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Ryanair's summer fares are lower as the company misses profit forecasts
Ryanair warned on Monday that the average summer fare was likely to be lower than last year due to the uncertainty surrounding the Iran War, and that the airline's after-tax profits for the April-June quarter were below analyst expectations. Europe's biggest airline by passenger number reported an after-tax income of EUR538m ($615.6m) for its fiscal first quarter ending June 30 compared to a forecasted EUR579m in a poll of analysts. Citi analysts said in a note that the airline's shares looked likely "to open down a low-mid-single-digit-%" ?following the miss. FARES 'TRENDING MODERATELY DOWN Michael O'Leary, Chief Executive Officer of British Airways, said that the first-quarter average fare was 6% less than last year's same-period fares. "The Middle East conflict has led to consumer hesitancy and concerns about EU jet fuel shortages as well as economic uncertainty, which have delayed bookings," he explained. The final outcome of the H1 fare is highly dependent on the strength and volume of last-minute bookings, which is what drives profit for budget airlines. Ryanair's last quarterly results, released in May, stated that fares would likely be flat between July and September. CFO SEES CAPACITY FALLING, FARE INCREASING IN THE COMING YEAR Neil Sorahan, Chief Financial officer, said that the decline in fares will be temporary. In an interview, Sorahan stated that "I wouldn't surprise to see some casualties this winter... There's a couple of people who are very close to the edge." He said he expected "significant" capacity to be reduced in Europe this winter "which could be beneficial for pricing." And a lot more?may be taken out in the summer of?2027. Sorahan stated that the possible sale of British rival,?easyJet (which is currently in a bidding battle), could lead to a reduction of capacity, and trigger a "domino-effect" of consolidation across Europe.
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Maguire: ROI-America’s power grid chokes on expensive congestion
The congestion on the U.S. electric grid is a costly bottleneck that drives up prices and delays new generation projects, while also compromising reliability. The electricity industry is still largely focused on the generation of electricity. Politicians debate solar panels, gas turbines, and nuclear reactors, while utilities boast of billions of dollars in planned investments. PJM Interconnection is the largest U.S. electricity market, spanning 13 states. It provides a striking example. According to a recent report from Gridraven, transmission congestion cost market participants $777.8 millions in June. This is down from the record-breaking $1 billion in May during a regional heatwave, but it remains high. In just two months, the combined congestion charges amounted to $1.8 billion. GROWTH TREND It is the direction of travel, not the headline figure. The direction in which things are going is what's most worrying. In the coming years, if current trends continue to be followed, electricity producers and consumers will likely face an increased burden of congestion costs. This is important because congestion acts as a tax against economic growth. Grid operators can't just dispatch the cheapest electricity available when transmission lines are overloaded. They are forced to use generators that are more expensive and located nearer to the demand centers. These costs are eventually passed on to customers through wholesale markets. On their electric bills, consumers rarely find a "congestion charge". They pay it anyway. The problem is getting worse because the demand is increasing at exactly the wrong time. Years ago, the U.S. demand for electricity was virtually flat. This allowed policymakers and utilities alike to put off difficult transmission decisions. This era is over. Construction of data centers is booming. Manufacturers are increasing domestic production. State and utility companies continue to promote electrification in transport and heating. All of these trends are increasing demand for electricity and, more importantly, for the movement of it throughout the country. MISMATCH IN SUPPLY AND DEMAND The modern electrical system is geographically complex, making the task even more difficult. The cheapest new generation is often located away from the major population centers. In rural areas, wind resources are most abundant. Solar power is often more efficient in areas where there is plenty of land than where the electricity is consumed. The U.S. needs transmission infrastructure as much as it needs generation infrastructure. Transmission development is notoriously slow. Permitting and building new high-voltage lines can take up to a decade. Projects are often delayed by local opposition, disputes over permits and battles about cost allocation. The demand growth is however not waiting. PJM PAINPOINTS The effects are already visible?across PJM. Congestion in June was concentrated primarily in Pennsylvania, Maryland and Northern Virginia. These