This is what happens when pilots go on strike

Air France-KLM's longest pilot strike in 20 years rocked the company in 2014.

The stand-off between the airline and the pilots not only led to a drop in full year profits but it has also caused Air France-KLM to unveil some stinging cost cuts and investment reductions.

The airline aims to cut around 800 jobs through "voluntary measures." The move is part of the group's £443 million two-year cost cutting plan.

Pilots argued against Air France-KLM's plans to expand the group's budget subsidiary Transavia, mainly due to pay disputes.

Earnings fell by £172 million to £1.12 billion. The group already warned the markets last year that the pilot strike impact could cost as much as £393 million.

However, luckily, the dramatic fall in oil prices to below $60 per barrel, compared to June's $115 per barrel highs, offset the drop in earnings.

"By deciding today to reinforce its unit cost reduction efforts and adapt its investment plans, the Group is ensuring that it can achieve its key targets of improved competitiveness and de-leveraging," said Alexandre de Juniac, Chairman of Air France-KLM's board of directors in a statement.