Air France-KLM dismisses report of big job cuts

Airline group says it’s too early to talk about the details

It is too early to give the details of any further cost cuts, Air France-KLM insists, following the publication of a report in newspaper Le Figaro that it is planning around 5,000 more job cuts.

“The group denies information reported by Le Figaro,” a spokesman for the group said.

Le Figaro reported yesterday: “If Air France employees believed they had finished with cuts, they need to prepare for a new job-cut plan in 2015. According to our information, this is being considered in the coming months and could cover nearly 5,000 jobs (out of about 96,000 Air France-KLM employees). [This would take] staff reductions to nearly 8,000 jobs over three years.”

The airline group issued its third profit warning in six months in December, further reducing its 2014 EBITDA forecast by €200 million to between €1.5 billion and €1.6 billion. Costs from a pilot strike had been higher than expected, it explained at the time, and long-haul revenues were weak.

“On December 18, the group said that its situation and the deteriorating competitive climate required additional cost-cutting actions and a significant reduction of its investment plan,” the spokesman said. “A strengthening of these actions on costs will be submitted to staff representatives […] nothing has been decided yet.”

Reuters / Le Figaro

[pictured: Air France A380; courtesy Air France]


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