Helsinki - Finnish flag carrier Finnair Thursday said it planned to cut 500 jobs as part of cost-cutting measures to compensate for soaring fuel prices.

The carrier said fuel prices have "risen throughout the first half of the year at (a) much faster rate than anticipated," estimating the 2008 fuel bill will be 160-180 million euros
(248-279 million dollars) higher than in 2007.

While talks with unions were pending, the cuts were likely to include temporary staff and part-time workers as well as lay-offs, Finnair said.

The group has some 9,400 employees.

On Tuesday, Finnair reported a 3 per cent drop in the number of passengers it flew in May compared to the corresponding period in 2007. (dpa)