
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
6 U.S. States for Climbing - 2
Solid Living Tips: Experiences from a Wellness Fan - 3
I'm 18 and founded an AI startup. I have to wake up at 3 a.m. to work on it before school, but it's worth every sleepless night. - 4
What loving-kindness meditation is and how to practice it in the new year - 5
The Best Internet based Courses for Expertise Improvement
Step by step instructions to Utilize Open Record Rewards for Your Potential benefit
How to see the Ursids, the final meteor shower of 2025
At least 30 killed in attack on Nigeria village
After toilet and email issues, Artemis II astronauts fire engine to head for the moon
The Solution to Individual budget: Dominating Cash The board
The Best 10 Innovation Developments of the Year
Two separate Israeli espionage cases uncover Iran-linked activities in Jerusalem, Ashkelon
Eating Brie, Gouda, cheddar may lower dementia risk, new study says
2023's Best 10 Cell phone Advancements You Can't Miss













