
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
The new queen of country music has no scandals and no gimmicks — and just broke a record set by Taylor Swift - 2
Manual for Wonderful Getaway destination - 3
Watch SpaceX launch powerful ocean-mapping satellite for Europe and NASA early Nov. 17 - 4
Swap The Amalfi Coast For This Low-Cost Ligurian Seaside Town - 5
What to know about Jack Dorsey's new Vine revival, DiVine
Striking American and European television Projects: A Survey
Vote In favor of Your Favored Shimmering Water
'A completely new manufacturing frontier': Space Forge fires up 1st commercial semiconductor factory in space
The Most Famous Virtual Entertainment Powerhouses of the Year
Hypothermia claims newborn in Gaza and more babies are at risk, doctor says
Kristin Cavallari was the teen queen bee of 'Laguna Beach.' Now she's a 'cringey' mom.
Wizz CEO: We’re going to invest $1 b. in Israeli market
Hitler's madcap mega-railway would have linked Berlin with India
Fiber is something most people could use more of. But experts advise caution with 'fibermaxxing'












