First Quarter KLM Group: Initial effects of savings program become visible
In the first quarter, KLM Group achieved a revenue of €2.9 billion, an increase of 8% compared to the same quarter last year. The operating loss amounted to €199 million, compared to a loss of €290 million in the first quarter of 2024. A stable operation and better fleet availability contributed to this improved result. The initial effects of the measures announced in October are also becoming visible, but a strong focus on cost savings remains essential.
In the first quarter, KLM took steps towards the announced savings of €450 million. The measures are focused on reducing 250 office jobs and improving productivity in various business units.
Last October, we announced measures to structurally improve our financial performance. The first results are now visible, but we’re a long way from where we need to be, which is why we continue to focus on cost savings. Operationally, we had a good quarter with significantly fewer cancellations and the best departure punctuality in the past two years. This is a strong performance with positive effects for our customers and our revenue.
We expect the positive impact of the measures to increase further as the year progresses. This is necessary because, despite the revenue growth, profitability is under pressure due to rising costs of materials, personnel, and airport charges. Geopolitical uncertainty also highlights the need for cost control and efficiency, as the effects on transport, the supply chain, and cargo remain unclear.
The improvement in operational results is progressing well. Thanks to the measures taken, we were able to make better use of the available flight capacity. There were significantly fewer cancellations and delays than in the first quarter of last year. An agreement was reached with the Pilots' Association for increased deployment of pilots until April 2026.
Additionally, in the first quarter, KLM expanded its fleet with three new Airbus A321neo aircraft, launched the first flights to new destinations Ljubljana and Exeter, and began construction of a modern training center for KLM Group pilots.
Transavia faced a challenging first quarter. Although revenue increased, costs rose faster than in the first quarter of last year. The business units Cargo, Engineering & Maintenance, and Passenger Services performed as expected.
The press release from Air France-KLM Group regarding the first quarter can be read here.