With a domestic market that only includes long-haul flights to the Caribbean, KLM’s reliance on international flows into Amsterdam and through its Schiphol Airport hub has meant that it has been hit hard by the Covid-19 pandemic and its president and CEO Pieter Elbers has set a deadline of 01-Oct-2020 to finalise an agreement with unions and the airline's works council on a comprehensive restructuring package, which includes a 20% salary reduction.
The airline says intercontinental seat capacity is currently "way down", with a third of its intercontinental activities operating as cargo only movements. The airline forecasts it will operate 92% of its 2019 network in Nov-2020 and Dec-2020, while it will operate approximately 60% of 2019 ASKs during the corresponding period in 2020.
KLM plans to adopt a "more restricted" winter 2020/2021 schedule than previously planned due to adjusted travel warnings in Europe, the UK – its largest international market – and other countries. The carrier estimates it will operate 55% of capacity levels on its European network in Nov-2020 compared to the same period in 2019 and 59% across its combined network.
Benjamin Smith, CEO of parent Air France-KLM has said state aid received by Air France and KLM Royal Dutch Airlines "will allow us to hold out for the next 12 months", but a recapitalisation plan under discussion with shareholders may prove essential how to strengthen its balance sheet beyond this period.
Mr Smith said he remains "optimistic" about the long term future of air travel. He admitted that travel "will pick up, but probably in a different format", with growth in video conferencing impacting the frequency of business trips to a certain extent, while tourism can resume "as soon as borders are reopened". Mr Smith concluded: "All indicators today show that, as soon as sanitary conditions allow, those who travel regularly will take the plane".
Established in 1920, KLM Royal Dutch Airlines is the national carrier of the Netherlands. KLM operates an extensive network which includes services within Europe and to Asia, Africa, North America, Central and South America and the Middle East. The carrier also operates freight services, and handles all service operations from its hub at Amsterdam Schiphol Airport. KLM is a founding member of the SkyTeam alliance, and is part of Air France-KLM.
KLM has a regional airline, KLM Cityhopper, based mainly at Amsterdam Airport Schiphol in the Netherlands. Wholly-owned by Air France-KLM, KLM Cityhopper operates scheduled short-haul service to 50 business centres across the UK, Belgium, Germany, France, Switzerland, Scandinavia, Italy, Luxembourg and Austria. The airline also operates as a feeder service into Schiphol for its parent's long-haul operations and is also a member of the SkyTeam Alliance.
GLOBAL RANKING (as at 28-Sep-2020)
NETWORK MAP (as at 28-Sep-2020)
DESTINATIONS (as at 28-Sep-2020)
CAPACITY SNAPSHOT (versus same week last year)
ANNUAL PASSENGER TRAFFIC (2011-2020YTD)
ANNUAL CAPACITY (2012-2020*)(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)
WEEKLY DOMESTIC CAPACITY (2017 – 2020*)(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)
WEEKLY INTERNATIONAL CAPACITY (2017 – 2020*)(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)
CAPACITY SPLIT BETWEEN DOMESTIC AND INTERNATIONAL OPERATIONS (w/c 28-Sep-2020)
LARGEST NETWORK POINT (w/c 28-Sep-2020)
BUSIEST DOMESTIC ROUTES BY CAPACITY (w/c 28-Sep-2020)
LARGEST INTERNATIONAL MARKETS BY COUNTRY (w/c 28-Sep-2020)
BUSIEST INTERNATIONAL ROUTES BY CAPACITY (w/c 28-Sep-2020)
DEPARTING SYSTEM SEATS BY CLASS (w/c 28-Sep-2020)
AVERAGE FLIGHT LENGTH (w/c 28-Sep-2020)
FLEET SUMMARY (as at 28-Sep-2020)
FLEET SUMMARY KLM CITYHOPPER (as at 28-Sep-2020)
AVERAGE FLEET AGE FOR IN-SERVICE AIRCRAFT (as at 28-Sep-2020)