Parent company KLM suffers 1.7 billion euros loss, more jobs at risk | NOW



Air France-KLM, KLM’s parent company, suffered a loss of 1.7 billion euros in the third quarter. The company announced this on Friday. In view of the second corona wave, KLM is taking into account the loss of more jobs.

For KLM the loss amounted to EUR 234 million. “These figures once again show how bad things are still going in aviation,” says KLM CEO Pieter Elbers in an explanation.

“This is without a doubt the greatest crisis since the Second World War; for society, for aviation and certainly also for KLM.” Without the NOW scheme, KLM would have suffered a loss of 500 million euros in the third quarter.

On Friday, the Ministry of Finance will announce whether the recovery plan that KLM submitted at the beginning of this month is sufficient to appeal to further state aid. That is a package amounting to 3.4 billion euros. To get that support, KLM has to cut costs considerably.

At the end of this year, the KLM workforce has already been reduced by 5,000 FTEs, KLM says. That is 15 percent of the number of jobs KLM had before the outbreak of the corona crisis. “Given the recent developments of the second wave and gloomy outlook, further downward adjustments in the organization must be taken into account.”

Elbers emphasizes that the loans and guarantees from the Dutch state are of crucial importance. “To maintain the company and as much employment as possible.”

People hardly book tickets

In July, August and September, traditionally the best months for aviation, Air France, KLM and Transavia carried 6.8 million passengers. That is a decrease of more than 70 percent compared to last year. Both the CEO of Air France-KLM and KLM say it looked quite hopeful at the beginning of the summer.

But since mid-August, the borders have gradually closed again. The outlook for the rest of the year is also not bright. According to Air France-KLM, people still book very few tickets.

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