Korean Air launches emergency cost cuts as fuel prices surge

Korean Air announced on Tuesday, March 31, that it is entering an “emergency management mode” as it seeks to cope with sharply rising fuel costs driven by the ongoing war in the Middle East.

South Korea’s largest airline said it is establishing internal targets aimed at reducing expenses not directly related to flight operations, according to AP.

The company stated that the cost-cutting measures will be introduced in phases beginning in April. However, it did not provide specific details on the measures or clarify whether they would involve significant reductions in flight operations.

Korean Air also noted that its fuel expenses for April are expected to exceed earlier projections outlined in its annual business plan by more than double, underscoring the scale of the financial pressure.

By Tamilla Hasanova