KLM takes “painful” steps to boost productivity and profit
Dutch airline KLM has announced a string of measures to boost productivity and thereby operating profit by an estimated €450 million.
The airline said on Thursday it wants to boost productivity by 5% via automation, reducing absenteeism and simplifying rosters. Some planned investments are also being delayed or scrapped altogether, including developing a new HQ.
The company, part of an alliance with Air France, has been told to improve its results by Paris, according to the Financieele Dagblad.
Chief executive Marjan Rintel said the measures would be “painful” for everyone. KLM is also facing mounting costs and a shortage of staff, particularly engineers and pilots, she said. “Our planes are full but our capacity is not yet back to its pre-coronavirus level.”
The fees KLM pays to Schiphol airport are also due to rise sharply next year.
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