Latest News
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Frontier Airlines forecasts third quarter profit higher than estimates due to strong demand and increased airfares following rival's departure
Frontier Airlines, a low-cost carrier, forecasted third-quarter earnings that were above Wall Street expectations on Wednesday. The airline attributed this to higher airfares as well as strong demand following the exit of its competitor Spirit. In premarket trading, the company's shares were up 2.4%. The uncertainty surrounding the Middle East war has made it difficult for airlines forecasting earnings and jet fuel prices, which make up roughly one-fourth of their operating costs. Frontier Airlines' exit from its closest rival Spirit Airlines allowed it to increase fares faster and limit the impact a ballooning fuel cost had on its margins. U.S. carrier has also cut costs by delaying deliveries of newer Airbus planes and prematurely returning older aircraft to lessors. Frontier Airlines, based in Denver, expects its third-quarter earnings to be between a loss of 10 cents and a profit of 10 cents, compared to analysts' expectations for a 29-cents loss. Analysts expected a profit of 24 cents a share. It forecasted?for the fourth quarter between breakeven and?20 cents a share. The airline reported that revenue for the second quarter reached a record of $1.28 billion, "driven by a strong travel demand and favorable competitive capacity." In May, rival Spirit Airlines left the U.S. In fact, unit revenue (a measure of pricing) grew by 28% compared to a year earlier, reaching 11.52 cents, but capacity only increased by 8%. The airline spent $4.17 per gallon in the quarter ended June 30, 77% more than the year before. Total fuel costs almost doubled to $436 millions. Frontier posted a quarterly loss of 10 cents, which was lower than the 31-cent loss per share a year ago and higher than analysts' expectations for a 48-cent loss per share. Reporting by Nandan Mandyam, Bengaluru. Editing by Jonathan Ananda.
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Bangladesh's USBangla will buy 21 Boeing aircraft for $1.5 billion in expansion
US-Bangla Airlines plans to acquire 21 Boeing aircraft for $1.5 billion in order to expand its international network. The 'order,' announced at the "Beyond with Boeing", event in Dhaka includes 15 Boeing 737-8s and six Boeing 737-8s with deliveries planned by the end 2027. Bangladesh's air travel industry generates an estimated $5.8billion annually. However, foreign airlines transport the majority of passengers, leading to a significant loss of foreign currency. Bangladesh, in an effort to address the problem and boost trade with the United States, agreed to purchase 14 'Boeing' aircraft valued at $3.7 billion. US-Bangla Airlines stated that the deal announced on Wednesday was more than just a fleet expansion. Mohammad Abdullah Al Mamun said, "It reflects the long-term vision of US-Bangla to transform from an airline into a global aviation group that is fully integrated." The event was attended by government officials, diplomats and Boeing executives. Mamun said that the company founded in 2014 was also investing in technology, maintenance, cargo and catering, as well as infrastructure, to support the growth of Bangladesh's aviation industry. US-Bangla stated that the new aircraft will support expansion throughout South?Asia Southeast Asia East?Asia Middle East.?Including planned services to Bengaluru Colombo Kathmandu Beijing Penang Kuwait and Madinah. Ruma Paul is reporting; Barbara Lewis is editing.
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UK PM Burnham: Social care reform should be put before debate on assisted dying
Andy Burnham, the new British Prime Minister, said that the debate over assisted dying should wait until the palliative and adult social care systems in the country have been 'fixed'. The bill was defeated in the upper chamber. Some critics of the legislation claim that people who are vulnerable could be pressured into ending their lives because palliative and social care is often underfunded. Burnham, who became Prime Minister last week, and has made adult social care a top priority, says the debate shouldn't happen until the correct care structures are in place. Burnham, a?Catholic, responded to Burnham's question about his position on assisted dying by saying, "I think that there is something that has to happen first. That's fixing the funding for palliative and social care." It is "very difficult" to introduce this wider debate when people are not receiving that care. The legislation that was debated in England and Wales last year would have allowed terminally ill adults who are mentally competent to choose medical assistance to end their life.
