KLM trims losses in first quarter as savings measures take effect
April 30, 2025
KLM Group has narrowed its first-quarter operating loss to €199 million, down from €290 million a year ago, with the airline crediting improved fleet availability, operational stability and the early impact of a cost-cutting programme introduced late last year.
Revenue rose 8% year-on-year to €2.9 billion in the three months to March, driven by better use of flight capacity and fewer cancellations or delays compared to the same period in 2024.
The airline said a clear focus on efficiency, alongside a more stable operational environment, helped support the improved performance, though cost pressures and geopolitical risks continue to weigh on profitability.
“Last October, we announced measures to structurally improve our financial performance. The first results are now visible, but we’re a long way from where we need to be, which is why we continue to focus on cost savings. Operationally, we had a good quarter with significantly fewer cancellations and the best departure punctuality in the past two years. This is a strong performance with positive effects for our customers and our revenue,” said KLM CEO Marjan Rintel.
The savings plan aims to cut €450 million from the airline’s costs, and has already seen moves to reduce 250 office-based roles and increase productivity across several departments. KLM’s CFO Bas Brouns noted that while revenue growth is encouraging, higher expenses for materials, staff and airport services remain a concern.
“We expect the positive impact of the measures to increase further as the year progresses. This is necessary because, despite the revenue growth, profitability is under pressure due to rising costs of materials, personnel, and airport charges. Geopolitical uncertainty also highlights the need for cost control and efficiency, as the effects on transport, the supply chain, and cargo remain unclear,” Brouns said.
KLM has continued to invest in its operations, taking delivery of three new Airbus A321neo aircraft and launching new routes to Ljubljana and Exeter during the quarter. The group also began construction of a new pilot training centre. In a move to boost flight crew availability, KLM reached a deal with the Dutch Pilots’ Association to extend increased pilot deployment until April 2026.
Among the airline’s subsidiaries, Transavia saw revenue growth in the first quarter, though rising costs outpaced income gains. KLM said its cargo division, engineering and maintenance teams, and passenger services delivered in line with expectations.
