SCHIPHOL – Airline KLM has announced a temporary hiring freeze and a series of cost-cutting measures as fuel prices surge due to escalating tensions and conflict involving Iran.
The airline says the sharp rise in oil and kerosene prices has reached a level that can no longer be fully absorbed within its current revenue structure. Although a fuel surcharge has already been introduced, KLM indicated that it cannot pass on the full increase to passengers without making tickets unaffordable.
In response, the company has halted the recruitment of new staff and is reducing non-essential expenses. Business travel has been minimized, and the use of external consultants has been temporarily suspended.
The conflict is also directly affecting flight operations. KLM confirmed that certain intercontinental routes cannot be maintained as scheduled. For safety reasons, flights to Dubai and the Saudi cities of Riyadh and Dammam have been suspended until at least May 17. These destinations had previously already been canceled through March 28 due to security concerns in the airspace around the Persian Gulf.
The measures reflect growing pressure on the aviation sector, as geopolitical tensions continue to impact fuel costs and global flight routes.