
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
NASA’s history-making moon mission aims to send the first woman and person of color to deep space - 2
Ancient Egyptian pharaoh's boat is being reassembled in public at the Grand Egyptian Museum - 3
The Land Rover Freelander Is Back—But It’s No Longer a Land Rover - 4
Step by step instructions to Contrast Lab Jewels and Regular Ones - 5
What to watch for in weight loss drugs in 2026
FDA official discusses potential link between COVID-19 vaccines and pediatric deaths
How to get rid of your Christmas tree — and the 1 thing to never, ever do with it
Cuba says 33 have died of mosquito-borne illnesses as epidemic rages
Delta flight bound for Atlanta makes emergency landing after engine issue
At least 30 killed in attack on Nigeria village
The Best Business visionaries Under 30
Scientists document a death from a meat allergy tied to certain ticks
Eating Brie, Gouda, cheddar may lower dementia risk, new study says
Gaza amputees struggle to rebuild lives as the enclave faces shortages of prosthetic limbs













