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Air France KLM to step up cuts as coronavirus impact bites

PARIS, March 16 (Reuters) - Air France KLM, one of many airlines around the world that has been hit by the coronavirus outbreak, said it was stepping up cost saving measures to deal with the impact.

The Franco-Dutch airline said it had identified new measures which would generate 200 million euros ($223 million) in savings in 2020, and ways to cut its capital expenditure by 350 million euros.

Air France KLM said it would gradually cut back its flights over the next few days, with the number of available seat kilometers (ASK) potentially falling by 70%-90%.

The company added that as a result of the cut in capacity, Air France would ground its entire Airbus 380 fleet and KLM its entire Boeing 747 fleet.

($1 = 0.8973 euros) (Reporting by Sudip Kar-Gupta, editing by Louise Heavens)

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