
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
Instructions to Clean and Really focus on Your Lab Precious stone - 2
Couch Styles of 2024: What's Moving - 3
German men need approval for stays abroad under military service law - 4
Israel Police decry online defamation campaign against female officer in Jerusalem - 5
Israeli lawmakers pass bill reviving death penalty for terrorists
Watch SpaceX launch 119 payloads to orbit from California early on March 30
AI’s errors may be impossible to eliminate – what that means for its use in health care
Underestimated Metropolitan Experience Urban communities On the planet
Flu activity rises sharply across US with 7.5 million cases, CDC data shows
How to see the Ursids, the final meteor shower of 2025
Ageless Tastefulness: An Outline of Valuable Gemstones and Adornments
Report in relation to renaming Herzog Park set to be withdrawn
The Way to Recuperation: Defeating Dependence
One killed, several injured in Iran missile barrage on southern, central Israel













