T’way Air turns to unpaid leave as fuel costs spike from Middle East crisis

Check-in counters at Incheon International Airport appear quieter than usual amid the Middle East conflict, April 1. Yonhap

Low-cost carrier T’way Air is offering voluntary unpaid leave for its cabin crew as financial pressures mount amid a surge in the won-dollar exchange rate and soaring fuel prices triggered by the U.S.-Iran conflict.

The carrier recently notified its cabin crew that it would accept applications for unpaid leave, marking its first such move since August 2024. It said the measure aims to ease fatigue among the crew and balance workloads following recent adjustments in flight schedules.

The carrier, hit by the fallout from the Middle East crisis, became the first Korean airline to enter emergency management mode on March 16, signaling that it will implement additional measures in stages if necessary.

The carrier is facing mounting liquidity pressure from rising costs and weakening passenger demand, after posting operating losses of 12.3 billion won ($9.5 million) in 2024 and 265.5 billion won in 2025.

“The temporary leave is designed to offer greater flexibility in working conditions for cabin crew, and will be available for a limited period only to those who choose to participate,” the company’s official said.

With oil prices climbing and geopolitical tensions showing no signs of easing, other carriers, both major and low-cost operators, have also stepped up cost-cutting measures, given that fuel accounts for roughly 30 percent of operating costs.

Korean Air and Asiana Airlines have also declared an emergency management system, focusing on streamlining operations and delaying nonessential investments.

Asiana Airlines reduced a total of 14 round-trip flights across four international routes to Cambodia’s Phnom Penh and China’s Changchun, Harbin and Yanji as a temporary measure in April and May, offering alternative flights on nearby dates and fee waivers to customers affected by the schedule changes.

Low-cost carriers have also scaled back operations on certain routes this month, with Air Busan suspending 20 flights on routes from Busan to Guam, Vietnam’s Da Nang and the Philippines’ Cebu. Aero K will partially halt four routes through June, whereas Eastar Jet will be suspending more than 50 flights in May.

Jin Air has suspended a total of 45 flights throughout this month, including routes from Incheon to Guam, the Philippines’ Clark and Vietnam’s Nha Trang. Air Premia, which operates mainly mid- to long-haul routes, will suspend 50 flights from Incheon to destinations in the Americas and Southeast Asia during April and May.