Back on Track: what are we going to do
We are reducing the number of office functions by 250 jobs We are making every effort to solve this, wherever possible, through natural turnover, but we cannot rule out the possibility of forced redundancies. This is a proposed decision for 2025, and we have already submitted an initial advisory request to the Works Council. Once we receive the Works Council’s advice, we will refine the plans for each department. At that point, we will also inform the affected employees about how these measures will impact them.
In the meantime, we will continue recruiting for operational and hard-to-fill positions to keep our operations running as smoothly as possible.
All KLM units are taking measures to increase labour productivity by at least 5% in 2025 compared to 2024 You can find the initiatives per division in the overview below. For some additional measures in divisions we are talking to the unions, as this may lead to adjustments in the CLA.
We are working towards a combined training organization for pilots (ATO) We are exploring how to combine training organizations (ATO) for our pilots. At Flight Operations, we have made the setup and planning of pilot training more efficient. These are the first steps, and we will continue this process.
We have expanded our pilot recruitment efforts
Since early January, we have been recruiting non-Dutch-speaking pilots. We have already received over 500 applications. The majority meet our criteria.
We are improving the productivity of the outstations management We are improving productivity by making the management of outstations more efficient in collaboration with KLM, KLM Cityhopper and Transavia.
We improve productivity in IT and reduce costs
- We critically assess the balance between hiring services and personnel in the Netherlands and abroad.
- We explore opportunities to outsource activities to third parties.
- We save costs by simplifying our application landscape.
- We review our contracts to improve returns of our IT investments.
- We reduce the rental of square meters in data centers by using the cloud more.
We have reached an agreement in principle with the VNV on temporary measures to increase pilot deployability
This will secure our production on Europe and ICA for the coming summer and winter ‘25/’26. The temporary measures are:
- continue wetleases at KLM Cityhopper and expand them where necessary,
- continue second officers in first officer positions on routes where four pilots are needed and
- additional deployment of KLM Cityhopper instructors for training.
This result will now be discussed with the VNV Council of Members for approval. We will continue to discuss structural measures with the VNV after March 2026.
We’re working on fleet availability
At E&M, we are working hard on improving fleet availability. In hangar 11, work has been done to improve the punctuality of maintenance and we are also seeing the first results in hangar 14. The Regional Jetcenter is working with KLC to improve the deployment of the KLC fleet.
We're making smart adjustments to our network
- We temporarily operate fewer flights requiring four pilots, in order to operate more flights to other destinations
- We lease aircraft (wetlease) for short and medium connecting flights in Europe
- We are flying more to North America because of the stable economy and our cooperation with Delta, Air France and Virgin. This generates profits and we need relatively few additional pilots.
We are taking measures at Cargo
- At the moment, KLM’s ICA bulk holds are closed to the Express product, due to occupational health and safety regulations. By adjusting the weight limit, we can reopen these bulk holds. This improves employee well-being and generates additional revenue.
- We are working to improve the fleet availability of the B747 freighters in collaboration with E&M.
We are making money in new ways that will increase our revenues by at least €100 million by 2025
- We are improving existing products and developing new paid products and more choice for our customers, including paid catering in economy class on European flights. At the end of January, test flights started to Birmingham and Billund, with Oslo, Lisbon, and Porto added in February.
- We are looking at ways to adjust the cabin layout and make smart choices to use the valuable space on board more efficiently in the existing ICA fleet. We have submitted a proposal to adjust the cabin layout on the 777-200.
- We plan to add four extra seats in the newest Embraers of KLM Cityhopper, without compromising on comfort. This will increase revenue and reduce costs and emissions per passenger. The proposal is currently with the Works Council.
- We will improve existing products and services and develop new ones, such as a 'Change&Fly' option, and expand the KLM Holidays offer with extra destinations.
- In Cargo, we will organize our customer service more efficiently by smartly using time zones and going digital (Customer Service of the Future).
- It is costly to improve our service to our Cargo customers. Therefore, we are introducing a booking fee to generate extra income to cover our costs.
We are reviewing and/or postponing all investments, except investments to continue working safely, healthily and according to the rules (safety comes first).
We previously announced that we are postponing the construction of a new head office and buildings at Schiphol, such as Engineering & Maintenance. We have also decided to postpone investments in an additional hall for component services, as well as the development of sports facilities or event spaces.
We will increase E&M's performance and profitability by 2025
E&M, as part of the Air France-KLM Group, holds significant value for KLM, and we are committed to preserving this for KLM. At the same time, there are still numerous financial opportunities within this maintenance and repair division. The improvement plan for E&M focuses on two things:
- improving performance and reliability so that we have more aircraft available, reduce cancellations and save costs.
- we want to improve and expand the profits and growth of our commercial departments. New contracts have been negotiated with Component Services customers. A separate team has also recently been responsible for supplying components to KLM. In the coming years, KLM plans to hire more technical staff.
KLM and Transavia will work more closely together to improve and save costs
We made agreements on
- improving the inflow and outflow of the fleet and materials
- technical assistance in the event of damage and
- arranging major maintenance for the Airbus.
Cygnific is making changes to its organisation, saving six million euros for KLM
Cygnific, a 100% subsidiary of KLM, provides customer service, reservations and sales services for KLM, Air France and other companies. Costs at Cygnific have also risen sharply in recent years, increasing their prices for KLM. In addition, KLM has less work for Cygnific as we expand self-service for our customers. To reduce costs and remain competitive, Cygnific is making organisational changes that will result in 40 fewer jobs at Cygnific in the Netherlands. In addition, KLM's costs are expected to decrease by over six million euros in 2025 compared to 2024. The advice request for these proposed changes is currently with Cygnific's Works Council.
KLM Catering Services (KCS)
To secure the future of KCS and the catering for our KLM flights, significant investments are needed in the coming years. We are working with KCS to see how we can best shape these investments and reduce the financial burden for KLM.