KLM announces major restructuring with 1,000 fewer jobs and changes to European fleet

KLM is launching a major restructuring programme aimed at improving its competitiveness and restoring profitability, including around 1,000 additional job reductions, extensive outsourcing and changes to its European fleet. The Dutch airline says it needs to achieve an additional €1 billion in annual earnings improvement to secure its future and finance investments in aircraft, customer service and employees.

The measures, announced on Thursday, November 5th are part of a broader strategy to make KLM a smaller, simpler and more flexible organisation. The airline has already achieved more than €750 million in structural financial improvements in recent years, but management says further action is necessary amid high fuel prices, global instability and increasing competitive pressure on the aviation industry.

According to KLM, approximately 5,000 positions will be affected by the reorganisation, although not all of these represent job losses. Around 1,250 positions at KLM Catering Services have already been reorganised through cooperation with gategroup. Another 800 positions in Ground Services will involve activities transferred to external providers, while approximately 2,000 positions, including 1,500 at customer contact centre Cygnific, will be transferred to Air France-KLM. In addition, productivity improvements are expected to result in approximately 1,000 fewer positions at KLM itself, representing a further reduction of almost 15%.

KLM expects to limit compulsory redundancies through natural attrition, voluntary departure arrangements and transfers to other positions. However, CEO Marjan Rintel warned that further changes to the organisation, employment conditions, productivity and staffing levels could still be necessary.

Changes to European fleet

A significant part of the restructuring concerns KLM’s European operations. The airline intends to change the balance between larger and smaller aircraft to better match capacity with passenger demand.

The Airbus A321neo will remain an important part of the fleet, while smaller Embraer E195-E2 aircraft will replace the previously planned Airbus A320s. This will give KLM Cityhopper a greater role in operating the European network. Meanwhile, the Boeing 737 and Embraer E190 fleets will be phased out over the coming years.

KLM currently operates a fleet of approximately 185 Airbus, Boeing and Embraer aircraft. The airline says the simplified fleet will help reduce maintenance and operational costs while improving flexibility and reliability. Available capacity will increasingly be allocated to routes that contribute most to passenger connectivity and KLM’s nonstop network from Schiphol, which currently serves 160 destinations.

Ground handling and maintenance activities to be reorganised

The restructuring will also have a considerable impact on ground operations at Amsterdam Schiphol.

Passenger Services will increasingly rely on digitalisation and new technology, allowing passengers to manage check-in, boarding and rebooking themselves. Airport employees will focus more on hospitality and direct customer assistance.

For apron services on European flights and baggage handling, KLM plans to work with external partners. These providers will take over below-the-wing activities at KLM Cityhopper and baggage handling in Schiphol’s East Hall. The airline believes specialist ground-handling companies can invest more efficiently and deliver services at lower costs.

KLM Cargo will consolidate its cargo-handling activities in its own warehouse at Schiphol, handling freight carried on both passenger and dedicated cargo aircraft. The initiative is also intended to prepare the division for a new cargo terminal scheduled for completion in 2035.

Engineering & Maintenance will increasingly concentrate on the future fleet, accelerating the phase-out of maintenance activities for aircraft types being withdrawn from service. KLM also intends to bring the management of its Engine Services and Component Services operations closer to the Air France-KLM Group.

Air France-KLM reports stronger third-quarter operating profit

The announcement comes as parent company Air France-KLM also published its third-quarter financial results on Thursday. The group reported an operating profit of €1.34 billion, exceeding the €1.1 billion expected by analysts.

Strong demand for nonstop flights to India and Asia, together with growth in premium travel, contributed to the better-than-expected performance. However, the group lowered its full-year 2026 capacity growth forecast to approximately 2%, compared with its previous guidance of 2% to 3%. Its expected fuel expenditure was also increased from $8.9 billion to $9.2 billion.

The group is also looking to strengthen cooperation between its airlines, with the proposed expansion involving Scandinavian airline SAS expected to create further opportunities for synergies and economies of scale, subject to European Commission approval.

KLM CEO Marjan Rintel acknowledged that the changes would be painful for employees, particularly those whose activities have traditionally been performed within the airline.

She said the objective was to ensure that KLM remains a major international airline, maintains the Netherlands’ connections with the rest of the world and remains an attractive employer.

The airline will now enter discussions with trade unions and employee representatives on the proposed changes, including new collective labour agreements. KLM is targeting a structural productivity improvement of at least 8% by 2028, alongside very moderate wage increases.