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March 4 (Asia Today) — South Korea’s aviation industry is on alert as rising oil prices and a weakening Korean won threaten airline profitability following the recent escalation in Middle East tensions.

The surge in global crude prices and the won-dollar exchange rate comes after the United States and Israel launched airstrikes on Iran, raising fears of prolonged instability in the region.

According to the Korea Exchange on Tuesday, shares of Korean Air fell 7.94% to 23,200 won (about $16.10). The stock has dropped about 17% compared with its Feb. 27 closing price of 28,100 won (about $19.40), just before the strikes on Iran, reflecting investor concerns about rising operating costs.

Fuel expenses account for roughly 30% of airline operating costs, making the industry particularly vulnerable to oil price fluctuations. Korean Air estimates that a $1 change in oil prices per barrel can affect its operating profit by about $30.5 million.

Brent crude futures on the ICE Futures Exchange closed at $81.40 per barrel on Tuesday, up $3.66, or 4.71%, from the previous session. West Texas Intermediate crude rose $3.33, or 4.67%, to close at $74.56 per barrel on the New York Mercantile Exchange.

Oil prices have climbed for three consecutive trading days after tensions surrounding Iran intensified and shipping through the Strait of Hormuz – a key route for about 20% of global seaborne oil shipments – was disrupted.

Korean Air said it plans to protect profitability through hedging strategies. The airline uses fuel price option contracts under internal risk management policies, primarily employing a “zero-cost collar” hedging structure that sets upper and lower price limits for fuel purchases.

Under this system, the airline can buy jet fuel at a predetermined price even if oil prices rise, while it must purchase fuel at the agreed level if prices fall below a certain threshold.

Korean Air said it hedges up to 50% of its projected annual fuel consumption.

“Ongoing assessments of oil price risks are conducted regularly, and we apply appropriate hedging products depending on market conditions and price levels,” a Korean Air official said.

Industry analysts warn, however, that prolonged tensions in the Middle East could place additional pressure on airlines through a weaker Korean currency.

The won briefly surpassed the psychologically significant level of 1,500 per U.S. dollar early Tuesday. A weaker won typically increases overseas operating costs for airlines and can also dampen travel demand.

Low-cost carriers are expected to face greater difficulties. Jeju Air, Jin Air and T’way Air – South Korea’s major budget airlines – all reported operating losses last year amid the strong dollar and have been striving to return to profitability.

Recent signs of exchange rate stabilization had raised hopes for improved performance this year, but the Iran crisis has revived concerns across the industry.

A T’way Air official said the company is preparing contingency plans.

“When the won-dollar exchange rate rises, we respond by covering overseas operating costs with foreign currency revenues generated locally,” the official said. “We are reviewing additional measures depending on changes in the international situation.”

If you want, I can also create a short 60-90 second YouTube news script version of this story, which would fit well with your weekly global news roundup format.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260304010001116

Karachi, Pakistan – As rain and thunder threatened to disrupt their team’s T20 World Cup match against India on Sunday, Pakistan’s cricket fans are bracing for a different storm – the now-customary loss against their archrivals at global events.

Pakistan have not beaten India in the tournament since 2021 when they recorded a solitary win in eight T20 World Cup encounters against their formidable opponents.

Despondent fans have now shifted from anticipating a thrilling, unpredictable game to praying for a miracle as Salman Ali Agha’s team step on the field at the R Premadasa Stadium in Colombo, Sri Lanka.

Pakistan’s latest “win” came in the form of a move to boycott the match on political grounds. Despite the eventual reversal of the decision after weeklong negotiations with the International Cricket Council (ICC), the initial decision to not take the field against India was seen as a triumph by cricket fans in Pakistan.

Despondent or optimistic, fans still eager for match

Escalating political tensions between the South Asian neighbours have seen a decades-old sporting rivalry turn into an ugly debacle both on and off the pitch with customary handshakes avoided and light jibes replaced by controversial hand gestures invoking their most recent armed conflict in May.

Politics and sport blur boundaries on both sides of the border, making these fixtures an exhibition of nationalistic pride that can sometimes turn distasteful.

The pre-match jingoism in Pakistan, though, was short-lived. It has been replaced by bitterly disappointed fans airing their thoughts in the form of self-deprecating memes or reels depicting the “foolishness” of a section of fans expecting a win.

“We’ll have heartbreak on February 14 and 15,” read the captions of several social media posts set to melancholic songs on Valentine’s Day, the eve of the match.

Supporters – both hardcore and casual – will religiously watch the three-plus-hour encounters. Come 6:30pm (13:30 GMT) on Sunday, the public will be glued to screens across the country to watch the high-stakes match.

Roadside tea stalls will be thronged by male spectators filling up wooden benches, plastic chairs or squatting on their haunches in front of small TV screens.

Food delivery riders busy with an overflow of match-day meal orders will occasionally halt their journeys to catch a glimpse of the action on their phones or through restaurant windows.

Upscale eateries will bring in large screens and host groups of young fans and families.

Domestic responsibilities will be wrapped up before the start of the match, and extended families will gather around a living room TV with drinks, snacks and feasts of biryani.

The weekend – now the standard time that all India-Pakistan matches are played for economic and logistical reasons – will offer some respite from an otherwise hectic schedule of school and office routines that throw the heaving metropolis of Karachi into transport turbulence.

