KLM sells off 75 percent of Catering Services division to Swiss firm

KLM stated that it has agreed to sell a 75 percent stake in its in-flight catering arm, KLM Catering Services, to Swiss airline catering company Gategroup, in a move tied to the airline’s broader “Back on Track” restructuring program.

KLM will retain a 25 percent share and remain involved in onboard catering after the deal, which is intended to cut costs while maintaining service standards for passengers.

The agreement follows plans announced at the end of 2024, when the airline said it was reviewing the future of its catering operations amid continued cost pressures.

KLM said the partnership is meant to attract investment and improve efficiency at KLM Catering Services, while maintaining the airline’s influence over food quality and service standards on board its flights.

Bas Brouns, KLM’s chief financial officer, said the airline had found a partner with significant experience in airline catering. “We are pleased that we have found in Gategroup a strong and specialized partner with years of experience in airline catering. We remain involved in catering on board our flights, thereby maintaining the quality and service that KLM passengers expect from us. The intended acquisition has no impact on colleagues' jobs within KCS. We look forward to the cooperation,” Brouns said in a statement.

Gategroup operates in more than 60 countries and already supplies catering services to major airlines, including Lufthansa. It also acquired Air France's catering subsidiary in 2017.

KLM Catering Services employs more than 1,300 people and produces more than 55,000 meals daily for about 350 flights operated by KLM and other airlines. The company runs 82 catering trucks from Schiphol, serving intercontinental, European, and cargo flights.

KLM and Gategroup said the transaction will not result in job losses. The deal still requires consultation with works councils and approval from relevant authorities.