
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
IDF Givati Brigade soldier arrested, charged in suspected Iran espionage - 2
Falcon 9 rocket launches Starlink satellites before making 550th SpaceX landing (video) - 3
More people are addicted to marijuana, but fewer of them are seeking help, experts say - 4
Minnesota jury says Johnson & Johnson owes $65.5 million to woman with cancer who used talcum powder - 5
Hubble Space Telescope spies dusty debris from two cosmic collisions
Drenched in Pixels: A Survey of \Vivid Interactivity Experience\ Game
Gunmen open fire near Israeli consulate in Istanbul in possible ISIS-linked attack
Fundamental Monetary Guidance for Going into Business
Volcanic eruption led to the Black Death, new research suggests
Monetary Versatility: Get ready for Life's Unforeseen Difficulties
The German series proving subtitles can be sexy — and wildly addictive
IDF strikes Hamas terror base in Lebanon, Health Ministry says 11 killed
World's oldest known tortoise still very much alive despite rumor to the contrary
We tasted one of the 10,000 Hershey's Dubai chocolate bars being resold on eBay. Is it worth the hype?












