
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
Paul Feig loves a plot twist. Why not reboot 'Die Hard' starring a woman? - 2
Unsold Rams May Be Less expensive Than You Suspect - 3
5 High Limit Outer Hard Drives For Information Stockpiling - 4
Airbnb Unveils Airport Pickup Service Across 125 Cities in Global Expansion - 5
'Euphoria' Season 3 trailer includes Eric Dane's final appearance, Jacob Elordi and Sydney Sweeney at the altar and Zendaya's 'Breaking Bad' era
Hamas hands over another body in the Gaza Strip
Select Your Go-To Bluetooth Earphones
Indoor Drinking Fountains: Famous Home Advancements during the Pandemic
NASA’s Artemis II mission will take an astronaut crew around the Moon – a space policy expert describes the long road to launch
Fire Allegedly Triggered by Wedding Cake Sparkler Causes Venue to Go Up in Flames, Leaving Groom with Second-Degree Burns
Israel approves death penalty law for Palestinians convicted of attacks
Space station changes command, setting stage for Crew 11 departure
Foreign journalist kidnapped in Iraq: Interior Ministry
The year's first meteor shower and supermoon clash in January skies












