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.
âAll options are on the tableâ to protect KLMâs 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 KLMâs connecting-flight business is âunder serious threatâ in the current environment. He noted that the planned 41% increase in Amsterdam Schiphol Airport fees for 2025 represents âprobably the biggest change in the airlineâs cost structure in recent years,â calling the hike âunprecedented.â
The financial strain could also impact KLMâs fleet renewal plans. âIf weâre not making money, we canât buy new planes, itâs that simple,â Smith said. âNo profit, nothing new.â
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