regions are at the intersection between rising electricity demand and transmission bottlenecks. Northern Virginia has been a major hub for the U.S. Data-Center Boom. It is clear that the billion-dollar event in May was not an anomaly. It may instead offer a glimpse at what the future of electricity markets will look like. This presents challenges to consumers and power producers alike. Even when the electricity demand is high, generators behind transmission restrictions may not be able to access all lucrative markets. Congestion can reduce revenues, distort signals of investment and reduce the value new generation projects. Many renewable developers are vulnerable, as they are often located in remote areas far from urban demand centers. They are therefore heavily dependent on transmission availability. DYNAMIC PROSPECTS FOR GROWTH Ironically, America is investing heavily in power generation but failing to make the most of it due to grid bottlenecks. This explains the interest in technologies which can extract more capacity from existing transmission infrastructure. Gridraven estimates Dynamic Line Rate technology could have increased the available?transmission capability in PJM by averaging 13% in June, resulting in a congestion saving of approximately $88.3 millions. According to the company, which models future transmission capacity using weather forecasts and AI, the Graceton 230-kilovolt corridor, could have had congestion costs reduced by almost $36 million. It is not as important whether these estimates are accurate or not, but rather the message. Because it is so difficult to build new infrastructure, the industry is looking for ways to maximize existing grid capacity. Other firms have also developed hardware to increase capacity on existing transmission lines. These include Linevision which models transmission capacity using sensors and digital twins. These technologies could be helpful. They are unlikely to eliminate the problem completely. It's a sad fact that America's electric ambitions are growing faster then its transmission network. The country is aiming for AI leadership, increased domestic manufacturing, cleaner energie, a wider electrification, and stronger economic growth. Each of these goals will require more electricity to be flowing through the grid. Congestion costs will continue to rise until transmission expansion catches up. If PJM is any 'guide, then electricity consumers will soon find out that the most costly part of energy transition isn't producing power. It's moving. These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. 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Ryanair's summer fares are lower as the company misses profit forecasts
Ryanair warned that the 'average summer fares' would be a modestly lower than last year due to uncertainty surrounding 'the Iran war, while after-tax profits for the low cost airline April-June quarter fell below analyst expectations. The largest airline in Europe by passenger count reported an after-tax income of EUR538 millions ($615.6) for the?fiscal quarter ending June 30. This was compared to a 'forecast' of EUR579 from a poll of company analysts. Ryanair warned that fares may be flat between July-September in its last quarterly results, released in May. Michael O'Leary, Chief Executive of Irish Airlines, said that the first-quarter average fare was 6% less than it was the year before. "The Middle East conflict caused consumer hesitancy and concerns about EU jet-fuel shortages as well as economic uncertainty, which led to later bookings," he added. He said that despite a slight increase in 'volumes' and less price stimuli, Q2 prices are trending down modestly year-on-year. The final H1 fare outcome will be heavily dependent on the strength and volume of bookings made in August and Septembre. Close-in bookings are last-minute reservations and the primary source of revenue for budget airlines. ($1 = 0.8739 euro) (Written by Conor Humphrey; edited by Kevin Buckland).
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UOB Private bank appoints Judy Chan as the Hong Kong Business Leader
UOB Private Bank (the wealth management arm of United Overseas Bank in Singapore) has appointed Judy Chan as managing director for Hong Kong. This appointment will take effect July 2026. The following is more information about the statement: Chan will report to Chew Mun Yew as the head of private banking for the group. She will oversee the local private banking team and lead the bank's work in Hong Kong with wealthy clients. Chan has over 30 years' experience in private and commercial banking. She has been in senior positions?managing teams, growing business?in key markets and advising on wealth planning and succession. * UOB Private Bank said that the appointment is part of its plan to grow in Hong Kong and serve more high net worth clients throughout Asia. (Reporting and editing by Jamie Freed; Yantoultra ngui)
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Data shows that Gulf crude exports increased in July, but shipments slowed down due to renewed hostilities.
