January 13, 2015 / 7:58 PM / 3 years ago

Air France-KLM says too early to detail cost cut plans

PARIS (Reuters) - Air France-KLM SA AIRF.PA said on Tuesday it was too early to detail further belt-tightening actions to cope with a tough economic climate as it denied a Le Figaro newspaper report that it planned around 5,000 job cuts.

Air France-KLM logo at the presentation of the company's 2012 annual result in Paris February 22, 2013. REUTERS/Philippe Wojazer

“The group denies information reported by Le Figaro,” a group spokesman said.

The Franco-Dutch airline in December issued its third profit warning in six months, trimming its 2014 forecast for earnings before interest, tax, depreciation and amortisation (EBITDA) by 200 million euros to 1.5 billion to 1.6 billion euros, citing higher-than-expected costs from a pilot strike and weak long-haul revenues.

“On Dec. 18, the group said that its situation and the deteriorating competitive climate required additional cost-cutting actions and a significant reduction of its investment plan,” he said.

“A strengthening of these actions on costs will be submitted to staff representatives ... nothing has been decided yet,” he added.

Reporting by Dominique Vidalon, editing by G Crosse

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