Air France-KLM to unveil fresh round of cost cuts

Air France-KLM is expected to unveil a raft of new cost-cutting measures, including the further slowing of capacity growth and hiring freezes, aimed at stemming losses in the face of another economic downturn across Europe according to newswire reports.

CEO Pierre-Henri Gourgeon will "seek a consensus to reduce structural costs in a context of economic uncertainty," a spokesman said. Annual cost savings are expected to increase to EUR700-800 million, up from the current EUR470 million target. Air France-KLM is currently in negotiations regarding the purchase of an estimated 100 long-haul aircraft to replace the aging fleets of Air France-KLM. In Jul-2011, the airline group said winter long-haul capacity growth will be reduced from 5.1% to 2.7%, helping the group generate an operating profit for the full year.