Air France-KLM considering further cuts to offset losses

Air France-KLM, after experiencing a dismal Q1 result, has said that it is considering costs cutting even further to offset the recent losses.

The airline said that it is mulling to cut costs this year as well as the next year so that the present gap in competitiveness against its rival Lufthansa and IAG is effectively reduced.

Pierre-Henri Gourgeon, CEO of Air France-KLM, expressed disappointment at Q1 results and agreed that the airline’s competitiveness is not at par with its prominent European competitors.

He, however, said that the airline will not change its full-year target for achieving an operating profit and would continue to strive towards this. Gourgeon also said that the airline would publish its quarterly results in November and provide update on cost plans.

This year, Air France-KLM stock performed worst, down 55%. The airline is likely to unveil plans for its multi-billion order for mid-sixed aircraft to replenish its fleet at the board meeting scheduled on September 15, 2011.