Dutch airline KLM has announced a “painful” round of cost-cutting measures in order to combat high costs and staff shortages following the impact of the COVID-19 pandemic. The Air France-KLM group, of which KLM is a part, reported a significant loss in 2020 due to the grounding of planes and a decrease in passenger numbers.
CEO Marjan Rintel stated that KLM, like many other airlines, is facing challenges with high costs and a lack of staff and equipment, despite having full planes. The cost-cutting measures are expected to improve KLM’s operating result by €450 million in the short term, with a focus on protecting jobs as much as possible.
The airline plans to rejuvenate its fleet with quieter and more fuel-efficient planes, with investments in this area being made possible through the cost-cutting measures. KLM aims to increase productivity, address pilot shortages, and achieve a better balance between European and long-haul flights. It is also considering outsourcing maintenance and reassessing certain investments.
While the measures may be difficult for KLM employees, CEO Marjan Rintel emphasized that they are necessary for the airline’s financial recovery. The company is focused on ensuring its long-term sustainability and viability in the face of ongoing challenges in the aviation industry.
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