
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
Invigorating Spots To Go Kayaking All over The Planet - 2
10 Hints for an Effective New employee screening - 3
'Stranger Things' Season 5: When does Volume 2 come out? And Volume 3? Everything to know about the remaining episodes before the finale. - 4
Experience Unrivaled Sound: Top Speakers You Really want to Hear - 5
Inconceivable Spots To Stargaze All over The Planet
Dependable Savvy Locks to Update Your Home Security
Insane Realities That Will Make You Reconsider How you might interpret History
Becoming Familiar with an Unknown dialect: My Language Learning Excursion
Mosquitoes carrying malaria are evolving more quickly than insecticides can kill them – researchers pinpoint how
The Land Rover Freelander Is Back—But It’s No Longer a Land Rover
How Skoda Lost Its Biggest Market In Just Seven Years
Chemical leak in Oklahoma forces evacuations and leaves many ill
The Response to Independence from the rat race: Methodologies for Creating Financial momentum
L.A.'s most famous midcentury home, the Stahl House, is on the market for the 1st time, at $11K per square foot: See inside













