
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
This Flashy Old-School Design Trend From Italy Still Has A Place In Modern Kitchens - 2
Poll: By a 2-to-1 margin, Americans say Trump has done more to raise prices than lower them - 3
Only 30% of young people in Israel optimistic about future, Aluma survey reveals - 4
6 Travel Services for Colorful Get-aways: Pick Your Fantasy Escape - 5
Ghassan Al-Duhaini to replace Abu Shabab as Popular Forces leader in Gaza
Eli Lilly to build $6 billion Alabama plant as part of US manufacturing push
Exploring the Market: Unsold Rams May Be Less expensive Than You Naturally suspect
Don’t let food poisoning crash your Thanksgiving dinner
Audits of 6 Specialty Mixed drinks
Foot fossil discovery could reshape human evolutionary history
Federal judge upholds Hawaii's new climate change tax on cruise passengers
Ancient mass grave discovered in water cistern during Tel Azekah excavations
Vote in favor of the handheld vacuum that you love for its strong attractions!
Christmas 2025 skywatching guide: What you can see in the night sky on Dec. 25













