Financial Details
In May 2010, Air France-KLM announced increased losses (€1.56 billion for the year to 31 March 2010), and warned that the 2010 eruptions of Eyjafjallajökull had caused a further €160 million loss in the current financial year.
Air France-KLM is one of the largest airline companies in Europe, with 204.7 billion passenger-km in the year ending 31 March 2011.
Private shareholders own 81.4% of the company with 37% held by former Air France shareholders and 21% held by former KLM shareholders. The Government of France owns the remaining 18.6%.
In June 2008, Air France-KLM agreed to pay $350 million to settle charges of cargo price fixing in an investigation conducted by the U.S. Justice Department. Cathay Pacific, Martinair Holland, and SAS Cargo Group also agreed to fines bringing the total to $504 million. In November 2010, the European Commission fined Air France-KLM €310 million following another price-fixing investigation.
The company spends about a third of its revenue on staff, its biggest expense, while Lufthansa only spends around a quarter, so to save around 800 million euros (1.04 billion) annually over the next three years, the company will make a recruitment freeze which will lead to 2,000 job cuts in 2012.
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