KLM reported lower Q3 2024 profits due to high costs, prompting measures to improve performance, including cost savings, productivity increases, and investment reviews.
In the third quarter of 2024, KLM Royal Dutch Airlines achieved a lower operating profit than in the same quarter last year: 396 million euros on a turnover of 3.5 billion euros. For the first nine months of 2024, operating profit is even 303 million euros less than in 2023. High costs of equipment, staff and airport charges mean that results are lagging behind. The figures therefore underline the need for the previously announced financial and operational measures.
At the beginning of October, KLM Royal Dutch Airlines 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. In this context, KLM Royal Dutch Airlines announces that it will explore strategic options for KLM Catering Services to prepare this business unit for the future. This exploration focuses on KLM’s objectives in the areas of being a good employer, personalised catering, sustainability, operational control and efficiency.
“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.” said Marjan Rintel, CEO KLM.
“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.” says Bas Brouns, CFO KLM.
Activities first nine months
Engineering & Maintenance is experiencing supply chain issues and saw its operating result drop by half. Cargo is performing in line with the first nine months of 2023. 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. In addition, Transavia welcomed six new A321neos to its fleet.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
