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Spirit Airlines targets a net profit of $220 million in 2027
Spirit Airlines announced on Tuesday that it would fully implement its transformation by the end 2027. By then, the bankrupt airline expects to generate about $220 millions in net profit. In a regulatory filing the discount airline estimated that its adjusted operating losses in 2025 would be $819 million. After filing for bankruptcy a second consecutive time in August, the ultra-low cost carrier has cut its network and fleet size, and is planning to lay off pilots and flight attendants in order to get on a more solid financial footing. Spirit Airlines said that its EBITDAR, a measure for operating performance, is estimated to reach $900 million at the end of 2027. Two furloughs are expected to save the carrier $211 million, of which one has already taken place. Spirit stated that fleet reductions would result in an estimated $400 million in annualized rent savings and a decrease in lease liabilities of over $3 billion. Reporting by Rajesh Kumar Singh in New York and Doyinsola Oladipo; editing by Chris Reese, Deepa Babington
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Next week, the US Senate Committee will vote on legislation relating to aviation safety.
The U.S. Senate Commerce Committee will vote on aviation safety legislation on October 21, following a deadly January crash between a regional American Airlines jet and an Army helicopter at Reagan Washington National Airport that killed 67 people. The Senate Commerce Committee chair Ted Cruz, along with several other senators, are set to introduce legislation that will require military helicopters flying near civilian aircraft to use ADS-B technology for tracking, and all civilian aircraft to use ADS-B. At the time of the collision in January, the helicopter that was involved did not use ADS-B. First reported the planned vote next week that will mark the first major step toward aviation safety reforms following the U.S. plane accident which killed more than 200 people. Cruz, a Republican senator, has been working with Maria Cantwell, a Democrat, to try and reach a bipartisan agreement before the hearing on legislation relating to aviation safety. Sean Duffy, Transportation Secretary and members of both parties in Congress, has questioned the Federal Aviation Administration's failure to take action for many years regarding close calls with military helicopters near Reagan. Cruz's bill, dubbed ROTOR Act, would also require that the Army Inspector General's Office initiate a safety audit after declining to do so. Cantwell, along with other Democratic Senators, proposed legislation in June requiring an audit of helicopter operations and passenger operations on major airports. The bill also mandated new FAA safety assessments after fatal passenger airline crashes and required ADS-B usage. Cruz's spokesperson said that he had been working with the families of those who were injured in the accident and was committed to making sure this kind of accident never happens again. The spokesperson said that the bill "requires all aircraft, both military and civil, to use ADS-B out and ADSB in and seeks accountability for the Army failures which may have contributed to this crash." In April, the FAA announced that government helicopters would be required to use ADS-B near Reagan National. And in May, the Army was barred from flying helicopters around the Pentagon following a close call. The FAA changed helicopter routes earlier this month at the Baltimore/Washington Thurgood Marshall International Airport, and Washington Dulles International Airport in order to "add additional buffer between aircraft" and "increase the separation between helicopters flying into and out from each airport." (Reporting and editing by Nia William and Aurora Ellis; Reporting by David Shepardson)
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NDTV reports that at least 19 people have died after a bus catches on fire in India's Rajasthan.
According to the Indian broadcaster NDTV, citing police, at least 19 people were killed on Tuesday when a private vehicle in the state of Rajasthan, located in western India, caught fire. Smoke was seen coming from the back of the bus as it traveled from Jaisalmer towards Jodhpur. NDTV reported that the driver stopped the vehicle along the roadside, but within seconds flames engulfed it. According to the report, police suspect that the fire was caused by a short-circuit. NDTV reported that 15 passengers, including 2 children, suffered serious burns. Some of the victims had up to 70% of their skin burned off. Details of the report could not be independently verified. Rajasthan Police did not respond immediately to our request for comment. "Distressed at the loss of life due to an accident in Jaisalmer (Rajasthan). In this difficult time, my thoughts are with those affected and their families," Indian Prime Minister Narendra Modi wrote in an X-post. The Prime Minister also announced that the National Relief Fund of the Prime Minister will provide 200,000 Rupees (2,253) for the families and injured.
