KLM today announced measures to structurally improve the company's operational and financial performance. These measures include increasing productivity, simplifying the organization, reducing costs, and deferring or cancelling investments. Despite revenue growth, these measures are necessary due to rising costs for equipment, personnel, and airport fees. In addition, the airline is engaged in a comprehensive fleet renewal, a multi-billion dollar investment aimed at cleaner, quieter, and more fuel-efficient flights.

Marjan Rintel, President and CEO of the Dutch airline, stressed "Despite strong demand and full aircraft, we are still not operating at pre-pandemic levels"; we must therefore "make difficult but necessary decisions. This will mean sacrifices for our employees, but it is essential that we act now to ensure our resilience and future competitiveness".

The plan is ambitious and aims to increase the structural profit margin above 8% by 2026-2028, in line with the aspirations of the Air France-KLM Group. The strategies adopted aim to generate an increase of 450 million euros in operating income in the short term. "The strategies we are implementing are aimed at optimising our revenues and reducing operating costs, which will translate into greater liquidity and increased financial management capacity", explained Bas Brouns, Chief Financial Officer. "This financial strengthening is essential to support the billion-euro investments planned to modernise our fleet and improve the experience offered to our customers".

The Works Council and the unions have been informed of the (proposed) measures and targets. They will continue to be involved through a standard consultation process until final decisions are reached, a statement said today. Specifically, the measures to be taken include:

- Increase productivity by at least 5% by 2025, including through automation, mechanization and reduction of absenteeism

- Measures to address the impact of the pilot shortage and ensure the operation of flights with available pilots, with a better balance between intercontinental and European flights

- Due to the current shortage of technicians and problems with the supply of parts, KLM can operate fewer flights. In the Engineering & Maintenance section, measures are being taken to reduce the number of cancellations. If this does not produce sufficient results, options to partially outsource maintenance will be examined

- All investments -except for (occupational) safety and compliance- will be reconsidered and postponed, such as the new headquarters and Engineering & Maintenance buildings.

- Improvement of on-board products and introduction of new ones. Experiments are underway with an expanded catering offer and an optimization of the aircraft layout, aimed at increasing revenues by at least 100 million euros per year

- Measures to simplify the organization, achieve more synergies, eliminate overlaps and overheads

- Finally, KLM will evaluate the possibilities of outsourcing, divesting or ceasing activities that do not directly contribute to flight operations.