(Adds detail, background, shares)
Feb 28 (Reuters) - Finnair warned of a
significant fall in operating profit this year due to the
coronavirus outbreak, joining a growing list of airlines to cut
their forecasts due to the travel disruption caused by the
virus.
Finland's national airline also said on Friday was scrapping
its capacity growth target for this year, and would look into
cutting costs by 40-50 million euros ($44-54 million), with
measures under consideration including temporary layoffs.
Its shares dropped nearly 6% after the Helsinki market open.
"Finnair currently estimates that the coronavirus situation
will decrease demand, resulting in a negative impact on revenue
for Q2 2020," the company said in a statement, adding this would
result in a "significantly lower" operating profit for the year.
British Airways-owner IAG also warned on Friday its
earnings would be hit by the virus outbreak this year, while
budget airline easyJet said it had seen a "significant"
softening of demand in and out of its northern Italian bases
amid a spike in nearby infections.
Asia - where most virus cases have been recorded - accounts
for more than 40% of Finnair's passenger revenue, but on Feb. 7
the airline still estimated the direct financial impact of the
outbreak would be relatively limited during the first quarter.
On Friday, the company withdrew its capacity growth guidance
of approximately 4% for 2020, saying it planned to adjust it
over the next months.
"As the coronavirus situation has entered a new phase with
outbreaks in several new countries, we will take appropriate
measures to adapt our costs, operations and resources to better
match our revenues," Chief Executive Topi Manner said.
(Reporting by Anne Kauranen; editing by David Evans and Mark
Potter)