KLM to suspend Egypt flights over 'economic reasons'

FILE -- In this Sept. 30, 2003 file photo, an Air France jumbo jet rolls behind the tail of a KLM Royal Dutch airliner at Charles de Gaulle airport in Roissy, north of Paris. KLM said Wednesday, Sept. 14, 2016 that it will temporarily suspend flights to and from Cairo in January, citing “economic reasons.” The Royal Dutch Airlines’ statement said the devaluation of the Egyptian pound and restrictions imposed by the country’s central bank on the transfer of foreign currency out of Egypt are behind the decision. (AP Photo/Remy de la Mauviniere, File) (The Associated Press)

CAIRO – KLM says it will temporarily suspend flights to and from Cairo in January, citing "economic reasons."

The Royal Dutch Airlines' statement, posted on its website Wednesday, says the devaluation of the Egyptian pound and restrictions imposed by the country's central bank on the transfer of foreign currency out of Egypt are behind the decision.

It says its Cairo-Amsterdam service will be suspended from Jan. 8.

KLM's decision is testimony to the shortage of foreign currency in Egypt, a problem partially caused by the decimation of the local tourism industry by years of turmoil and by a drop in remittances from Egyptian expatriates.

Egypt is widely expected to devalue or float its currency as part of an ambitious economic reform plan tentatively agreed last month with the International Monetary Fund.