South Korea’s aviation industry is currently reacting to the economic shockwaves of the conflict in the Middle East. Since the start of the war on February 28, Brent crude oil has risen by over 50%, exceeding $110 a barrel. Jet fuel prices reached nearly $200 per barrel by March 20, more than doubling since February. South Korea is particularly at risk due to its heavy reliance on oil and gas imports from the Gulf region.
In response, Vice Chairman Woo Ki-Hong told staff members “we plan to switch to an emergency management system in April to prepare for rising costs due to a surge in fuel expenses.” The airline is pursuing company-wide cost efficiency through measures tied to oil prices.
The moves are “not merely a one-time cost-cutting initiative but rather an opportunity to strengthen our structural foundation”, he said. To this end, the airline is transitioning to an emergency management system starting in April to buffer against rising expenses. Leadership views these shifts in reinforcing the company’s long-term resilience.
Given the ongoing regional conflict, South Korea is particularly vulnerable to energy supplies as it relies heavily on oil and gas from the Gulf. Consequently, the nation’s major carriers-including Korean Air, Asian Airlines, and Busan Air-have entered emergency management mode. As of Tuesday, energy prices continue to edge upward, with Brent crude trading at over $113 per barrel.
