Quick Links Suffering from high costs Labor inefficiencies and shortages Focusing on new aircraft additions KLM Royal Dutch Airlines has admitted that it will have to take action to structurally improve the airline’s operational and financial performance, saying that while its revenue has grown, cost growth has outpaced its ability to generate income. At the same time, it was in the process of renewing its fleet, which will require significant capital expenditure (CapEx) to introduce more fuel-efficient aircraft. The Dutch carrier expressed that its goal was to improve its operating result – not net profit – by €450 million ($496.
8 million) and, in line with the ambitions of Air France-KLM , achieve a structural profit margin above 8% within the 2026-2028 timeframe. Suffering from high costs KLM said that it was taking these and other measures to maintain its network and services and to protect jobs as much as possible. In total, the airline announced seven initiatives that should help achieve its financial goals.
The Dutch carrier also said that it has informed the Works Council and its unions about the proposed measures, promising to continue talking to the unions to finalize the moves. Marjan Rintel, the president and chief executive officer (CEO) of KLM, said that the airline wanted to maintain its 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 .
