Air France-KLM is reportedly planning to cut 2,900 jobs after talks with pilots unions were unsuccessful.

The airline would not confirm the number of cuts, but said it would present a cost-cutting plan on October 5.

Profits at Air France have been hit in part by strikes by pilots, who have been protesting over the expansion of its budget subsidiary.

It also faces stiff competition from low-cost rivals as well as airlines in the Middle East.

Air France said after a board meeting that it had decided to implement a new restructuring plan in order to accelerate its recovery.

“Facing the impossibility of reaching an agreement to implement the productivity measures within Air France and restore long-term profitability, the board members consider it essential to introduce an alternative plan and have unanimously agreed to mandate Air France-KLM and Air France Management to carry this out,” the company said in a statement.

The plan will be presented to the Works Council on October 5.

Union sources leaked the planned job cuts to reporters at two news agencies.

The unions also said the restructuring could include retiring five long haul planes next summer and nine others in 2017.

One official is quoted as saying: “These points were presented to the board for information, but no vote has been taken.”

Air France merged with Dutch KLM in 2004.