Air France-KLM is being set on a course to reinvent itself as part of a new five-year strategic plan.

The European airline conglomerate wants to restore “dynamic profitability” following a series of damaging strikes last year.

The group “must simplify and optimise its mode of operation and reposition itself to pursue the most profitable traffic,” investors were told in Paris yesterday.

The plan includes cutting operating costs and increasing efficiency while calling on French authorities to create “a more competitive airline business environment”.

The new focus will be on the three ‘master brands’ of Air France, KLM and Transavia to strengthen their respective positions in France and the Netherlands.

Air France-KLM will also “pragmatically consider consolidation opportunities when and where they make sense”.

The European airline combine saw net profits drop by €420 million to €366 million in the three months to September 30.

Group CEO Benjamin Smith said: “In a competitive and fast-transforming environment for European airlines, the Air France-KLM Group has all the assets to regain its leadership position.

“Thanks to the dedication of our employees at Air France, KLM and Transavia, since the end of 2018 we have been able to establish the fundamentals of our go forward plan: simplifying our fleet, clarifying our brand and market positioning, and unlocking significant commercial and operational flexibility thanks to new labour agreements.

“This is the starting point of a strategy that will allow Air France-KLM to reinvent itself, creating value for all key stakeholders.

“We will optimise our operational model and increase revenues to significantly improve our operating margin.

“Everything we do will support our goal of remaining an industry pioneer as the airline group most committed to global environmental sustainability.”