Dutch flag carrier KLM has reported a decline in profits through the third quarter, which it said highlights the need for financial and operational measures.
“Results are lagging behind,” the airline said, owing to “high costs of equipment, staff and airport charges.”
KLM achieved a lower operating profit compared to the same period last year: €396mn on a turnover of €3.5bn.
For the first nine months of 2024, operating profit was €303mn less than in 2023.
“The figures therefore underline the need for the previously announced financial and operational measures,” the airline said.
At the beginning of October, KLM announced a robust package of measures to structurally improve the company’s financial and operational performance.
These measures include increasing productivity, simplifying the organisation, cost savings and postponing or cancelling investments.
The airline said it will therefore explore “strategic options” for KLM Catering Services to prepare this business unit for the future.
This includes focusing on being a good employer, personalised catering, sustainability, operational control and efficiency.
KLM CEO Marjan Rintel said: “It’s great to see that people are travelling with us more. Our aircraft are full and we carried more passengers in the first nine months of this year.
“But our capacity still lags behind and the costs are too high. That is why the announced package of measures is desperately needed – not least because we will be investing billions in cleaner, quieter and more fuel-efficient aircraft in the coming years.”
The airline said its KLM Engineering & Maintenance business is experiencing supply chain issues and saw its operating result drop by half.
Meanwhile cargo is performing in line with the first nine months of 2023.
KLM’s low-cost subsidiary Transavia recorded higher turnover compared to last year, despite operational challenges.
A total of 7.5 million people travelled with Transavia from January to September, during which the carrier welcomed six new Airbus A321neos to its fleet.
KLM’s chief financial officer Bas Brouns said: “The financial performance for the first nine months of this year is historically low and confirms the need for the announced measures throughout the company.
“With these measures, we will strengthen our cash position and improve our financial management, enabling us to invest in the future.”
