Air France-KLM cuts harder on office expenses – NU.nl

It is a sum of 150 million euros, or 10 percent of the total overheads in addition to the previously announced cuts totaling 1.8 billion euros.

In the current austerity program for the years up 2020 was already subscribed to savings in overhead costs for 150 million euros.

” We think the next two to be able to double for three years, for example by simplifying processes and to ensure that people no duplication do more ‘said finance director Pierre-Francois Riolacci Friday.

Traders reacted positively to the interim figures. At 13.00, the share was Air France-KLM over 3 percent in plus on 6,82 euro.

Worsened

Air France-KLM reported Friday that the results in the second quarter deteriorated further. Although the company saw sales rise by 3 percent to EUR 6.64 billion, but this increase was due to the favorable impact of the high dollar. Which propelled the yields on flights to and from the United States. Without that tailwind, sales would have fallen by 4.5 percent.

The strong dollar, however, drove the cost and eventually had a net negative effect on earnings. Operating profit fell by more than a fifth to 185 million euros. Bottom line was Air France-KLM 79 million short, against a loss of 11 million euros a year earlier

Video:. Air France-KLM deeper into red numbers

Ticket prices

The ticket prices have long been under pressure due to heavy

competition. The pressure that it puts on the turnover in the second quarter only increased. In key markets such as Japan and Brazil contend the company also with a declining demand. Additionally let customers in the oil industry it fails as a result of lower oil prices.

Plans to further bring down the cost are ready, but are still subject to agreement of the unions. KLM recently reached agreement on new collective agreements that all staff sacrifices are required.

Air France run those conversations yet. By September must be an agreement, otherwise substantially decontaminate the only alternative, warned chief executive Alexandre de Juniac. Furthermore, as previously announced loss-making routes canceled and postponed investments in new aircraft include

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Fewer people

The additional savings on office functions will also be felt in Amstelveen. ” We’re going once towards a KLM with less people, ” said KLM President & CEO Peter Elbers. Numbers did he not mention. ” At the end of this year we have more insight, ” he promised.

It is as Elbers not obvious that there in the rest of 2015 will not occur in a strong improvement, but any sign of recovery may affect the future

By:. ANP