Air France News

Airlines are still in for financial turbulence despite a recent fall in oil prices, with many at risk of posting major losses as the cost of their top input remains historically high.

Air France plans to slim down its European business into three units in a push to slash costs at the perennially unprofitable short-haul operation.

Air France-KLM Group said its first- quarter loss widened as fuel costs and a drop in freight volumes wiped out benefits from gains in passenger traffic, increasing pressure to secure cost cuts from unions by a June deadline.

KLM plans to launch a non-binding bid for the Austrian government's share of Austrian Airlines.