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Cost cutting pays off for KLM
KLM is the latest carrier to report a positive set of results, fuelling hopes of an upturn in the sector. The Dutch carrier reported a net profit of eight million euros for the three months ending December 31. It compares to a net loss of 66million euros in the same period last year. KLM – which aims to merge with Air France – said the turnaround was due to a “ persistent focus on reducing costs.” In the quarter operating revenues actually fell by 7% compared to the same period a year ago. But KLM managed to offset this by reducing operating expenses by 12% compared to last year. President and chief executive Leo van Wijk said: “In today’s operating environment a strong focus on costs remains essential to improve financial performance and we remain committed to deliver on our structural cost reduction programme.”
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