Job cut costs swell 2012 loss at Air France-KLM
Air France-KLM, which is one year into a three-year turnaround plan, says it is hoping to strengthen its position this year by paying down debt and reducing staff costs further. (Feb. 19, 2013) Credit: Bloomberg News
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 says Friday it made a net loss of (euro) 1.13 billion in 2012 from (euro) 809 million the year before. However, it says it performed better at the operating level, trimming losses to (euro) 300 million from (euro) 353 million 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, says 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.
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