KLM is reorganising about 5,000 positions but expects only about 1,000 to disappear, and swaps planned A320s for E195-E2s, as Air France-KLM's Q3 operating profit rose to €1.35bn.
Cover image: A KLM Cityhopper Embraer E195-E2 on approach to Berlin Brandenburg Airport (2022 file photo) — photo by MarcelX42, CC BY-SA 4.0, via Wikimedia Commons.
The KLM restructuring announced on Thursday 5 November will cut the number of positions at the Dutch airline by almost another 15%, and put smaller Embraer E195-E2s flown by KLM Cityhopper in place of the Airbus A320s it had planned for Europe. Its Boeing 737s and Embraer E190s will be phased out over the coming years. KLM says it needs another €1 billion a year of earnings improvement, taking the total to €1.4 billion, to fund new aircraft, service and staff.
About 5,000 positions are being reorganised, but KLM expects only about 1,000 of them to disappear. The work behind the rest has moved, or will move, to gategroup, outside ground handlers or Air France-KLM. The same day, Air France-KLM reported third-quarter adjusted operating profit of €1,346 million, up €126 million on a year earlier.
How many jobs does the KLM restructuring cut?
KLM's release splits the positions into four groups. They add up to 5,050, which KLM rounds to "approximately 5,000".
| Group | Positions | What happens to the work |
|---|---|---|
| KLM Catering Services | 1,250 | Done with gategroup since spring 2026 |
| Ground Services | About 800 | To move to external providers |
| Air France-KLM transfers (incl. 1,500 at contact centre Cygnific) | 2,000 | Moves to the group |
| Productivity measures | About 1,000 | Positions no longer exist at KLM |
| Total | About 5,000 | Reorganised, per KLM |
KLM expects natural attrition, voluntary arrangements and transfers to limit the impact. It wants new labour agreements that lift productivity by at least 8% by 2028, "combined with very moderate wage growth".
"KLM's future is not guaranteed," chief executive Marjan Rintel said, citing global instability and high fuel prices.
Outside ground handlers will take over below-the-wing work at KLM Cityhopper and baggage handling in Schiphol's East Hall, KLM said, without naming them. The FNV union said this risks reviving unhealthy competition among Schiphol's ground handlers; "you don't build a strong airline by cutting jobs and outsourcing work," said its KLM ground-staff official, Egon Groen.
What changes in KLM's European fleet?
The A321neo stays. Below it, the E195-E2 (136 seats, according to Air Data News) replaces the planned A320s, and capacity goes to the routes that contribute most to connectivity and the nonstop network from Schiphol. KLM says it will fly a simplified fleet of 185 Airbus, Boeing and Embraer aircraft.
Air France-KLM's fleet table counted 38 Boeing 737s at KLM on 30 September: 27 737-800s, six -700s and five -900s.
This is not a new Embraer order. KLM Cityhopper already flies 25 leased E195-E2s and is evaluating options for 25 more, with a decision hoped for by the end of 2026, Air Data News reported. The A320s were to come from a December 2021 group order for 100 A320neo-family jets, it added. Neither company's 5 November releases said what happens to them.
What were Air France-KLM's Q3 2026 results?
Group revenue rose 7.6% to €9.9 billion, the operating margin reached 13.6% and net income rose €170 million to €938 million. AeroTime reported that analysts had expected an operating profit of about €1.1 billion.
Most of the gain came from KLM, whose profit rose €106 million to €458 million on revenue up 11.7%. Its unit costs fell, mainly on better fleet utilisation and "significantly lower" wet-lease costs. Air France added just €5 million, reaching €811 million. Over nine months, though, KLM's margin was 4.8%, against the more than 8% that KLM finance chief Bas Brouns says it needs.
Corporate customers kept avoiding Gulf hubs, the group said, which lifted demand on nonstop routes to Asia, India and East Africa. It cut Middle East capacity by 68% in the quarter.
In Portugal, after losing the contest for a stake in TAP Air Portugal to Lufthansa, the group now talks of "driving organic growth through Transavia".
How much will Air France-KLM pay for fuel in 2027?
More than this year. The 2026 fuel bill is now expected at US$9.2 billion, up from the US$8.9 billion indicated last quarter and US$2.3 billion above 2025, despite an estimated US$2.0 billion hedging gain.
The results presentation puts 2027 at about US$10.4 billion after hedging, excluding sustainable aviation fuel, on the forward curve of 30 October. That is roughly 13% higher, by our arithmetic. Cover is thinner: 54% of 2027 consumption is hedged, against 68% for 2026, and the expected hedging gain shrinks to about US$1.39 billion.
The group has already raised carrier-imposed surcharges per ticket "in line with actions taken by its peers", and hiring of non-operational staff remains paused.
Frequently asked questions
Is KLM cutting 5,000 jobs?
Not outright. About 5,000 positions have been or will be reorganised, but most of that work continues elsewhere: catering with gategroup, ground services with external providers, and 2,000 positions at Air France-KLM. KLM expects about 1,000 positions to disappear through productivity gains, and natural attrition and transfers to limit the impact.
Is KLM dropping the Airbus A320neo?
KLM says smaller Embraer E195-E2s will replace the A320s it had planned, while the A321neo stays in its fleet. The A320s were part of a December 2021 group order for 100 A320neo-family jets, according to Air Data News. Neither company's 5 November releases said what happens to them.
Has KLM ordered more Embraer E195-E2s?
Not yet. KLM Cityhopper flies 25 leased E195-E2s and is evaluating options for 25 more, with a decision hoped for by the end of 2026, Air Data News reported. The 5 November plan gives the type a bigger role in KLM's European network but includes no new order.
What were Air France-KLM's Q3 2026 results?
Adjusted operating profit rose €126 million to €1,346 million on revenue of €9.9 billion, up 7.6%, for a 13.6% margin. KLM's profit rose €106 million to €458 million, while Air France's rose €5 million to €811 million.
Sources
- KLM, restructuring announcement (5 November 2026)
- KLM, Group third-quarter results
- Air France-KLM, Q3 2026 results release (PDF)
- Air France-KLM, Q3 2026 results presentation (PDF)
- Air Data News, KLM drops A320neo plans
- FNV, statement on KLM's plans (in Dutch)
- AeroTime, Air France-KLM beats profit forecasts
