Air France-KLM jumps 10% as KLM plans 5,000 job cuts

Air France-KLM shares rose 10 per cent in early Amsterdam trading on Thursday after the airline group reported higher quarterly profits, while its Dutch subsidiary KLM announced plans to cut about 5,000 jobs to reduce costs.

The cuts amount to roughly 15 per cent of KLM’s workforce. The airline said compulsory redundancies are probably unnecessary: it expects to reduce staff through voluntary departure schemes, redeployments and not replacing employees who leave.

KLM cited sharply rising costs in the Netherlands, including higher airport charges at Schiphol. Air France-KLM and KLM both recorded higher profits in the latest quarter despite increased fuel prices, according to ANP reporting published by Nieuws.nl.

The shares were up 10 per cent shortly after the market opened. The AEX index was 0.3 per cent higher at 1,140.02 points, while the MidKap rose 0.8 per cent to 1,125.72.