Air France-KLM cost-cutting slices deficit in half
Major European passenger and cargo carrier Air France-KLM halved its operating losses in the second quarter of the year, but told its pilots that it would still have to press ahead with further restructuring.
French pilots and cabin crew at the group last week voted in favour of strike action in protest at plans to cut more than 5,000 jobs.
The company's losses were cut by more than half, from 145 million to 66 million euros, in the first six months of the year.
And analysts expect the cost-cutting measures now being taken to bear fruit by the end of the year and lift the airline group back into the black, after revenue rose by 4.5 per cent between January and June.
Air France and KLM merged in 2004, but the group has since seen large chunks of its business taken by low-cost carriers, and the expanding airlines of the Gulf states, such as Emirates and Qatar Airways.
The group's tough stance on cost-cutting was emphasised by the group's financial director, Philippe Calavia, who said: "We don't have a choice: the measures we proposed are meant to ensure the survival of the company and its recovery in coming years."
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