Korean Air to implement emergency system in April due to rising fuel costs from Middle East conflict
2026.03.31 16:34
Korean Air will implement an emergency management system starting in April as rising fuel costs linked to the Iran war increase pressure on the airline.
Following in the footsteps of the low-cost carrier T'way Air, major full-service carriers are also tightening their belts, indicating that a trend of cost reduction is spreading across the entire aviation industry.
Korean Air Vice Chairman Woo Kee-hong announced in an internal memo that the airline will implement an emergency management system starting in April, according to the company on Tuesday.
“We will shift to an emergency management system beginning in April to respond to rising costs caused by surging fuel prices and immediately implement phased measures based on fuel price levels,” Woo said. “We will pursue company-wide cost efficiency.”
“If the high oil price situation persists, it could seriously disrupt the achievement of our annual business targets,” Woo added.
Korean Air’s cost burden has sharply increased due to a surge in aviation fuel prices, according to the company.
“Fuel prices in April are expected to reach around [$4.50] per gallon, far above our business plan assumption of [$2.20] per gallon,” Woo said. “This is increasing monthly fuel costs for Korean Air.”
The emergency measures come as similar moves spread across the aviation sector following the Iran war. T’way Air entered emergency management on March 16, followed by Asiana Airlines last Wednesday.
The back-to-back declarations reflect rising oil prices and a weaker won. Fuel typically accounts for about 30 percent of airline operating costs, making it a critical expense.
Additionally, major costs such as aircraft leasing and maintenance are paid in dollars. A weaker won increases these costs.
Both oil prices and exchange rates are key determinants of profitability, according to Korean Air’s business report. A $1 increase in oil prices adds roughly 46.5 billion won ($30 million) in annual costs, while a 10 won fluctuation in the dollar-won exchange rate affects profits by about 55 billion won.
Some carriers have already begun cutting operations. Jin Air, Air Busan, Air Seoul and Air Premia are reducing their flight schedules from April, scaling back less profitable routes to minimize expenses.
The emergency management trend could expand further if the conflict continues, industry sources said.
“Even airlines that haven’t officially declared emergency management are already cutting spending and adjusting investments,” an industry insider said. “If high oil prices and a strong dollar persist at the same time, a deterioration in profitability across the industry will be inevitable.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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