Follow our live coverage here.

SEOUL – Korean Air will enter emergency management mode from April as rising oil prices driven by the war in the Middle East weigh on costs, a source with knowledge of the matter told Reuters on March 24.

The airline said in an internal memo reviewed by Reuters that if high oil prices persist, it expects significant disruption to its annual business targets, and will shift to an emergency operating system from April.

The memo added that the airline plans to implement phased response measures based on oil price levels, and step up company-wide cost efficiency to offset surging fuel costs.

T’way Air and Asiana Airlines have also entered emergency management mode in March amid rising fuel costs, according to local media reports, underscoring the broader strain on South Korea’s aviation industry.

Korean Air said it expects fuel costs for April to rise to around 450 US cents (S$5.80) per gallon, significantly higher than the 220 US cents per gallon cited in its business plan, a sharp increase in its monthly cost burden.

Fuel surcharges for flights departing from South Korea in April are also set to jump, with fares on Incheon to New York and Incheon to Chicago routes rising by more than 200 per cent, while surcharges on Incheon to London and Incheon to Paris routes are expected to increase by nearly 250 per cent, according to Korean Air’s website.

Korean Air shares were trading down 1.9 per cent, compared with the benchmark KOSPI’s 1.9 per cent fall at 2.51am GMT (10.51am Singapore time). REUTERS