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00:00:00
>>
SOUND] A
r France-KLM beating market expectations, posting an operating profit of just over 1 billion euros for 2016. Lower fuel prices helping boost the Franco-Dutch carrier's bottom line. Now the group is laying plans to fight back against low-cost rivals like Ryanair, with a budget unit dubbed boost. Reuters chief airline correspondent Victoria Bryan explains.
00:00:24
>> This will be under its Air France unit and it's hoping to bring pilot costs down by 15% and cabin crew costs down by 40% on those planes will be a small unit and it still remains to be approved by unions. But that's sort of like one way in which Air France is trying to bring costs down at the moment.
00:00:42
>> Pilot unions though, not keen. That could bode ill for a company that has been dogged by the labor unrest. Security fees also weighing on the companies French arm.>> You can see that the results for the KLM units with a margin of over 6% were much better than that of the Air France unit which was around 3%.
00:01:00
A lot of them would stand to tariff tax, dampening demand en route to France as well as strikes that happened in France last year.
SOUND]>>
The company describing it started this year as resilient. The fuel prices are back on the up and there's little sign that those security worries will go away.
00:01:22
For Europe's big airlines, there is always turbulence.