KLM to Record Operating Loss in the First Quarter of 2024, Amid Rising Costs

KLM Royal Dutch Airlines (Airbus A321neo)

Despite robust demand, the KLM Group recorded an operating loss for the first quarter of 2024 (January to March).

Revenue was €2.7 billion, with an operating loss of €290 million. Due to global supply chain issues causing a shortage of parts, operational capacity remained at 94% of the target. The number of passengers included 7.5 million for KLM Royal Dutch Airlines and 1.8 million for Transavia Airlines.

Although the first quarter traditionally sees a downturn, this period faced additional challenges such as reduced operational capacity, rising costs, and adverse weather conditions. The group is grappling with prolonged maintenance leading to aircraft leasing, compensation costs due to operational disruptions, and increased labor costs from new labor agreements. The avoidance of Russian and Middle Eastern conflicts necessitates additional pilots for some Asia routes, and to address a shortage of maintenance staff, the hiring of pilots and mechanics has been expanded.

The KLM Group is evaluating positions in indirect departments for possible suspension or termination to reduce personnel costs, as well as thoroughly reviewing and reconsidering investments.

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