KLM Reaches 10% Compensation Settlement Over Amsterdam Schiphol Disruptions

Dutch carrier KLM and Amsterdam Schiphol Airport (AMS) have reached a settlement following the severe disruption at the airport last year. The carrier will be awarded no more than 10% of an estimated €350 million in damages and lost revenue.

KLM and Schiphol reach compensation settlement

As reported by NL Times, the airline will receive just 10% of the damages it claims to have suffered as a result of Amsterdam Schiphol’s troubles last year. The airport has agreed to partially compensate KLM for the damages portion of its claim – including passenger compensation and rebookings – but will not pay anything toward its lost revenue.

KLM says it lost around €350 million during the travel chaos – €75 million in damages and €275 million in lost bookings. An airline spokesperson told Telegraaf that a settlement had been reached, but refused to comment on the amount, while a Schiphol representative cited the settlement’s confidentiality.

While ramping up capacity following the widespread lifting of COVID restrictions in early 2022, staff shortages at AMS led to thousands of flight cancelations and severe queues over a period of several months. As a result, the airport imposed daily passenger caps to minimize further disruption, forcing airlines to cut their schedules and thus lose out on revenue.

More airlines want compensation

As the largest operator at Amsterdam Schiphol Airport, KLM was inevitably the hardest hit during the airport’s difficult period last year. However, plenty of other airlines suffered sizable damages due to the disruption, leaving the door open for further payouts. Marnix Fruitema, Chairman of aviation group BARIN, said other airlines are still negotiating with the airport on settlements. Fruitema commented,

While additional settlements are unlikely to be in the region of KLM’s, they would compound the airport’s financial and reputational woes. Schiphol’s interim CEO Ruud Sondag conceded that 2022 was a “bad chapter” in its history books, with the airport suffering full-year losses of €77 million ($82.5 million).

The latest on Schiphol

Schiphol has taken its fair share of flak after last year’s disruption, particularly regarding its passenger cap. This culminated in a lawsuit brought by several airlines, including KLM-Air France and Delta Air Lines, which a Dutch court ruled in favor of last month.

This means the airport won’t be allowed to impose a flight cap from November 2023 to October 2024, although the Dutch government will appeal the ruling. The airport’s planned reduction for the 2024/25 season – which will also cut down flight movements to 440,000 – is currently set to go ahead.

Schiphol has also been at odds with airlines after increasing its charges last month – on this occasion, the Netherlands Authority for Consumers and Market ruled in favor of the airport following a complaint from carriers, saying its raised charges are not unreasonable.

Were you caught up in the travel chaos at Amsterdam Schiphol Airport last year? How did it affect your journey? Let us know your stories in the comments.

Source: NL Times, Telegraaf

• KLM

  IATA/ICAO Code:

  KL/KLM

  Airline Type:

  Full Service Carrier

  Hub(s):

  Amsterdam Schiphol Airport

  Year Founded:

  1919

  Alliance:

  SkyTeam

  Airline Group:

  Air France-KLM

  CEO:

  Marjan Rintel

  Country:

  Netherlands

• Amsterdam Schiphol Airport

  IATA/ICAO Code:

  AMS/EHAM

  Country:

  Netherlands

  CEO:

  Ruud Sondag

  Passenger Count :

  20,887,144 (2020)

  Runways :

  18R/36L ‘Polderbaan’ – 3,800m (12,467ft) |06/24 ‘Kaagbaan’ – 3,500m (11,483ft) |09/27 ‘Buitenveldertbaan’ – 3,453m (11,329ft) |18L/36R ‘Aalsmeerbaan’ – 3,400m (11,155ft) |18C/36C ‘Zwanenburgbaan’ – 3,300m (10,827ft) |04/22 ‘Oostbaan’ – 2,014m (6,608ft)