
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
Miss Thailand Pageant Contestant's Veneers Fall Out During Speech on Stage - 2
An ex-FBI agent analyzes what we learned from Savannah Guthrie's 'Today' show interview amid the search for her mother Nancy - 3
An Excursion Through Renowned Western Network programs - 4
'Everyone in this prison has had family killed or shot' - 5
Vote In favor of Your Favored Pizza Cover
If everyone on Earth sat in the ocean at once, how much would sea level rise?
Kiev declares energy emergency after Russian attacks amid winter cold
Discovery of ancient pleasure boat reveals Egypt's maritime history
Hundreds of kilos of protected plant seized by Israel Nature and Parks Authority in Golan
A single shot of HPV vaccine may be enough to fight cervical cancer, study finds
Why is the Artemis 2 rocket launch different from all other rocket launches?
Top 20 Wellbeing and Wellness Applications for a Sound Way of life
The most effective method to Amplify Profits from Gold Speculation: Systems and Tips
New dinosaur tracks in Italy illustrate herds moving in unison













