South Korea’s primary carrier, Korean Air, has transitioned into an emergency management framework to counter the financial impact of rising fuel costs triggered by the ongoing US-Israel-Iran conflict.
The airline stated on Tuesday that it is implementing internal cost-saving strategies to safeguard its financial position against global economic instability, reports BBC.
Since the outbreak of the war on 28 February, Brent crude oil prices have surged by over 50 per cent, surpassing $110 (£83.33) per barrel.
In a memo circulated to staff, Vice Chairman Woo Ki-hong confirmed that the airline will shift to this emergency system in April to address the spike in operational expenses.
Woo noted that the company intends to pursue enterprise-wide efficiency tailored to oil price fluctuations, describing the initiative as a strategic move to bolster the carrier’s structural foundation rather than a short-term measure.
The crisis has extended to other entities within the Hanjin Group conglomerate, with Asiana Airlines and budget carrier Busan Air also entering emergency management phases. South Korea’s heavy reliance on oil and gas imports from the Gulf makes the nation particularly sensitive to energy supply disruptions in the Middle East.
Figures from the International Air Transport Association reveal that the average price of jet fuel hit nearly $200 (£151.45) per barrel on 20 March, representing a more than twofold increase compared to February levels.
