Air France KLM managed to halve its second quarter loss with the help of a 2 billion-euro ($2.5 billion) savings plan.
The company, which is Europe’s biggest airline, reported an operating loss of 66 million euro, compared to 145 million euro in 2011, much under the 163 million euro estimated by the analysts. Ryanair, Europe’s top low-cost carrier, reported net income decreased from 139.3 million euro to 98.8 million euro.
Since November 24th, 2011, Air France KLM managed to reach the sharpest gain, 13%, trading 50 cents more at 4.39 euro as of 11:19 a.m. in Paris. Ryanair, with its headquarters in Dublin, decreased 5.4% and traded at 3.82 euro down 2.1%.
“Air France is going in the right direction but I’m still not convinced that they’re prepared to be radical enough in the face of industrial strife over job cuts,” said John Strickland, director of JLS Consulting in London. “Ryanair on the other hand will do whatever’s necessary in terms of grounding aircraft when demand is low, and they don’t have labor issues to worry about.”
In June Air France KLM announced it will cut more than 5,000 jobs at its unit in France, while the company tries to make as many savings as possible to survive. The quarterly fuel bill is already up 13% to 1.9 billion euro and it is expected it will reach 9.4 billion euro by the end of the year, an increase of 400 million euro.