Air France-KLM during the next three years plans to increase capacity "only by a little over 5 percent on a cumulative basis."

The aviation group noted "the uncertain economic environment and the ongoing imbalance between transport supply and demand." The decision is part of a transformation plan announced this week by the Air France-KLM board of directors that targets "an additional €1 billion in free cash flow over three years." The plan includes fleet reductions, a freeze on pay raises, renegotiated employee collective bargaining agreements and restructured short- and medium-haul operations to be achieved through improved aircraft utilization and "potentially" more outsourcing in certain areas.