Finnair became the latest European network carrier to issue a profit warning on Friday as the airline reported a half-year loss.
Helsinki-based Finnair recorded a loss of almost €24 million in the six months to June against a profit of €18 million last year.
Revenue was down 7.2% to €566 million and the carrier warned full-year revenue would be “significantly lower” than last year.
The profit warning followed similar warnings from Lufthansa and Air France-KLM in early July.
A Finnair spokesperson blame “weak unit revenue development, weakened domestic demand and intensified international competition in long-haul traffic, as well the appreciation of the euro against our other primary revenue currencies”.
Finnair reported it is in negotiations with pilots on proposed wage cuts and announced it has agreed a deal to partially outsource cabin crew.
Chief executive Pekka Vauramo said: “Achieving the cost reductions we are pursuing and reaching market-level costs in all categories is absolutely essential in this financial situation.”
The carrier unveiled the cabin interiors for the new Airbus A350 aircraft it will operate from the second half of next year.
The first A350 should enter service with Qatar Airways later this year. The A350 is a wide-body aircraft with similar fuel-efficient features to the Boeing 787.
Finnair has 11 A350s on order.