KLM today announced measures to structurally improve the company’s operational and financial performance.
These measures include increasing productivity, simplifying the organisation, cutting costs and deferring or postponing investments. Despite revenue growth, these interventions are necessary because of the rising cost of equipment, staff and airport fees. Furthermore, KLM is engaged in an extensive fleet renewal – a billion-dollar investment aimed at cleaner, quieter and more fuel-efficient flying.
“We want to maintain KLM’s 105-year pioneering role in aviation and continue to connect the Netherlands with the rest of the world. However, just as many other airlines, KLM is suffering from high costs and shortages of staff and equipment. Our aircraft are full, but our capacity is still not back to pre-corona levels. We want to remain at the forefront of customer and employee satisfaction as well as sustainability. To continue doing this effectively, we must make clear and decisive choices now. This is painful for every KLM colleague, but it is necessary, and it has to be done now” Marjan Rintel, President & CEO KLM
With the total package of measures, KLM aims to improve its operating result by €450m in the short term. In line with Air France-KLM’s group ambition, this should lead to a structural profit margin above 8% by 2026-2028.
KLM is taking these and other measures to maintain its network and services for customers and to protect jobs across the company as much as possible. The Works Council and trade unions have been informed by KLM of the (proposed) measures and objectives. They will continue to be engaged through the standard consultation process to reach final decisions.