India favourites, but Usman Tariq could spin a win

Despite the days of anticipation and hours spent preparing for the showpiece, fans remain realistic in their expectations.

On a balmy late Friday afternoon in Karachi as life gradually returned to its normal pace after an hour-long pause for midday prayers at mosques across the city, a group of young law students picked up their kits for a local league match.

“It’s looking 70-30 in India’s favour,” Talha Bandayal, a law student, told Al Jazeera as he watched his teammates play a cricket match in their local lawyers league at the historic Karachi Parsi Institute on Friday.

Bandayal and his friends plan to watch the match at a restaurant in one of Karachi’s posh localities.

“It’s a Pakistan-India match. We’re excited regardless of the result!”

Syed Ahmed Shah, who officiated the league match as a third umpire, was more sceptical of the team’s chances and more in tune with the country’s overall opinion of Pakistan’s expected performance.

“Sport is just like politics in our country,” a bespectacled Shah opined dryly to everyone’s amusement, drawing comparisons between the nation’s two most favoured topics.

“India is far superior to us, not just in cricket but everything,” Shah told Al Jazeera.

Cricket analysts have appeared on national talk shows throughout the week, dissecting the team’s shortcomings, the Pakistan Cricket Board’s organisational failures and the squad’s weak mental fortitude for a match of this proportion.

Local cricketers like Bandayal have been analysing Pakistani players’ strengths and weaknesses. Usman Tariq’s unreadable spin action and variations are being seen as Pakistan’s secret weapon.

When life comes to a standstill

When it comes to off-field behaviour, though, India’s trend of avoiding handshakes with Pakistani teams has been frowned upon.

“Politics should strictly be kept separate from sports,” a local cricket coach who requested anonymity said of Suryakumar Yadav and his team’s controversial actions from the Asia Cup last year.

“But if India takes that stance, Pakistan also needs to have some self-respect and respond accordingly,” the 46-year-old coach said.

Admittedly, the handshake row has taken centre stage in a fixture that has historically been remembered for scintillating bowling performances, swashbuckling innings or nail-biting finishes.

When Pakistan awakes on Sunday morning, most cricket fans will begin their day by playing their own cricket games – whether in narrow neighbourhood streets or vast, dusty fields hosting multiple matches simultaneously. As the evening draws closer, the clothes will be dusted off and equipment packed away for the showdown in Colombo.

Just as the hustle and bustle of life gave way for prayers two days earlier, the India-Pakistan match will do the same.

After all, it’s only cricket and Friday prayers that can bring life to a standstill in Pakistan.

Spain and Portugal are bracing for a new storm, just days after Storm Leonardo’s deadly floods killed at least two people — one in Portugal and one in Spain — and forced more than 11,000 residents to evacuate their homes.

On Saturday, authorities in Portugal mobilised more than 26,500 rescuers as Storm Marta approached, forcing three municipalities to postpone Sunday’s presidential vote until next week due to severe weather.

Both countries issued warnings of further flooding after previous heavy rains had submerged roads, disrupted train services, and displaced thousands. Portuguese forecasts warned of heavy rain, strong winds, and rough seas, with alerts active across the country.

In Spain, much of the south, particularly Andalusia, and the northwest were placed on orange alert for heavy rain and violent storms, the national meteorological agency Aemet said.

Other regions, including Castilla‑La Leon, Galicia, Murcia, and the Valencian Community, also received warnings. While rainfall was expected to be less “exceptional” than during Storm Leonardo, authorities cautioned that saturated ground increased the risk of flooding and landslides.

New downpours in Andalusia added to earlier rain that had already caused widespread flooding, landslides, and forced more than 10,000 people from their homes.

Many roads remained closed, and rail services were largely suspended, with officials urging residents to limit travel wherever possible.

Mario Silvestre, commander at Portugal’s civil protection agency, described the forecast as “extremely worrying”.

Juan Manuel Moreno, president of the Andalusia region, wrote on X that the “rivers have hit their limit,” warning of gusts of wind reaching 110 kilometres per hour (68 miles per hour), landslides, and flash floods.

“All the furniture is completely destroyed, the water broke the window, forced the doors open and then burst through the window from the other side,” Francisco Marques, a municipal employee in the central village of Constancia, told the AFP news agency.

After flying over flood-hit areas in southern Spain near Cadiz on Friday, Prime Minister Pedro Sanchez warned that “difficult days” lay ahead for the region as a result of the “very dangerous” weather forecast. Sanchez added he was “bowled over at seeing the endless rain”.

Portuguese Prime Minister Luis Montenegro said the damage exceeded four billion euros ($4.7bn).

Portugal was already reeling from the effects of Storm Kristin, which led to five deaths, hundreds of injuries, and tens of thousands without power, when Leonardo struck earlier this week.

Portugal’s National Meteorological Institute (IPMA) has placed the entire coastline on orange alert due to heavy seas, with waves reaching up to 13 metres (43 feet) high. Eight of the 18 districts on the mainland, mainly in the centre and south, are also on orange alert.

“All river basins remain under severe pressure,” particularly the Tagus River in the Lisbon region and the Sado River further south, a spokesperson for the National Civil Protection Authority told AFP.

One person died during Storm Leonardo in Portugal, and 1,100 people were evacuated across the country. A succession of atmospheric depressions forced Portugal’s dams to release “a volume of water equivalent to the country’s annual consumption” in just three days, Jose Pimenta Machado, president of the Portuguese Environment Agency, said on Friday.