Dutch Flag Carrier KLM Starts Selling Food and Drink On Short-Haul Flights in Bid to Turn Dire Financial Performance Around
- In a nutshell: Dutch flag carrier KLM has started a trial of 'buy-on-board' food and beverages for Economy Class passengers on short-haul flights as part of a wider effort to improve revenues following a year of disappointing financial performance.
KLM Royal Dutch Airlines has confirmed that it has begun a trial of ‘buy on board’ food and beverages on short-haul flights as the Amsterdam-based carrier attempts to turn its dire financial performance around.
The decision to introduce paid snacks on intra-European flights in the same way that low-cost airlines have done for years was first touted last September, although KLM initially said the buy-on-board concept might not be introduced until late 2025.
KLM’s new buy-on-board service is currently in a trial phase on a small number of flights, although the concept is a crucial part of the airline’s ‘Back On Track’ turnaround program aimed at improving the carrier’s operating margins.
On Thursday, KLM’s chief executive, Marjan Rintel, bluntly admitted that the airline’s financial performance for 2024 was “disappointing” after its operating result plunged by €234 million to €416 million in 2024.
KLM has blamed a number of factors for its lackluster performance, including high personnel and operating costs.
The airline has already announced plans to make 250 head office employees redundant as it looks to save costs and has managed to reach a deal with its pilots to increase productivity over the busy summer months.
The buy-on-board concept is part of a broader push to increase revenues, which also includes measures like upselling paid seat selection at check-in.
KLM also plans to carry out a so-called ‘densification’ of its fleet of Embraer regional jets by adding four additional passenger seats. The airline also announced plans to change the seating layout on its Boeing 777-200 fleet in order to improve ‘earning capacity.’
It’s unclear how KLM intends to change the layout of its 777-200 fleet given that the Economy Class configuration is already in a 3-4-4 layout, although KLM might consider expanding its Premium Economy cabin, which currently only takes up three rows with a capacity fo 24 passengers.
The airline could also consider changing the layout of its galleys or even ripping out one or two lavatories in order to squeeze more seats onboard.
In terms of the buy-on-board concept, it’s expected that KLM will still offer passengers in short-haul Economy some sort of small complimentary snack, along with a soft drink.
This will then be augmented with a wider range of fresh and ambient snacks, along with alcoholic drinks that can be purchased.
In 2017, British Airways became the first traditional full-service airline in Europe to introduce buy-on-board service on short-haul flights as part of a tie-up with upscale grocer Marks & Spencer.
Although the move away from a full complimentary service proved incredibly divisive at the time, passengers quickly adapted to the change. British Airways did, however, backtrack slightly in 2021 when it introduced complimentary bottles of water and a small snack.
I struggle to find an aircraft with a 3-4-4 configuration anywhere, let alone KLM’s 777.
It’s interesting to see KLM implementing a “buy-on-board” service for short-haul flights to improve financial performance. This move, similar to low-cost carriers, could be a game-changer in terms of boosting revenue while offering passengers more choices. However, it will be important to balance passenger satisfaction with the added charges. Looking forward to seeing how this trial goes! Thanks for sharing this update!