
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
4 Creative Savvy Home Gadgets of 2024: Reforming Home Robotization and Security - 2
How a niche Catholic approach to infertility treatment became a new talking point for MAHA conservatives - 3
CNN Crew Detained and Journalist Put in Chokehold in IDF Run-In: ‘We’re Journalists. What Are You Doing?!’ - 4
Pfizer says patient dies after receiving hemophilia drug in trial - 5
Roche breast cancer pill cuts risk of disease recurrence by 30% in trial
Russia provided Iran with list of Israeli energy targets, Ukrainian intelligence finds
5 Morning Schedules That Stimulate Your Day
Takeda's AI-crafted psoriasis pill succeeds in late-stage studies
Zelensky sees new Russian attack threat from Belarus
Step by step instructions to Get a good deal on Your Rooftop Substitution Venture
Extraordinary Shows to Long distance race on a Plane
Allow Innovative Progressions To have a Massive Effect
Inside the cockpit of RAF tanker during defensive mission against Iranian drones
Strength training is crucial after menopause. How to make the most of your workouts













