Air France-KLM will leave no stone unturned in its efforts to speed up cost cuts and reduce investment. That’s the message from the company after it reported a drop in full year profits.
Earnings fell to 1.59 billion euros in 2014 from 1.86 billion euros a year earlier. The Paris based company said it had been hit by the weaker euro. But the main factor was September’s pilots’ strike.
The walkout was the longest in 20 years and offset the benefits of lower fuel prices. Pilots took the action after a dispute over plans to expand the group’s budget subsidiary Transavia.
It’s estimated the strike cost the company 495 million euros in lost revenue while overcapacity on routes to Asia, Latin America and Africa weighed heavily on ticket prices.