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Azeri BTC and Urals are both down on weaker demand
As November-loading cargoes began to trade, the differentials between Russia Urals and Azeri BTC remained stable, but traders reported that Azeri BTC volumes had been offered at lower premiums on a bearish oil market. The demand for Russian Urals Oil remained strong, and cargoes to be loaded in November began to appear on the market. The traders tried to estimate the volume of exports for November, as the ongoing attacks on Russian oil refining facilities and the news of an increase in Russian oil production suggested a higher availability of this grade. Traders said that the high availability of alternative oils on the market has put pressure on premiums for Azeri BTC. PLATTS WINDOW Azerbaijan SOCAR offered to load 650,000 barrels Azeri BTC Oil from Ceyhan on November 4-8 at plus $1.95 Brent Dated, but the offer failed to find a purchaser, despite being below recent price estimates. The United States, China and other countries began to charge additional port fees for ocean shipping companies that transport everything from holiday toys or crude oil. This is a major front in the trade dispute between the two world's largest economies. The International Energy Agency reported on Tuesday that Russia's revenue from crude oil, refined products, and other petroleum products dropped again in September. Exports of these products plummeted to their lowest level in over a decade, excluding April 2020 when COVID was a problem.
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Chinese airlines oppose Trump's plan to stop flying above Russia on US routes
On Tuesday, major Chinese airlines urged the Trump Administration to abandon its plan to ban them from flying above Russia on U.S. flight routes, claiming that it would increase flight times, increase air fares, and disrupt some routes. The U.S. Transportation Department last week proposed that Chinese airlines be banned from flying over Russia in routes between the United States and China, claiming the shorter flight times put American carriers at an unfair disadvantage. China Eastern, which was one of the six Chinese airlines to send a letter, stated in a USDOT filing that this move could increase flight times on some of their most important routes from two to three hour, and significantly increase the risk of missing connections. Air China and China Southern have said that the decision will adversely impact a significant number of passengers both in the United States as well as China. China Southern estimated that at least 2,800 passengers who were scheduled to travel between November 1 and December 31 during peak holiday travel season would have to be rebooked, "putting their travel plans in jeopardy." In retaliation to Washington's ban on Russian flights over the U.S. after Russia invaded Ukraine in March 2022, Russia has banned U.S. Airlines and many other foreign airlines from flying over their airspace. Chinese airlines are not banned, and they have used this to gain a larger market share on international routes compared to other carriers. On Friday, a spokesperson for China's Foreign Ministry said that the restrictions did not encourage person-to-person contact. Airlines for America, the major trade association representing American Airlines, Delta Air Lines, and United Airlines, applauded the initiative but called on USDOT "to maintain parity in the numbers of passenger flights available for U.S. airlines and Chinese carriers, by ensuring the level of capacity for passengers remains reasonably tied to the marketplace demand." (Reporting and editing by Chris Sanders; David Shepardson)
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Boeing receives EU antitrust approval for Spirit AeroSystems $4.7 billion deal
Boeing received EU antitrust approval Tuesday for its $4.7 Billion acquisition of Spirit AeroSystems, after agreeing on the sale of some Spirit businesses in order to address concerns about competition. Boeing announced a deal last year to streamline its operations and improve the quality of its products, many years after it had spun off the airline suppliers. Boeing offered remedies when the European Commission, the EU's antitrust enforcer said that the deal would have reduced competition on the global aerostructures market and the large commercial aircraft industry. The Commission confirmed a report last week that it had accepted Boeing's proposal to divest Spirit's aerostructures business to Airbus. Boeing will sell Composites Technology Malaysia Sdn Bhd the Spirit site in Malaysia that supplies aerostructures for Airbus. This allows the Malaysian firm to enter the market. Teresa Ribera, EU antitrust chief, said that "Boeing’s commitments" will preserve competition on this important market. They also allow for the entry of new competitors and guarantee commercial aircraft manufacturers get the parts they require at competitive prices. The U.S. has yet to approve the deal. Boeing's spokesperson stated that they were committed to completing the acquisition and obtaining the necessary regulatory approvals. This will allow Boeing to continue to produce high-quality, safe airplanes, benefiting the flying public and our customers. Spirit Airlines said that it is working hard to meet the closing conditions, as well as complete its further planning with Boeing Airbus and Composites Technology. Spirit AeroSystems' spokesperson Joe Buccino stated, "This is a milestone towards transaction closure expected this quarter."