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Sources say that Yemen's Houthis are considering charging ships for crossing the Red Sea.
Regional sources familiar with the matter said that Yemen's Houthi militia is considering charging fees to commercial ships navigating through the southern Red Sea a week after announcing a naval blockade against Saudi Arabia. The Iran-aligned Houthis declared a maritime boycott against Saudi Arabia on July 20th, opening up a "new" front against the U.S. Sources said that the Houthis are considering imposing fees for most traffic passing through the Bab el-Mandeb narrow gateway which connects the southern Red Sea to the Gulf of Aden. At this point, no timeframe for implementation was provided. The media office of the Houthis did not reply to a comment request. Two regional officials briefed on the matter by Tehran said that Houthi officials visited Iran in July to attend the funeral of the late Supreme Leader Ayatollah Ayatollah Khamenei. They met with their Iranian counterparts and discussed the issue of imposing fees for Bab el-Mandeb Transits. Sources said that the objectives of such a move were to normalise fees on international waterways, and increase pressure on America. The sources said that Chinese ships would not be subject to'such fees' and that the Houthis supported the arrangement. Sources have confirmed that China has had direct talks with Houthis in order to allow its tankers to safely sail through the southern Red Sea. China is the largest buyer of Saudi Arabian crude oil in the world. The IRANIAN ADVISERS GUIDE Fee Plan An Arab official in this region reported that Houthi officials returning by plane to Tehran were accompanied on the ground by 'Iranian advisors, who were there to 'guide them on how they could set up a possible authority which would regulate fees via the Bab el-Mandeb. Afrah Al-Zouba is the foreign minister-designate for Yemen's internationally recognized government. She said that "the Houthis" would try to gain access to the Red Sea, and they would try to charge vessels if they did. Two Western diplomats say that such a move will be met with strong opposition by Gulf and European nations, despite the fact that overstretched naval forces in the international arena are currently unable provide adequate protection for merchant ships and there is a lack of political appetite to change this. A senior Iranian official said that Tehran had rejected Oman's proposal for regional joint management of Strait of Hormuz, which would have included voluntary fees from shipping. This has dashed hopes of a solution to the impasse, which has been choking off Gulf trade at that chokepoint since months. SAUDI ARABIA - FACES SUPPLY THREAT Closed Bab el-Mandeb would rob Saudi Arabia of a vital alternative to the Strait of Hormuz, and increase?fears of a shortage of oil. The Red Sea?traffic is still not back to normal since the Houthi began their attacks on Yemen's coast in November 2023, which they claimed was an act of solidarity for Palestinians during the Gaza War. The attacks by the group on merchant ships only stopped with the Gaza ceasefire in October last year. Houthis claim responsibility for at least one Saudi oil tanker that was attacked off the southern Saudi port Jizan, which is near Yemen. A 2024 U.N. Panel of Experts Report claimed that the Houthis had collected fees in return for'safe passage' from shipping agencies transiting through the Red Sea and Gulf of Aden at the height of their maritime campaign. However, the report said it could not independently verify this information. These fees were estimated at $180 million per month, but these details were not confirmed. The average time to ship cargo from the Bab el-Mandeb through the Suez Canal, then through southern Africa, is 16 days. This compares with 50 days if the cargoes were rerouted via the northern Red Sea and the Suez Canal. (Reporting and editing by Jonathan Saul; reporting by Parisa Hafezi; Timour Azhari, Mohammed Ghobari, and Ros Russell).
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Travel companies in the US are resilient enough to absorb Middle East shock.
