
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
Why doing good also makes us feel good, during the holidays and beyond - 2
Dark matter obeys gravity after all — could that rule out a 5th fundamental force in the universe? - 3
'Backward and upward and tilted': Spaceflight causes astronauts' brains to shift inside their skulls - 4
Figure out How to Adjust Work, Life, and an Internet based Degree - 5
Hezbollah fires over 600 times at Israel, IDF troops over last 24 hours
Gartex Texprocess India to showcase innovations across textile ecosystem
I watched more than 500 new movies this year. These are the 25 best ones.
Meet the Artemis crew in NASA's first astronaut mission to the moon in more than a half-century
Fiber is something most people could use more of. But experts advise caution with 'fibermaxxing'
6 Modest and Strong Tire Brands
See as Your #1: These Low-Sugar Food sources You Ought to Attempt
A photographer finds thousands of dinosaur footprints near Italian Winter Olympic venue
Horror and fear in West Bank as Israel approves hanging Palestinians convicted of murdering Israelis
Struggling to keep your New Year's resolutions? Here's how to keep yourself on track













