
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
Ergonomic Office Seats for Work spaces - 2
Blue Origin's next space tourism flight will break new ground for people with disabilities - 3
The powerful new Rubin Observatory just found 11,000 new asteroids and measured 'tens of thousands more' - 4
Cyber Monday 2025: Save over 70% on HBO Max with this Prime Video streaming deal - 5
As reefs vanish, assisted coral fertilization offers hope in the Dominican Republic
What to know about MIT professor Nuno Loureiro and the investigation into his shooting
Astronauts beam home Christmas wishes from International Space Station: 'I think we may be orbiting a little higher than Santa' (video)
Dick Van Dyke shares his secrets to longevity as he turns 100
Kenmore East reacts to their best overall delegation award at WNY Model United Nations General Assembly competition
'Spending more on gas than groceries:' Rising fuel prices drive more San Antonio families to the Food Bank amid Iran war
Twins were the norm for our ancient primate ancestors − one baby at a time had evolutionary advantages
After fleeing past Hezbollah fighting, some Israelis on northern border vow to stay
Change Your Home into an Exercise center with These Famous Wellness Gadgets
Key takeaways from Sen. Bill Cassidy's interview on 'Face the Nation' with Margaret Brennan











