Air France KLM posts huge 2012 net losses
Feb. 22, 2013, Paris, France - Costs associated with cutting jobs, higher fuel prices and weakness in Europe have combined to swell losses at airline Air France-KLM.
February 22, 2013 By Carey Fredericks
The Paris-based company said Friday its net loss soared to (euro) 1.13 billion (U.S. $1.49 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.