
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
Three killed as unfinished building collapses on church service in Ghana - 2
Israel says 40 Hezbollah members killed as forces advance in Lebanon - 3
The Fate of Gaming: 5 Energizing Advancements Not too far off - 4
At least 36 dead in major fire in Hong Kong residential blocks - 5
Exploring the Main Year of Life as a parent: Individual Encounters
Flourishing in a Remote Workplace: Individual Techniques
NASA begins fueling rocket to launch astronauts on the first lunar trip in half a century
Ukraine Now Using Drone Boats To Attack Russian Riverine Targets
Nearly half of reindeer have been wiped out and armadillos are in Iowa. Here’s how animals are weathering warming holidays
NASA's make-or-break moon shot
4 astronauts depart ISS, leaving behind just 3 crewmates to staff the orbiting lab
\Step by step instructions to Pick the Best Material Organization for Your Home\
Ten Awesome Authentic Realities That Will Leave You Interested
Watch SpaceX launch powerful ocean-mapping satellite for Europe and NASA early Nov. 17













