Most affected is tourism sector, with Air France estimating losses of 50 million euros, while Bank of France says fourth quarter growth cut by 0.1 pcnt.
The group, which has posted net losses for the past four years, said it will cut routes, winter flights and shave administrative spending.
Up to 4,000 jobs will be shed in France as part of cost-cutting plan that will include selling off assets, following four years of operating losses.
The Franco-Dutch airline says it made a 1.19bn euros net loss in 2012, blaming sharply rising fuel costs and trouble with its cargo business.
Result is the worst in the firm's history, but France's number one carmaker insists it has built foundations for recovery.