Air France is to impose a recruitment block and freeze any replacement of retiring staff, measures that could mean up to 1,200 fewer posts at the airline.

Its decision follows the release of third-quarter results today showing a $250 million operating loss for the company.

"Because of low activity in the air transport sector, hiring is blocked for Air France [and] retiring people will not be replaced," says a spokesman for Air France.

The numbers reflect a trend within the French flag-carrier that saw almost 2,000 staff go unreplaced for the 2007-2008 period. The latest estimate of up to 1,200 jobs affected will correspond to the year ending 31 March 2009.

"We have automated ground services through the Internet, so we need fewer people at airports, for example," adds the spokesman, although he adds the jobs freeze could affect all Air France sectors.

Air France stresses that "there is not a redundancy plan", although its employment block has met with characteristic hostility from major French union CGT.

In an exhaustive analysis of Air France's current situation, a union statement notes: "For the CGT, jobs are not a shock absorber for the crisis. It's not up to workers to pay the bill.

"Air France has a robust balance sheet and cash of around €3 billion. No rush, the crisis could end sooner than predicted as our business is essentially global. At that moment, we have to be ready."

Source: Air Transport Intelligence news