Seoul: 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 Yonhap News Agency, Korean Air Vice Chairman Woo Kee-hong posted an internal notice that it will implement an emergency management system starting Wednesday. Woo stated that the decision was made to address 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.

Woo further warned that a prolonged period of high oil prices could seriously disrupt the company's ability to meet its business targets. He emphasized that the measures are not a one-off cost-cutting effort but are part of broader structural efforts to strengthen the company's fundamentals.

Asiana Airlines Inc., the country's second-largest carrier and a Korean Air subsidiary, also entered emergency management mode last week. The broader airline industry is facing growing pressure as jet fuel costs, which typically account for about 30 percent of total expenses, surge, while the Korean won continues to depreciate against the U.S. dollar.

Several low-cost carriers, including Jin Air Co. and Air Busan Co., plan to reduce flights starting in April to minimize losses. Industry watchers predict more airlines to follow suit if the Middle East conflict persists.