Airline group Air France-KLM has cut its operating losses to 66 million euros for the second quarter, compared with 145 million a year earlier.
The results were better than anticipated, sending the share price to 4.4 euros, a rise of 13% as per a report in Euronews.
The group is being hit by low-cost European rivals in the short-haul sector on one hand and Gulf carriers eating into it’s long-haul premium business on the other.
Jean-Cyril Spinetta, CEO of Air France-KLM told Euronews “The debts of Air France-KLM, which were 2.5 billion euros at the end of 2008 jumped to 6.5 billion by the end of 2011. If we are not quickly able to halt this trajectory, it’ll saddle the group with serious future debt.”
The restructing plan has been at the heart of the turnaround, but isn’t popular with some Air-France unions.
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