2020 has been an incredibly tough year for KLM. The COVID pandemic brought the KLM network to a virtual stalemate in April and led to unprecedented losses and rising debt. Many of the airline's ambitions had to be recalibrated and the plans constantly adjusted.
Given the strategic importance of the KLM network for the Netherlands, the government supported the company with loans and guarantees for credit facilities. However, more than 5.000 employees were laid off in 2020.
At the same time, KLM managed to make a significant contribution in 2020 by repatriating 250.000 Dutch and Europeans and by ttransport of essential medical supplies in Netherlands. KLM's response to the COVID pandemic was a testament to resilience, creativity and agility.
KLM's turnover decreased by 54%.
The consequences of this pandemic are clearly visible in the 2020 figures. Turnover a KLM decreased by 54% to 5 billion euros. While in 2019 a record 35 million customers were registered, in 2020 only 11 million customers traveled with KLM.
KLM's total operating result was a loss of EUR 1.2 billion, despite the fact that the cargo division managed to improve its margins as a result of the strong increase in demand for cargo capacity.
KLM's financial results show how serious the situation is. Thanks to the support of the Dutch government, KLM managed to maintain its financial liquidity. In their turn, KLM employees contributed by accepting the conditions imposed by the government and banks.
The Covid-19 crisis has severely affected the 2020 results.
- Revenues reached 11.1 billion euros, down 59% from last year
- The loss of EBITDA reached -1.7 billion euros, limited due to cost control
- The net cost of the group's employees decreased by 35% in 2020 compared to last year, supported by staff reductions, state support mechanisms and activity-related salaries.
- The average number of FTEs (full-time equivalent) in December 2020 decreased by 8.700 compared to December 2019
- Operating income decreased by 5.7 million euros compared to 2019, reaching 4.5 billion euros
- Net income decreased by 7.1 billion euros, provisions for restructuring decreased by 822 million euros, over-coverage was lower by 595 million euros and the depreciation of the fleet by 672 million euros
- Net debt reached 11 billion euros, up 4.9 billion from the end of 2019
- At 31 December 2020, the Group had EUR 9.8 billion in liquidity and credit lines
The world of aviation will look very different for a longer period of time, with less traffic and revenue pressure. Despite this and looking at the second half of 2021, people will start flying again and slowly, but surely, KLM will rebuild its global network.
To achieve this, a restructuring plan has been developed, called "From more to better". The restructuring plan is based on different market and recovery scenarios and will allow flexibility and new opportunities.