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Coupang prepares for increased competition following South Korea data breach
Investors will examine the financial results of South Korea's ecommerce giant,?Coupang on Thursday to see if there are any repercussions from a data breach. Rivals have been luring shoppers away from its platform. A proposed "regulatory" change could also increase competition for ultra-fast deliveries, which have been the cornerstone of the company's market dominance. Coupang has been pushed to the edge of its position after a data breach in November exposed names, phone numbers, and shipping addresses, but not login details or payment information. In an update released this month, the Science Ministry attributed Coupang's management failure rather than a sophisticated cyberattack. Coupang stated in a press release that it will "take all necessary measures to prevent further harm" and strengthen safeguards to avoid a repeat. Lee Kwang-lim is an executive director of the Korea Chainstores Association. The association represents large retailers such as E-mart, Lotte Mart, and others. According to WISEAPP, Coupang reported a 3.5% drop in monthly active users on mobile devices from November to January, while Naver saw a 23% increase during the same time period. According to IGAWorks Mobile Index, the average daily consumer spending fell 6.3% in January compared to November. According to LSEG, analysts lowered their average estimates for Coupang's fourth-quarter revenues by 2.2% compared to the previous quarter. Coupang, a New York-listed company, has seen its shares fall by around 34% following the disclosure of the breach. Meanwhile, shares in traditional retailers and logistic firms have risen. The damage to Coupang's reputation comes as a proposed regulation change could also weaken its position. Coupang was built upon the "Rocket Delivery", which allowed customers to place orders by midnight and receive them before dawn. Since more than a century, the?South Korea has prohibited large brick-and mortar retailers from operating at night, as a way to protect small neighborhood stores. Because the rule didn't apply to ecommerce platforms like Coupang (founded in 2010 by Harvard graduate Bom kim), it fueled their rapid growth. The government announced earlier this month that it would ease the late-night restrictions for hypermarkets. This will "pave way for more competition" in delivery services. Coupang has not responded to a comment request. E-Mart and Kurly are among the competitors who have already expanded their fast-delivery?offerings in order to compete with Coupang. Choi Soo Yeon, CEO of Naver, said that the company had seen "meaningful" increases in the number of online users as well as the amount they spent. CJ Logistics has Naver as a customer and said that shipment volume for overnight or one-day deliveries jumped 120% in the fourth quarter compared to a year earlier. Analysts predict that its low prices and the familiarity of its users with its integrated services will keep competitors at bay. Seo Jung-yeon is a senior analyst with Shinyoung Securities. He said, "There's still nothing as convenient as Coupang." The key question is... how well competitors take advantage of this opportunity to increase market share.
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FAA issues directive on Boeing 737 circuit breaker problem
Federal Aviation Administration announced on Wednesday that it has issued an airworthiness Directive for all Boeing 737 MAX 8 and 8200 aircraft to address a "circuit breaker" issue which could cause a malfunction leading to excessively high cabin temperatures. The directive calls for the revision of the aircraft flight manual in 30 days so that the crew is aware of the?operational procedures' if an air conditioner malfunctions due to a circuit breaker trip. The FAA stated that the directive applies to 2,119 aircraft worldwide, including 771 U.S. registered airplanes. Boeing said it supported the directive it issued last week that mandated guidance. Boeing said that it was working on an engineering solution to eliminate this possibility. FAA reported that two incidents in flight where temperatures onboard the aircraft increased dramatically were recently reported. Boeing has said that the fault is in the ground wire of the air conditioning system. The FAA stated that the malfunctioning air conditioning system could lead to an "uncontrollable" excessively high temperature. This could result in injury or incapacitation to flight crew and passengers. Boeing stated that it expects a fix for the 737 MAX 7 or 10 to be available before certification. Southwest Airlines, the airline that was involved in one of the reported incidents said they are in close contact with the FAA and Boeing regarding the issue. They have also informed their flight crews on the correct steps to take to address the electrical fault.
