Business News
Higher fuel prices and lower demand to impact carrier Finnair
By DPA
May 22, 2008, 12:55 GMT

Helsinki - Higher fuel prices and a slowdown in demand was expected to impact profits, Finnish flag carrier Finnair said Thursday, saying it expected lower profits for the six-month period ending June 30 than earlier estimated.

'At the beginning of the year, jet fuel cost 850 dollars per ton. Now the price is clearly above 1,300 dollars,' Finnair said.

Chief Executive Jukka Hienonen said fuel costs were estimated to account for 'more than a quarter of estimated turnover.'

With a drop in scheduled passenger traffic, Hienonen said the carrier was planning 'to reduce capacity, particularly in Europe.'