Transavia plans large-scale cuts to lift profits; Job losses unclear

Transavia is launching a large-scale cost-cutting program in an effort to lift profits. This was confirmed to ANP by a spokeswoman following a report by De Telegraaf. It is not yet known what the cuts will involve or whether jobs may be eliminated. "No concrete decision has been made," the spokeswoman said.

In recent years, Transavia says, it has not made enough profit. “Our costs are high, and competition continues to increase. That is why we are working on measures to make our company structurally stronger and more profitable,” the airline said.

According to the spokeswoman, Transavia posted a margin of 1 percent last year but wants to raise that on a lasting basis to at least 8 percent. Transavia Netherlands is also looking at closer cooperation with Transavia France and the Air France-KLM group. An 8 percent margin, the airline said, would be needed to remain financially sound and to pay for the fleet renewal.

It was reported in May that the company was implementing 10 million-euro budget cuts due to the rising price of aviation fuel. At the time, the airline said layoffs were possible. It suffered an operating loss of 49 million euros a year prior.

"This is necessary to pay for our multi-billion euro investments in new Airbus aircraft, which are needed in connection with lower emissions, noise reduction, and also lower costs. There is a lot to do, because the biggest concerns lie in fuel prices," CEO Paul Terstegge told De Telegraaf at the time.