T'way to implement voluntary unpaid leave for cabin crew on rising oil prices, weakening won
Published: 13 Apr. 2026, 16:14
Updated: 13 Apr. 2026, 19:14
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- MICHAEL LEE
- [email protected]
![A T'way Air plane moves on the runway at Gimpo International Airport in western Seoul on June 25, 2025. [YONHAP]](https://koreaseafood.online/data/photo/2026/04/13/90930803-9075-48b9-9c66-33808673eafc.jpg)
A T'way Air plane moves on the runway at Gimpo International Airport in western Seoul on June 25, 2025. [YONHAP]
Budget carrier T'way Air will begin implementing voluntary unpaid leave for two months for its cabin crew from May as the rise in fuel costs and the depreciation of the won due to the Iran war continue to roil the Korean airline industry.
The company’s decision reflects a broader squeeze on profitability as airlines contend with the double whammy of higher oil prices and a stronger dollar.
Both factors strike at the core of airlines’ cost structures, where key expenses — including jet fuel, aircraft leases and maintenance — are largely denominated in dollars.
T’way Air told workers that participation would be optional, describing the measure as a way to “flexibly support working conditions” in line with changing flight schedules, according to industry sources who spoke to the JoongAng Ilbo.
The carrier last resorted to unpaid leave in 2024, before travel demand rebounded to pre-pandemic levels and aircraft deliveries were delayed.
Other carriers are also taking steps in light of surging costs.
Korean Air and Asiana Airlines have already shifted into emergency management mode, while several low-cost carriers — including Jin Air, Air Busan, Air Seoul and Air Premia — have begun trimming flight schedules this month.
![Planes are parked at Incheon International Airport on April 1. [NEWS1]](https://koreaseafood.online/data/photo/2026/04/13/040298eb-aea8-43f6-9683-aa93ec1431a2.jpg)
Planes are parked at Incheon International Airport on April 1. [NEWS1]
A key vulnerability of the airline industry is its exposure to global price swings.
Fuel accounts for roughly 30 percent of operating costs, making even small changes in oil prices consequential.
Korean Air estimates that a $1 increase in oil prices raises its annual costs by about $30.5 million. A 10 won drop in the value of the Korean currency against the dollar adds roughly 55 billion won ($36.9 million) in costs.
Passengers are also likely to feel the pinch as fuel surcharges on flights this month rise sharply and, in some cases, more than triple from a month earlier.
For domestic routes, Korean Air and Asiana have set next month’s surcharge at 34,100 won per one-way ticket — up from 7,700 won this month and the highest level since the current pricing system was introduced in 2016.
One-way fuel surcharges have already risen from 21,000 won to 57,000 won this month on Korean Air flights to China and Japan, while the increase was from 39,000 won to 123,000 won on Southeast Asia routes. Surcharges on U.S. East Coast routes also jumped significantly from 99,000 won to 303,000 won.
Low-cost carrier Jeju Air, which flies mainly within Asia, has also increased its fuel surcharges roughly threefold on most routes from between $9 and $22 to between $29 and $68 this month.
The higher surcharges could lead passengers to cut back on travel, further cutting into the profitability of airlines.
“When oil prices rise, surcharges go up and dampen demand, while operating costs also rise as the local currency weakens,” said one airline industry source who spoke to the JoongAng Ilbo on condition of anonymity.
Analysts say the outlook will depend heavily on how long geopolitical tensions persist.
“Higher oil prices and exchange rates tied to the Iran conflict could push airline operating costs up by around 3 percent in the first quarter compared to typical levels,” said Lee Seo-yeon, an analyst at SangSangin Investment & Securities.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SU-MIN, MICHAEL LEE [[email protected]]
with the Korea JoongAng Daily
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