Finnair is looking to cut up to 500 jobs as part of its drive to save 50m
The Nordic carrier said it was starting talks with staff on job cuts.
These are part of it plan to cut production which it said will affect "all traffic types."
Job losses will include "adjusting the number of temporary staff, part-timing, lay-offs and as a last resort, terminations."
The airline blamed the measures on the price of oil and a fall in demand.
It said its fuel bill in 2008 would be between 160-180m higher than last year.
Finnair said it needed cuts of 50m to ensure its growth strategy.
It added that "demand has decreased and this decrease has accelerated at such a rate in the past weeks that together with the price development of fuel, Finnair's result-making capability has significantly weakened.
"Demand has dropped especially on Chinese routes and it is also reflected on European and domestic traffic."
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UK budget hotels boom
UK budget hotels are growing at a "rapid rate", according to a new survey by TRI Hospitality Consulting.
Its Budget Hotels 2008 UK report with BDRC, a research company, found that in the first quarter of the year, rooms revenue rose by 9.2%, compared with 8.8% during the whole of 2007.
The study said a typical UK budget hotel now turned over £1m a year in rooms revenue.
Investors and developers also continued to be attracted to budget hotels because of their low initial capital costs, simple operating model and margins of between 57% and 62%.
There were now 1,264 hotels and 95,705 bedrooms in the branded UK budget market by the end of March 2008.
Two brands dominated the UK market, Premier Inn which has a 37% share and Travelodge with a 23% share.
Jonathan Langston, TRI's managing director, said: "Our unique analysis of the UK's budget hotels reveals no signs of a saturated market in spite of the rapid proliferation of budget properties across the country.
"Both supply and demand are increasing at much the same rate, demonstrating the ever-growing appetite for budget hotel product from investors, developers and from the consumer."