Air France to cut over 7,500 jobs; losing Euro 15 m daily

Monday, 13 July 2020 00:31 - - {{hitsCtrl.values.hits}}

Air France has reported that at the height of the COVID-19 crisis, thus far, it was losing 15 million euros per day.

Recovery looks set to be very slow and the airline has predicted, that even on the basis of ambitious recovery assumptions, it will not see the same level of activity as in 2019 before 2024.

The support of the French State, in the form of guaranteed loans amounting to 7 billion euros, will enable the group to withstand the crisis in the short term and is accompanied by strong commitments to ensure its sustainability, but the airline still needs to continue reducing its external and internal costs.

Air France has forecast that it will need to lay off 6,560 jobs by the end of 2022 out of a current total of 41,000 employees.

For HOP! the resizing of activity and the restructuring of the company linked in particular to the simplification of the fleet will lead to a reduction of 1,020 jobs over the next three years out of the current 2,420 employees. Taking into account the estimated number of natural departures, the overstaffing figure remains at around 820 at the end of 2022.

Air France and HOP! are now working with the unions to implement plans that give priority to voluntary departures, early retirement arrangements and professional and geographical mobility.