Finnair launches comprehensive adjustment and cost-savings program

Finnair is in the middle of the largest crisis in aviation’s history and is facing a challenging financial situation due to the impacts of the COVID-19 pandemic. To emerge from the crisis the airline has launched a comprehensive adjustment and cost-savings program. The program includes, among many other actions, jointly agreed decreases in personnel costs for several personnel groups. Top management remuneration does not include variable salary elements from 2020-2022.

The rebuild of Finnair will take years, and will require hard work and dedication. Securing the company’s future demands a long-term contribution from all Finnair employees.

Finnair has prepared a long-term incentive program for those personnel groups with whom it reaches agreements on permanent cost savings that support Finnair’s recovery. Finnair has now launched this incentive program, which starts during this year and will end in the third quarter of 2023.

“Finnair is facing an extremely difficult situation due to the COVID-19 pandemic. The company must make painful decisions to emerge from the ongoing crisis which is reshaping our industry. Getting through this phase requires renewal so that Finnair can be competitive in the years to come,” said Jouko Karvinen, Chairman of the Board, Finnair. “Finnair has launched an incentive program for personnel and management, aiming at in due course rewarding the Finnair team for their contributions to Finnair’s future. The targets and key performance indicators we have set for the program are ambitious and in line with the company’s best interests. They are also aligned with the interests of the company’s shareholders.”

The program for personnel will result in an incentive being paid to participating groups if Finnair succeeds in rebuilding its business over the coming three years in line with the set performance indicators and targets. At the maximum the incentive pay-out can amount to approximately two months of salary, payable in the third quarter of 2023.

The key performance indicators of the new three-year incentive plan for the Finnair Executive Board are the same as those of the personnel incentive program. Incentives are paid only if Finnair achieves the common targets. Finnair has also issued a stock exchange release with the details of the Executive Board incentive plan.

Finnair has reserved the possibility to offer the incentive program to personnel groups with whom agreements on permanent cost savings have not yet been reached. If such agreements are reached shortly, these personnel groups will take part in the new incentive program under the same conditions as other participants.

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