A major economic impact for national economies 

The study's findings highlight the major role played by the Air France-KLM Group in the economic dynamics of France – Air France's home country – and the Netherlands – KLM's home country. While in fiscal year 2023, the Air France-KLM Group generated a net income of 0.9 billion euros, its total economic impact is estimated at 48.9 billion euros in France and 21.9 billion euros in the Netherlands (or 723 euros per year per inhabitant in France and 1,228 euros per year per inhabitant in the Netherlands). The study concludes that for every euro invested, the Air France-KLM group generates 3.6 euros in the French economy, and 3.4 euros in the Dutch economy. 

These economic benefits take the form of direct investment, direct and indirect job creation, and spending with local suppliers and service providers. 

A driving force for employment in France and the Netherlands 

In addition to its economic and financial impact, the Air France-KLM Group also contributes significantly to the creation of skilled jobs that cannot be relocated. In 2022 and 2023, respectively, the various entities of the Air France-KLM Group recruited 4,000 and 5,000 permanent staff, namely pilots, flight attendants and mechanics. This dynamic will continue in 2024, particularly for pilots and aircraft maintenance activities. The Group is also particularly active in supporting access to employment for young people, through work-study programs and support for associations that promote inclusion. 

The impact study estimated that 552,570 jobs in France and 267,996 jobs in the Netherlands depended on Air France-KLM's activity, equivalent to the population of Lyon in France and Eindhoven in the Netherlands. These numbers include direct jobs (employees working directly for the Air France-KLM Group – around 46,000 in France and 26,000 in the Netherlands); indirect jobs (in related sectors such as suppliers, subcontractors, and service providers); as well as jobs induced by the Group's activity, for example in tourism. These jobs support the local economies of France and the Netherlands. 

Furthermore, the study highlights that each direct job created by the Group generates 11 additional jobs in France. In the Netherlands, the impact is also very positive: for every job created by the Group, 9.2 additional jobs are created in the Dutch economy. 

In France, shared benefits across all regions 

The socio-economic impact study shows that Air France-KLM's activity benefits all French regions, without exception. 

By way of example, in addition to strong air transport activity, the Occitanie region benefits from significant direct injections related to Air France-KLM’s purchasing of aircraft and aeronautical spare parts from Airbus, its subcontractors and service providers. Since 2018, Air France-KLM has ordered over 230 aircraft from Airbus, most of which are assembled in the Toulouse region. Air France also has a maintenance site in Toulouse. 

In the Bourgogne-Franche-Comté and Grand Est regions, Air France-KLM's contribution can be seen in its support for the wine industry, through purchases of wines, champagnes and spirits served on board Air France. In 2023, over 2.4 million bottles of wine and 1.3 million bottles of champagne were served on board Air France flights. 

The Île-de-France region remains the main beneficiary of the Group's impact. Thanks to the Paris-Charles de Gaulle hub and Paris-Orly airport, as well as the location of Air France’s and Transavia France’s headquarters, the Air France-KLM Group is a natural socio-economic catalyst for the Île-de-France region. Long the region's leading private sector employer, the Group contributes 3.2% of Île-de-France’s total GDP, for a total economic impact of nearly 25 billion euros. Representing 50% of the traffic at Paris-Charles de Gaulle and Paris-Orly airports, the Air France-KLM Group is a driving force behind the region's connectivity and national and international appeal, supporting all links across the local economy, industry, and tourism. 

In the Netherlands, a global hub supporting all sectors of the economy

Air France-KLM’s contribution to the Dutch economy mainly takes the form of connecting the country to the world. KLM has built one of the world’s most effective transit hub at Amsterdam-Schiphol Airport, connecting the Dutch capital to 160 destinations, far exceeding the natural potential of its home market. 

This makes the Netherlands one of the best-connected economic centres in the world, creating a favorable business climate for international organizations and corporations to establish or maintain their headquarters. 

Air France-KLM’s operations in the Netherlands also support Dutch exports, from flowers to medicines, notably via the Group’s cargo division, Air France-KLM Martinair Cargo. 

For more details, see Air France-KLM Group: a major socio-economic contributor to France and the Netherlands - nos engagements (foleon.com)

Note on methodology: 

The data in the impact study reflect the assessment of the socio-economic benefits of the Air France-KLM Group’s activity, which distinguishes four types of economic impact: 

- Direct impacts, including the remuneration of Air France-KLM Group staff working in their home region, as well as the Group's consumption of goods and services.

- Indirect impacts, resulting from the Air France-KLM group's activities, notably spending by passengers traveling on Group aircraft, as well as the economic activity of airports associated with the Group's activities. 

- Induced impacts, which are determined by the spending of the beneficiaries of direct and indirect impacts, including public bodies that benefit from tax revenue induced by the Air France-KLM group's activity. 

- Catalytic impacts, which represent the attractiveness of a given region for businesses, thanks to the Air France-KLM group's air traffic to the area. 

