Today, KLM announced measures to improve the company’s operational and financial performance structurally. 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.
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.
The measures we are announcing today contribute to increasing our revenues and lowering our costs. This will strengthen our cash position and improve our financial management. This will enable us to realise the planned billion-dollar investments in fleet renewal and customer experience improvement. In the coming years, KLM will replace older aircraft with a quieter, cleaner and more fuel-efficient fleet. In doing so, we will also meet the agreements with the government and reduce noise pollution for Schiphol’s local residents.
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. Specifically, this involvement includes:
Our goal is and remains running a healthy future proof KLM. We will do everything we can to maintain our network and services for our customers and protect jobs throughout our company. With this package we are laying the foundation of a strong KLM that in the coming 105 years will continue to connect the Netherlands with the rest of the world.
This post was published on 3 October 2024 20:53
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