[Alpha Biz= Kim Jisun] The prolonged disruption in the Strait of Hormuz is increasingly weighing on airlines worldwide, as soaring jet fuel prices and supply constraints strain operations. Carriers are responding with measures such as unpaid leave programs and route reductions.

According to industry sources on April 13, T'way Air has begun accepting applications for unpaid leave from cabin crew for May and June, as it scales back unprofitable routes. Other low-cost carriers (LCCs) are also reportedly considering similar measures.

A key driver behind these decisions is the sharp rise in jet fuel prices. According to S&P Global, Singapore jet fuel (MOPS), a benchmark for aviation fuel pricing, averaged $228.21 per barrel during the first week of April (March 30–April 3), up 9.3% from the previous week’s average of $208.79. This represents roughly 2.5 times the pre-crisis level of $92.67. Fuel costs typically account for about 30% of airlines’ operating expenses.

Major Korean carriers such as Korean Air and Asiana Airlines have adopted “tankering” strategies on certain routes—loading additional fuel at airports where prices are lower or supply is more stable. Meanwhile, global carriers including United Airlines and Delta Air Lines have raised baggage fees to offset rising costs.

Flight reductions have also become more common. Data from a lawmaker’s office indicates that international flight cancellations among nine Korean LCCs totaled 604 between February 28 and March 31, up 26.1% from 479 cancellations a month earlier. Jin Air reduced its mid-haul flights by 27.7%, from 1,168 to 844. For Korean Air, long-haul route cancellations surged from 0.2% (3 out of 1,604 flights) before the conflict to 3.9% (64 out of 1,636 flights) afterward.

Despite these headwinds, Korean Air reported record first-quarter performance, with revenue rising 14.1% year-on-year to KRW 4.52 trillion—the highest ever for a first quarter. Operating profit also increased 47.3% to KRW 516.9 billion, partly benefiting from reduced competition as Middle Eastern carriers scaled back routes.

However, industry observers warn that airlines could slip into losses in the second quarter, as elevated oil prices and currency volatility driven by the conflict continue to pressure profitability.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]