Korean Air enters emergency management amid rising fuel costs

South Korea’s flag carrier, Korean Air Co., will implement emergency management measures starting this week in response to rising fuel costs and worsening external conditions, industry sources said on March 31.

According to the sources, Vice Chairman Woo Kee-hong issued an internal notice stating that the airline will activate its emergency management system beginning April 1, Caliber.Az reports per foreign media. 

The move comes amid surging fuel prices linked to the ongoing Middle East conflict.

Woo explained the rationale for the decision, saying: "The measures are not a one-off cost-cutting effort but are part of broader structural efforts to strengthen the company's fundamentals."

He added that the company will implement phased response measures aimed at improving cost efficiency and warned that prolonged high oil prices could seriously disrupt the airline’s ability to meet business targets.

Asiana Airlines Inc., South Korea’s second-largest carrier and a subsidiary of Korean Air, entered emergency management mode last week.

The wider airline sector is under increasing pressure as jet fuel, which typically accounts for about 30% of total expenses, continues to rise, while the Korean won weakens against the U.S. dollar.

Several low-cost carriers, including Jin Air Co. and Air Busan Co., plan to reduce flights starting in April to minimise losses. Industry observers expect more carriers may adopt similar measures if the Middle East conflict continues.

By Sabina Mammadli