Shipping data shows that Gulf countries increased 'crude oil' and 'condensate" exports to their highest level since the Iran War began late in February. However, the flow of crude oil through the Strait of Hormuz is now slowing down as the fighting escalates. Kpler data shows that crude and condensate imports from Saudi Arabia and the United Arab Emirates increased by about 16 percent compared to the entire June daily average, reaching 12 million barrels a day (bpd), in the first half of July. Vortexa estimated that exports for the period were even higher at 13.06 million bpd. Kpler reported that Saudi Arabia, Iraq, and Iran led the growth in the first six months of July. Vortexa, on the other hand, estimated Iraq had the biggest month-on-month increase, while UAE exports declined from June's record levels. As supply concerns eased, oil prices fell after the U.S. reached an interim agreement with Iran in mid-June. The deal reopened the Strait of Hormuz, the world's main shipping route for oil, gas and other commodities, and sought a wider settlement to end the war. Early July, disagreements over the administration of the waterway led to the collapse of an interim agreement. Shipping data shows that RED SEA CONCERN Shipments are already 'declining' as both sides escalated their strikes. On Thursday, only three commodity tankers transited the strait, the lowest number of daily transits since last May. Kpler analyst Johannes Rauball stated that "we're experiencing a?"slowdown" in activity. This means that countries are going to have to reduce their output, resulting in a decrease?in the amount of crude that is shipped. Exports were still 32% below the pre-war high of 17.6 million bpd in February. Iran warned Yemen's Houthis that they should be ready to stop traffic in the Red Sea, if the United States targets Iranian energy infrastructure. Sources told Reuters on Thursday. Saudi Arabia diverted the majority of its energy exports via its Red Sea Port Yanbu. Kpler data shows that 75% of Saudi Arabia's 5.29 million barrels per day (bpd) crude and condensate have been exported through Yanbu so far in July.
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Farnborough Airshow opens with a focus on aircraft orders and conflicts
Farnborough Airshow will open on Monday, with Boeing and Airbus looking to secure aircraft deals. Defence firms are also vying for their share of the booming budgets for military spending fuelled by the wars in Ukraine or Middle East. Sources in the industry say that planemakers will announce a number of deals this week. However, they also state that total orders may fall short of analyst predictions of 800 or more aircraft, due to supply-chain constraints which continue to limit production. Defence companies are also arriving in large numbers as governments increase military spending and learn from conflictes that have highlighted the importance of missile defence systems, drones and artificial intelligence. The opening of the event on Monday coincides with Prime Minister-in-waiting Andy Burnham's first day as a cabinet minister. Burnham could also make an appearance during the July 20-24?event. Organisers claim that defence companies will make up?half of the record 1,600 exhibitors, which is a departure from the roots of the event in 1948 when it was a showcase of British aerospace technology. This shift is a reflection of how conflicts in Ukraine and the Middle East, have changed spending priorities, and increased demand for new defence technology, such as unmanned fighter jets, autonomous AI software, and kamikaze drones. The head of Boeing’s commercial aircraft unit stated that the company was focused on increasing and improving aircraft production. "Not order announcements." Airbus and Boeing will reportedly secure about 300 orders, unless additional deals are struck in the last minute. The?sources' said that SMBC Aviation Capital of Ireland, a leasing company, is expected to announce a deal for 100 narrowbody - aircraft from each manufacturer. Bloomberg News was the first to report on the deal. No one from the companies involved has commented. Riyadh Airlines and Philippine Airlines are also in the process of placing orders. There were no immediate'signs' of a breakthrough between Turkish Airlines and engine manufacturers over long-term agreements the carrier had linked to a plan to purchase 150 Boeing 737 MAX aircraft. (Reporting and editing by Sharon Singleton, Joanna Plucinska Dan Catchpole Tim Hepher Joe Brock David Shepardson)
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Trump says the new Air Force One coming from Qatar will be upgraded to its'maxed-out' potential
Donald Trump, the U.S. president, said on Sunday that an Air Force One plane that was donated by Qatar will be upgraded soon. This follows questions regarding 'the planes security features. Trump began flying on the Boeing 747 jumbo jet in 'July 1' after receiving the plane last year as a present. Trump ditched his plane unexpectedly on a flight to the United Kingdom from Turkey on the 8th of July amid an increase in hostility towards Iran. He took an older Air Force One plane to London, which he called a "move for old times sake", but later took the newer plane back to the U.S. On Sunday, Trump was asked if the newly-renovated plane lacked missile defense capabilities. He had just returned from the FIFA World Cup Final in New Jersey. Trump said that the plane has many capabilities. "But, as I understand it, it will be upgraded in about a month or two... It'll take a little over a week." The Air Force didn't immediately respond to an inquiry for comment. L3Harris Technologies, a defense contractor, repainted the plane in Trump's choice of red, white and dark blue with gold. This is a temporary replacement as Boeing struggles to deliver the next-generation Air Force One aircraft. Boeing has been working on delivering two 747-8s that are purpose-built under a $3.9billion fixed-price contract signed in 2018. The contract is now four years late and over budget. The delivery of the 'new planes' is expected to take place in mid-2028. Some experts were concerned that the upgrades made to the Air Force One jet by Qatar may not have been completed as quickly as they had hoped. The critics also questioned whether the gift was worth it and whether the government should have accepted it. The New York Times journalists who had covered the security features of the new aircraft earlier this month were subpoenaed. The Times has requested that a court block the orders to appear in front of a federal grand jury panel at Manhattan federal court. Trevor Hunnicutt, Idrees Al-Idrees Ali and Sergio Non edited the article.
