Airlines
Air France-KLM To Speed Cost-Cutting, Slash Investments
Targets unit cost reduction of between 1 and 1.3 percent for 2015
Air France KLM plans to defer some fleet renewal investment in an effort to control costs. (Photo: Air France-KLM)
Air France KLM plans to defer some fleet renewal investment in an effort to control costs. (Photo: Air France-KLM)

Air France-KLM said on Thursday it would accelerate cost-cutting measures and cut planned investments by more than €600 million ($683 million) as economic weakness in Europe drives a “cautious” approach over the next two years for the struggling company. The plans came to light as the company reported a 2.3-percent decline in sales for 2014 and a €425 million ($484 million) margin hit caused by a two-week pilot strike in September. It also retracted its September 2014 financial target for 2017 in recognition that it will not benefit from a significant fall in fuel prices. Air France-KLM targets a unit cost reduction of 1 to 1.3 percent, a net debt of €5 billion ($5.7 billion) and a significantly reduced goal of an 8- to 10 percent earnings growth for 2015.