CAPA Live: KLM CEO straps in for aviation's bumpy recovery

"We're heading for a very cold winter", KLM CEO Pieter Elbers told CAPA Live on 11-Nov-2020, but added that, "with the vaccine and some of the measures, we're optimistic".

KLM has received a state aid package totalling EUR3.4 billion, of which EUR2.4 billion was a bank loan 90% guaranteed by the Dutch state and EUR1 billion was a direct loan from the government. State approval of the aid required union agreement to a 15% staff cost reduction, and KLM is cutting its workforce by 5,000 by the end of 2020.

This ensures KLM's survival through the most challenging phase of the COVID-19 crisis and gives it the opportunity to benefit from improved demand, particularly long haul, when it comes. It is operating more of its fleet and network than most European legacy airlines - a necessity for a hub carrier with almost no domestic market.

For now, Mr Elbers remains cautious, telling CAPA Live: "My internal focus is we have crisis management for the last six to nine months. We're now in the phase of recovery. It's not going to be linear recovery, it's going to be a bumpy recovery".