Early earnings reports show that travel companies, including hotel chains and cruise operators, relied on the resilient U.S. leisure and business demand. They also benefited from a temporary boost from World Cup to offset the effects of the Middle East war. Fuel costs have increased and international travel has been disrupted by the?conflict. However, earnings reports released on Tuesday indicate that many consumers are not deterred by economic uncertainty or higher travel costs. The founder of GetCruiseInfo.com, Brian Rooney, said that "JetBlue Hilton and Royal Caribbean have all shown continued strength with higher-valued products. This suggests that travelers still prioritize experiences, even though they are becoming more selective in their discretionary spending." These results confirm that we are still experiencing a K-shaped economy in travel. While higher-income travelers book premium experiences, value-conscious travellers adjust when and how to travel instead of giving up vacations entirely. Hilton Worldwide Holdings has raised its forecast of full-year revenue growth, driven by strong demand for its luxury properties, and the expected benefits to the third quarter from the World Cup. However, the U.S. hotelier's Middle East -and Africa room revenue fell 29.5% compared to the previous period. Hilton CEO Christopher Nassetta stated in a conference call that the World Cup helped boost earnings, but mid-scale hotels saw the greatest turnaround, as they benefited from the business and group travel market. Hilton's RevPAR (room revenues) grew by about 1.7% in the second quarter due to the soccer event. Visa, the world's largest processor of payments, noted an?improvement from the event. Chris Suh, Chief Financial Officer of the United States, said that the total card-present spending in the U.S. increased. Card-present transactions rose as much as 20 percent in certain host cities during match days at the FIFA World Cup. The entertainment and restaurant categories saw the largest growth in cross-border spending. Royal Caribbean, the cruise operator, raised its profit forecast for this year but cut its revenue growth projection as it accounted for a slight drop in bookings due to prolonged geopolitical tensions. The Miami-based company reported an increase of 27% in its quarterly fuel costs to $355 millions from the previous year, but reduced its forecast for full-year fuel expenses from $1.35 to $1.34 billion. Royal Caribbean's chief financial officer, Naftali Hoetz, said: "Consumer interest in our vacation experiences continues to be strong and guests are willing to spend money on memorable experiences." The war in Iran has been a major blow to the airlines. Although most U.S. airlines recovered?nearly 50% of the increased fuel costs caused by the conflict during the second quarter, the outlook for their profits remains uncertain. The price of air travel is expected to remain high. JetBlue Airways reported that higher demand and higher fares allowed it to recover more fuel costs than anticipated, even though the New York-based carrier's quarterly fuel bills ballooned by?nearly 80%, or approximately $407 million. JetBlue's President Marty St. George stated during an earnings call that "nobody likes fare increases" but, at the end, we need to cover costs. As volatile fuel prices resulting from the war have moderated, the airline's visibility for?the second half of the year improved. Travel is the most resilient part of luxury. Adam Sebba is the CEO of The Luminaire, a luxury travel agency based in London.
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Two India-based GMR Group units eye aggregate $500 million debt, bankers say
Two merchant bankers who have a 'direct' knowledge of the plans confirmed the plan on Wednesday. The bankers declined to name themselves because they were not authorized to speak with the media. In August 2025 the company raised 15 billion rupees via an 18-month paper at a return of 10.35%, and 44 billion rupees via three-year papers with a rate of 10.50%. The bankers said that Delhi International Airport (DIAL), where GMR Airports has a 74% stake, also plans to raise 35 billion rupees through longer-duration papers of 15 years. These will have a call-option at the end the fifth year. DIAL and GMR Airports have not responded to emails seeking comments. One of the bankers quoted said, "DIAL raises rupee funds to pay its expensive dollar bond that is due to mature in Oct." DIAL issued dollar bonds in the amount of $523 million with a coupon rate of 6.1250%. They are due to mature by October 31. These bonds will be issued in a form of a STRPP (separately transferable redeemable principle part) and it would be the company's first issue for a period of?over one year. In September 2025 it raised 10 billion rupees via bonds maturing after 15 years. The redemption was staggered, starting at the end of the?sixth to maturity, and a coupon of 8.75%. The bankers said that the companies could complete their fundraising by the end of October. (1 dollar = 95.7000 Indian Rupees). (Reporting and editing by Nivedita Battacharjee; Reporting by Dharamraj Dhutia, Khushi malhotra)
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India's largest refiner is looking to buy stakes in US gas carriers, as it prepares for higher US imports
