This has been their dresscode for years, and suddenly it pops up in the news again. Slow summer, I guess?
I fly SV from time to time, and my experience is that even some women that board the plane fully dressed in hijab or niqab, remove it for the duration of the flight and are on board dressed in a style used for in non-Arabic countries. This seems not to be an issue.
Once the aircraft door is closed, rules are not that strict anymore it seems.