Some highlights

Each day produces new insights and technologies, enabling us to improve our performance. Our policy on the environment and society is constantly evolving. This will enable us to meet our goals for 2020 and to create opportunities for later generations.

Here are just a few of the results KLM booked in 2014:

• We reduced onboard catering products using non-sustainable palm and soybean oil by 80%. In 2014, we introduced fifteen new products, including ASC-certified salmon and fruit juices bearing GLOBALG.A.P. certification.
• KLM operated twenty flights from Amsterdam to Aruba and Bonaire partially fuelled by biofuel, thanks to the companies participating in the KLM Corporate BioFuel Programme.
• We took a significant step towards reducing onboard catering waste by using less packaging. We also adapted the sandwich packaging, which has reduced annual waste by 20 tons.
• 39 tons of used KLM aircraft carpet was recycled last year to produce new carpet fibre and other material using carpet manufacturer Desso’s Take Back™ programme.
• A number of divisions are reducing paper consumption by increasing digitisation. We are providing ground personnel with digital-format manuals, which will lead to 375,000 fewer pages of printed paper.

More details and examples can be found in the 2014 CSR Report at klmtakescare.com. Earlier CSR reports can also be found here under the heading White Papers and Reports.

• 6.2 million passengers, +1.3%
• Continued restructuring of point-to-point (capacity down -15.0%) supporting increase in Short and Medium-Haul load factor
• Unit revenue per available seat kilometer (RASK) ex-currency down compared to December 2013 

Transavia

• 0.5 million passengers, +17.5%
• Ongoing accelerated development of Transavia: increase in both traffic and load factor

Cargo

• Unit revenue per available ton kilometer (RATK) ex-currency down compared to December 2013

Agenda

• 9^th February 2015: January 2015 traffic
• 19^th February 2015: FY2014 results
• 9^th March 2015: February 2015 traffic

• The persistent weakness in unit revenues in several long-haul markets, witnessed since the summer and still prevailing in early December.
• The updating of the estimated impact of the Air France pilots’ strike on the fourth quarter including, in particular, a higher-than-expected re-invoicing charge for passenger transportation by other airlines during the strike (‘interline’ invoicing).
• Due to new fiscal regulations, the group will not recognize in its 2014 EBITDA a positive pension cost adjustment that was previously expected. Any potential adjustment will be booked under ‘other non-current income and expenses’.
• A limited fuel price effect in the fourth quarter, in view of the continued decline in the crude oil price which has fallen by more than that of jet fuel, of the structure of the procurement contracts and of the fuel hedging portfolio.

As announced in the third quarter results press release, with no impact on the principles of the Perform 2020 plan, the Group has decided to revise its 2015 and 2016 business plans to take into account the consequences of the pilots’ strike and of the weaker unit revenue trend that has developed since the summer. The Group is thus planning further unit cost[1] reduction measures and a significant scale back in its investment plan.

[1] Unit cost per EASK, on a constant currency, fuel price and pension expense basis.

• 5.9 million passengers, +0.5%
• Restructuring of point-to-point supports increase in load factor
• Unit revenue per available seat kilometer (RASK) ex-currency down compared to November 2013

Transavia

• 0.5 million passengers, +22.0%
• Ongoing accelerated development in France: capacity up 48.0%

Cargo

• Unit revenue per available ton kilometer (RATK) ex-currency down compared to November 2013

Recent developments

• Air France unveiled its new Short and Medium-Haul initiatives. In point-to-point, a presentation of the new Hop! Air France organization was given to the Air France Works Council. With respect to the Paris-Charles de Gaulle hub, the company is pursuing its move up-market by introducing, starting from April 2015, a new seat and a new catering proposition.
   
• Having installed the new World Business Class on all its B747-400s, KLM brought its first B777-200 into service equipped with this new product and a new Economy cabin. The renovation of KLM’s 15 B777-200s will be completed by the end of 2015.
   
