KLM has responded to a Dutch regulator’s report that alleges the airline has not met the government’s conditions for receiving state aid during the pandemic, saying it “read the state agent’s final report with some astonishment”, claiming it is “a mixture of opinions and facts”.

The airline received a total of €3.4 billion in support from the Dutch government with conditions of the loan including a commitment to reduce controllable costs by at least 15 per cent, temporary salary cuts, a range of sustainability and quality of life conditions, and a ban on the payment of dividends.

A fifth and final report by the regulator appointed to monitor compliance, Jeroen Kremers, says the airline did too little to cut costs and, while salary reductions were agreed, the contribution of senior staff was not sufficient.

Responding to the report, KLM said it “comfortably achieved” the 15 per cent reduction in controllable costs in 2020, 2021 and 2022, noting that the loans have been repaid and that the airline began recording positive financial results again last year. The airline has agreed a commercial credit facility with 14 banks, enabling the airline to terminate the government support package in April.

In a lengthy statement published yesterday, KLM said: “Changing economic circumstances and scarcity in the labour market posed new dilemmas and forced KLM to make tough choices, which have proved successful.

“Government support has been effective and KLM has successfully survived the crisis. Travellers can rely on us, our network has been preserved and the loans were repaid much sooner than anticipated. KLM’s reporting has always been correct, factual and scrupulous, including in its annual report, and it has always informed the relevant ministries of its considerations.”

KLM went on to refute assertions by the regulator around conditions of the loans not being met and its use of the Dutch government’s emergency job retention scheme, a support measure available to all companies in the Netherlands.

The airline concluded: “KLM is optimistic about the future. Our 33,000 employees are grateful for the government’s support and proud that KLM has emerged from this difficult period. It is time to look forward and to work together to build a strong and more sustainable airline industry.”

According to Dutch media, the country’s finance minister Sigrid Kaag said there would be a new inquiry into KLM’s efforts to meet conditions of the loan.