Nine-month adjusted operating profit rises to €526 million as revenue increases 9.4% to €10.9 billion. Despite stronger earnings and a €750 million contribution from its Back on Track programme, the airline announces further structural measures to improve profitability.
KLM Group reported an adjusted operating profit of €458 million in the third quarter of 2026, an increase of €106 million compared with €352 million in the corresponding period last year. The improvement was supported by stronger ticket revenues, higher passenger and cargo business revenues, lower unit costs and savings generated through the airline’s Back on Track improvement programme.
However, despite improved quarterly performance, KLM cautioned that its overall financial position continues to face structural challenges, including elevated fuel expenses, a high cost base and operational vulnerabilities. The airline said additional measures would be necessary to strengthen its competitiveness and support long-term investment in customers, employees and operations.
For the first nine months of 2026, KLM Group recorded an adjusted operating profit of €526 million, compared with €328 million in the same period of 2025. Revenue increased by 9.4% to €10.865 billion, while capacity expanded by 4.3%.
The third-quarter performance was particularly important for the airline, as the summer travel season traditionally represents its strongest earnings period.
Back on Track programme delivers €750 million in savings
KLM’s Back on Track improvement programme has generated approximately €750 million in structural improvements to date. The initiative has focused on improving productivity, controlling costs and strengthening operational efficiency.
The programme has helped the airline contain rising expenses while supporting improved financial performance. Nevertheless, management believes the existing savings are insufficient to achieve its longer-term profitability objectives.
Marjan Rintel, CEO of KLM, said the third-quarter results reflected the commitment of employees and the collective efforts made to deliver cost savings.
She noted that these improvements had not fully addressed the airline’s underlying structural challenges, with fuel prices continuing to put pressure on earnings and the company’s cost base remaining too high.
Rintel said KLM would introduce far-reaching changes to improve its financial resilience and strengthen its ability to compete effectively.
Profitability remains below long-term target
Bas Brouns, CFO of KLM, highlighted that the third quarter traditionally generates the airline’s strongest earnings, supported by favourable seasonal demand and higher ticket revenues.
Despite the improved results, he said KLM’s profitability remained insufficient, even under favourable market conditions and with the benefits of its efficiency programme.
The airline is targeting an operating margin of more than 8% to secure a financially sustainable future. Its adjusted operating margin stood at 11.4% in the third quarter but was 4.8% for the first nine months of 2026, illustrating the impact of weaker performance earlier in the year.
Passenger and cargo businesses show resilience
KLM’s Passenger business recorded strong revenue growth and improved yields during the first nine months of the year. However, cancellations on routes to and from the Middle East, together with higher fuel expenses, affected its overall performance.
The Cargo business delivered a strong performance, supported by increased cargo capacity, stable operations, solid yields and disciplined cost management. The improvement reflects continued demand for air freight services and the airline’s efforts to optimise its cargo operations.
Meanwhile, Engineering & Maintenance improved its financial performance, although global supply-chain shortages continued to create challenges for aircraft maintenance activities.
Transavia, KLM’s leisure airline subsidiary, remained under financial pressure due to intense competition across leisure routes, high fuel costs and operational challenges.
Further structural changes planned
KLM’s latest results underline the need to balance revenue growth with sustainable cost management. The airline has announced additional measures aimed at improving the efficiency of its European network, simplifying its organisational structure and increasing workforce productivity.
The proposed changes include simplifying the European fleet by phasing out older aircraft types and improving the balance between larger aircraft and newer, smaller models. This is intended to provide greater flexibility in matching capacity with demand.
The airline also plans to reorganise selected activities across Ground Services, Cargo and Engineering & Maintenance, including the possibility of outsourcing or integrating certain functions within the wider Air France-KLM Group.
In addition, KLM is seeking productivity improvements of at least 8%, alongside more competitive employment conditions and restrained wage growth.
The measures are intended to strengthen the airline’s operational foundations while preserving its international network and connectivity through Amsterdam Schiphol Airport.
With higher revenues, improved quarterly profitability and continuing efficiency initiatives, KLM has made progress in its financial recovery. However, the gap between its quarterly performance and longer-term profitability ambitions highlights the scale of the restructuring still required.
Note: KLM Group adopted IFRS 18 ahead of its mandatory implementation date, replacing the previous Current Operating Income measure with Adjusted Operating Profit. The 2025 comparative figures have been restated accordingly.
