KLM to suspend Egypt flights over 'economic reasons'

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.