The picture isn't pretty at Air France right now and over 460 workers may be about to lose their jobs. The carrier has plans to cut hundreds of jobs and drastically reduce short-haul capacity. Competition from Europe's low-cost airlines and high-speed trains appears to be the cause behind the move. Air France has been dealing with pretty steep losses for the last few years. It has been revealed that the carrier's domestic losses have amounted to $805 million since 2013. As many as 465 jobs could be gone. Cuts will be made mainly on French domestic routes throughout the next year.
Air France's upcoming capacity cuts will amount to roughly 15 percent of the carrier's short-haul network. We can expect the cuts to be complete by the close of 2021. All airlines are being tested by the rise of low-cost carriers around the world at the moment. However, Air France is having a particularly hard time keeping up. That's because the carrier actually has two fronts to fight. In addition to falling airline fares, competition from TGV trains is also straining Air France. TGV is France's high-speed rail service that connects cities within the country and also reaches several European countries.
Air France did try to keep up with budget carriers by rolling out a domestic arm called Hop!. However, Hop! has seen difficulty when it comes to staying competitive against established budget carriers like Ryanair and EasyJet. The future of Hop! is uncertain at the moment. Many predicted that 2019 would be a difficult year for European carriers. Rising fuel costs and extreme competition are making it hard for many carriers to fight losses. You may remember that Iceland's WOW Air unexpectedly ceased operations at the end of March.