Europe

Finnair lowers 2013 guidance because of low demand

HELSINKI (AP) — Finnair says the uncertain economic climate in Europe and weaker growth in Asia are expected to hit its full-year performance, with turnover falling to below 2012 levels and the possibility that it will show an operational loss.

The Finnish national carrier says fuel costs were expected to remain high in the last quarter of 2013 and that the demand for air traffic would only "grow moderately." It gave no figures. The airline's previous guidance said it expected an operational profit this year.

Finnair PLC, which is due to release its third-quarter result Friday, has embarked on several cost-cutting programs, including substantial job cuts, as it struggles against high costs and tough competition from budget airlines.

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