PARIS--Franco-Dutch airline group Air France-KLM (AF.FR) will continue to cut costs after it managed to trim losses in the second quarter, it said Friday.

Despite negative foreign-exchange affects Air France-KLM cut operating costs 3.8%. It spent 5.6% less for fuel and 3.4% for employee costs.

Second-quarter net loss was 6 million euro ($8.1 million) compared with 158 million euro loss in the same period a year ago. Revenue fell to 6.45 billion euro from 6.54 billion euro. Currency swings chopped 168 million euro from sales revenue.

"Despite a tough operating environment the Air France-KLM Group maintained the momentum of its recovery in the first half of 2014," Chief Executive Alexandre de Juniac said in a statement.

In the first half of the year net loss narrowed to 614 million euro compared with 799 million euro.

Europe's largest airline by traffic has suffered losses on short- and medium-haul routes because of competition from discount carriers.

Earlier this month it lowered expectations for the year following weak bookings.

Write to Inti Landauro at inti.landauro@wsj.com

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