KLM Royal Dutch Airlines (KL, Amsterdam Schiphol) is exploring "strategic options" for its subsidiary KLM Catering Services (KCS) as part of measures to structurally improve the airline's operational and financial performance.

"KLM is exploring strategic options to make KCS future-proof as investment in KCS is imminent. Any strategic option needs to ensure cost efficiency, maintaining operational control, assuring the quality for passengers, and supporting KLM's sustainability and personalised catering goals," the airline said in its third quarter 2024 results.

KLM CEO Marjan Rintel told the Dutch public broadcaster NOS (Nederlandse Omroep Stichting) that the airline is not considering selling or downsizing its catering business. Instead, the focus is on investing in a new catering facility. Rintel explained that the strategic options include potential collaborations to ensure the business unit's long-term viability.

"We need to invest in a new catering building with new facilities. That is why we are looking at a wide range of options. That is why we also call them strategic options, to make this business unit future-proof," she clarified.

The financial results also disclosed that Air France-KLM lost EUR25 million euros (USD27 million) from the worldwide computer outage in July when a faulty update by US cybersecurity firm CrowdStrike triggered widespread disruptions. The initial loss was estimated at EUR10 million (USD10.8 million) after KLM had to cancel 75 flights and suffered significant logistical interference. Aircraft had to be repositioned, maintenance was delayed or rescheduled, and many passengers required rebooking, all contributing to the snowballing damage, Rintel explained.

In the third quarter, KLM reported a lower operating profit of EUR396 million (USD428 million) on EUR3.5 billion (USD3.7 million) in revenue. For the first nine months of 2024, operating profit was EUR303 million (USD328 million), lower than the previous year. The airline has blamed higher costs for equipment, staff, and airport charges.

To address this, KLM announced its Back on Track plan in early October. It targets a EUR450 million (USD486 million) short-term EBIT improvement and an EBIT margin above 8% by 2026-2028 by focusing on boosting productivity, simplifying operations, cutting costs, and postponing or cancelling certain investments.