KLM’s operating result decreased by €234 million to €416 million in 2024. Despite a revenue growth of 5.4%, profitability was under pressure due to rising costs of equipment, personnel, and airport fees. With the measures it announced in October last year, KLM aims to save €450 million this year and achieve an 8% profit margin in the period 2026-2028, enabling the execution of KLM’s ambitious fleet renewal plan and future strategy.
“Our results for 2024 show two different sides. On one hand, we are still not operating at 100% of our flight capacity and costs continue to rise sharply. As a result, we run the risk of not earning enough to keep investing in our future, although I’m confident that our plans will help us to improve our operations and finances for the long term. At the same time, 2024 also brought some good news and progress. We saw growing customer demand for flight tickets, achieved operational improvements, welcomed the first Airbus A321neo, and successfully completed the conversion of our Premium Comfort Class – our highest-rated class.” – Marjan Rintel – CEO KLM
Fourth Quarter and Annual Results
Revenue in the fourth quarter amounted to €3.1 billion compared to €3.0 billion in 2023, and the operating margin increased to 1.6%. Costs, excluding fuel, remained high. KLM Group’s annual revenue amounted to €12.7 billion, an increase of 5% compared to 2023. However, costs rose sharply throughout the year, resulting in an operating result of €416 million, compared to €650 million in 2023.
Cargo achieved good results in 2024, with a strong second half of the year, and opened a new full freighter route to Hong Kong. Engineering & Maintenance faced global supply chain issues in 2024, impacting results. Transavia recorded higher revenue compared to last year, despite capacity constraints.
Our financial performance for 2024 is disappointing, especially considering that the operating result largely consists of cost savings. We need to strengthen our financial position, in order to be able to make vital investments in the coming years. The measures we announced are beginning to pay off. That said, a 3.3% margin is not enough to finance new aircraft. Therefore, this year, strengthening our financial position remains our first priority.
Bas Brouns, CFO KLM
Operational and financial measures
The cost savings initiated in 2024 will continue into 2025. Thanks to a temporary agreement with the VNV, KLM can operate all planned flights next summer. To increase the earning capacity of the fleet, the newest Embraers will get four extra seats, and the cabin layout of the Boeing 777-200 will be adjusted. Additionally, we have begun to test a new catering proposition on European flights, offering passengers more choice and paid catering. As part of the measures, KLM recently announced a reduction of 250 office (i.e. non-operational) jobs, a step being implemented across the company to increase productivity by at least 5% and improve profitability.
Rising Demand
More than three-quarters of Dutch people have a positive view of aviation, and the demand for flying continues to rise. This is reflected in the numbers for KLM and Transavia: in 2024, KLM welcomed 33 million passengers on board and Transavia around 9.5 million. KLM also transported 434,000 tons of cargo, announced seven new destinations, and added nine new – cleaner and quieter – aircraft to its fleet.