(Photo KLM)
DUTCH FLAG carrier KLM’s operating profit for 2024 fell by €234m to €416m despite a revenue growth for the year of 5.4%. Rising costs of equipment, personnel and airport fees put profitability under pressure, the airline said.
Marjan Rintel, KLM CEO, commented: “Our results for 2024 show two different sides. On [the] one hand, we are still not operating at 100% of our flight capacity and costs continue to rise sharply. As a result, we run the risk of not earning enough to keep investing in our future, although I’m confident that our plans will help us to improve our operations and finances for the long term. At the same time, 2024 also brought some good news and progress. We saw growing customer demand for flight tickets, achieved operational improvements, welcomed the first Airbus A321neo and successfully completed the conversion of our Premium Comfort Class – our highest-rated class.” In October last year, KLM announced a series of measures including strengthening its engineering units, simplifying its organisation, improving staff productivity by at least 5% and increasing revenues by introducing new products and services. KLM aims to save €450m this year and achieve an 8% profit margin in the period between 2026 and 2028, enabling the execution of its fleet renewal plan and future strategy.