
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
Vote In favor of Your Number one Kind Of Food Conveyance Administration - 2
Ten Awesome Authentic Realities That Will Leave You Interested - 3
Heat Wave Fuels Massive Wildfire In Australia - 4
10 Energizing Vocations in the Innovation Business - 5
Consumers advised to dispose of 19 cooking pans due to lead leaching risk, FDA reports
British-Egyptian dissident apologises for tweets as Tories push for UK deportation
The most effective method to Execute a Lung-Solid Eating routine After a Cellular breakdown in the lungs Finding
Clocks to go forward one hour in Europe as summer time starts
Flourishing as a Charitable Pioneer: Individual Encounters in Generosity
What is a Trump Gold Card? U.S. launches $1 million immigration visas
Instructions to Upgrade the Security Elements of Your Kona SUV
Investigating the World's Chief Authentic Urban communities to Visit
Scientists find new clues to why female fertility declines with age
Gym tied to outbreak of obscure disease that spreads through mist













