KLM to Cut Workforce by Nearly 15% in Major Cost-Saving Drive
The airline group posted €1.34 billion in operating profit, driven by strong demand in Asia and premium travel, while KLM outlined deeper job cuts.
- KLM announced a major reorganization affecting approximately 5,000 positions, including a 15% reduction in roles aimed at boosting annual earnings by €1 billion.
- Aiming to increase profitability, KLM CEO Bas Brouns flagged fleet modernization and reorganization of ground handling, cargo, and engineering; Brouns called the measures "far-reaching" and "sometimes painful."
- Strong demand for nonstop flights to India and Asia drove Air France-KLM's third-quarter operating profit to €1.34 billion, beating analyst expectations; however, 2026 fuel costs are now expected at $9.2 billion.
- CEO Ben Smith noted that "demand across key strategic markets" and "continued cost discipline" kept unit costs broadly stable, while the airline revised 2026 capacity growth to 2%.
- Spot Northwest European jet fuel prices have fallen 12% this week to their lowest level since August, tracking a broader decline in oil prices that may ease near-term cost pressures.
47 Articles
47 Articles
Air France-KLM has raised its fuel spending estimates for the year, as the tensions in the Middle East, which have lasted for months, keep oil prices high. Exclusive material for subscribers. To have full access, access the material link and register.
"The continuity of KLM is not guaranteed," said CEO Marjan Rintel, at the presentation of the financial results in the third quarter.
"The continuity of KLM is not guaranteed," said CEO Marjan Rintel, at the presentation of the financial results in the third quarter.
Carrier targets €1 billion improvement in annual earnings through outsourcing, staff transfers and productivity measures
The net profit in the third quarter, that of the high summer season, increased by 22%, to 938 million euros. This propelled up the stock market price, by about 10% at the opening in Paris. Over the first nine months of this year marked by the war in the Middle East and the inflation of the prices of kerosene, however, the profit is down by 25%, to 877 million euros. The group is preparing for this item of expenditure to remain very heavy. In its…
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