KLM's Strategic Cost-Cutting: Navigating the Turbulence

Dutch airline KLM will make strategic cuts and postpone investments to navigate rising costs. The measures aim to improve the operating result by 450 million euros and include restructuring flights, cutting office jobs, and enhancing productivity through automation while keeping essential fleet investments.

KLM, the Dutch arm of Air France KLM, announced cost-cutting measures and investment postponements due to escalating expenses in equipment, staff, and airport fees. The airline aims to improve its operating result by 450 million euros in the short term.

The airline plans to restructure flights and eliminate an undisclosed number of office jobs. Additionally, it will increase productivity through automation and mechanization to optimize resources. CEO Marjan Rintel emphasized the challenges faced by many airlines, including high costs and shortages of staff and equipment.

KLM will reconsider and delay investments in infrastructure such as its new headquarters and maintenance buildings while focusing on maintaining fleet investments. The company is also looking to outsource or divest non-essential activities and introduce new onboard products and plane layouts to boost revenues by around 100 million euros annually.

(With inputs from agencies.)