On Thursday, KLM announced its financial results for 2024, describing them as disappointing.
The annual revenue of the KLM Group increased by 5% compared to 2023, reaching €12.7 billion. However, due to a significant rise in costs over the past year, the group’s operating profit dropped to €416 million, down from €650 million in 2023.
‘KLM’s financial performance for 2024 is disappointing, especially considering that a substantial part of the operating result comes from cost savings. We need to regain control of our finances to make essential investments in the coming years, said Bas Brouns, KLM’s CFO, regarding the financial figures.”
KLM CEO Marjan Rintel stated that the results tell ‘two different stories.’ On one hand, the airline risks being unable to continue investing due to declining profits. On the other hand, demand for airline tickets increased, and KLM implemented several operational improvements. She also highlighted the arrival of KLM’s first A321neo as positive news. Additionally, KLM Cargo delivered strong results, launching a full freighter route to Hong Kong last year.
Measures
KLM announced that the cost-saving measures introduced in 2024 will continue into 2025. The new Embraer aircraft for KLM Cityhopper will be fitted with four additional seats to increase revenue per flight. Similarly, the cabin layout of the Boeing 777-200 fleet will be adjusted for the same reason.
At the end of January, KLM also introduced another major cost-cutting measure: the company will eliminate 250 jobs in non-operational roles this year. Altogether, these measures are expected to improve the company’s financial results by €450 million on a structural basis.