With oil prices sitting at $100 per barrel for weeks over the war with Iran, airlines have been forced to make long-term decisions over what many initially hoped would be a temporary ebb.
Airlines such as Delta Air Lines, United Airlines, Virgin, Air France, Air Canada, and Lufthansa have all had to axe multiple flights to the U.S. and other parts of the world, and Lufthansa also shut down its regional carrier CityLine a year earlier than anticipated.
Spirit Airlines, already struggling to emerge from financial problems that put it in a second bankruptcy, was dealt the final blow by the cost of fuel and shut down all operations on May 2.
With the double hit of the security situation in the region, almost every airline flying into cities including Dubai, Abu Dhabi, and Doha now keeps pushing its restart dates further into 2026.
Jeju Air puts employees on unpaid leave
On the Asian continent, South Korean budget airline Jeju Air is now putting its employees on unpaid leave.
The airline launched in 2005 out of Jeju International Airport (CJU), east of the country in the Korea Strait, and flies to seven domestic and more than 40 international destinations in nearby Asian countries.
Related: Airline cancels flights to Canada over fuel costs
Initially launched as a regional airline serving the island where many South Koreans spend holidays, Jeju Air is currently the largest low-cost airline in South Korea and one of the big names in Asia.
With the widespread furlough first reported by Swiss outlet ch-aviation, it is not immediately clear how many Jeju Air employees are affected or when they will be able to return if they take the unpaid leave.
The furlough is almost certainly a cost-saving measure, given rising fuel expenses. It also preserves jobs, since employees can choose to leave on their own while retaining their position in the event the carrier’s financial situation changes.
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South Korean airlines prepare for flight cuts over fuel costs
Domestic competitors Korean Air and Asiana Airlines have also been taking cost-cutting measures since the start of the spring.
At the start of March, Korean Air Vice Chairman Woo Ki-hong sent an internal staff memo saying that the airline was preparing for “a surge in fuel expenses,” the BBC reported.
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While the national airline has not yet revealed a wave of cuts, a spokesperson told the BBC they could be on the horizon as “travel demand for medium- and long-haul routes has weakened due to the rising burden of fuel surcharges.”
Meanwhile, Jeju Air, earlier in the spring, cut 187 international routes, or 4% of its network, from its summer flying schedule.
Other airlines to cut staff in recent weeks include Air India and Norse Atlantic Airways. United Airlines CEO Scott Kirby, back in March, said the carrier is “NOT going to do that” in response to questions about staff cuts, but the prolonged nature of the fuel crisis throws everything into doubt.
The impact to consumers, Kirby said in a separate interview in March, will “probably start quick.”
Related: Another airline shuts down and cancels last flights
