Volkswacht Bodensee - Dutch airline KLM unveils 'firm' cost-cutting measures

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.

Labour productivity should be boosted by at least five percent by next year, via automation, mechanisation 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.

"This is painful for every KLM colleague, but it is necessary, and it has to be done now," added Rintel.

According to its last set of results, combined with partner airline Air France, the group's second-quarter profit stood at 165 million euros -- well below forecasts.

A drop in passenger traffic due to the Paris Olympics hammered ticket sales, as tourists avoided the French capital during the Games.

N.Schaad--VB