Dutch airline KLM plans to cut 1,000 jobs and transfer 2,000 positions to Air France-KLM

KLM is restructuring roles, outsourcing ground services, and modernising its fleet to combat soaring fuel costs and operating pressures. Despite solid quarterly earnings and surging shares, leadership warns deeper savings are vital to fund future aircraft investments and secure international connectivity.

Dutch airline KLM plans to reduce its workforce by around 1,000 positions over the coming years as rising fuel prices, global instability and higher operating costs put pressure on its finances.

The airline announced the decision on November 5 as part of a restructuring programme aimed at improving profitability and strengthening its financial position.

KLM President and CEO Marjan Rintel said the airline needed to take difficult decisions to remain competitive and secure its future.

The restructuring will affect approximately 5,000 positions, with activities being outsourced, transferred within the Air France-KLM group or reorganised to improve productivity.

"Every day, we all work with incredible dedication, commitment, and pride. But KLM's future is not guaranteed," Rintel said.

1,000 fewer jobs

The restructuring includes around 800 positions in Ground Services, where certain activities will be transferred to external service providers. Another 2,000 positions, including approximately 1,500 at customer contact centre Cygnific, will move to parent company Air France-KLM.

Separately, planned productivity improvements are expected to eliminate around 1,000 positions at KLM. The airline said it would try to avoid compulsory redundancies by using natural attrition, voluntary arrangements and transfers to other roles.

The changes are part of a wider plan to reorganise approximately 5,000 positions rather than eliminate all 5,000 jobs. Work associated with around 1,250 positions at KLM Catering Services has already been transferred to a partnership with catering company Gategroup.

Rintel acknowledged that transferring activities traditionally handled by KLM would affect long-serving employees. However, she said failing to restructure could have more serious consequences for jobs and the Netherlands' international connectivity.

€1 billion earnings target

KLM aims to improve its annual earnings by €1 billion, taking its total targeted earnings improvement to €1.4 billion. The additional financial strength is required to fund investments in new aircraft, customer experience and employees.

The airline has already achieved more than €750 million in structural cost savings through measures such as reducing office space, leaving vacant positions unfilled, cutting jobs and outsourcing activities, including catering and maintenance.

However, KLM said these measures had not been sufficient to secure its long-term financial position. It is also planning to simplify its European fleet by phasing out older aircraft and improving productivity across its operations.

KLM Group reported an operating profit of €526 million for the first nine months of 2026, compared with €328 million in the same period last year. Despite the improvement, the airline said its profitability remained insufficient to support the investments it needs to make.

Chief Financial Officer Bas Brouns said strengthening the airline's financial foundation was necessary to make it more resilient and prepare for future investments.

"We need a KLM that can invest in a new generation of aircraft, better customer service, and our people," Brouns said.

Fuel costs rise

The restructuring comes as Air France-KLM faces higher fuel expenses and pressure on passenger spending amid the rising cost of living. The group has raised its estimated fuel bill for 2026 to $9.2 billion from its earlier forecast of $8.9 billion.

It has also reduced its full-year capacity growth forecast to 2%, compared with an earlier estimate of up to 3%. The group said 54% of its expected fuel consumption for 2027 had already been hedged.

Air France-KLM has increased ticket surcharges to offset higher fuel costs. It also adjusted its flight capacity during the year in response to changes in demand and airline operations in the Middle East.

Air France-KLM results

Air France-KLM reported third-quarter operating profit of €1.34 billion, compared with €1.1 billion expected by analysts. Strong demand for non-stop flights to India and Asia, along with growth in premium travel, supported the performance.

Following the results and KLM's restructuring announcement, Air France-KLM shares rose as much as 14% in Paris trading.

The group is also working to simplify operations across its Dutch subsidiary and improve its profitability through outsourcing, fleet modernisation and closer cooperation within the airline group.