South Korea's largest airline will enter emergency management mode to cope with soaring fuel prices.

Industry insiders said on Tuesday that Korean Air, the country’s flagship carrier, will enter an emergency management mode this week to deal with rising fuel costs and other increasingly worsening external conditions.

According to people familiar with the matter, Woo Kee-hong, vice chairman of Korean Air, issued an internal notice announcing that the company will activate its emergency management system starting Wednesday.

Woo Kee-hong said this move is intended to respond to the spike in fuel prices caused by the ongoing conflict in the Middle East. He added that the company will roll out countermeasures in phases to improve cost efficiency.

He warned that persistently high oil prices over the long term could seriously affect the company’s ability to achieve its business goals.

“These measures are not one-time cost-cutting efforts, but part of broader structural initiatives to strengthen the company’s fundamentals,” he said.

As South Korea’s second-largest airline, Korean Air’s subsidiary Asiana Airlines also entered an emergency management mode last week.

With soaring aviation fuel costs (typically accounting for about 30% of total costs) and the ongoing depreciation of the won against the U.S. dollar, the entire aviation industry is facing mounting pressure.

Several low-cost carriers, including Jin Air and Air Busan, plan to reduce flights starting in April to minimize losses. Industry observers predict that if the Middle East conflict continues, more airlines will follow suit.

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Responsible editor: Yu Jian SF069