KLM announces set of measures aimed at improving the airlines operational and financial performance

Rhea-AI Summary

KLM has announced a set of measures aimed at improving its operational and financial performance, as part of Air France-KLM's initiative to meet medium-term profitability targets. The measures focus on:

• Increasing productivity
• Implementing cost-cutting initiatives through organizational simplification
• Postponing non-essential investments
• Exploring new revenue streams
• Seeking more synergies

These actions are expected to result in a 450 million euro improvement in KLM's operating result in the short term. The measures are designed to address rising costs at KLM and contribute to Air France-KLM's overall financial goals.

Positive

• Expected 450 million euro improvement in operating result
• Focus on increasing productivity and cost-cutting initiatives
• Exploration of new revenue streams
• Seeking more synergies within the Air France-KLM group

Negative

• Rising costs at KLM necessitating performance improvement measures
• Postponement of non-essential investments

Paris, 3 October 2024

KLM announces set of measures aimed at improving the airline’s operational and financial performance

Earlier this year, Air France-KLM announced that measures would be implemented at KLM to structurally improve the airline’s operational and financial performance.

These measures are required to address rising costs at KLM and to secure Air France-KLM’s ability to meet its medium-term profitability targets.

KLM today presented the outlines of these measures, which notably include a focus on productivity, cost-cutting initiatives notably through simplification of the organization, and the postponement of all non-essential investments.

In parallel, KLM will explore new revenue streams and seek to achieve more synergies.

KLM expects these measures to result in a 450m€ improvement of its operating result in the short term.

Further details on the measures can be found here.

Investor Relations                                                        

Michiel Klinkers                        Marouane Mami                                                            

michiel.klinkers@airfranceklm.com        marouane.mami@airfranceklm.com

Website: www.airfranceklm.com

Attachment

• PR - KLM announces set of measures aimed at improving the airlines operational and financial performance

FAQ

What is the expected financial impact of KLM's new measures on its operating result?

KLM expects these measures to result in a 450 million euro improvement of its operating result in the short term.

What are the main focus areas of KLM's performance improvement measures announced on October 3, 2024?

The main focus areas include increasing productivity, implementing cost-cutting initiatives through organizational simplification, postponing non-essential investments, exploring new revenue streams, and seeking more synergies.

Why is KLM implementing these performance improvement measures?

KLM is implementing these measures to address rising costs and to secure Air France-KLM's ability to meet its medium-term profitability targets.

How will KLM's new measures affect its investments?

As part of the measures, KLM will postpone all non-essential investments to improve its financial performance.