Air France-KLM plans to cut more than 7,500 jobs at its French arm, amid warnings that its future is on the line. Europe’s second-biggest airline will eliminate 6,560 positions at its Air France flagship, while its regional carrier Hop! will lose 1,020 posts, the company said Friday. The cuts will take place over the next three years. In all, the reductions amount to about 17% of the workforce in those units. So-called natural departures, such as retirements and employees who leave on their own, are expected to make up about half the reductions. The airline said it’s not expecting business to return to last year’s level before 2024. During the worst days of the coronavirus health crisis, revenue fell by 95% and losses topped E15m a day. “Recovery looks set to be very slow due to the uncertainties regarding the health situation, the lifting of travel restrictions and changing commercial demand,” Air France-KLM said. The company briefed unions Friday on the measures, part of a strategic review ordered by CEO Ben Smith aimed at securing the company’s future.<br/>
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Shares in airline Aeromexico closed up 4.48% on Friday, rising for a second straight day even as the company missed a debt payment after filing for bankruptcy protection. Aeromexico this week became the third airline in Latin America to file for Chapter 11 bankruptcy protection after the business took a huge hit from the coronavirus pandemic. Late on Thursday, bank CIBanco said Aeromexico had failed to make interest payments worth some 1.01m pesos ($45,000) on local stock certificates AEROMEX 01119. CIBanco, representing holders of the securities, said it would convene a meeting of investors to resolve the matter.<br/>
Kenya Airways started a three-month round of job cuts as lawmakers debate a bill to nationalize the carrier and its losses mount due to the impact of the coronavirus pandemic. The process is expected to be completed by Sept. 30, CEO Allan Kilavuka said Friday in a memo to employees, without providing the number of workers to be affected. When domestic flights resume, depressed demand for air travel will cut the number of workers needed for operations and some employees will proceed on unpaid leave from July 6, according to the memo. “We have projected that demand is going to slow down to at least 50% between now and December,” Kilavuka said last month. “Our assets need to reflect that. Our operations need to reflect that, that goes without saying.” The airline employed 3,734 people by end 2019, with a total wage bill of 13.5b shillings ($126.6m). That accounted for 11% of the airline’s total operating costs in the year, according to its annual report. Passenger flights accounted for 81% of the airline’s revenue by the end of 2019, compared to 6.8% from cargo.<br/>