KLM is launching a major restructuring plan aimed at improving its operating margin from 4.8% to 8%. The initiative, dubbed Back on Track, seeks to boost the company's annual financial performance by €1 billion. The airline has already achieved cost savings of €750 million through this program.
The restructuring will impact approximately 5,000 jobs, representing nearly 15% of the total workforce. About 4,000 roles will be outsourced or transferred to other Air France-KLM units, while 1,000 positions will be eliminated. Management plans to avoid mass layoffs by relying on natural attrition, voluntary departures, and internal transfers.
The airline is also adjusting its fleet strategy. While KLM will retain its orders for Airbus A321neo aircraft, it is canceling plans to purchase Airbus A320neo models. Instead, the company will acquire Embraer E195-E2 jets to better align capacity with passenger demand. Additionally, KLM intends to phase out its Boeing 737 and Embraer E190 aircraft in the coming years.
