KLM implements hiring freeze due to skyrocketing fuel price; fuel shortages likely

KLM will temporarily stop hiring new employees due to sharply rising fuel prices caused by the Iran war. The airline is also reducing business travel to a minimum and suspending the use of consultants as part of cost-saving measures.

On Thursday, a spokesperson for KLM confirmed reports from De Telegraaf and Luchtvaartnieuws, stating that the airline is temporarily halting any spending not essential to its operations. She noted that soaring oil and kerosene prices have risen so sharply that current revenues can no longer cover the costs.

Market data show that before the war, kerosene traded at about $85–$90 per barrel, but some jet fuel prices have since reached roughly $150–$200 per barrel or more, highlighting a substantial rise in aviation fuel costs.

The airline said the extra steps are required because it can only partially pass rising costs on to travelers. “We added a fuel surcharge to our fares last week, but passing on the full increase would make tickets too expensive,” KLM explained. Air France-KLM has raised long-haul flight fares for tickets issued from March 11, 2026. On average, a round-trip economy ticket costs 50 euros more.

A KLM spokesperson confirmed that, despite the fuel surcharge and rising fares, the number of bookings has not dropped so far.

The war has disrupted some of KLM’s intercontinental flights, either preventing them from running or forcing schedule changes. On Thursday, the airline announced it would suspend flights to Dubai and the Saudi cities of Riyadh and Dammam until May 17 for safety reasons. Earlier, it had already canceled flights to these destinations until March 28 due to unsafe airspace over the Persian Gulf region.

Air France-KLM is also bracing for potential fuel shortages in some of its destinations. The Iran war has heavily restricted fuel exports from the Gulf, hitting Southeast Asian countries hardest. CEO Ben Smith told the Financial Times that the airline is preparing for possible complications on return flights from that region.

Smith told the business paper, “We are preparing scenarios to manage potential fuel shortages. Southeast Asia relies far more heavily on fuel from the Gulf than Europe does. While we can obtain fuel in Europe, flying to a Southeast Asian city could leave us unable to make the return journey.”

The Financial Times reports that several airport officials anticipate flight reductions due to fuel shortages. Vietnam’s aviation authority recently cautioned that domestic flights could be cut because of kerosene scarcity.