Air France-KLM is planning to speed up cost cuts and reduce investment after it had reported a drop in its full-year profits following last years’ pilots’ strike.

The strike followed a dispute with pilots over plans to expand the groups budget airlines Transavia.

The airline’s pilot strike which was the longest in 20 years had offset the benefits of lower fuel prices.

Earnings had fell €266m (£172m) with the September strike costing the group €495m (£364m) that it had lost in revenue.

Air France-KLM had also said it had been hit by the weaker euro, while overcapacity on routes to Asia, Latin America and Africa had weighed on ticket prices.

Revenues had fell 2.4% despite a 1.3% increase in passenger numbers.

Earlier this year Transavia welcomed a new look to the company. Transavia is owned by Air France-KLM and it caused a strike by pilots because of the announcement of the expansion of the airline

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