Air France-KLM reported that its third quarter profits fell down hard-61 percent because of the 2-week long pilots strike that cost the airline €416 million ($529.7 million) losses.
The France carrier stated that its sales went down dramatically 6.7 percent to €6.70 billion. Net profit was reportedly €100 million in the most recent quarter, down from €148 million the same period a year earlier.
The protest began after announcement of plans of parent company Air France-KLM to outperform its competition and boost sales by putting up foreign airport bases for its low-cost Transavia brand.
Pilots are worried that Air France may altogether abandon Transavia's development in France and shift its attention in building Transavia bases out of the country.
They fear that the Airline may try to replace Air France pilots with Transavia's pilots who are "less expensive" and underrate their own pay and conditions.
The strike's impact coupled with a sluggish economy and weak bookings during the summer could lead to a €500 million loss to its EBITDA (net income with interest, taxes, depreciation and amortization).
The France Carrier said it will have to up its game in order to recover form the losses brought about by the strike, according to Chief Financial Officer Pierre Francois Riolacci. The company will implement a "Perform 2020" strategic plan developed last month to materialize its vision.
Aside from that, Riolacci said that the Paris-based company may have to revise its fleet plans as well. Even before the start of the strike, Air France said it will not take any more new Airbus NV A380 superjumbo planes and will stick with smaller long-range A350s instead.
Furthermore, in order to pacify pilots and prevent tension to rise, Air France said it would not push through with some of its Transavia plans purportedly included in its "Perform 2020 plan"
