Structural cost control  
The Back on Track improvement program contributed €159 million in savings and additional revenue above expectations to the result in the first quarter. Partly as a result, the cost increase was limited, despite higher airport charges, collective labor agreement wage increases and the financial impact as a result of extreme winter weather. The current developments at the same time emphasize the need for the announced transformation and cost control to make KLM more resilient structurally. An important milestone in the first quarter is the proposed acquisition of KLM Catering Services by Gategroup. In addition, as part of the transformation, KLM is starting a participation program with colleagues from various departments and with stakeholders who are closely involved with KLM. The objective is to develop future scenarios for KLM towards 2030.

Transavia, Cargo and Engineering & Maintenance  
At Transavia, turnover in the first quarter of 2026 was in line with the same period a year earlier. The pressure on turnover resulting from the conflict in the Middle East and snow disruptions was partially offset by lower costs. At Cargo, the wintry weather at the beginning of the year resulted in lower volumes and pressure on revenues. Revenues recovered in March. At Engineering & Maintenance, the result improved compared to last year.

Looking forward  
KLM CFO, Bas Brouns: “We cannot fully pass on the high fuel prices resulting from geopolitical uncertainty to our customers. That puts pressure on the profitability of our operation. Therefore, we have taken measures to respond quickly to the changing circumstances, including through adjustments to the network and tight management of our cash position. Only then can we continue to invest in KLM’s future.”

KLM recorded an operating loss of €128 million in the first quarter of 2023 compared to the €3 million operating profit in the first quarter of 2022, when it received €140 million under the Dutch government's emergency job-retention scheme (NOW).

Capacity management was KLM’s top priority at the start of new year. We adjusted the number of flights to the number of employees available both at Schiphol Airport and internally. Further complications included delays in component deliveries and the reduced operational deployability of the Embraer E2. As a result, total capacity (for both intercontinental and European flights) dropped to about 88% of capacity in 2019.

We welcomed a total of 7.8 million passengers in the first quarter, 6.3 million at KLM and 1.5 million at Transavia. Transavia's results were impacted by the cap on the number of passengers boarding locally at Schiphol Airport. Cargo faced slightly weaker demand than in the first quarter of last year, leading to a drop in revenue from cargo transported on both passenger flights and freighters. Engineering & Maintenance continued to be troubled by supply chain issues, resulting in delays in the delivery of components.

KLM received its last contribution of €140 million under the emergency job-retention scheme (NOW) in the first quarter (previous year: €321 million), which contributed to the positive results.

Only €942 million was withdrawn from the loan package of €3.4 billion in 2020. And, as was also the case for 2021 as a whole, nothing was withdrawn in the first quarter of 2022. The repayment in the second quarter is €311 million, which reduces the outstanding debt of this loan package from €942 million to €631 million. If recovery continues, KLM may make further repayments later this year.

Improvements in all business areas

The first quarter of this fiscal year showed a mixed picture. Our customers are keen to travel again and are now able to, and this is reflected in the results. In total, we welcomed 4.8 million passengers on board, compared to 1.4 million in the first quarter of 2021. The upward trend in bookings continued despite the conflict in Ukraine and the closure of Russian airspace, forcing flights to and from South Korea, China and Japan to make a detour.

Once again, Cargo performance was excellent in the first quarter. Transavia also performed well, benefiting from the further relaxation of entry restrictions affecting holiday destinations. Engineering & Maintenance (E&M) showed a strong improvement in first-quarter turnover.

At the same time, key markets in Asia are still closed to international travellers. Additionally, the global airline industry is facing rising costs and scarcity in the labour market, which are putting pressure on operations. This also applies to KLM.

Operation under pressure despite commitment of KLM staff

Operations were already under pressure in the first quarter of 2022 due to numerous operational changes and scarcity in the labour market. This did not lead to any major disruptions. However, with steadily increasing passenger numbers and the situation at Schiphol in terms of capacity shortages in many places, the past few weeks have been very difficult for operations. Many thanks for all the efforts of KLM colleagues and sincere apologies to our customers who were inconvenienced.