18 Sep 2009

Russian airline to cut jobs

3:33 pm on 18 September 2009

Aeroflot is to cut 2000 jobs. The Russian airline, which is 51% owned by the government, also suggested more job cuts could follow, after profits plunged as a result of fewer passengers and higher fuel costs.

The BBC reports the cuts amount to about 13% of Aeroflot's total workforce.

In July, the airline announced that its net profit in 2008 had plummeted by 88% to $US37 million, down from $US313 million in 2007.

The company blamed the fall on higher fuel costs and losses at its cargo operations, which declared bankruptcy in June.