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Blackouts across several states caused by fire at Brazil's power substation
An early morning fire at a substation of Brazilian company Eletrobras caused a power outage in several parts of Brazil. Officials said that the shutdown affected more than one million Brazilians and around 10,000 megawatts of load. OnS, Brazil's energy operator, said that the incident took place in a reactor of a substation located in the south. It shut down the facility, and caused the disconnection for the entire region. The region was exporting 5,000MW to the rest of Brazil. The fire in the South resulted to a loss of 1,600 MW. In other areas, an automatic protection system was activated to cut the power when a disturbance caused the system to need to be rebalanced. The Northeast region was affected by an interruption of approximately 1,900MW. The North region suffered an interruption of 1,600MW. And the Southeast region was affected by 4,800MW. Brazil Mines Minister Alexandre Silveira described the blackout as an isolated incident that was not caused by a lack in energy but an issue with infrastructure. "We now have greater energy safety." "This was an isolated incident to which ONS responded promptly," Silveira stated during an interview with local television. ONS reported that the equipment was restored and the loads recovered "safely" within the first minutes. All the loads were returned within two-and-a half hours. Eletrobras stated in a press release that it would work with ONS in order to identify the cause of the incident, and the agency will also investigate the factors leading to the wider disturbance in the interconnected national system. The blackout affected at least 1.3 millions people, according to electricity distributors in the country. These include Light and Enel Sao Paulo. (Reporting by Leticia Fucuchima in Sao Paulo and Rodrigo Viga Gaier in Rio de Janeiro; Writing by Fernando Cardoso; Editing by David Gregorio)
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Sources: Enagas is in negotiations to purchase GIC's stake in French gas grid operator Terega.
According to two sources familiar with the matter, Enagas, a Spanish gas grid operator, is in negotiations to buy GIC, a Singaporean sovereign fund, 32% of Terega, France’s second largest gas transmission operator. Terega also partners with the Spanish company on a project to build a hydrogen pipe connecting Spain and France. The companies also run gas pipelines between the two countries. According to one person, the stake could be worth up to 600 million euros. The French company's value, including its debt, is estimated at 4 billion euros. According to LSEG, Enagas' market capitalisation stood at 3.6 billion euro as of Monday close. The sources, who spoke on condition of anonymity because the conversations were private, said that no deal was certain. Enagas declined to comment. Terega refused to comment on these talks and didn't respond to an inquiry about the value of the stake. Enagas could achieve its stated goal of accelerating investments in hydrogen infrastructure by signing a deal with GIC. Terega, Enagas and Engie's Natran unit are part of a joint-venture to build a trans-border hydrogen pipe between the Spanish port of Barcelona and France's Marseille. This project is part of the larger H2Med pipeline, a 2.5 billion euro project, which will connect Portugal, Spain France and Germany in 2030. The European Union hopes to replace some of the natural gas used in homes with hydrogen which doesn't emit CO2 when it is burned. According to the website of Terega, Italian gas grid operator Snam holds a stake of 40.5%, French utility EDF has an 18% stake and French bank Credit Agricole has a 10% share. EDF and Credit Agricole explored selling their stakes, but the deal never materialized.
US Judge to hold trial in 2027 for fatal helicopter and plane collision lawsuits
A federal judge set a trial date of April 2027 for lawsuits filed over the collision between an American Airlines regional plane and a U.S. Army chopper that claimed 67 lives near Ronald Reagan Washington National Airport this year.
U.S. district judge Ana Reyes set the date for a hearing in Washington with attorneys representing victims, defendants such as American Airlines and U.S. Government.
Reyes stated at the hearing that "we will not dishonor those who have lost their lives and their families and friends and we will not dishonor employees of defendants who are working hard to ensure safety" by dragging the matter along.
American Airlines, Federal Aviation Administration and U.S. Army didn't immediately respond to comments. Plaintiffs' lead attorneys either refused to comment or didn't respond immediately to a request.
At least two lawsuits have been filed against American Airlines and U.S. Both lawsuits were filed in September and name PSA Airlines as a defendant.
PSA didn't immediately respond to an inquiry for comment.
American Eagle Flight 5342, on its approach to Reagan, collided with a U.S. Army Black Hawk Helicopter over the Potomac River at night. The helicopter was flying above the published altitude for helicopter routes.
American Airlines defended their safety record in a previous statement and stated that they would "defend American Airlines and PSA Airlines from any legal actions claiming that the airline caused or was involved in this accident."
The U.S. airline disaster was the deadliest in over 20 years. (Reporting and Editing by Bill Berkrot.)
(source: Reuters)