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Against the flow
ORIGINAL FRENCH ARTICLE: Air France-KLM. Les résultats s’améliorent mais les suppressions d’emplois continuent
by Alexandra Chaignon
Air France-KLM: Bottom Line Improves But Job Cuts Continue
Translated Thursday 26 February 2015, by
The Franco-Dutch corporation chalked up new losses in 2014.
But in reality, the 14-day pilots’ strike masks the improvement made by Air France-KLM. Its end-of-year result plunges back into the red (a 129-million-euro loss as against a 130-million-euro operating profit the preceding year), but without the impact of the strike, it would have more than doubled. What is more, the corporation’s competitiveness is also improving. The net loss was reduced to 198 million euros as against 1.82 billion euros in 2013, according to a press statement from the corporation. Total sales are down, but the corporation points out that they are “partly offset by a 70-million-euro net cost reduction.” The cost reduction included the axing of the equivalent of 1,550 full-time jobs between 2013 and 2014, by way of a voluntary redundancy scheme that the corporation adopted. And it is not over. According to corporate management, 1,300 employees will leave in the first half of 2015.
