Air France-KLM has promised to cut costs and boost passenger capacity this year in an effort to “regain the offensive" in the lucrative long-haul market, as the group reported a 35% increase in full-year earnings. The Franco-Dutch carrier warned of a highly uncertain micro-environment in 2017 due to the still sluggish economy, political risk over the French and German elections and continuing overcapacity in several core markets. But the carrier said that unit revenues had been better than expected so far this year and vowed to lift capacity as much as 3.5% in 2017 in long-haul markets, and at the same time reduce unit costs by 1.5%, up from a 1% drop last year. “In an economic and geopolitical context that remains very uncertain, and faced with aggressive competition, the status quo is not an option,” said Jean-Marc Janaillac, the CE, adding that he was “resolutely committed to regaining the offensive”. The company has for years been under severe pressure from fast-expanding Middle East carriers including Emirates and European budget airlines such as easyJet. It has also suffered a number of costly strikes by Air France pilots. Janaillac last year announced plans to transform the fortunes of the group, focusing in particularly on improving the profitability of the struggling larger French unit, Air France. Air France-KLM on Thursday reported a jump in operating profit from E780m in 2015 to E1.05bn in 2016, helped by a lower fuel bill and productivity gains at the Dutch arm KLM, which has been quick to cut costs — unlike its French counterpart. Profit at the larger Air France arm, however, fell 54% to E372m over the year. The unit was weighed on by a drop in tourism to France following a spate of terrorist attacks as well as two strikes involving pilots and cabin crew.<br/>
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Delta is bringing free meals back to economy class on some long US flights after dropping them years ago to save money. Delta said Thursday it will start serving meals to all passengers on 12 long-haul routes over the next several weeks. Airlines took away free sandwiches and similar fare after two industry downturns in the decade of the 2000s. Delta was among the first to drop meals in economy, in 2001, and all the other big US carriers did the same by 2010. Since then, the carriers have returned to profitability and gone on a spree of buying new jets and hiring more employees. But free meals in economy have remained scarce except on international flights and ones to Hawaii — American gives passengers a sandwich box on some flights to the islands, and Delta began offering free meals on Honolulu flights last August. On nearly all other domestic flights, passengers sitting in the main cabin have to schlep their own meals from the airport concourse, pay for one on board, or make do with airline pretzels and peanuts. Delta tested free meals on routes between New York and California last year. Lisa Bauer, the airline's VP of on-board services, said customer-satisfaction scores were much higher on flights with meals. Representatives for both American Airlines and United Airlines said their carriers were studying the possibility of adding complimentary meals in the main cabin.<br/>