Job cut costs swell losses at Air France-KLM in 2012

Friday 22 February 2013 16.26
Air France-KLM made net loss of €1.13 billion last year
Air France-KLM made net loss of €1.13 billion last year

Costs associated with cutting jobs, higher fuel prices and weakness in Europe have combined to swell losses at airline Air France-KLM.

The Paris-based company said today that it made a net loss of €1.13 billion in 2012 from €809m the year before.

However, it said it performed better at the operating level, trimming losses to €300m from €353m as it made more revenue from each seat, particularly on North American routes.

The Franco-Dutch airline, which is one year into a three-year turnaround plan, said it is hoping to strengthen its position this year by paying down debt and reducing staff costs further.

Air France-KLM is struggling to compete against low-cost carriers and has said it expects to cut about 5,000 people in its workforce of 49,000.

Keywords: air france, klm