High Oil Prices Hit Low-Cost Airlines as 900 Flights Cut and Unpaid Leave Spreads

Rising oil prices are pushing low-cost airlines toward flight cuts and workforce adjustments. Jeju Air [089590] said on the 8th that it would implement unpaid leave for cabin crew members who volunteer for the measure during the month of June. The industry has also reported that low-cost carrier operations are being reduced by 900 flights due to the impact of high oil prices. When jet fuel costs rise, operating expenses increase, which can lead to changes in route operations and crew schedules. The move shows how airlines are trying to reduce flight capacity and labor-cost pressure amid higher expenses. Source: yna.co.kr.