KLM to raise ticket prices after Schiphol chaos cost airline 175 million euros
KLM has revealed that the chaotic scenes at Schiphol Airport over the past several months have cost the airline 175 million euros, with the new director Marjan Rintel announcing that, should the issues continue, the airline will have no choice but to increase ticket prices in the new year.
KLM to pass on costs to passengers with higher prices
According to the airline’s latest financial reports, KLM lost a total of 175 million euros in the third quarter of 2022 as a direct result of the various issues seen at Schiphol Airport. 30 million was spent on compensating passengers, while 145 million euros were recorded as lost revenue.
While KLM has already raised its prices this year after fuel prices rose significantly in the spring, the airline’s new chief has explained that if Schiphol doesn’t work fast to improve the situation and hire new workers, more price hikes will be inevitable in the new year.
Issues at Schiphol Airport expected to continue into 2023
In spite of the additional costs incurred over the past several months, the Air France / KLM group still managed to record a profit of 466 million euros - although the sister company Air France performed significantly better than the prominent Dutch airline.
While Schiphol is working to increase capacity and step up recruitment, the issues the airport has been facing are expected to continue well into the new year. Airport management has already introduced measures to cap passenger numbers until April 2023, and KLM has warned that plans to cap the number of flights could force the airline to scrap 30 destinations from its network.