Helsinki - Finnish flag carrier Finnair on Tuesday posted a drop in pre-tax profits for the first quarter 2008 on higher turnover, citing concern over higher fuel costs and uncertainty over the global economy.

First-quarter pre-tax profit was 7.6 million euros (11.88 million dollars), compared to 13.4 million euros for the corresponding business period in 2007.

Turnover increased 9 per cent to 576 million euros in the quarter, the carrier said.

"The high price of fuel and the uncertain outlook for the world economy raise question marks about the profit outlook for airlines," Chief Executive Jukka Hienonen said in a statement.

Hienonen said the airline business was heading for restructuring, adding that bankruptcies were not to be ruled out.

In its outlook, Finnair said it expected growth to level off and envisaged it will raise ticket prices to compensate for fuel costs.

The carrier was to continue to focus on traffic between Asia and Europe.

In June it planned to begin direct flights to Seoul, and will add one more flight a week to Mumbai.

Asia traffic grew some 23 per cent in the quarter, Finnair said.

During the quarter the group flew some 2 million passengers, including 344,000 passengers on charter flights. The group noted a drop of some 11 per cent for its scheduled traffic. (dpa)