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Air France-KLM losses mount sharply to €630m

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Air France

Air France

PA Archive/Press Association Images

Air France

Air France-KLM said its losses mounted sharply in the first quarter compared with a year earlier, when earnings were boosted by a gain in the value of oil price hedging contracts the airline uses to manage its fuel costs.

The group said it lost €630m in the January-March quarter, compared with a loss of €379m a year earlier. Last year's result benefited from a €220m gain on the airline's hedging contracts.

The airline, in the midst of a three-year turnaround plan, said it is hoping to strengthen its position by paying down debt and reducing staff costs further.

Air France-KLM is struggling to compete against low-cost carriers and has said it expects to cut about 5,000 people in its workforce of 49,000.

PA Media