Dutch airline KLM has posted an operating loss of €31m for the first half of the year, blaming high operational costs for the disappointing financial performance.
Revenues were up, year-on-year, but costs were a huge lag on results. KLM said that “without measures, this will not improve”.
It said it would be critically assessing its investments, cost savings and opportunities in order to generate greater revenues.
KLM chief executive, Marjan Rintel, said: “Our results fell short of expectations due to significantly higher costs. The operation was more stable, but capacity could not yet be fully utilised. The fleet could not be fully deployed. We have insufficient numbers of pilots and engineering staff and face long delivery times of spare parts. In the period ahead, the focus will be on cost control and improving our financial performance. We will soon announce additional measures for the entire company. This is a difficult message but essential for KLM’s future.”
KLM chief financial officer, Bas Brouns, said: “We are flying more than last year, but costs are rising faster than revenues. That is downright disappointing. The margin has to improve. We are already working on initiatives to work more efficiently, generate more revenue and cut costs. We are going to accelerate and expand this. Among other things, this means postponing the plan for KLM’s new headquarters. In addition, we are taking a critical look at other investments. We will also continue to reduce the growth in indirect staff.”
