Reuters: Hot Stocks: UPDATE 1-Larger-than-expected loss hits Finnair turnaround hopes

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UPDATE 1-Larger-than-expected loss hits Finnair turnaround hopes Apr 26th 2013, 07:34 Fri Apr 26, 2013 3:34am EDT * Loss of 17.7 mln euros, worse than expected * Shares fall 4 pct * New CEO under pressure to complete turnaround (Adds shares, detail, background) HELSINKI, April 26 (Reuters) - Finnish flag carrier Finnair reported a larger-than-expected loss in the first quarter, disappointing investors' hopes for a quicker turnaround after cost cuts and an expansion in profitable long-haul routes. Shares in the company fell 4 percent to 2.74 euros in early Friday trading after it posted a first-quarter underlying loss of 17.7 million euros ($23 million), compared with a 24-million-euro loss in the same period the year before. Analysts on average expected a loss of 7.6 million euros, according to a Reuters poll. The lacklustre results add pressure on chief executive Pekka Vauramo, recently hired to complete a turnaround started by his predecessor Mika Vehvilainen. Vehvilainen led efforts to cut back on flights in Europe, where Finnair faces stiff competition from discount carriers, and instead expand direct flights to Asia. Analysts have said the company needs to cut more costs, although such steps are likely to face resistance from unions. Deputy CEO Ville Iho said on Friday the airline would try to curb costs by trimming wages and working hours. "The measures required to ensure Finnair's success are difficult, but we believe we can achieve this goal in cooperation with our personnel through discussion and negotiation," he said. ($1 = 0.7689 euros) (Reporting by Ritsuko Ando; Editing by Helen Massy-Beresford and Mark Potter) Link this Share this Digg this Email Reprints

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