
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
Pentagon advances Golden Dome missile defense with new Space Force contracts - 2
Vote in favor of the Web-based Work out schedule to Keep You Fit and Sound - 3
New science points to 4 distinct types of autism - 4
41 Young Men Die in South Africa After Circumcision Initiation - 5
Tehran defends ship seizure as a legal action, but tensions continue in the Gulf
Instructions to Pick the Right Toothbrush for Your Teeth
Travels to Dream Objections in Europe
'An incredible privilege and responsibility': Artemis 2's Christina Koch is ready to become the 1st woman to fly around the moon
Antimatter took to the road for the very first time. Here’s why it matters
Iran-backed militias reassert power in Iraq, proving the Islamic axis is still standing
Key Business Regulations to Consider While Arranging Your Independent venture
23 Most Amusing Messages At any point Sent Among Kids and Their Folks
Countdown to Artemis II: What to know about NASA's moon mission
Former ‘Dancing with the Stars’ Pro Survives Plane Crash at LaGuardia That Left 2 Pilots Dead













