KLM Aims to Soar: Cost Cuts and Strategic Delays to Enhance Profits

Dutch airline KLM plans to cut costs and delay investments to improve profitability amid challenges such as rising costs and competition. The strategy includes enhancing productivity and revising flight schedules while maintaining key fleet investments and seeking additional revenue streams through new onboard offerings.

Dutch airline KLM announced on Thursday its plan to reduce expenses and postpone certain investments in a bid to lift its profits. The company is tackling rising costs for equipment, staff shortages, and increased airport fees, aiming to boost its operating result by 450 million euros ($497 million) in the short term.

The airline, part of the Air France KLM group, seeks to enhance its profit margin from 5.4% in 2023 to over 8% by 2028. Amid rising costs, aircraft delivery delays, and stiff competition, KLM plans to achieve these goals through measures such as restructuring flights and automating operations.

KLM's strategy includes a revamped flight schedule to optimize the use of resources, particularly for intercontinental flights. It also eyes revenue growth by launching new onboard offerings and fine-tuning airplane layouts while temporarily shelving investments in new infrastructure projects.

(With inputs from agencies.)