Although Leoz had died, the hostages could not just be released; they still needed to be controlled, and to be safe, it would be best to silence them permanently.
The reason they had not done so was not because the group suddenly started to care about humanitarianism.
It was mainly because they were worried about fluctuations in stock prices and the Galaxy Civilization behind the airlines.
More precisely, the Empire.
After all, this was a company of the Empire's partner civilizations. In terms of status, Velazquez and the Galaxy Civilization were almost on the same level... It was better not to stir up trouble that could lead to loss of lives. The Empire would not look kindly on them.
If no lives were lost, the Empire would at most issue a condemnation, a little money in compensation would suffice, but if trouble arose... the impact on the company's reputation would be detrimental.