KLM consolidates Schiphol cargo in wider 5,000-role overhaul

KLM will consolidate all cargo handling at Amsterdam Schiphol in its own warehouse, covering freight carried on both passenger and cargo aircraft and preparing the operation for a new terminal scheduled for completion in 2035.

The decision forms part of a cost and reorganization program that touches about 5,000 positions. KLM expects the cargo move to absorb more volume without adding employees, while its wider plan must deliver what chief financial officer Bas Brouns called a €1 billion improvement in annual earnings.

What changes in Schiphol cargo handling?

The shift brings passenger-aircraft freight and freighter cargo under one warehouse operation at KLM’s main hub. KLM did not announce cargo job cuts; instead, it expects higher volumes to run without additional hires.

KLM said: “This will help prepare KLM Cargo for the new cargo terminal, scheduled for completion in 2035, and enable it to attract more transfer cargo passing through Schiphol.”

The airline plans to expand services for customers requiring additional support. It will handle the increased volume without extra employees by simplifying processes, increasing automation and deploying staff across different activities. The combination gives KLM a stated route to more transfer freight without additional cargo hires.

The consolidation plan also sits alongside an existing outsourced arrangement. In 2024, Menzies Aviation agreed to provide cargo warehouse and ramp handling for all KLM and Martinair freighter operations at Schiphol for five years. Menzies described the renewed contract as its largest at the airport.

Can KLM turn restructuring into €1 billion?

KLM says its Back on Track program has produced structural improvements of more than €750 million. The airline also calls those gains insufficient to secure its future. Alongside job reductions and outsourcing, KLM is seeking fresh labor agreements as it tries to build a more resilient financial base.

Bas Brouns, chief financial officer, said: “We need a KLM that can invest in a new generation of aircraft, better customer service, and our people. These measures will help us increase revenue and further reduce our structural costs.” He called a €1 billion improvement in annual earnings essential to delivering KLM’s strategy and focusing on what sets the airline apart.

The operating plan extends beyond cargo. Certain activities will move to external partners, while others will be reorganized or consolidated within Air France-KLM as KLM concentrates on its core work. KLM expects to reorganize about 5,000 positions and hopes to limit the impact through natural attrition, voluntary arrangements and transfers.

• 1,250 catering positions tied to KLM’s partnership with Gategroup.
• Around 800 ground-services positions transferring to external partners.
• 2,000 positions transferring to Air France-KLM, including 1,500 at customer-contact center Cygnific.
• A further 1,000 positions reduced through productivity improvements.

How will the European fleet change?

KLM is changing the balance between larger and smaller aircraft in its European fleet. The Airbus A321neo will remain, while smaller Embraer 195-E2s will replace the planned A320s.

The airline says more smaller aircraft will let it match capacity more closely to demand across the European network and give KLM Cityhopper a greater role. That puts the cost program on the network side as well: KLM can adjust aircraft size on routes while retaining its larger Airbus presence.

KLM will also phase out Boeing 737 and Embraer 190 aircraft “over the coming years,” without specifying a timetable.

European capacity will be reallocated toward routes that contribute most to passenger connectivity and Amsterdam Schiphol’s nonstop network. That links the fleet decision to the hub strategy, while the warehouse consolidation is intended to prepare KLM Cargo for the terminal due in 2035.

The test for KLM is whether labor, cargo and fleet changes can deliver the €1 billion annual earnings improvement while the new Schiphol terminal moves toward completion in 2035.