KLM's turnover in the first quarter of 2022 amounted to €1.903 million, more than doubling compared to 2021, when turnover was €930 million. The operating profit of €3 million is an increase of €340 million compared to 2021, when a loss of €337 million was incurred. Bookings continued to pick up thanks to the increasing number of countries that have relaxed entry rules. The negative impact of the sharp rise in oil prices was limited by hedging.
In the first quarter, KLM received a NOW contribution of €140 million (previous year €321 million), which contributed to the positive result for the last time. Of the loan package of €3,4 billion from 2020, an amount of €2020 million has been drawn in 942 alone. In the first quarter of 2022, as in 2021 as a whole, nothing was drawn. The second quarter repayment is €311 million, reducing the outstanding debt of this loan package from €942 million to €631 million. If the recovery continues, KLM may make further repayments later this year.
Improvements in all business areas
Customers want and are able to travel again and this is reflected in the results. In total, KLM welcomed 4,8 million passengers on board, compared to 1,4 million in the first quarter of 2021. The upward trend in the number of bookings continued despite the conflict in Ukraine and the closure of Russian airspace, forcing flights to and from South Korea, China and Japan.
Freight again performed excellently in the first quarter, as did Transavia, which benefited from the fact that leisure destinations have relaxed entry rules. Engineering & Maintenance showed a strong sales improvement in the first quarter. At the same time, important markets in Asia are still closed to international travelers. In addition, global aviation is faced with rising costs and a tight labor market, which is putting pressure on the operation. This also applies to KLM.
Operation under pressure despite great deployment of KLM staff
The operation was already under pressure in the first quarter of 2022 due to many changes in the operation and a shortage on the labor market. That did not lead to major disruptions at the time. With the further increase in passenger numbers and the situation at and from Schiphol Airport in terms of capacity shortages in many places, the past few weeks have been very difficult for the operation. A big thank you for the efforts of KLM colleagues and a heartfelt apology to our customers who have experienced this, according to the airline.
“These figures for the first quarter clearly give cause for optimism. Despite geopolitical tensions, high inflation and rising costs, the recovery continues to be strong. The bookings are approaching the level of 2019, our customers can and would like to travel with us again. We will start repaying the loans in the coming (second) quarter. It concerns an amount of €311 million and hopefully more later this year. An extremely important step in many ways that underlines the resilience and commitment of all KLM colleagues. In the coming period, the focus will be on repaying the loans on the one hand and on the operation and workload on the other. Numerous measures are being taken to ensure that the summer will be better than the situation in recent weeks."
