Air France said Wednesday it's taking more drastic steps to improve its finances after its year-old transformation initiative failed to stop losses.
Officials announced the airline will phase out its three Boeing 747 all-cargo planes in 2015 when it also stops flying passenger 747s, leaving the company with two Boeing 777 freighters.
Officials said the global air cargo market faces over capacity and most combination airlines are focusing on carrying cargo in the belly holds of their passenger planes.
Air France also plans to outsource operation of its cargo facility at Paris-Orly airport, which officials said never reached sufficient volume to cover its steep expenses.
Management is striving to return the company to profitability by next year. It also said it's contemplating a further reduction in staff to meet its goal.
Air France is a subsidiary of the airline holding company Air France-KLM, formed by merger nine years ago.