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”.
It is the latest Asian airline to announce measures to deal with the economic impact of the Iran war.
The cost of crude oil has surged by more than 50% since the conflict began on 28 February, while global jet fuel prices have more than doubled.
Airlines have adopted similar emergency protocols to protect their businesses during crises like the Covid-19 pandemic, said Tan Chi Siang from consultancy PwC Singapore.
Asian carriers, in particular, are dealing with a “double shock” of rising global oil prices and a regional jet fuel shortage that has forced them to take action, he added.
