Grapevine

Dutch airline KLM unveils 'firm' cost-cutting measures

Dutch airline KLM on Thursday announced a sweeping package of "firm" cost-cutting measures it hopes will lead to a boost in operating profits of around 450 million euros ($496 million) "in the short term."

There was no specific mention of job cuts, but the company vowed to "explore options for outsourcing, divesting or discontinuing activities that do not directly contribute to flight operations."

KLM said it would reconsider and postpone all new investment, including its new headquarters and engineering buildings.

Labor productivity should be boosted by at least five percent by next year, via automation, mechanization and reducing absenteeism, according to the firm.

"We will do everything we can to maintain our network and services for our customers and protect jobs throughout our company," said airline CEO Marjan Rintel in a statement.