Korean Air Co., South Korea's flag carrier, will enter emergency management mode this week to respond to rising fuel costs and other worsening external conditions, according to industry sources Tuesday.
According to the sources, Korean Air Vice Chairman Woo Kee-hong posted an internal notice that it will implement an emergency management system starting Wednesday.
Woo said the decision was made to cope with rising costs driven by surging fuel prices due to the ongoing Middle East conflict. The company will implement phased response measures to improve cost efficiency, he added.
He warned that a prolonged period of high oil prices could seriously disrupt the company's ability to meet its business targets.
"The measures are not a one-off cost-cutting effort but are part of broader structural efforts to strengthen the company's fundamentals," Woo said.
