Air France announces loss of over $300Mln due to ongoing strikes

Shares in Air France fell 14% in early Monday trading. (Net photo)

French flagship airline Air France on Friday announced a 269-million-euro loss (almost $322 million) in the first three months of 2018 due to the three days of employee strikes in February and March.

The overall cost of eleven days of strikes is estimated at some 300 million euros (almost $359 million), with one day of protests costing the company slightly more than 25 million euros. Air France - KLM group said already it expected to see a sharp decrease in its operating profit compared to 1.9 billion euros of profit in 2017.

On April 26, the management of Air France published a proposal for its employees, subject to an online vote. The agreement, rejected by the trade unions, outlined a 7-percent salary raise between 2018-2021, with a 1-percent salary increase in 2018. The trade unions demanded a 5-percent immediate salary raise, calling the management's proposal "a provocation."

On Friday, the outcome of the negotiations between Air France's leadership and its employees that are on a rolling strike since February, will define the future of the company's CEO Jean-Marc Janaillac, 65, who put his resignation on the line in case of failing to resolve the crisis in the company.

 

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