Korean Air Enters Emergency Mode as Fuel Costs Surge Amid Middle East Conflict

By Blessing Nweke

Korean Air has announced it will shift into emergency management mode as soaring jet fuel prices strain the aviation industry, driven by the ongoing US-Israel war with Iran and global economic uncertainty.

A spokesperson for the airline said Tuesday that internal cost-reduction measures will be introduced to stabilize finances and maintain operational resilience. The move comes as fuel costs spike sharply following the conflict’s outbreak on 28 February.

According to market data, Brent crude oil prices have surged by more than 50% to exceed $110 per barrel, significantly increasing aviation fuel expenses. Industry figures from the International Air Transport Association show jet fuel prices climbed to nearly $200 per barrel on 20 March, more than doubling within weeks.

In an internal memo seen by the BBC, Vice Chairman Woo Ki-hong informed employees that the airline will adopt an emergency system starting in April. The initiative will focus on company-wide efficiency measures linked to fluctuations in oil prices.

Woo emphasized that the strategy goes beyond short-term cost cutting, describing it as an opportunity to strengthen the airline’s long-term structural foundation.

South Korea’s aviation sector is particularly exposed to energy market volatility due to its heavy dependence on Middle Eastern oil and gas supplies. The impact is already spreading across the industry.

Asiana Airlines and Air Busan have also entered emergency management mode. All three carriers operate under the Hanjin Group.

Analysts warn that prolonged instability in energy markets could force airlines to raise ticket prices or reduce capacity, as carriers worldwide grapple with mounting operational costs and an uncertain economic outlook.