Job cut costs swell losses at Air France-KLM in 2012Friday 22 February 2013 16.26
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.