Europe’s largest airline, Air France-KLM Group, suffered a net loss of 147 million Euros or $220 million in its second quarter. Airlines across the board have been taking hits as passenger traffic and ticket prices continue to drop as the recession draws on.
“We’re in the midst of a crisis that is very, very strong,” said the airline’s Chief Executive Officer Pierre-Henri Gourgeon in Paris. May brought the first losses for Air France in 13 years; prompting massive layoffs meant to account for a 19 percent revenue loss over the course of the recession. Layoffs; however, are not sufficient and Gourgeon continues to do his best cut costs and improve services in the hopes of minimizing losses for the approaching fiscal year.
Plans to cut 1,500 additional jobs and reduce ticket prices by as much as 30 percent have been established in the hopes of helping the airline to compete with discount carriers and high-speed ground transportation.
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