
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
Minneapolis ICE shooting: Woman dies after federal agent opens fire on her vehicle amid immigration crackdown - 2
Top notch Remote Earphones for Audiophiles - 3
The 10 Most Famous Style Minutes on Honorary pathway - 4
Earthquake in Indonesia kills at least 1 person and sets off small tsunami - 5
Living in the dark: Gaza’s struggle for electricity
Huge solar flare no threat to Artemis 2 astronaut launch to the moon, NASA says
Understanding Various Sorts of Financial balances: An Extensive Outline
Indonesian Mega-Farm Drives Surge in Deforestation
5 Great Youngster Care Administrations To Watch in 2024
Australia’s post-Bondi crackdown accused of targeting pro-Palestinian voices
Ice Spice's 'Big Guy' SpongeBob song is stuck in everyone's heads again — and TikTok is fueling it
Vote In favor of Your Favored Kind Of Attire
7 Straightforward Moves toward Move Information from Your Old Cell phone to Your New One: A Thorough Aide
Is new Harry Styles music on the way? Fans think so, after a cryptic website and posters pop up.












