Air France works on additional cost-saving measures

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Air France-KLM is working on a new cost-saving plan, which calls for savings of between €700-800 million ($0.87-1 billion) by 2011-12 and €1.1-1.2 billion by 2013-14.

The airline group's investment programme is also to be reviewed in a bid to address capacity decline.

It disclosed the additional cost savings following the company's recent investors' day.

Air France-KLM has already warned that it is unlikely to reach an operating result of €1 billion in this financial year, and intends to limit capacity increases to 1-2% for winter 2008 and summer 2009.