According to a document describing a bid, India's largest refiner, the Indian Oil Corp. (IOC), wants to buy a 50% stake in large gas carriers. IOC will be the first refiner in India to own VLGCs. The company relies on LPG and crude oil tankers that are leased for a specific period of time. IOC did not respond immediately to an email request for comment. Indian state-owned fuel retailers will increase their purchases of U.S. cooking gas (LPG) from 2027. A trader in Asian LPG said that U.S. LPG was typically more expensive to Indian?buyers due to the longer journey and higher freight 'costs. The trader stated that the biggest problem in purchasing U.S. LPG was not availability, but freight costs. According to the tender document that was sent to a small number of companies, IOC is looking for VLGCs of between 80,000 and 93,500 cubic meters, with a maximum age of 12 years. The document stated that bidders could offer up to two VLGCs. However, IOC did not specify how many vessels they intend to purchase. The document stated that IndianOil LNG is an IOC joint venture and reserves the right of acquiring one or more vessels through the tender. IOC will host a pre-bid meeting on August 5. Commercial and technical bids are due by September 7. The document also stated that the vessels would be re-flagged in India following the acquisition. (Reporting and editing by Kevin Buckland; Nidhh Verma)
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Sources say that China has been in contact with the Houthis of Yemen to allow ships to pass through the Red Sea.
Six sources familiar with the situation said that China held direct discussions with Yemen's Houthi movement to allow its tankers to navigate through the southern Red Sea, without being attacked. The Iran-aligned group had pledged to block access to Saudi ports. The Houthis announced their 'blockade' on July 20th, opening a?new front?against U.S. allies and the Iran war? and expanding attacks on oil tankers transporting energy and other supplies beyond the Middle East. According to sources, including a senior Iranian official, Beijing asked the Houthis to guarantee safe passage for their tankers. Sources who declined to identify themselves due to the sensitive nature of the issue said that China was one of the first countries to directly contact the Houthis about transits across Bab el-Mandeb. Bab el-Mandeb is the strait between the Red Sea and Yemen, located on the eastern bank. Sources say that China cleans vessels individually with a mouthhie. Beijing wants to ensure that oil is exported from Saudi Arabian Red Sea terminals like Yanbu to plug the supply gap caused by Iran's effective closure of the Strait of Hormuz as it exits the Gulf. Requests for comments from the Houthis media office, China's Transport Ministry and Iran's Foreign Ministry were not immediately responded to. China's Foreign Ministry said that it closely follows developments in the Red Sea without confirming any talks with the Houthis. It added that sovereignty and security should be respected by all countries in the area, and the safety and free flow of international shipping should be maintained. Mao Ning, the spokesperson for China's Ministry of Foreign Affairs, said in a press conference on Wednesday that the country calls on all parties to resolve their differences and conflicts through dialogue and consultation and to de-escalate situations on the Red Sea. According to Kpler analysis, LSEG and MarineTraffic data on ship tracking, at least four tankers loaded crude oil from Saudi ports bound towards China and transited Bab el-Mandeb after the Houthis declared their restrictions. Two officials briefed on the situation by Tehran said that both sides had informed Iran about their actions. According to one source, Chinese officials cleared each vessel with the Houthis individually. Houthis sent an email to international shipping companies warning that they may be attacked by the Houthis if their vessels load or discharge cargo in Saudi Arabian ports. Two separate Chinese sources confirmed that some tankers trying enter the Red Sea via Bab el-Mandeb changed their course due to safety concerns. TWO TANKERS CUT OFF THE STRAIT TO AVOID IT According to an analysis of data from MarineTraffic and Lloyd's List Intelligence, both the New Champion and New Prime supertankers sailed out of the Gulf of Aden and into open water. According to Kpler, and other ship tracking and industry data, the New Champion was 'due' to call at Yanbu to load oil. The New Prime, however, had already been loaded with oil. The Hong Kong-based operator of the vessels, Associated Maritime did not respond immediately to a comment request. Last week, the Houthis claimed that they carried out drone and missile strikes on two Saudi oil tanksers -?the Encelia' and?the Layla. The Encelia was confirmed by maritime security sources, but the Layla attack could not be immediately confirmed. Average time to travel from Yanbu, through Bab el-Mandeb, to Asia is 16 days. The ship would take 50 days to sail around Africa and the west and south of Africa after turning north for the Suez Canal. Two sources close to Houthis said that the Houthis maintain good relations with China, and they have worked closely together in the past, particularly on oil shipments from Saudi Arabia to China. Reporting by Jonathan Saul; Parisa Hafezi; Mohammed Ghobari; Timour Azhari; Florence Tan; Aizhuchen; Siyi Liu; and Sam Li. Additional reporting by Ethan Wang, Beijing; Editing and Kevin Liffey, Kevin Buckland.
