BBC reports that Korean Air has moved into emergency management mode to mitigate the impact of sharply rising jet fuel costs linked to the ongoing conflict involving Iran.
The airline said it will implement internal cost-reduction measures to protect financial stability amid higher fuel prices and broader economic uncertainty. In a memo to staff seen by the BBC, vice chairman Woo Ki-hong warned the company was preparing for “a surge in fuel expenses” and said the measures would help strengthen its longer-term resilience.
The move comes as crude oil prices have risen by more than 50% since the conflict began on February 28, while global jet fuel prices have more than doubled. Industry observers told the BBC that Asian airlines are facing a “double shock” from rising oil prices and a regional jet fuel shortage.
Other carriers in South Korea, including Asiana Airlines and Busan Air, have also taken emergency measures focused on reducing costs and potentially cutting flights.
Across the region, airlines are taking a range of actions in response to the fuel crisis. In China and Hong Kong, carriers have raised fuel surcharges, while authorities have reportedly moved to limit fuel exports to stabilise domestic prices. Cathay Pacific has added surcharges across its network, contributing to higher fares.
In Japan, airlines have so far taken a more cautious approach, with All Nippon Airways maintaining existing fuel surcharges and Japan Airlines reporting limited immediate impact. However, some ticket prices have increased due to route changes.
Elsewhere, Singapore Airlines has raised fares to offset higher fuel costs, while India’s aviation sector is facing reduced flight schedules and greater pricing flexibility as carriers adjust to rising costs.