
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
Anger as German family business group opens talks with far-right AfD - 2
Members of Kenya-led security mission in Haiti were involved in rapes, U.N. says - 3
I asked ChatGPT who would win a Golden Globes. Here's what it got right — and totally wrong. - 4
German economic institutes cut forecast in half over Iran war - 5
MEPs urge Commission leaders to stop Russia from returning to the Venice Biennale
Investigating the Financial History of the World: A Succinct Outline
Figure out how to Use Your Brain research Degree in the Gig Market
Philippines evacuates 3,000 villagers after volcano activity raises alert level
Exclusive-Head of Pemex's production arm to step down in coming days, sources say
Europe could get 42 more days of summer by the year 2100 due to climate change
British-Egyptian dissident apologises for tweets as Tories push for UK deportation
Step by step instructions to Choose the Right Internet based Degree Program for Your Future
Kuwait is softening stance on Israel, dissident tells ‘Post’ after viral UN speech
Who plays Moana in the live-action remake? What to know about Catherine Lagaʻaia.











