The airline has reported improved quarterly results, but remains cautious about its financial outlook. CEO Marjan Rintel says that while cost‑saving measures are clearly working, they must continue. The hiring freeze will stay in place, and she does not rule out additional steps, noting that new measures will be introduced gradually.
KLM posted an operating profit of €176 million last quarter, an increase of €3 million compared with the same period last year. Rintel aims for a profit margin of 8 percent in the coming years. Last quarter, the margin reached 4.5 percent. “This is too low, but we achieved it in an uncertain world. Fuel prices are very volatile, and competition is fierce. We continue to invest and proceed with our cost‑saving program”.
Measures and Demand
Hundreds of millions of euros are being saved through measures announced last year. Around 250 office jobs were cut, the management board was reduced from five to four members, and hiring of non‑essential staff was halted. “We are sticking to everything we initiated”, Rintel confirmed.
Improved results were partly driven by strong demand for air cargo. Shipping routes have been unreliable due to disruptions linked to the Iran War, yet many chips and other components for artificial intelligence (AI) still needed rapid transport. Additionally, KLM was able to pass higher kerosene costs on to customers. “We have seen demand for cargo pick up enormously. I expect that trend to continue”, Rintel added.
Demand for holiday travel is also strong this summer despite higher prices and global uncertainty. Destinations such as South Africa and Curaçao remain popular, and KLM is transporting many American travellers heading to Europe.
Flight cuts
Despite strong demand, Air France‑KLM announced that it will cancel flights on a larger scale in the final months of 2026. This is primarily due to high fuel prices. The reduction will mainly affect short‑ and medium‑haul flights, intra-European flights. Oftentimes, it is in these sectors that the ticket prices cannot be raised to offset growing kerosene prices.
KLM says the cuts will mostly impact Air France. However, the Dutch airline will also reduce frequencies on routes that are flown multiple times per day during the quiet last quarter of the year. Even with these reductions, overall capacity remains higher than last year. Air France‑KLM now expects 1 percent lower capacity for short‑ and medium‑haul flights compared with last year.
Transavia
Budget airline Transavia is also adjusting its growth expectations. Earlier projections anticipated 8 to 10 percent growth, but this has now been reduced to 8 percent. For the entire group, expected capacity growth has been revised from 2 to 4 percent down to 2 to 3 percent.
Bookings at Air France and KLM are slightly lower than last year, though the group says this aligns with the trend of passengers booking closer to departure. Transavia, however, is ahead of last year’s pace. Demand remains strong for destinations in Spain, even in regions affected by wildfires.
@anp | NEWSBRAINPORT