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The death toll is expected to reach dozens after a passenger ship sinks off the coast of Guyana
Authorities feared that dozens of people may have died after a 'ferry carrying 133 passengers capsized late Saturday night off the coast Guyana. They suggested an incorrect passenger list or drug use on the part of the crew could have been responsible. Guyana's authorities have not found any survivors since Sunday afternoon, when they announced that they had rescued 15 children and 67 adults. At a late-night press conference on Sunday, Juan Edghill, Minister of Public Works, said that the captain and several members of his crew are in police custody. Edghill stated that search and rescue was still ongoing. "We are doing all that we can to locate the loved ones of those families who are searching for them." Authorities said that the MV Barima capsized while travelling from Georgetown to Port Kaituma village, with 116 passengers on board and 17 crew. The ship was approximately?seven mile from shore. Around 11 pm on Saturday night, air traffic control received distress calls from the ferry. This triggered a search-and-rescue operation. Edghill stated that early response was hampered due to the darkness, and the lack of vessels equipped with scanners?that could search and find survivors. Rescuers were left relying on their eyesight and sounds. Edghill stated that the oil and gas industry has deployed scanners, and the government has sent divers to the ferry in order to search for the bodies. The authorities have expanded the search area from 400 square kilometers to 1,040 sq km (401 sq?miles). Edghill first insisted on Sunday afternoon, that the ferry operator had not shown any signs of "neglect". On Sunday evening, Edghill said that the captain and other crew members tested positive for marijuana. A number of the people who were saved were not on the manifest for the ferry, which suggests that the passenger list was inaccurate. The minister stated that the boat was in need of maintenance and would be dry docked - the process whereby a ship is temporarily taken out of the water to inspect or repair problems - this year. Families have been torn apart by the disaster. Leon Murray, who was on the ferry at the time, told the local news outlet Ignite News, that someone shouted about four hours after the boat left Georgetown that it was sinking. Murray was able to swim up to the surface and use a life jacket in order to stay afloat. He floated and shouted for help, and then found his son holding onto a box floating in the water. Murray claimed that he and son were still alive, but his daughter, wife and four grandchildren had not been found. "Six of the six are gone." Mark Phillips, the Guyananese prime minister, said in a press release that the vessel had a cargo weight of 286, out of its capacity of 284, tons. He stated that the ferry had a license to carry 300 passengers and was equipped with 250 'life jackets', six inflatable liferafts and 2 'rigid liferafts. Phillips announced at a press conference on Sunday night that an investigation was underway into allegations of wrongdoing by members of the maritime administration, police, and defense forces. Let me be clear. If negligence, misconduct, or criminal wrongdoing is proven, the responsible parties will be held accountable to the full extent of the law. Reporting by Kemol and DeisyBuitrago, Writing by Emily Green, Editing by Chizu and Thomas Derpinghaus
Boeing focuses on production at Farnborough Airshow, not new orders
Boeing's head of commercial aircraft unit announced on?Sunday that the company is examining a?new?round of _production increases? for its best-selling 737 MAX, after it received regulator approval in may to increase production to 47 a monthly. Boeing was given an unprecedented production limit by the Federal Aviation Administration after a mid-air accident in 2024 revealed widespread safety and quality lapses.
Stephanie Pope, CEO of Boeing Commercial Airplanes, told reporters during a roundtable before the Farnborough Airshow that the company uses its safety management system to determine when it is stable enough to move to the next rating.
"I have the team focused on stabilising 47." We'll move to 52 once we reach 47. Then we'll continue to study that. She said that the company's focus at the show is on increasing and improving aircraft production. "Not order announcement," she added. The backlog is extremely strong. The demand is not a problem. Pope said that if we announced some orders along with the process, we would 'celebrate' with our customers depending on whether they wanted to. She said that the priority of 'the planemaker is to listen' to its customers and suppliers at this biennial event, which brings together executives of many of the industry's biggest companies. She said, "We will?understand what their challenges are and then update them on our product," (Reporting and editing by Sharon Singleton in London, with David Shepardson reporting from London)
(source: Reuters)