Air France plans to cut 2,800 jobs
- 18 September 2013
- From the section Business
French carrier Air France has said it plans to cut a further 2,800 jobs through voluntary redundancy as it struggles to cut costs.
The airline, part of the Air France KLM group, had already announced plans to cut 5,100 jobs from its 69,000-strong workforce as part of a turnaround plan.
But it has now admitted it will miss its financial targets for 2013.
Air France said it was in negotiations with unions regarding the latest planned cuts.
The airline merged with Dutch carrier KLM in 2004.
European airlines have been hit by low growth in passenger numbers and high fuel costs, while older "flag carrier" airlines are also struggling to compete with low-cost carriers such as Easyjet and Ryanair.
"We are in a period of weak demand," chief executive Frederic Gagey told a news conference. "We have felt the full brunt of the cyclicality of air transport."
Shares in Air France KLM fell more than 3% in response to the news.
In a statement, Air France said it would continue a policy of "wage moderation" alongside the job cuts.