KLM is committed to reducing the environmental impact of its activities as far as possible. The following three pillars are important to this approach:

• A plan to modernise and renew the Air France and KLM fleets with the latest generation of aircraft emitting 20% to 25% less CO₂ compared to their predecessors. With the objective of 64% of new generation aircraft in the fleet by 2028, Air France-KLM currently invests over €2 billion annually in the acquisition of Airbus A220s, Airbus A320s and A321neo aircraft, Airbus A350s, Boeing 787s and Embraer 195‑E2s, which are amongst the most efficient aircraft in their respective categories.
• The use of sustainable aviation fuel (SAF). This non-fossil-based fuel can be produced from industrial or domestic waste, which contributes to a more circular economy, and the SAF sourced by Air France-KLM does not compete with the food chain for people and/or animals. Two off-take agreements were signed in November 2022 to secure 3% of the 10% of our SAF objective by 2030.
• The improvement of operational efficiency by favouring more direct routes and introducing procedures that reduce fuel consumption (single-engine taxi, continuous descent).

Additionally, KLM cooperates with a wide variety of sector partners. We are committed to developing innovative solutions for aircraft design and maintenance, engines and synthetic fuels. Aside from the target that has now earned SBTi validation, KLM is also committed to achieving other objectives intended to reduce our environmental impact.

SBTi – a scientific approach in compliance with the Paris Agreement 

The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emission reduction targets in line with the latest climate science. The initiative is a partnership between the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). SBTi independently assesses and validates companies’ CO2 emissions targets based on a scientific approach and criteria.

For more information about KLM’s Climate Action Plan, click here

KLM was forced to take drastic measures to manage operations, for example restricting ticket sales to passengers departing from Schiphol and cancelling flights. The airline will continue pursuing these measures in the period ahead to improve network predictability. The essence was and remains: to ensure that every customer who books can fly.

KLM and Transavia carried a total of 9.5 million passengers in the third quarter. Cargo performed well despite having less belly capacity available, and Engineering & Maintenance (E&M) welcomed back customers. Taken together, these factors led to operating profits of €443 million in the third quarter of 2022, compared to €169 million in the same quarter of 2021. Revenues stood at €3.236 billion compared to €1.890 billion in 2021.

On the cost side, KLM faced sharp increases in the past quarter, due in part to the high oil price, inflation, supply chain shortages and costs associated with rebooking and compensating passengers affected by network interventions. Since the start of Schiphol’s security issues in April, which continued through September, direct costs alone have amounted to almost €70 million, compounded by the loss of revenue.

Over and above reducing fuel consumption and as a drop-in fuel, SAF is a solution to reduce CO₂ emissions generated by the airline industry in the short to medium term, without the need for modifications to existing infrastructure and equipment. It has the potential to reduce CO₂ emissions in pure form by an average of 80% (compared to fossil fuel), depending on the combination of technology and raw materials chosen, and as long as strict sustainability criteria are met.

Air France-KLM has established a strict procurement policy whereby it commits to only purchasing sustainable fuels that do not compete with the production and supply of food for humans or animals, are certified under RSB or ISCC+ and have not been produced from palm oil.

SAF is not yet widely available. KLM is committed to scaling up the production and use of SAF to achieve greater sustainability in the future. For more SAF, KLM cooperates with various parties to research and stimulate the development of various promising technologies and to stimulate the scaling up of production facilities.

Link to Air France-KLM press release.

New and existing shareholders are participating in the rights issue. The Dutch State also announced it intends to buy shares to maintain its current 9.3% stake at the same level. Parliamentary approval is still required for this.

 For more information please see the press release of Air France-KLM: www.airfranceklm.com/en/press-releases/air-france-klm-launches-rights-issue-be-subscribed-cash-andor-offsetting-claims

The Air France-KLM Board of Directors has approved the nomination.

Cees 't Hart, Chairman of the Supervisory Board, on the unanimous nomination: ‘We are delighted that Marjan will come on board as CEO on the 1^st of July. With her broad managerial, commercial and operational experience, we are bringing in someone who is close to the staff and who, together with her team, will continue to shape the future of KLM as a customer-focused, sustainable and financially healthy company. We are convinced that her knowledge of the sector, her network and her experience in the political arena will contribute to this.’

Ben Smith, CEO of Air France-KLM: ‘I am extremely happy to welcome Marjan to our team as the new CEO of KLM. I know that Marjan will succeed in making KLM even stronger by continuing to build on the Group’s strengths.’

Marjan Rintel: ‘I am honoured to return to KLM and take over the baton from Pieter. His 30-year track record is impressive. Under Pieter's leadership, KLM found its way up and I will continue on that course. Aviation is in times of great and complex challenges. I am of the opinion that an indigenous Dutch company like KLM, just like NS, has a major role to play in these social and economic challenges. Fulfilling that role successfully will be my priority from day one.’

The Works Council of KLM has been asked for its advice on the intended nomination of Marjan Rintel as Statutory Director of KLM. The nomination for the appointment will be submitted to shareholders for approval at an extraordinary general meeting scheduled for this purpose. 

For the Netherlands, the connection with the rest of the world via Schiphol is of strategic importance. That is why, in 2020, the Dutch State supported KLM with a loan of EUR 1.0 billion and EUR 2.4 billion in guarantees on credit facilities, linked to major conditions. KLM is grateful to the Dutch government for its support.

In time, KLM will also need capital. For that purpose the Dutch State is in talks with Brussels, Air France-KLM, KLM and other stakeholders. As long as these discussions are ongoing, KLM will not comment on the progress of these talks.

Mr Hartman completed the agreed term of four years and is succeeded by Ms Leni Boeren, who was today officially appointed as independent director of the supervisory body of Air France-KLM at the Group’s annual general meeting of shareholders. Ms Boeren started het financial career at Paribas before moving to Rabobank, where she held various posts. She subsequently went on to hold a series of posts at Robeco and other companies.