KLM achieved an operating result of EUR 540 million the third quarter, up EUR 118 million (gross margin 18.5%) compared to the third quarter last year. During the first nine months of 2017, KLM’s operating result increased by EUR 211 million, from EUR 628 to EUR 840 million (gross margin 10,7%). This increase was driven by a combination of 1) higher revenues, 2) lower fuel costs, and 3) efforts guided by the Perform 2020 programme, resulting in lower unit costs. Productivity was up 3.7% in the first nine months. This positive intermediate result was achieved thanks to the efforts of all KLM staff.
Third-quarter capacity growth at KLM Passenger was restricted to 2,1%, with passenger capacity up 4.6% over the first nine months. Further growth is obstructed by the busy peaks at Schiphol in the summer. Although capacity growth was limited in the third quarter, KLM Passenger saw revenue per passenger and load factor increase.
The results for the first nine months are definitely very promising and they confirm that our KLM strategy is working. However, these are intermediate results. KLM will continue on its path towards productivity gains and further structural cost reduction with the purpose to further ramp up its investment levels in the interests of its customers and employees.
The joint Air France KLM third quarter 2017 results are available in the download box in this message.