The KLM Group suffered an operating loss of 31 million euros in the first half of 2024. Revenues were higher than in the same period last year, but due to high costs, the result lagged behind, KLM said in a statement on Thursday. Without measures, there will be no improvement. KLM will therefore take a critical look at investments, cost savings and the possibilities to generate more revenue. After the summer, KLM will introduce new measures. “The result is below expectations due to significantly increased costs,” says CEO Marjan Rintel in a statement. ‘The operation was more stable, but the capacity could not yet be fully utilised. For the time being, the fleet will continue to be less deployable. We have a shortage of pilots and technicians and are struggling with long delivery times of spare parts. The coming period will be dominated by cost control and improving financial results. We will soon be announcing additional company-wide measures. This is a difficult message, but it is essential for the future of KLM.’ According to CFO Bas Brouns, KLM is flying more than last year, but costs are rising faster than revenues. ‘That’s downright disappointing. The margin needs to be better. We are already working on initiatives to work more efficiently, generate more revenue and cut costs. We are going to accelerate and expand this. This means, among other things, that the plan for KLM’s new head office will be postponed. In addition, we are taking a critical look at other investments. We will also continue to reduce the growth in indirect staff.’ The operating loss of 31 million euros is in stark contrast to the results of the same period last year. In the first six months of 2023, KLM recorded a plus of 129 million. Sales amounted to 6 billion euros. In the first six months of 2023, sales were 5,6 billion. KLM welcomed nearly 16 million passengers on board in the first half of the year. In the second quarter, the operation was more stable, so customers were less affected by disruptions thanks to a package of operational measures. These include the available reserve fleet and hiring enough colleagues at various locations in the company, says KLM. Subsidiary Transavia also recorded higher turnover in the first half of the year. ‘Transavia managed to get Dutch people to go on holiday affordably under difficult circumstances, which resulted in a positive result in the second quarter.’ In total, almost 4.5 million people travelled with Transavia in the first half of 2024. Photo: Marjan Rintel (Photo KLM).
