
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
Atorvastatin recall may affect hundreds of thousands of patients – and reflects FDA’s troubles inspecting medicines manufactured overseas - 2
Step by step instructions to Contrast Lab Jewels and Regular Ones - 3
'The Beast in Me' arrives on Netflix: Is it based on a true story? And what drew Claire Danes to it? What to know about the thriller series. - 4
The most effective method to Make a Dazzling Site in 5 Basic Advances - 5
Astronomers spot white dwarf star creating a colorful shockwave
5 Home Improvement Styles: Decision in favor of Your #1
Birds at a college changed beak shapes during the pandemic. It might be a case of rapid evolution
Step by step instructions to Pick the Right Web-based Degree Program
Katz to Hezbollah chief Qassem: You won't live to see Israel’s full response to Passover attacks
Flu season is ramping up, and some experts are "pretty worried"
Germany expresses 'great concern' over Israel's new death penalty law
Hitting the brakes: Hubble Space Telescope watches doomed comet reverse its spin
Inconceivable Spots To Stargaze All over The Planet
Step by step instructions to Prepare with Senior Protection for Inward feeling of harmony.












