KLM cancels Dubai flights through June 22 as fuel costs bite

KLM canceled flights to Dubai through June 22, alongside existing cuts to other Middle East destinations, as jet fuel costs continue to squeeze airline profitability amid war in the region.

The Dutch carrier said April 29 it will cancel flights to Dubai while keeping existing cuts to Riyadh and Dammam through June 14.

The move comes as security in the region remains uncertain and as jet fuel prices have more than doubled since the Middle East conflict escalated, forcing airlines globally to slash capacity on routes where ticket revenues cannot cover surging fuel expenses. On April 23, KLM told Platts, part of S&P Global Energy, it will operate 80 fewer return flights within Europe over the coming month, citing routes that are "no longer financially viable" due to rising jet fuel costs.

Airlines are grappling with jet fuel prices that have doubled in recent weeks, with carriers warning that hedging strategies cannot fully offset the impact of supply disruptions, boosting refined product prices. The Strait of Hormuz closure has disrupted crude oil and product flows from the Middle East, pushing up global prices for jet fuel and other refined products.

Platts assessed jet fuel cargoes on a CIF basis in Northwest Europe versus Dated Brent at $72.72/b April 29, up from $34.41/b Feb. 27, before the war started.

Airlines struggle

KLM's cancellation follows similar moves by other airlines.

Lufthansa Group said April 22 it would remove 20,000 short-haul flights from its schedule through October 2026, equivalent to 40,000 mt of jet fuel. The German carrier said jet fuel prices have doubled since the outbreak of the Middle East war.

While there are no jet fuel supply interruptions, fuel prices have risen sharply, a spokesperson for airline group IAG told Platts April 23. The group is making "some pricing adjustments" to reflect higher fuel costs, the company said.

Cathay Pacific said it has consolidated around 2% of its total passenger flights from mid-May through end-June, with its low-cost unit HK Express cutting 6% of frequencies during the period. The Hong Kong-based carrier said it plans to operate all scheduled flights beyond June, "subject to developments in the Middle East situation and jet fuel price."

United Airlines CEO Scott Kirby said March 20 that "the reality is, jet fuel prices have more than doubled in the last three weeks." He said that if prices stayed at elevated levels, "it would mean an extra $11 billion in annual expense just for jet fuel."