
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
Holiday travel: Best days to hit the road as 110 million Americans expected to drive over Christmas and New Year's - 2
I watched more than 500 new movies this year. These are the 25 best ones. - 3
Mont Blanc road tunnel reopens to traffic after 15 weeks of repairs - 4
South Carolina measles outbreak grows by nearly 100, spreads to North Carolina and Ohio - 5
Sexual violence is being used as a weapon in Sudan's war, doctors group says
7 Methods for further developing Rest Quality
Ultra-Orthodox protests erupt across Israel on haredi IDF enlistment day
The most effective method to Alter Your Savvy Bed for A definitive Rest Insight
2024 Watch Gathering: The Best Watches of the Year
From Iran to Israel: An Iranian volunteer’s unlikely stand in wartime
Book excerpt: "Enough" by Dr. Ania Jastreboff and Oprah Winfrey
‘It’s Israeli policy’: Report reveals abuse of Palestinians in prisons
Man who grabbed Ariana Grande at 'Wicked: For Good' premiere also rushed Katy Perry onstage this year. Who is he and why is he doing this?
If you want a true taste of Italian paradise, head to Favignana












