A 14-day strike by Air France pilots last year cost the airline €425 million, it was disclosed today.
The figure emerged in full year results issued by Air France KLM this morning.
The strike led to multiple flight cancellations resulting in revenues being down by €495 million.
The carrier’s net losses increased to €535 million from €463 million in 2013 as full year passenger revenues declined by 2.7% to €19.5 billion.
Air France KLM is to accelerate cost cuts and reduce investment by €300 million in both 2015 and 2016.
Chairman and chief executive Alexandre de Juniac said: “By deciding today to reinforce its unit cost reduction efforts and adapt its investment plans, the group is ensuring that it can achieve its key targets of improved competitiveness and deleveraging.”
Capacity growth in the carrier’s passenger business will be limited to 1.1% this year.
However, the group’s Transavia low-cost arm will see capacity rise by 30% in France with a network of 44 destinations from Paris Orly under a new brand identity and with a new website.
The Transavia fleet will increase to 21 Boeing 737s this summer, rising to 37 by 2019, potentially operating flights from all French airports, including on destinations already served by Air France.
“Transavia will maintain its own operating and remuneration conditions, which are key to achieving its unit cost and operating flexibility objectives,” the group said.
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