KLM. Photo: Jose Luis Vega / Shutterstock.com KLM has announced a major restructuring program that will reduce the number of positions at the Dutch airline by almost 15%, as it seeks to improve profitability, lower operating costs and strengthen its competitiveness.
The plan includes transferring activities to external partners, moving thousands of positions within the Air France-KLM Group, changing fleet plans and increasing employee productivity.
The announcement comes despite improved financial results during the first nine months of 2026. KLM Group reported an operating profit of €526 million, compared with €328 million in the same period last year. Revenue rose by more than 9% to €10.9 billion, while capacity increased by 4.3%.
However, the airline says its financial performance remains insufficient to address long-term structural challenges, including high fuel prices, rising costs, geopolitical uncertainty and operational difficulties.
"Our third-quarter results reflect the dedication of our colleagues and the cost savings we've achieved together. However, these efforts have not resolved our underlying structural challenges," said Marjan Rintel, President and CEO of KLM. She added that the airline needs far-reaching changes to remain competitive and financially sustainable.
KLM has already achieved more than €750 million in structural financial improvements through its Back on Track program. Measures implemented in recent years include reducing office space, cutting administrative positions, leaving vacant jobs unfilled and outsourcing certain catering and maintenance activities.
The company now aims to improve its annual earnings by a further €1 billion to support investment in new aircraft, customer service and employees.
The restructuring will affect approximately 5,000 positions, although not all will disappear from the company. Some activities will be transferred to external providers, while others will move to different parts of the Air France-KLM Group.
The breakdown includes approximately 1,250 positions at KLM Catering Services, where work has been carried out in partnership with gategroup since this spring. Another 800 positions in Ground Services are expected to involve activities transferred to external providers.
In addition, approximately 2,000 positions, including 1,500 at customer contact center Cygnific, will be transferred to Air France-KLM. A further 1,000 positions are expected to be eliminated through structural productivity improvements.
KLM says it hopes to limit the impact on employees through natural attrition, voluntary departure arrangements and transfers to other positions.
The airline also plans to negotiate new collective labor agreements with unions, targeting a structural productivity increase of at least 8% by 2028, alongside very moderate wage growth.
Ground Services will undergo significant changes, with greater use of external partners for baggage handling and apron services. Passenger services will increasingly rely on digital tools and technology, allowing terminal employees to focus more on direct customer assistance and hospitality.
KLM Cargo will consolidate its cargo handling activities in its own warehouse at Schiphol, preparing for a new cargo terminal planned for completion in 2035. The company intends to handle higher cargo volumes without increasing staffing levels, through automation and more efficient processes.
Engineering & Maintenance will focus increasingly on the future fleet, accelerating the phase-out of maintenance activities for aircraft types being retired. The management of Engine Services and Component Services is also expected to become more closely aligned with Air France-KLM.
KLM will retain the Airbus A321neo but replace its planned Airbus A320 aircraft with smaller Embraer E195-E2 jets.
The Boeing 737 and Embraer E190 will gradually leave the fleet over the coming years. KLM Cityhopper is expected to play a larger role in the European network.
The airline says the revised fleet composition will allow it to better match capacity with passenger demand and improve the profitability of European routes.
Despite the cost-cutting program, KLM says it will continue investing in its core business, including its international network, aircraft modernization and passenger experience.
Planned improvements include more comfortable aircraft, upgraded onboard services, free high-speed Wi-Fi on intercontinental flights and a wider meal selection on European routes. Digitalization and artificial intelligence will also play a greater role in booking services and internal operations.
Rintel warned that additional changes to the organization, employment conditions, productivity and staffing could still be necessary.
"Doing nothing would ultimately have even more painful consequences, both for jobs and for our country's connections to the rest of the world," she said, adding that the changes would be implemented through dialogue with employees, unions and other stakeholders.