Finnish airline, pilots agree on cost cuts

The agreement, backed by the Finnish Air Line Pilots' Association (SLL), shields pilots from redundancies over the next two years and will impact salaries and working hours, as well as pensions for new pilots, the national carrier said in a statement.

"Considering the situation of the world economy and our industry, such a long protection period is exceptional," Finnair chief executive Pekka Vauramo said in the statement.

The carrier, which has had trouble staying profitable, launched two programmes in 2011 and 2012 to save €200m by the end of 2014. At the end of June it had achieved an estimated €176m in savings.

Finnair issued a profit warning for the full year when it published second quarter results last month, citing weaker demand in its main markets.

The airline recently announced plans to hire outsourced cabin crew staff for some Asian routes after failing to agree with the Finnish cabin crew union on cost savings.