Air France-KLM managed to bring down its losses sharply in 2014 despite the pilots’ strike. The airline made a loss of €198m last year, well down on the €1.8bn loss booked in 2013.

Passenger numbers rose from 86.2 million to 87.3 million, the airline said in a statement.

The two-week strike cost the airline €425m in bookings and other knock-on effects.

KLM itself booked an operating profit of €175m while Air France made an operating loss of €314m. LIke-for-like revenue came in stable at just under €25bn.

Chief executive Alexandre de Juniac said the cost-cutting measures of the past few years were having an impact but will continue.

The company wants to reduce costs by 1.5% between now and 2017 and is looking for 800 voluntary redundancies from Air France staff. At the same time, the airline is scaling back its investment plans by €600m over the next two years because of economic uncertainty and European overcapacity.

Charter and budget airline subsidiary Transavia will be expanded to take on the likes of Ryanair and EastJet. Transavia carried almost 10 million passengers last year, a rise of 11% on 2013.