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, United, Virgin, Air France, Air Canada and Lufthansa have all had to axe multiple flights to the U.S. and other parts of the world while the latter also shut down its regional carrier CityLine a year earlier than anticipated.
Spirit Airlines, which was 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 such as Dubai, Abu Dhabi and Doha now keep pushing back their 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 7 domestic and more than 40 international destinations in nearby Asian countries.
While initially launched as a regional airline to the island that many South Koreans go to for holidays, Jeju Air is currently the largest low-cost airline in South Korea and one of the big names in Asia.
Related: Airline cancels flights to Canada over fuel costs
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 come back if they take the unpaid leave.
It is, almost certainly, a cost-saving measure meant to bring down costs given rising fuel costs and preserves jobs since employees can choose to leave on their own while still retaining the position if the financial situation changes.
Jeju Air was initially launched to serve the tropical island off the Korean coast.
South Korean airlines scale back operations, 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.”
While the national airline has not yet announced a wave of cuts, a spokesperson warned that this can be on the horizon as “travel demand for medium- and long-haul routes has weakened due to the rising burden of fuel surcharges.”
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Jeju Air, meanwhile, has 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 has back in March said that 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 back in March, will “probably start quick.”
Related: Another airline shuts down and cancels last flights