• At the end of November, the Group entered into a hedging transaction to protect the value of half its Amadeus shares. The Group retains its shareholding amounting to 19.7 million shares (4.4% of the share capital).

Agenda

• 8^th January 2015: December 2014 traffic
• 9^th February 2015: January 2015 traffic
• 19^th February 2015: FY2014 results

• 7.3 million passengers, +2.1%
• Capacity growth in the Americas driven by Latin America, up 7.3%
• Traffic increase on all networks
• Unit revenue per available seat kilometer (RASK) ex-currency stable compared to August 2013

Transavia

• 1.3 million passengers, +11.3%
• Ongoing accelerated development of Transavia France: capacity +20.7%, with load factor above 90%

Cargo

• Unit revenue per available ton kilometer (RATK) ex-currency down compared to August 2013

Agenda

• 8^th October 2014: September 2014 traffic
• 29^th October 2014: Q3 2014 results presentation

Course
The event will follow a unique route. The starting point is the Lions Dive & Beach Resort. Participants in the half and full marathon will run along the water of Curacao, over the famous Queen Emma pontoon bridge (‘swinging old lady’), and over the Queen Juliana Bridge – one of the world’s highest bridges at 185 feet above the sea, a route that is normally not open to people on foot. The famous “Handelskade” is also part of the route.

Musical support
It promises to be a vibrant occasion for participants and spectators alike. Radio Dolfijn and Curom Broadcasting will report on the event from start to finish, so that those unable to attend can also follow the developments. An audio license has been granted for the entire trajectory, and hotels along the route, such as the Avila Hotel, Renaissance Curacao Resort & Casino, Hilton Curacao Resort and Kura Hulanda Village & Spa Curacao, as well as the Curacao Tourist Bureau will provide support by means of drinking stations and Caribbean music.

Before and after
The evening before the event there will be a traditional ‘Pasta Party’; the first edition of which is being developed with the support of Michelin star chef and marathon runner Pascal Jalhay, in collaboration with Curacao “Culinair”. The finish and after-party will be celebrated at one of the island’s most popular beaches, in front of the Lions Dive Hotel & Beach Resort. The awards will be presented on a stage floating in the ocean.

Registration
Participants can register online via klmcuracaomarathon.com . Every participant will receive a start number with time registration, a medal and a t-shirt. The results will be available online immediately after the finish. On Saturday 29 November there will also be the Lito Kids’ Run, sponsored by Maduro & Curiel’s Bank.

Organisation
The Run in the Sun Foundation is organising this event in cooperation with the Curacao Tourist Board, Curacao Athletics Association and the Curacao Hospitality and Tourism Association. The Royal Netherlands Navy will support the organisers, with particular emphasis on the 15 km Trail.

The goal of the Foundation is to promote running on Curacao among people of all ages. It believes that the positive influence of sports and running events can contribute to a better relationship between various communities, stimulate a healthier lifestyle, and promote tourism to Curacao. The Board of the Foundation consists of initiator Kees van Muiswinkel, Race Director Wim Verhoorn and Martin Does of Kuoni and Does Travel & Cadushi Tours.

Sponsoring
KLM is the main sponsor of the event as running is a much-loved sport among many of the airline’s most loyal customers. Moreover, the sport is becoming increasingly popular and can be enjoyed by travellers around the world. KLM also values the social role of the event, stimulating young and old to maintain a healthy and active lifestyle. Moreover, in late 2014, KLM will have been flying to Curacao for 80 years.

Other partners include the Curaçao Tourist Board, Curaçao Hospitality & Tourism Association, Does Travel & Cadushi Tours, Insel Air, Intertrust, Janssen de Jong Groep, Lions Dive & Beach Resort, Madura and Curiel’s Bank en Kuoni Nederland.

Charity
In association with the KLM Curacao Marathon 2014, the Run in the Sun Foundation has initiated the charity ‘Run 4 Shoes!’. When registering participants can make a donation, and donate running shoes for Curacao children in all participating hotels.

