Finnair shows Q2 profit, hints at merger this decade

Finnair turns Q2 into €14m profit by a scheme to sell out several assets and functions. Its overhaul has been sold to SR Technics, its catering has been sold to Lufthansa Sky Chefs, and its Embraer fleet is to be transferred to its joint venture with Flybe.  |  Photo: Flickr by Curimedia

Finnair’s first half of 2012 is still in the red, and its cabin force will next be reduced by 100.

CEO Mika Vehviläinen, however says that Finnair puts its search for a European partner for short and medium haul on hold. Earlier this year Finnair reported its plans to transfer its short and medium haul traffic to a suitable partner; speculations included Norwegian and Air Berlin.

None of these have advanced and Finnair is now only outsourcing some of its longer European flights to Latvian SmartLynx, starting with A320 ops to Madrid.

At the same time Vehviläinen, in an interview for newspaper Helsingin Sanomat, says that one should not expect Finnair to remain an independent carrier within 5 to 7 years. He also hints that a future partner is to be found “within the alliances”, widely understood as IAG being the potential buyer of the Finnish government’s 56 pct. share in the airline.

The news lifted Finnair shares sharply, from an all-time low, by 8 pct. during Friday.

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