Job insecurity is spreading across South Korea's low-cost carrier (LCC) industry as international oil prices surge in the wake of the Middle East war. With unpaid leave and now delayed start dates for newly hired flight attendants emerging, emergency management measures are taking hold across the airline sector.
According to the airline industry on Thursday, Jin Air has postponed the start dates of about 50 final-round successful candidates for cabin crew positions to the second half of the year.
Jin Air selected approximately 100 candidates in its first-half recruitment round, half of whom have already joined the company and are undergoing training. The remaining 50 were scheduled to begin work on Wednesday, but the company recently notified them that their start dates would be pushed back to late September or early October, after the Chuseok holiday.
"Given the emergency management situation stemming from the surge in international oil prices following the Middle East war, we inevitably had to adjust the start dates," a Jin Air official said. "The plan to hire the final-round candidates itself remains unchanged."
Industry observers say deferred hiring could spread to other airlines.
Airlines are indeed accelerating international route reductions and cost-cutting measures under the burden of high oil prices. Jin Air cut 45 flights across eight routes, including Guam, last month, and 131 flights across 14 routes, including Phu Quoc, this month, reducing operations by 176 round-trip flights to date.
Across the entire domestic LCC sector, international flights have been reduced by roughly 1,000 round trips since the Middle East war, centered on Southeast Asian routes.
Unpaid leave programs are also mounting. Jeju Air is accepting unpaid leave applications from cabin crew for the month of June, while T'way Air is already implementing unpaid leave for its cabin crew. Aero K has also accepted unpaid leave applications from all employees.
The industry's burden stems from the sharp rise in jet fuel prices. The average Singapore jet fuel price between March 16 and April 15, which serves as the basis for May's fuel surcharge, reached $214.71 per barrel — roughly 2.5 times the pre-war level.
As fuel surcharges climb on the back of rising oil prices, concerns are growing over weakening demand during the summer peak season. Airlines are moving to cut labor and operating costs while reviewing further flight reductions on less profitable routes.
The Ministry of Employment and Labor (MOEL) also recently convened an emergency employment and labor situation review meeting, diagnosing that signs of an employment crisis are emerging in the airline industry. The government is not ruling out the possibility of across-the-board employment adjustments if the deteriorating Middle East situation and route reductions become prolonged.
