BUSINESS

Why KLM is Deliberately Raising Schiphol Ticket Prices Amid Snow Chaos

2 min read
Why KLM is Deliberately Raising Schiphol Ticket Prices Amid Snow Chaos
KLM confirmed it is deliberately raising Schiphol Airport ticket prices following 3,500 flight cancellations due to snow chaos, impacting nearly 500,000 travelers.

Key Points

  • 13,500 flights were canceled at Schiphol Airport since January 2 due to severe snow and winter weather.
  • 2KLM confirmed it is deliberately using dynamic pricing to raise fares, prioritizing stranded passengers over new bookings.
  • 3EU Regulation 261/2004 classifies severe weather as 'extraordinary circumstances,' exempting airlines from paying monetary compensation, but they must still offer rebooking or full refunds.
  • 4The disruption affected nearly 500,000 travelers, leading to significant airline capacity shortages and financial damage running into the millions.

Airline ticket prices are skyrocketing at Amsterdam Airport Schiphol. This follows days of snow chaos cancellations at the major hub. Since January 2, approximately 3,500 flights were canceled. This disruption affected nearly 500,000 travelers. The national carrier, KLM, is deliberately increasing fares.

KLM's dynamic pricing strategy aims to manage capacity. A spokesperson confirmed the price increases. This prevents new bookings for last-minute trips. It keeps seats open for stranded travelers rebooking. Passengers rebooking do not pay the extra cost. This applies if they book the same class and destination.

Capacity and Scarcity

Airline capacity shortages are a major factor. Thousands of people need rebooking on existing flights. An aviation economist noted scarcity is developing. This causes prices for next week to rise sharply. The remaining capacity cannot absorb all canceled flights. KLM is using larger aircraft to help. They deployed a Boeing 777 to Berlin. Boeing 787 Dreamliners went to Rome and Copenhagen. This adds hundreds of seats for rebooked passengers.

Dynamic pricing is a modern revenue tool. It uses AI to adjust fares in real-time. This balances network-wide revenue and demand. The International Air Transport Association (IATA) tracks these trends. Airlines must balance profitability and customer trust.

Passenger Rights and Financial Impact

The severe winter weather is considered force majeure. This means the situation is beyond airline control. However, airlines must still offer alternatives. Travelers are always entitled to a replacement flight. They can also receive a full ticket price reimbursement.

Under EU Regulation (EC) No 261/2004, compensation rules apply. Since the cause is adverse weather, it is an extraordinary circumstance. This means airlines are not required to pay monetary compensation. However, the European Union Aviation Safety Agency (EASA) mandates care. Airlines must provide meals and accommodation for long delays. The total financial damage could reach millions of euros. This includes operational costs and reimbursements. For more commercial aviation news, visit this site. (https://flying.flights)

Topics

SchipholKLMDynamic PricingEC 261/2004Flight CancellationsAviation Economics

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