South Korea’s largest carrier, Korean Air, has announced that it has entered “emergency management” mode due to the sharp spike in jet fuel prices.
According to the company’s assessment, every $1 increase in oil prices creates an additional annual cost of approximately 46.5 billion won. While the business plan initially projected fuel prices at around 220 cents per gallon, prices are expected to reach 450 cents in April.
The crisis appears to have taken on a sectoral dimension. Previously, T’way Air and Asiana Airlines had taken similar measures. Following the lead of Vietnamese airlines, South Korean carriers are now turning toward flight cancellations and capacity reductions.
In this context:
- Jin Air will reduce a total of 45 flights across 8 routes in April, including Guam, Clark, and Nha Trang.
- Air Premia is canceling Los Angeles and Honolulu services while implementing schedule changes for Washington and Bangkok flights.
- Aero K and Air Busan have also decided to reduce frequencies on several international routes.
According to data from the International Air Transport Association (IATA), jet fuel prices have increased by over 12% in the last week. Fuel expenses continue to account for approximately one-third of the total operating costs for airlines.
