Air France-KLM saw net losses increase 47 per cent to €1.19 billion in 2012, after a €471 million restructuring charge and a €890 million increase in its fuel bill hit results.
However, the Franco-Dutch airline saw operating losses fall to €300 million, down from €353 million the year before.
Revenues rose 5.2 per cent to €25.6 billion, thanks in part to increased prices on its North Atlantic routes.
Debt at the group fell from €6.51 billion to €5.97 billion after sell-offs and spending cuts.
Air France-KLM plans to reduce its net debt by €2 billion by the end of 2014.
Chief executive Jean-Cyril Spinetta said in a statement: “The year 2012 was characterised by a slowdown in global growth and recession in Europe, but nevertheless saw a sharp increase in the fuel price.
“In 2013, we will maintain strict discipline in terms of capacity management, investments and costs.”
Air France-KLM is renegotiating pay and conditions with its staff and cutting more than 5,000 jobs.