KLM Royal Dutch Airlines faced financial struggles in 2024 as rising costs hurt its profits. Even though revenue grew by 5.4%, higher spending on equipment, staff, and airport fees made it harder to stay profitable. The airline’s operating profit fell by €234 million, dropping to €416 million. To tackle this, KLM Royal Dutch Airlines launched a plan to cut €450 million in costs while aiming for an 8% profit margin by 2028.
In the last quarter, KLM Royal Dutch Airlines earned €3.1 billion, slightly more than the year before. However, operating costs, except for fuel, stayed high. The airline’s total revenue for the year reached €12.7 billion, a 5% increase from 2023. Still, growing expenses led to a sharp drop in profit. Some areas performed well despite these challenges. The cargo division grew by adding new routes, and Transavia, its low-cost airline, brought in more money. However, supply chain problems in the maintenance department slowed things down.
To manage costs, KLM Royal Dutch Airlines made big changes. It improved daily operations, adjusted its workforce, and secured an important deal with pilot unions to keep flights running. The airline also reworked its aircraft layouts to add more seats and launched a new catering system with more food choices. To boost efficiency, it cut 250 office jobs.
Even with money troubles, KLM Royal Dutch Airlines kept growing. It added nine fuel-efficient planes, launched seven new routes, and flew 33 million passengers in 2024. Public support for flying in the Netherlands stayed strong. However, saving money alone won’t be enough to buy new planes. By focusing on smart spending, better service, and long-term growth, KLM Royal Dutch Airlines hopes to stay competitive in the changing airline industry.
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