Arab Today, arab today air franceklm announces first half losses more costcutting
Last Updated : GMT 15:01:05
Arab Today, arab today
Arab Today, arab today

Air France-KLM announces first half losses, more cost-cutting

Arab Today, arab today

Arab Today, arab today Air France-KLM announces first half losses, more cost-cutting

Air France-KLM
Paris - AFP

Air France-KLM said Friday it would add a further 300 million euros ($328.4 million) to a previously announced 1.5-billion-euro cost-cutting programme as it revealed first-half losses of 619 million euros.

Despite a five-percent increase in passenger revenue for the first half of 2015, income from cargo plummeted 81 percent, the company said.

Tightening competition and the adverse effects of exchange rates also helped drag the airline farther into the red.

As a result, Air France-KLM chairman Alexandre de Juniac said the company would increase its two-year cost- cutting target to 1.8 billion euros by seeking greater efficiencies and additional closures of unprofitable routes.

"The lack of results improvement leads us to implement immediate additional adaptation measures including, in particular, the closure of heavily loss-making routes, the downward revision in capacity for the forthcoming winter season, together with an acceleration and an increase in the magnitude of our cost-saving initiatives," de Juniac said in a statement.

The airline -- Europe's largest in terms of traffic -- has been struggling to boost profitability and reduce its 5.4 billion euros of debt.

De Juniac has been urging unions to agree to a five-year "Perform 2020" plan to boost efficiency.

Fearful of job cuts and salary reductions, unions have resisted several points in the programme, especially expansion of its low-cost Transavia airline.

A 14-day strike in 2014 by pilots over planned restructuring around Transvia cost the airline 425 million euros, dragging it to a 198-million-euro loss for the year.

In revealing the continued losses during the first half of 2015, de Juniac appealed to unions to join management to find a way of returning to profit.

"Following the agreement signed by KLM with its unions, the rapid conclusion of the negotiations with the Air France unions is key to re-launching the results turnaround.

"At this pivotal moment in Air France-KLM's history, the board and I know that we can count on the spirit of responsibility and commitment shared by all the group’s staff to enable us to return to a growth path," he said.

The airline in June had already announced closure of four unprofitable routes, and said 1,000 jobs had been eliminated since the start of the year.

On Friday, it said several planes would be withdrawn its fleet to reduce costs and it would delay delivery of new long-haul Airbus A350s by a year to 2019.

Should negotiations with unions fail to adopt "Perform 2020", de Juniac noted, further consequences would be in store for the airline's long-haul activity.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today air franceklm announces first half losses more costcutting Arab Today, arab today air franceklm announces first half losses more costcutting

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today air franceklm announces first half losses more costcutting Arab Today, arab today air franceklm announces first half losses more costcutting

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today Saudi clerics use Twitter, textbooks

GMT 10:13 2017 Tuesday ,26 September

Saudi clerics use Twitter, textbooks
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today China refuses visa to elderly India runner

GMT 15:01 2017 Tuesday ,26 September

China refuses visa to elderly India runner
Arab Today, arab today Botanical gardens a lifeboat

GMT 02:50 2017 Tuesday ,26 September

Botanical gardens a lifeboat
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Mai Kassab happy for participating in new film

GMT 09:33 2017 Friday ,22 September

Mai Kassab happy for participating in new film
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 16:08 2017 Monday ,25 September

'World's heaviest woman' dies

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday