KLM faces sky-high flight crew costs, among the world’s highest
An internal investigation shows that KLM has some of the highest flight crew labor costs in the world, particularly when compared with foreign competitors. As a result, the total expense per flight for pilots and cabin staff is considerably higher than at other airlines, De Telegraaf reports.
Labor costs have recently increased by around 4.3 percent. Unions have earlier pointed out that flight staff enjoy relatively generous working conditions compared with other European airlines, including Lufthansa and British Airways.
KLM pilots on short-haul aircraft, like the Boeing 737, have historically earned approximately 17% more than their counterparts at Lufthansa or British Airways. The cost for a purser at KLM can be up to 50% higher than at major European competitors.
In the collective bargaining agreements, cabin crew received a cumulative 3.25% structural wage increase spread across three stages: 1% in December 2025, 1.25% in July 2026, and 1% in January 2027. To address inflation, flight staff also received a one-time net payment of €750 in January 2026.
In addition, KLM made the "80-90-100" scheme permanent, allowing older staff to work 80% of their hours for 90% pay while retaining 100% pension accrual, a benefit rarely matched by competitors.
The airline has launched a "Back on Track" program to counter these rising costs and aim for an 8% profit margin by 2026–2028. One of the goals is to increase labor productivity by 5% through automation and reduced absenteeism.
The program also includes cutting approximately 250 office jobs to reduce overhead and focus resources on flight operations. KLM will also delay non-fleet-related projects, such as a new headquarters, to prioritize the billions of euros needed for fleet renewal.
KLM's financial situation has been under the microscope recently, partly due to the fact that it's CEO, Marjan Rintel, saw her pay increase by 32% last year amid the company's cost-cutting measures. The news caused furore with finance minister Eelco Heinen announcing plans to object to the pay rise as a minority shareholder.
