In the midst of the ongoing US-Israel confrontation with Iran, Korean Air has announced that it is putting itself into emergency management mode in order to mitigate the effects of the surge in jet fuel prices.
The nation’s flag carrier will take “internal cost-reduction measures” to stabilize its finances in the face of rising fuel prices and worldwide economic uncertainties, according to a company representative who made the announcement on Tuesday. It follows other Asian airlines in announcing plans to mitigate the financial blow of the war in Iran. Worldwide, the price of jet fuel has more than quadrupled since the battle started on 28 February, while the price of crude oil has increased by more than 50%.
According to Tan Chi Siang of PwC Singapore, an advisory firm, airlines have implemented such emergency procedures to safeguard their operations in times of crisis, like as the COVID-19 pandemic.
He went on to say that Asian airlines are particularly hit hard by the “double shock” of increasing oil prices worldwide and a regional jet fuel scarcity, which has compelled them to act. According to Tan, most airlines would take internal steps like reducing investments or renovations, but some may even curtail flights to save money.
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