
Korean Air says it is moving into emergency management mode to buffer the impact of surging jet fuel costs as the global economy is rocked by the ongoing US-Israel war with Iran.
A spokesperson for the national flag carrier said on Tuesday that it will implement "internal cost-reduction measures" to manage its finances to ensure the firm's "stability amidst rising fuel prices and global economic uncertainty".
Since the Iran war started on 28 February, Brent crude oil has risen by more than 50% to over $110 (£83.33) a barrel, sending the cost of jet fuel sharply higher.
Employees of the country's largest airline were first notified about the measures in a memo that has been seen by the BBC.
Vice Chairman Woo Ki-hong told staff members "we plan to switch to an emergency management system" in April to "prepare for rising costs due to a surge in fuel expenses".
The airline will "pursue company-wide cost efficiency" through measures based on the price of oil, Woo said.
The moves are "not merely one-time cost-cutting initiative but rather an opportunity to strengthen our structural foundation", he said.
South Korea is particularly vulnerable to disruptions to energy supplies from the Middle East as it is heavily reliant on oil and gas from the Gulf.
The country's second-largest carrier, Asiana Airlines, and budget airline Busan Air have also entered emergency management mode.
All three airlines are owned by the South Korean conglomerate Hanjin Group.
The average price of jet fuel rose to nearly $200 (£151.45) a barrel on 20 March, more than double what it was in February, according to the latest International Air Transport Association figures.
In Asia trade on Tuesday, energy prices edged up, with Brent crude rising by 0.3% to just over $113 a barrel.
The price of US-traded oil rose 0.2% to $103. On Monday, it closed above $100 a barrel for the first time since the conflict began.
Additional reporting by Leehyun Choi in Seoul
LATEST POSTS
- 1
Image of foreigners being arrested in S.Africa during Eid is AI-generated - 2
Analysis-From 'Icarus bug' to flawed panels: Airbus counts cost of relying on single model - 3
Fundamental Home Exercise center Hardware: Amplify Your Exercises - 4
Top 15 Style Creators Changing the Business - 5
Administrative building in Sharjah region targeted by Iranian drone, UAE authorities announce
Sun storms are powered by a magnetic engine 16 Earths deep, study finds
Director Emerald Fennell explains why "Wuthering Heights" has quotation marks around the title
Can ICE agents detain U.S. citizens? What powers do they have to arrest people? Your most common questions answered.
Bronze Age "City of Seven Ravines" unearthed in central Asia after 3,500 years
Uranus's small moons are dark, red, and water-poor
AfD in Brandenburg takes back suit against the intelligence service
Eating ultra-processed foods could raise precancerous polyp risk for women under 50, according to research
Watch interstellar comet 3I/ATLAS speed away from the sun in free telescope livestream on Nov. 16
Top Frozen yogurt Flavor: Cast Your Vote!












