
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
In a first, scientists observe a comet reversing its spin - 2
Support Your Body: A Manual for Smart dieting and Sustenance - 3
Audits of the Top Science fiction Movies This Year - 4
EU waters down plans to end new petrol and diesel car sales by 2035 - 5
Why home maintenance deserves a spot in the annual health and budget plans
Young Muslims in Germany feel left out of Mideast debate, experts say
Astronaut on ISS captures spectacular orbital video of zodiacal light, auroras and the Pleiades
New movies to watch this weekend: See 'They Will Kill You' in theaters, rent 'Send Help,' stream 'Pretty Lethal' on Prime Video
10 Setting up camp Shelters That Offer Both Excellence and Isolation
An Extended time of Careful Nurturing: Individual Bits of knowledge on Bringing up Youngsters
Zelensky sees new Russian attack threat from Belarus
Surveys of 6 Hot Savvy Beds
A Lone Wolf Outsmarted Hunters in the Black Forest and Then Vanished
Supportive Tips On Home loans For First-Time Home Purchasers













