November 2022, Virtual
21 November 2022, Hilton London Metropole
Air France-KLM is planning to invest €1 billion in growing its low-cost brand Transavia, as part of a new turnaround plan.
'Perform 2020' is expected to create 250 new pilot jobs by 2019 and grow Transavia's fleet to over 100 aircraft.
The airline, Europe’s second largest traditional carrier by revenue, said by 2017 Transavia “will rank among the leading low cost carriers in Europe”, and plans to move the business to a more “pan-European scale”.
Transavia, which currently flies to predominately leisure-based European destinations, should contribute an additional €100 million in revenue and is targeting profitability by 2018, Air france-KLM said.
As part of Perform 2020, Air France-KLM said it’s targeting a 10 per cent yearly increase in earnings by 2017, and is aiming to reduce annual costs by 1 per cent through expected growth in capacity.The plan is the successor to the Transform 2015 restructuring programme, which is due to expire at the end of the year after achieving more than €1 billion in savings.
"The ambitious initiatives we are launching today will go hand in hand with redoubled efforts to reduce costs and restructure activities which remain loss-making," said Air France-KLM Chief Executive Alexandre de Juniac.
The airline has struggled to compete with European low cost carriers such as Easyjet and Ryanair and is also facing the threat of Middle East airlines on its long-haul business.
In July, Air France-KLM halved its losses or the first six months of the year and posted an increase in revenue.
According to the group’s first half year results, it recorded an ‘adjusted’ operating loss of €342 million, an improvement of €344 million from six months earlier.