KLM to suspend all flights to Egypt in 2017

KLM Royal Dutch Airlines (KLM) will temporarily suspend flights to and from the Egyptian capital of Cairo starting in January 2017 in another blow to the country’s dwindling tourism industry.

The final flight to Cairo will depart from Amsterdam on 6 January 2017 and return to Amsterdam on 7 January 2017 after which no more flights will operate to and from Cairo by the airliner.

“The devaluation of the Egyptian pound and the decision of the Central Bank of Egypt to impose restrictions on the transfer of foreign currency out of Egypt have a negative impact on [the profits] of KLM,” KLM explained in a statement on its website.

Any passengers who have already booked flights after the suspension date will be given “suitable alternatives.” Air France will continue operating flights from Paris to Cairo as normal.

Though the statement has been made public on its website, KLM has not yet officially informed the Egyptian authorities of its decision to suspend flights. However, Egypt’s aviation ministry yesterday informed airliners of its plans with the Egyptian Central Bank to address airlines’ concerns surrounding access to profits.

KLM, like many foreign airliners, has been unable to repatriate any funds for months leaving many unsurprised over the decision to suspend flights as Egypt’s tepid economy continues to down spiral.

Earlier this year, British Airways suspended all flights to the Egyptian resort of Sharm El-Sheikh indefinitely amid security fears in November last year when all 224 passengers aboard a Russian passenger plane were killed in a bomb attack.

Monarch Airlines has also chosen to suspend flights to the Red Sea resort despite a decision earlier in the year to resume flights next month.

Last month, Egypt applied to the International Monetary Fund (IMF) for a $12 billion loan over three years which cannot be given until Egypt secures at least $6 billion in bilateral financing.