Air France-KLM saw its losses increase by 47 per cent to €1.19 billion in 2012 due to higher fuel bills and restructuring costs.
The European aviation giant’s net losses grew from 2011’s deficit of €809 million due to a €890 million hike in its fuel costs and €471 in restructuring charges – which forms part of its ‘Transform 2015’ programme of cuts launched last year.
But there was some good news for the company as revenues rose 5.2 per cent to €26.6 billion last year and it also reduced its operating losses to €300 million from 2011’s loss of €353 million.
Air France-KLM chairman Jean-Cyril Spinetta said: “The year 2012 was characterized by a slowdown in global growth and recession in Europe, but nevertheless saw a sharp increase in the fuel price.
“Despite this very tough context, our results were in line with our expectations, with the first effects of the Transform plan enabling us to reduce the operating loss.
“Most importantly, it was a year in which our fundamentals were restored, as the first, necessary step towards the recovery of our group. Our working practices have been overhauled, industrial projects have been determined for each of our businesses while reducing costs and improving our financial position”
Spinetta added that the company would “maintain strict discipline in terms of capacity management, investments and costs” during 2013 as it bids to continue to reduce its debts of €6 billion.
Last month, the company announced that Air France would be launching a new regional airline called Hop with flights starting from March 31.
Air France-KLM’s Transform plan aims to cut the company’s net debt to €4.5 billion by the end of 2014.