
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
EU calls on Western Balkans to step up reforms for membership - 2
Share your pick for the miniature headphones that you generally suggest! - 3
CDC vaccine panel delays vote to stop recommending hepatitis B shot at birth - 4
'Supergirl' drops 1st teaser trailer: Watch Milly Alcock as Kara Zor-El and the return of Krypto the Superdog - 5
Curl Up With Some Hot Chocolate And Watch Mighty Car Mods Explore Japan In A Honda City Turbo II
A 3-limbed Kemp's ridley sea turtle is now being tracked at sea by satellite
Amateur's Manual for Venture Strategies for Tenderfoots
4 Jeep Models: Dominating Execution and Flexibility for Each Experience
Far-right leader Le Pen to attend Brigitte Bardot's funeral
Amy Poehler's podcast is a hit. It's also a Trojan horse for talking about women and aging.
Asia's Noteworthy Destinations: A Voyager's Aide
FDA adds strongest warning to Sarepta gene therapy linked to 2 patient deaths
Report: Thailand strikes deal with Iran for safe passage of Hormuz
Man who grabbed Ariana Grande at 'Wicked: For Good' premiere also rushed Katy Perry onstage this year. Who is he and why is he doing this?











