March 16, 2020 / 7:11 AM / 15 days ago

BRIEF-Finnair Issues New Profit Warning; To Refrain From Paying Dividend Of EUR 0.20

March 16 (Reuters) - Finnair Plc:

* FINNAIR REVISES ITS OUTLOOK FOR THE 2020 FINANCIAL YEAR AND ISSUES A NEW PROFIT WARNING. THE DIVIDEND PROPOSAL OF 0.20 EUROS WILL NOT MATERIALISE

* WILL CUT APPROXIMATELY 90 PER CENT OF ITS NORMAL CAPACITY, COMPARED TO 2019, STARTING FROM BEGINNING OF APRIL 2020

* SUBSTANTIAL COMPARABLE OPERATING LOSS IN 2020 FINANCIAL YEAR.

* WILL MAKE FURTHER SIGNIFICANT ADJUSTMENTS TO ITS COST BASE.

* RECONSIDERED ITS DIVIDEND PROPOSAL

* HAS CONCLUDED THAT COMPANY SHOULD REFRAIN FROM PAYING DIVIDEND.

* ALSO GOVERNMENT OF FINLAND HAS ADVISED COMPANY OF ITS INTENTION TO VOTE AGAINST DIVIDEND PROPOSAL OF 0.20 EUROS PER SHARE

* “IT HAS NOTHING TO DO WITH FINNAIR’S UNDERLYING COMPETITIVENESS, WHICH REMAINS INTACT” - CEO

* IS IMPLEMENTING A SUBSTANTIAL FUNDING PLAN

* PLAN INCLUDES FUNDING INSTRUMENTS SUCH AS AVAILABLE CREDIT LINES, SALE AND LEASEBACKS OF UNENCUMBERED AIRCRAFT

* PLAN INCLUDES A SUBSTANTIAL, MARKET-BASED PENSION PREMIUM LOAN.

* GOVERNMENT OF FINLAND HAS CONFIRMED TO COMPANY THAT IT WILL ACTIVELY SUPPORT FINNAIR THROUGH THIS EXCEPTIONAL PERIOD.

* WILL UPDATE ITS OUTLOOK IN CONJUNCTION WITH Q1 2020 INTERIM REPORT. Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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