
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
Supercharge Your Remote Work Arrangement with These Game-Changing Instruments - 2
Select Your Go-To Bluetooth Earphones - 3
Eurasian cargo hub expands to capture Europe-Asia freight flows - 4
Looking for a great Thanksgiving side dish recipe? These are the crowd-pleasers the Yahoo team swears by. - 5
German state railway loss widens, passengers warned of trouble ahead
How a rare drug made from scientists' blood saves babies from botulism
Extreme Manual for Picking a Camper Van
Tech giants accused of not complying with Australian social media ban
Doctored NXT Summit footage falsely portrays Modi as declaring war on Iran and Pakistan
Netflix's Eddie Murphy documentary explains 'Saturday Night Live' beef: 'That's why I didn't go back for years'
What is ‘Auld Lang Syne’? Why we sing this song at midnight on New Year’s Eve.
Pocket-Accommodating Jeep Wrangler Buying Guide for Seniors
Scientists dove hundreds of feet into the ocean and found creatures no human has ever seen. Our trash beat us there
Burkina Faso forces killed twice as many civilians as jihadists, rights group says












