
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 Favored kind of footwear - 2
Putting pig organs in people is OK in the US, but growing human organs in pigs is not – why is that? - 3
What is the 'Survivor 50' Challenge? Hidden immunity idols will be up for grabs in every U.S. state. - 4
Vote In favor of Your Favored Occasion Arranging Administration - 5
Eurovision Song Contest changes voting rules after controversial allegations against Israel
NASA's Perseverance Mars rover could break the record for miles driven on another planet
Flu is rising rapidly, driven by a new variant. Here's what to know
Vote In favor of Your Favored Language Interpretation Administration
NASA is shooting for the moon. A guide to the Artemis II mission
Greenland’s melting ice and landslide-prone fjords make the oil and minerals Trump is eyeing dangerous to extract
Grammy nominations 2026: Full list of nominees in every major category, including Album of the Year and Best New Artist
Key Little Things That Advantage Old People
Alleged Huione Group Money Laundering Boss Extradited to China
Ukraine apologizes to Finland for crashed drones












