PARIS (Reuters) - The head of the French unit of Air France-KLM (AIRF.PA) said in an interview that the flag carrier is doing well enough to avoid seeking further cost cuts beyond an existing restructuring plan calling for 5,000 layoffs company-wide.
“For the moment, it’s not necessary to toughen up the plan to reach our objectives,” Air France Chief Executive Alexandre de Juniac told financial daily Les Echos in an interview. “And I have the feeling that confidence is setting in about our capacity to carry out our overhaul.”
De Juniac added that Air France still expects its second-half results to exceed first-half results.
“The summer went well, our traffic numbers remain positive and we’re starting to see an initial inflection in our costs,” he was quoted as saying.
Under a three-year plan dubbed “Transform 2015,” Air France- KLM is seeking to reduce operating costs by 2 billion euros ($2.59 billion) with the proceeds going to pay down debt.
Air France-KLM will cut some 5,000 jobs to turn around its short- and medium-haul business, which lost roughly 500 million euros last year. ($1 = 0.7721 euros)
Reporting By Christian Plumb; Editing by Phil Berlowit