AIR FRANCE CONFIRMS that its losses shrank dramatically in 1994, although the French national carrier is still showing a group deficit of nearly Fr2.4 billion ($480 million).
The improved performance follows a record loss of Fr8.5 billion in 1993, when the carrier was hit by a series of industrial disputes.
The latest figures reflect a year of cost-cutting, workforce reductions and productivity increases, says the airline. Group sales were up by less than 2% at Fr56 billion.
The results, which confirm earlier reports (Flight International, 22-28 March), will be revised again as Air France moves to a new financial year. The group says that, when a new set of accounts are released for the 15 months to March 1995, it still expects to meet targets of a Fr3.5 billion loss.
The latest set of figures shows that the parent Air France airline swung back into profit at an operating level, after making a small deficit in 1993.
Passenger traffic was up by 15.6% on the strike-hit 1993 figures, although yields continued their decline, falling by 9.9%. Load factors rose by more than five points to 7.3%. Cargo also suffered a 5.5% fall in yields, while load factors leaped nearly eight points to 67.8%.
The first Fr8.8 billion injection of cash from the French Government, also helped the parent airline to cut debts back to Fr27 billion.
The state aid is part of a three-year restructuring programme, which is designed to return the airline to profit by 1998.
Air France says that it has already trimmed its workforce back by more than 2,500 people to end 1994 with a little over 37,400 staff.
As part of the restructuring package, which had to achieve European Commission approval, the parent airline has also transferred its shares in domestic airline Air Inter, back to the group holding company, as well as disposing of its headquarters building in Paris and relinquishing its stake in the Meridian hotel chain.
These sales netted nearly Fr2.5 billion, helping the airline cut its net loss to Fr1.27 billion.
Source: Flight International