Nov. 6 at 3:16 PM
Air France-KLM is considering a major restructuring of its Dutch unit KLM as it faces mounting financial pressure from rising airport fees, taxes, and inflation in the Netherlands.
“All options are on the table” to protect KLM’s profitability, CEO Ben Smith said Thursday during a media call following weaker-than-expected earnings. Possible measures include adjustments to fleet size, aircraft types, destinations, and staffing levels.
Smith warned that KLM’s connecting-flight business is “under serious threat” in the current environment. He noted that the planned 41% increase in Amsterdam Schiphol Airport fees for 2025 represents “probably the biggest change in the airline’s cost structure in recent years,” calling the hike “unprecedented.”
The financial strain could also impact KLM’s fleet renewal plans. “If we’re not making money, we can’t buy new planes, it’s that simple,” Smith said. “No profit, nothing new.”
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