The Franco-Dutch airline said Friday it lost 163 million euros ($215 million) in the second quarter, compared with a 897-million-euro loss a year earlier, when accounts were hammered by the cost of a plan to shed about 10 percent of the carrier's workforce.
Air France-KLM said a planned turnaround in its medium-haul and cargo businesses "is taking longer than expected" and that "further measures" will be taken later this year, instead of in the fall as earlier scheduled.
Revenue stagnated in the second quarter as slightly higher passenger traffic was offset by lower revenue per passenger.
The joint airline is in the midst of a three-year turnaround plan and it hopes to strengthen its position by paying down debt and reducing staff costs.
Air France-KLM is struggling to compete against low-cost carriers and has said it expects to cut about 5,000 people in its workforce of 49,000. It said the plan is on track despite "the persistently touch economic environment."
The company forecast second half operating earnings would improve to around the same level seen in the first half, which would still see the airline suffering an operating loss of around 200 million euros.