Airlines suspend flights as Middle East tensions rise
Issues over a larger conflict in the Middle East have actually prompted global airline companies to suspend flights to the region or to avoid affected air space.
Below are some of the airline companies that have adjusted services to and from the region:
AIR ALGERIE The Algerian airline company suspended flights to and from Lebanon up until even more observe.
AIRBALTIC. Latvia's airBaltic strategies to resume flights between Riga and Tel . Aviv on Sept. 17, it stated by means of email on Sept. 16.
AIR FRANCE-KLM. Air France stated on Sept. 17 it was suspending services to Beirut. and Tel Aviv as much as and including Sept. 19. KLM cancelled all flights to and from Tel Aviv up until Oct. 26. The Franco-Dutch group's inexpensive unit Transavia cancelled. flights to and from Tel Aviv until March 31, 2025, and flights. to Amman and Beirut until Nov. 3.
AIR INDIA. The Indian flag provider suspended arranged flights to and from. Tel Aviv till further notice.
CATHAY PACIFIC. Hong Kong-based Cathay Pacific cancelled all flights to Tel Aviv. up until March 27, 2025.
DELTA AIR LINES. The U.S. provider paused flights in between New york city and Tel Aviv. through Oct. 31.
EASYJET. The UK spending plan airline company stopped flying to and from Tel Aviv in. April and will resume flights on March 30, 2025, a representative. said.
IAG. IAG-owned Spanish inexpensive carrier Vueling cancelled its. operations to Tel Aviv till Jan. 12, 2025, it said in an. e-mailed remark. Flights to Amman have actually been cancelled up until. further notice, the airline company included.
LOT. The Polish flag provider suspended flights to Lebanon till. further see, while flights to Tel Aviv are now operating. routinely, it said in an e-mailed comment on Sept. 10.
LUFTHANSA GROUP. The German airline group stated on Sept. 17 it was suspending all. connections to and from Tel Aviv and Tehran up to and including. Sept. 19. The airline had resumed flights to Tel Aviv on Sept. 5, while flights to Beirut will remain suspended through Sept. 30. Swiss International Air Lines, also a part of the Lufthansa. Group, individually said it had suspended flights to Beirut till. the end of October.
RYANAIR. Europe's most significant budget airline company cancelled flights to and from. Tel Aviv up until Oct. 26, citing operational constraints.
SUNDAIR. The German airline company cancelled all flights between Bremen and. Beirut up until Oct. 23.
SUNEXPRESS. SunExpress, a joint venture in between Turkish Airlines. and Lufthansa, suspended flights to Beirut through Dec. 17.
UNITED AIRLINES. The Chicago-based airline company suspended flights to Tel Aviv for the. foreseeable future due to security factors.
LEBANESE AIRSPACE NOTIFIES. Britain recommended UK airline companies not to enter Lebanese airspace from. Aug. 8 until Nov. 4 pointing out prospective danger to aviation from. military activity.
(source: Reuters)