Job cut costs swell 2012 loss at Air France-KLM
PARIS (AP) - 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 â ¬1.13 billion ($1.49 billion) in 2012 from â ¬809 million the year before. However, it says it performed better at the operating level, trimming losses to â ¬300 million from â ¬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.