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STORY: Two of Europe's top airline groups announced cost cuts on Tuesday (April 30).

It comes after Lufthansa and Air France-KLM endured worse than expected first-quarters.

The two groups faced expensive strike action and disruptions due to capacity limits and cancelations.

Air France-KLM said it would tighten spending for the rest of the year, including a freeze on hiring support staff.

Germany's Lufthansa said it would cut operating costs and pause new projects.

The carrier spent $374.8 million in the first three months of this year after agreeing higher wages for staff and dealing with costs from cancelations.

Air France-KLM had to pay $53.5 million in compensation.

Earlier this month, Lufthansa slashed its full-year outlook following a wave of costly industrial action.

On Tuesday, it said earnings in the second quarter would be below last year's level as customers were reluctant to book in April and May.

The results show airlines are still grappling with higher costs despite a recovery in travel demand since the global health crisis.

Air France-KLM kept its 2024 outlook, but warned costs would still be up 2% year-on-year in its second quarter.

Air France-KLM shares were down over 3% Tuesday, while Lufthansa was only slightly down.

Shares of both groups are among the worst performers among European airlines this year.

Even so, hopes that summer demand would make up for recent losses are strengthening.

Lufthansa hopes to claw back its strike-related losses in the second half.

It pointed to a strong summer season ahead with bookings up 16% from last year.