KLM Still on Shaky Ground, Despite Financial Improvement

Dutch airline KLM has reported a financial improvement, but has stressed it is not sufficient for its long-term stability.

For the first half of this year, KLM’s operating result reached €68m – an improvement of €92m, year-on-year – and achieved an 8% increase in revenue to €6.9bn.

Despite this improvement, KLM said, the result is still not good enough to strengthen the financial foundation of KLM for the future.

"In a market characterised by geopolitical uncertainty, fluctuating fuel prices, and fierce competition, further strengthening of KLM is essential," the airline said.

Marjan Rintel, CEO KLM, said: “The measures we are implementing are having a positive impact on our results. At the same time, we must remain realistic: one good half-year does not make KLM structurally strong and robust. More is needed in the current operating environment, with ongoing uncertainty, rising costs, and intense competition. At the same time, I look forward to some upcoming highlights, such as the arrival of our first Airbus A350, a significant step in our fleet renewal programme.”

The improvement in the first half year was partly driven by productivity enhancements, cost-saving measures, and sustained strong demand in both passenger and cargo transport. Revenue per seat increased, particularly on routes to Asia and North and Central America. The Back on Track program yielded €315 million in savings and performed above plan. While this is encouraging, it does not change the fact that KLM still faces a substantial challenge to structurally strengthen its financial foundation, the airline stressed.

"KLM recognises that the challenges for the aviation sector have evolved. Geopolitical tensions lead to cancellations, re-routings, and volatile fuel prices. Simultaneously, costs are rising, for example, for materials, personnel, and airport charges," the carrier said.

Bas Brouns, CFO KLM, said: “We are moving in the right direction, but more is needed to make KLM more financially resilient. The results provide confidence, but not comfort. Therefore, we continue to invest in factors that strengthen our competitive position, while critically evaluating every euro spent. This is the only way to make the progress we are currently seeing sustainable.”