Employees of Air France Agree to Take 6% Pay Cut : Airlines: Passenger traffic has plummeted since the Gulf War started. The state-owned carrier was losing money even before the conflict.

Air France said Monday that its employees have accepted a 6% pay cut as the airline struggles with a plunge in passenger traffic caused by the Persian Gulf War.

The pay cut represents another round of austerity measures for state-owned Air France, which was losing money even before the war broke out a month ago, decimating the carrier business.

Some workers “in sectors which are most directly affected by the decline in activity” could suffer sharper cuts, Air France said in a statement.

The steps announced Monday also include a salary freeze and an early retirement program under which managers older than 58 are being encouraged to leave.

So far, Air France has not laid off any of its 39,000 employees. Monday’s measures are the equivalent to dismissing 3,000 workers in terms of cost savings, the statement said.

Air France said it did not preclude “other, more drastic measures, if the situation warrants them.”

But the airline said it was making the cuts in a way that leaves it ready for an expected rebound in business when passengers feel that air travel is safe again. Passengers on both sides of the Atlantic have cut back travel plans because of fears of terrorism.

Air France noted that already passenger traffic was down 28.5% in the first week of February, compared to the same period last year. Freight shipments were down 5.4%.

Other airlines have suffered a significant loss of business since the crisis in the Gulf broke out last August. Many have lost money.

Among U.S. carriers, Trans World Airlines has sharply cut its service to Europe, and TWA and Northwest Airlines have laid off employees.

In Europe, British Airways, KLM, Iberia and Sabena have announced layoffs, and a number of airlines have cut back their service.