KLM urges staff to cut costs as coronavirus effect hits business

KLM has announced budget cuts in response to a slowdown in business resulting from the coronavirus outbreak, according to a report in Reuters.

KLM, part of the Air France KLM Group, will cut back on hiring new staff and external consultants, delay new IT projects and office refurbishment plans and reduce travel expenses significantly, chief financial officer Erik Swelheim said in an internal letter to management.

“The impact [of the coronavirus outbreak] on KLM’s revenues will be very significant and will only partly be mitigated by lower costs and a lower fuel price,” he said.

“We urge you all to reduce your cost levels to a minimum level to ensure safe operations. Only ‘must-do’ expenditure is allowed.” Staff have been asked to take vacation days to reduce spending, as flight schedules continued to be hurt by reduced air travel.

KLM has shut down routes to China until the end of March and Air France KLM warned that costs could run up to 200m euros by April.

Share this story

Related Topics

Latest bellyhold airline news

Etihad Cargo looks forward to additional summer belly capacity

Etihad Cargo is hoping to capitalise on additional belly capacity being added for the summer season. Etihad will add 100 additional…

Read More

Share this story

Virgin Atlantic Cargo appoints Diesel as MD

Virgin Atlantic Cargo has appointed Nick Diesel as its new managing director, effective August 4. Diesel succeeds Phil Wardlaw, who…

Read More

Share this story

Lufthansa Cargo targets North America with freighter expansion

Lufthansa Cargo will expand its presence in North America with the launch of a new freighter service and an increase…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.