Air France KLM to Layoff 1200 more Staff
Air France KLM has admitted that they plan to axe another 1,200 jobs, which comes after their announcement of a sharp increase in losses for the 3rd quarter. A week following the announcement from British Airways of an £85 billion loss during the 3rd quarter, Air France KLM said that they fell victim to the crisis as well, which has hit cargo and passenger traffic both.
The Group revealed a reduction of €1.2 billion in costs, half of which are to be put into effect this year, and they plan to cut from 1,000 to 1,200 workers through a hiring freeze, retirement, and voluntary departures. Around 450 managers between the ages of 60 and 65 are being encouraged to retire from the company, even though there won’t be any compulsory redundancies. An airline spokeswoman said that Air France KLM is going to continue their cost reduction program, which showed a 2,000 job cut in their workforce for 2008.
The carrier says that they recorded an operating loss of €194 million for the 3 months leading to December 31st. Even though revenue continued to be stable and long-haul traffic was resilient, they witnessed a drop in overall passenger numbers by 1.9% during the month of January, which was due greatly to the decline in bookings for short-haul services. The freight traffic for the airline also fell 20% during last month for the second month.
Air France KLM says that they will cut capacity by 2% during the summer since the outlook of the economy is only growing worse by the day. However, they have maintained their forecast of ending in the black for the fiscal year ending March.
Learn more at: www.airfranceklm-finance.com
The Group revealed a reduction of €1.2 billion in costs, half of which are to be put into effect this year, and they plan to cut from 1,000 to 1,200 workers through a hiring freeze, retirement, and voluntary departures. Around 450 managers between the ages of 60 and 65 are being encouraged to retire from the company, even though there won’t be any compulsory redundancies. An airline spokeswoman said that Air France KLM is going to continue their cost reduction program, which showed a 2,000 job cut in their workforce for 2008.
The carrier says that they recorded an operating loss of €194 million for the 3 months leading to December 31st. Even though revenue continued to be stable and long-haul traffic was resilient, they witnessed a drop in overall passenger numbers by 1.9% during the month of January, which was due greatly to the decline in bookings for short-haul services. The freight traffic for the airline also fell 20% during last month for the second month.
Air France KLM says that they will cut capacity by 2% during the summer since the outlook of the economy is only growing worse by the day. However, they have maintained their forecast of ending in the black for the fiscal year ending March.
Learn more at: www.airfranceklm-finance.com
Labels: Air France KLM, layoffs
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