Air France-KLM reports $1.11 billion net loss

Air France flights have failed to put up a strong growth performance leading to a huge net loss. The ailing Franco-Dutch airline Air France-KLM recently disclosed that it has suffered a net loss of $1.11 billion (895 million Euros) in the three months to June this year.

The airline in a statement said that it is currently implementing $2.48 billion (2 billion Euros) cost-cutting measures and expects to improve its operating performance in H2 2012.

Air France stated that it had to face financial losses more than its rival Lufthansa as well as International Airlines Group (IAG), the parent company of British Airways and Iberia, only because it was much behind in implementing effective cost-cutting plans.
 
The airline said that it has already started cutting 5,000 jobs in France and hopes to curb mounting financial losses. The airline is also presently confronted with other problems, such as rising jet fuel costs and turbulent economic situation in Europe.