DALLAS — KLM Royal Dutch Airlines (KL) reported its Q3 results today. The numbers demonstrate the company’s need for financial and operational measures.
In the third quarter of 2024, operating profit fell to €396 million (US$427.3 million) on revenue of €3.5 billion (US$3.78 billion). Year to date, operating profit is €303 million less than the same period of 2023. KL cites the high costs of equipment, staff and airport charges as the reasons for the decline.
In early October, KL announced measures to improve the company’s financial and operational performance structurally. These measures include increasing productivity, simplifying the organization, cost savings, and postponing or canceling investments.
The airline is also exploring strategic options for KLM Catering Services to prepare this business unit for the future. Areas of focus include being a good employer, personalized catering, sustainability, operational control, and efficiency.
In a release, the airline said, “It’s great to see that people are traveling 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.”
Executive Comments
“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,” said Marjan Rintel, CEO KLM. “With these measures, we will strengthen our cash position and improve our financial management, enabling us to invest in the future.”
KLM also says that Engineering & Maintenance is experiencing supply chain issues and saw its operating results drop by half. Cargo, however, is performing in line with the first nine months of 2023.
Transavia (HV) recorded a higher turnover compared to last year despite operational challenges. A total of 7.5 million people traveled with HV from January to September. In addition, HV welcomed six new A321neos to its fleet.
The press release from Air France-KLM Group regarding the third quarter can be read here.
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December 2024
