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KLM to cut up to 3,000 jobs
AMSTERDAM, Netherlands (CNN) -- Dutch airline KLM said Wednesday it may eliminate up to 3,000 jobs as the Iraq crisis and concerns over the SARS virus cut into revenue. Europe's fourth largest airline, which has more than 33,000 employees, plans to slash between 2,000 and 3,000 jobs as it cuts 10 percent of its capacity, KLM spokesman Bart Koster told CNN. KLM said air travel had been hurt by war fears and the outbreak of SARS, or severe acute respiratory syndrome, which has affected almost 1,800 people in at least 15 countries. There have been at least 75 deaths so far. "We are cutting capacity by 10 percent due to the economic situations, Gulf War and SARS outbreak," said Koster. On Monday, Germany's Lufthansa announced a cost-cutting program, but did not give any details. Last month, British Airways said it would accelerate plans to cut jobs because of the slump in air travel and the Iraq crisis. Air Canada filed for bankruptcy protection Tuesday, blaming the economic slowdown and the threat of terrorism for big losses over the past two years. And American Airlines, which so far has avoided a similar move, has said it may cut more than 2,000 pilot jobs. The Iraq war will cost European airlines $2.5 billion in operating profits this year, according to the Association of European Airlines. But the global airline industry may rack up an additional $10 billion in losses this year because of the war, the International Air Travel Association said. It also predicted international passenger numbers would drop 15 to 20 percent during the year, depending on the region. KLM also said Wednesday it was still in talks with Air France and British Airways about a potential global alliance. "We would still like to link up with SkyTeam or Oneworld but are discussing all the possible options. We are not in exclusive negotiations; that is some way off," said Koster. BA is part of the Oneworld alliance with American Airlines and Spain's Iberia, while Air France, Delta Airlines and Italy's Alitalia form the SkyTeam alliance. KLM has tried to link up with BA and Italy's Alitalia in the past. KLM's stock soared 9.1 percent to 5.89 euros in mid-morning trading in Amsterdam on Wednesday.
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