 500 jobs to compensate higher fuel prices

Finnair set to cut 500 jobs to compensate higher fuel prices

By DPA,

Helsinki : Finnish flag carrier Finnair Thursday said it planned to cut 500 jobs as part of cost-cutting measures to compensate for soaring fuel prices.

The carrier said fuel prices have “risen throughout the first half of the year at a much faster rate than anticipated”, estimating the 2008 fuel bill will be 160-180 million euros ($248-279 million) higher than in 2007.

While talks with unions were pending, the cuts were likely to include temporary staff and part-time workers as well as lay-offs, Finnair said.

The group has some 9,400 employees.

On Tuesday, Finnair reported a three percent drop in the number of passengers it flew in May compared to the corresponding period in 2007.