KLM to increase 9-11 Surcarge

AMSTELVEEN, January 13, 2003 å- KLM Royal Dutch Airlines will increase the special insurance and security surcharge on tickets by USD 3 effective February 1, 2003. This brings the total surcharge per coupon to USD 8 or the equivalent in local currency. The initial surcharge, implemented in the fall of 2001, did not provide sufficient coverage for the structural increase in insu-rance and security costs.

In the Dutch market, the initial USD 5 surcharge was incorporated into the ticket price. The current increase will be separately stipulated on the coupon as a EUR 3 surcharge.

Insurance premiums have increased substantially since the 9-11 attacks, and airlines and airports have maintained the tighter security measures that were subsequently implemented. Over the past year, KLM has also invested extensively in extra security personnel and measures, on board as well as on the ground. KLM has also started the phased installation of new, high-security cockpit doors.

Airports around the world have also implemented new security measures, such as the screening of baggage, which also affects KLM operations and raises costs. KLM expects that that the costs involved in the total security package will be structural.