Schiphol problems cost KLM €175 million; Occupied seats back to pre-Covid levels

The problems at Schiphol cost KLM 175 million euros. Subsidiary Transavia lost 44 million euros. Most of those costs were due to lost revenues, but KLM also lost money to compensate travelers for canceled flights.

KLM lost 30 million euros on this compensation for passengers. The remaining 145 million euros consisted of lost income.

Due to staff shortages at Schiphol, especially in security, the airport has limited the number of departing passengers since July. That meant airlines had to cancel many flights and move flights to other airports like Rotterdam The Hague. KLM also sold fewer tickets to passengers departing from the Netherlands.

There are still restrictions in place at Schiphol for the winter season. The airlines are now in talks with Schiphol Airport about compensation for the problems. Umbrella organization BARIN, which represents the airlines, thinks the talks will last for several more weeks.

Air France-KLM planes were almost as full in the third quarter as in the same period of 2019, before the coronavirus pandemic. The French-Dutch combination even earned more on sold tickets and freight transport. That is mainly due to increased ticket prices because the company’s capacity is still lagging considerably, partly due to the restrictions at Schiphol.

Demand for flights was strong again in most regions, but there were fewer flights, partly because of staff problems. That meant more demand for airline tickets than a supply of seats, so Air France-KLM could sell its tickets for higher prices. This compensated for higher costs, such as for jet fuel and increased salaries. There was also more demand from travelers for more expensive tickets in First Class and Business Class.

The airline group posted a turnover of 8.1 billion euros in the third quarter. KLM and subsidiary Transavia were good for 3.2 billion euros of this. Both Air France and KLM achieved an operating profit: 570 million euros for Air France and 443 million euros for KLM. KLM was more affected by issues at Schiphol, its home airport.

Air France-KLM recorded a net profit of 460 million euros. The group expects to further increase its capacity in the current quarter and that its investments will be lower this year than previously indicated. That also gives the company more room for additional repayments. Air France will repay 1 billion euros of a total of 3.5 billion euros in loans backed by the French government.