Website:www.klmcuracaomarathon.com
Facebook:www.facebook.com/klmcuracaomarathon

• 5.3 million passengers, +1.8%
• Rise in capacity on the Americas driven by development in Latin America (+9.9%); capacity up +1.1% on North America
• Significant impact from medium-haul restructuring
• Increase in Unit revenue per available seat kilometre (RASK) ex-currency versus February 2013

​Cargo

• Improvement in load factor
• Unit revenue per available tonne kilometre (RATK) ex-currency stable versus February 2013

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Recent developments

• Air France and KLM announced the details of their Summer 2014 schedules (from 30^th March to 25^th October). In long-haul the main development is focused on Latin America with the opening of Brasilia thanks to the partnership agreement with GOL, and the continuation of the Santiago service launched by KLM in February. The impact of Transform 2015 on medium-haul translates into capacity reductions at Air France, while aircraft densification and the reduction in turnaround times enables KLM to increase its offer, launching four new destinations in Europe. 
• After suspending sales in Venezuela since the end of  January, the group will reduce capacity on the Paris-Caracas route by 45% as from April 2014.
• At the beginning of March, SkyTeam welcomed its 20^th member, Garuda, the Indonesian carrier. 13 out of the 20 alliance members are based outside Europe and North America.

Agenda

• 7^th April 2014: March 2014 traffic
• 30^th April 2014: Q1 2014 results
• 12^th May 2014: April 2014 traffic

KLM will succeed in achieving growth in its European network by deploying its fleet more efficiently. The network has been adjusted to optimise fleet utilisation and turnaround times have been tightened further. Additionally, KLM’s European fleet will be expanded with a 48^th Boeing 737 Next Generation effective summer 2014. Fleet expansion and optimisation will enable KLM to serve 71 European destinations (incl. Amsterdam) in summer 2014 in comparison with only 67 in summer 2013.

In addition to these new destinations, KLM will make seasonal adjustments to capacity in accordance with market demand and will seek to strengthen and, where possible, expand cooperation with partners.

(* ) Capacity measured in available seat kilometres (ASKs).

European network expanded by four new destinations
KLM will be adding four new destinations to its European network in summer 2014. Bilbao (Spain) and Zagreb (Croatia) will both be served daily from 26 May 2014. Turin (Italy) will even be served twice daily from the same date. Florence (Italy) is also new to the KLM summer schedule; KLM began operating a service to this destination in winter.

KLM will also be increasing daily frequencies to a range of destinations. For example, there will now be five daily flights to Bergen (Norway), three daily flights to Moscow (Russia), and Athens (Greece) will be served twice daily.

Reinforcement of existing partnership network in North America
In North America, KLM will be strengthening its position within the existing joint venture network operated by AIR FRANCE KLM, Alitalia and Delta Airlines. For example, KLM will be taking over a direct flight from Amsterdam to New York (USA) from Delta Airlines in summer 2014, now flying three times a day on this route. KLM will also expand service in its Houston (USA) business market to nine frequencies a week.

Growth in Central and South America boosted by strategic cooperation
AIR FRANCE KLM recently announced having entered into far-reaching strategic cooperation with its Brazilian partner GOL. Based on commercial cooperation between Brazil and Europe, KLM can now offer even more destinations in Brazil. KLM’s own network will also be expanded this summer. For example, KLM’s scheduled service to Santiago de Chile (Chile), launched in winter, will continue throughout the summer. Additionally, the frequency of KLM’s service to Quito/Guayaquil (Ecuador) will be raised to a daily flight.

Joint network optimisation with partner Kenya Airways in Africa
KLM’s previously announced intention to expand cooperation with Kenya Airways with effect from 1 January 2014, will continue to take concrete shape in the schedules operated by both partners in summer 2014. The joint network has been optimised and further aligned. For example, Kenya Airways will be deploying its recently acquired Boeing 777-300 on the most important joint route between Nairobi (Kenya) and Amsterdam. This aircraft also boasts the latest on-board product. With effect from summer 2014, KLM will be increasing frequencies to Cape Town (South Africa), currently served directly from Amsterdam five times a week.

