Airlines forced to reshape strategy as global oil prices soar

Local airlines are being pushed to overhaul their business strategies, as the prolonged surge in global oil prices poses an increasing financial burden to both major airlines and low-cost carriers (LCCs), industry officials said Tuesday. According to a business report released by Korean Air, the airline spent 4.16 trillion won ($2.78 billion) on fuel last year, accounting for 28 percent of its total spending of 14.96 trillion won. With global oil prices rising sharply this year, the carrier is expected to face significantly higher fuel costs for 2026. Korean Air consumes some 30.5 million barrels each year, meaning the carrier faces an increased fuel cost of $30.5 million if the oil price increases by $1 per barrel. “Korean Air is tightening its vigilance on the volatile oil price and hedging fuel costs by using financial derivatives,” a Korean Air official said. Geopolitical risks have also disrupted part of the firm’s operations. Following heightened tensions in the Middle East, Korean Air suspended its Incheon-Dubai route through April 19. The airline had previously operated dai

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