
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
I'm a woman who's into weightlifting. Was I man enough for the creatine-packed 'Man Cereal'? - 2
Figure out How to Ascertain the Restitution Time frame for Your Sunlight based chargers - 3
The Main 15 Powerful Business Heads of Today - 4
Moving Wedding Objections for Paramount Functions - 5
Can scientists detect life without knowing what it looks like? Research using machine learning offers a new way
Kids with smartphones by age 12 are at higher risk of health issues, study finds
Israel violated ceasefire with Hezbollah more than 10,000 times, UNIFIL claims
IDF confirms Iranian missile fragments hit near Kirya, multiple cars ablaze in Ramat Gan
The most effective method to Recognize a Great Lab Jewel
Was it a stone tool or just a rock? An archaeologist explains how scientists can tell the difference
Key Training: Picking a Significant for Monetary Achievement
Courageous Climbing: Trails and Stuff for Outside Lovers
Upgrading the Healthy benefit of Your Local Vegetables
6 Nations for Setting up camp













