Improvement, but still far below figures for COVID-19
‘The figures for this period show an improvement compared to 2020, but they are still far below the figures for COVID-19. Nevertheless, they mark the important start of the road to recovery,” said KLM.
Turnover and loss 2020/2021
For the first half of 2021, KLM realized an operating loss of €522 million (24% of revenue) on revenue of €2.137 billion. In the same period in 2020, that was a loss of €768 million (27% of revenue) and revenue of €2.841 billion.
Negative financial result slightly offset
The successful focus on cost control and the network strategy to continue to offer as many destinations as possible have somewhat offset the negative financial result of passage.
number of passengers
The number of passengers was 3.7 million in the first six months of 2021. This is significantly lower than the 6.7 million in the first half of 2020, when the first two months of operations were almost normal and then flights came to a virtual standstill. lying down.
Maintenance division turnover halved, freight turnover more than doubled
The maintenance division is also noticing the consequences of the delayed recovery; third-party revenue decreased by 49 percent to €225 million. Freight again performed very well; revenue increased by 57 percent to €974 million.
Travel adjustment within Europe positive for customers
The expected recovery only came considerably later during the first half of 2021, due to the wave movements of the corona epidemic and the strict travel restrictions that were imposed as a result, including the test obligation also for transfer passengers in the Netherlands. That made customers unsure to book. Also, the strict entry restrictions in many Asian countries and the restrictions for Europeans for the United States are still in effect.
Adjustments to corona policy for travel
On a positive note, the Dutch government is now adjusting the policy on travel within Europe as of August 8, 2016. This provides our Dutch customers with clarity and makes the possibility to travel less dependent on the dynamics in infection numbers. The need for harmonization of travel rules within Europe remains unabated. Our customers need clarity and predictability.
The crisis has proved to be a breeding ground for rapid innovation at KLM, as can be seen, for example, with Upload@Home, the service with which we help customers in a growing number of destinations by checking their corona-related documents in advance.
First signs of recovery visible’
‘The results of the first half show a rather diverse picture, but the first signs of recovery are clearly visible. Particularly in the first months, total passenger traffic has to deal with a delay in recovery. At the same time, you see strong freight results, a sharp focus on costs, NOW support and, from the summer, also recovery of European passenger traffic. The corona crisis is taking longer and is more erratic than expected. It is therefore all the more important for a company to be and remain agile and innovative. We are doing this, among other things, by expanding the network with destinations where we expect the first recovery in demand,” said KLM President & CEO Pieter Elbers.
Preparing KLM for the road to recovery
‘The agility, resilience and multiplicity of initiatives of KLM colleagues over the past six months have helped us to limit the losses. In addition, continued investments are made in digitization, customer service, sustainability and product to ensure that KLM is ready for the road to recovery,” says Elbers.
KLM figures show difficult recovery
Source link KLM figures show difficult recovery