Full-year losses at Air France-KLM were reduced in 2012 on the back of a freeze in capacity and 3,300 job cuts.
Europe’s biggest airline had an operating loss of €300 million, an improvement from €353 million in 2011.
Chief executive Jean-Cyril Spinetta is cutting 5,000 jobs at the carrier’s French arm and 1,300 more at KLM.
Capacity rose just 0.6% in the year, helping to lift unit revenue by 5.9%. Capacity will rise by just 1.5% this year.
Chief financial officer Philippe Calavia said: “The economic backdrop in 2012 was mediocre, but capacity was well managed, nicely contained, and it’s thanks to that that we managed to increase unit revenues.”
Air France-KLM had an annual net loss of €1.19 billion from €809 million a year earlier after fuel costs rose by €890 million to €7.44 billion and the company incurred €471 million of restructuring costs.
Spinetta is seeking to reduce costs and debt further this year through the airline’s Transform 2015 plan.
Whether that will be sufficient to reduce the loss or even post a profit depends on fuel costs, the world economy and global trade, Calavia said.