Finnair PLC said Wednesday that last week's strike by cabin crews will hit the company by euro10 million (US$12.5 million) this year, but that it will still make a profit.
The two-day strike, by more than 1,500 cabin personnel, will directly affect the airline's annual result by euro7 million (US$8.8 million), and will cost more than euro3 million (US$3.7 million) in lost ticket reservations, Finnair said.
"Finnair's operational profit for the entire year will be clearly below last year's level, but still in profit," the national carrier said.
The strike by cabin crews grounded most of the airline's international flights last week, forcing thousands of passengers to find alternative forms of transport. It was launched by the flight attendants' union to protest the airline's plans to recruit personnel through its Estonian subsidiary, Aero, at lower rates than for Finnair cabin staff.
Finnair said tight competition had forced it to consider hiring 500 more flight attendants through Aero, to meet growing demand on Asian routes.
After mediation by the state conciliator, the two sides agreed to continue negotiations on labor contracts and hiring policy.
Finnair, which flies to 50 destinations with a fleet of 60 aircraft, has increased Asian destinations and announced it will buy 12 new wide-bodied Airbus aircraft for more than euro1 billion (US$1.2 billion), expected to go into service in 2007-2011.
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