Stabilisation and optimisation of Middle East and Asian network
Despite fierce competition, KLM will succeed in maintaining its position in the Middle East in summer 2014. This will also be driven by the successful codeshare agreement between AIR FRANCE KLM and partner Etihad Airways. Supported by this cooperation, KLM is now in a better position to offer its passengers destinations within Oceania (incl. Australia).

KLM will also be making a number of adjustments within its Asian network to better meet market demand. For example, both Hong Kong (China) and Seoul (Korea) will be served on the basis of a different time schedule and KLM will be expanding its scheduled service – launched in summer 2013 – to Fukuoka (Japan) to four times a week during the peak season. KLM has also expanded a number of codeshare agreements with various partners, making it possible to offer even more destinations within Asia.

• 5.7 million passengers, +3.8%
• Capacity growth on the Americas network fueled by development in Latin America (+11.0%); capacity up +1.4% on North America
• Significant impact of medium-haul restructuring
• Increase in unit revenue per available seat kilometer (RASK) ex-currency versus January 2013

Cargo

• Stable load factor
• Decline in unit revenue per available ton kilometer (RATK) ex-currency, versus January 2013

Recent developments

• The group continues its product upgrade initiatives, unveiling the new business class seat which will equip Air France’s 44 Boeing 777s between June 2014 and summer 2016. The first flight with these new seats will be to New York in June.
• On 28th January, Air France operated an Airbus A380 to Abidjan on the occasion of the International Forum for Investment in Ivory Coast. A regular flight to this destination is planned  for the Winter 2014-15 season.
• On 3^rd February, KLM inaugurated a new destination, Santiago (Chile), with three weekly flights.

Upcoming events

• 20 Feb 2014: Full Year 2013 Results
• 7 March 2014: February 2014 traffic
• 7 April 2014: March 2014 traffic

Starting the 27^th May 2014 KLM Cityhopper will operate four weekly flights between Amsterdam and Zagreb on Tuesday, Thursday and at the weekend, using a Fokker 70 aircraft seating 74 passengers in Business and Economy Class.

Bilbao
Bilbao, the third KLM destination in Spain, located in the northern part, is one of most populous metropolitan areas in Northern Spain. The city is widely acknowledged for its scrumptious cuisine and architectural masterpieces. The famed Bilbao Guggenheim Museum is hailed as one the most astonishing architectural buildings of the 20^th century. The museum was not just an artistic and cultural amenity, but symbolized the city and society’s wish to change.

KLM will operate this new service on a daily basis except for Tuesday and Thursday. The flight will depart from Amsterdam at 14:50hrs (KL1687) arriving at 17:00hrs on Bilbao airport. The return flight (KL1688) will leave at 17:35hrs to arrive in Amsterdam again at 19:45hrs. The new service will start on 26 May 2014 until 25 October 2014.

Zagreb
Zagreb is the capital and largest city of the Republic of Croatia. It has an extensive history dating back to Roman times. If it’s a change of scenery you desire, the city offers a modern edge too, located in the lower part of the city, with striking buildings and parks, reflecting the city’s standing in the Austro-Hungarian Empire.

KLM will operate flights on Tuesdays, Thursdays and at the weekend. The outbound flight will depart from Amsterdam at 14:30 hours (KL1943), arriving at 16:20 hours at Zagreb International Airport. The return flight (KL1944) will leave at 16:55 hours, arriving in Amsterdam again at 19:05 hours. The new service will start on 27 May 2014 and run until 25 October 2014.

At Amsterdam Schiphol Airport passengers can easily transfer to over 160 destinations. 

(*) For the complete itinerary please check our booking site: wwww.klm.com.