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Qantas' first-half profits beat estimates due to strong travel demand
Qantas Airways, Australia's flagship airline and its budget offering both reported a?better-than-expected underlying profit? on Thursday. Qantas' first half was supported by a robust demand for its services across the domestic and international market, new overseas routes and the introduction of new aircraft. The company said that bookings will remain resilient in its network throughout the remainder of the year. Qantas’s domestic?unit reported a 5% increase in revenue, largely due to a higher capacity. Jetstar’s domestic division, a budget airline, posted a 38% rise in operating earnings. This helped the flag carrier of the country?report a first-half underlying loss before tax of A$1.46?billion ($1.04?billion), which was ahead of the Visible Alpha consensus of A$1.42 billion and the A$1.39?billion it posted in the previous corresponding period. Qantas also announced a'share-buyback of up A$150m and a interim 'dividend' of 19.8 Australian cents per share. ($1 = 1.4047 Australian dollars; Reporting by Sameer M. Manekar in Bengaluru, Editing by Shinjini G. Ganguli).
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Senator calls on US House to vote again on Aviation Safety Bill
The top Democrat in the U.S. 'Senate Commerce Committee urged House of Representatives on Wednesday to reconsider aviation legislation which 'failed by a single vote - after 'Pentagon resistance. The House passed the ROTOR Act 264-133, unanimously approved by the Senate in December. This was to address concerns raised after a collision between an American Airlines regional plane and an Army Black Hawk aircraft in the crowded airspace above the nation's capital a year earlier, in which 67 people were killed. The fast-track rules required that the bill be passed by two-thirds of the votes cast. It fell short by one vote. On Wednesday, Senator Maria 'Cantwell, top Democrat of the Senate Commerce Committee, urged House Speaker Mike Johnson, to call a new vote. Johnson's office refused to comment on Cantwell’s action, but he did say that Congressional?leadership is committed to enacting this bill. Cantwell stated that the passage of legislation in the House was complicated because 26 members did not vote, partly due to a major storm. This act requires the military to use ADS-B (advanced surveillance technology) on routine training flights, but not on sensitive missions. Jennifer Homendy, Chair of the National Transportation Safety Board, said that ADS-B could have prevented the collision in 2025 and stated that the agency has been calling for its mandate for more than 20 years. The Pentagon had said in December that it supported the bill. However, on Monday, they said the bill would create "significant unresolved budgetary burdens" and operational security threats to national defense activities. Sam Graves, Chair of the House Transportation Committee, said that his committee would be taking up a competing?aviation bill as early as next week. Homendy said that relatives of those killed met with Johnson's team on Wednesday in order to express their frustration at the military's opposition to the bill.
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Air New Zealand suffers a larger-than-expected loss and undertakes a strategic review
Air New Zealand announced?on Thursday that it would be conducting a strategic review of its business after reporting a?worse than expected first-half loss owing to engine maintenance delays and lower travel demand. Over the last few years, earnings for the flag carrier have been significantly reduced as global engine maintenance issues forced its aircraft to be grounded. The 'weaker recovery of travel demand, higher costs and a weaker recovery of the airline industry led to the first half-year loss in four years. Nikhil Ravishankar, Chief Executive Officer of Air India, said in his first result announcement since assuming the role in October: "We are undertaking a comprehensive business review to return the airline back to sustainable profitability." Air New Zealand's loss for the six-month period ended December 31 was NZ$59.38 ($35.38) million, a significant?amount?more than Visible Alpha's consensus estimate of a NZ$21.38 million loss. This compares to a profit of NZ$144million a year ago. The airline has not declared a?interim dividend and expects second-half earnings will be flat or 'weaker' than the first, as a result of?continued cost pressures from avionics and supply chains.
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FedEx must explain to consumers how they will receive tariff rebates, says US Treasury chief
FedEx must explain to the public how it plans to 'pass on any tariff rebates,' said U.S. Treasury Sec.?Scott Bessent after the global shipping firm sued for a refunded of emergency import duties ruled illegitimate by the U.S.?Supreme?Court. Bessent also questioned FedEx Chief Raj Subramaniam in an interview with NBC News on Tuesday evening, but provided no evidence that any wrongdoing had occurred. FedEx is a member of this business group, as are scores of other U.S. firms. FedEx filed suit in the U.S. Court of International Trade on Monday seeking a refund following a ruling by the Supreme Court last week that President Donald Trump exceeded his authority when he imposed sweeping emergency tariffs. French beauty group L'Oreal and British vacuum manufacturer Dyson, as well as contact lens manufacturer Bausch + Lomb, have all sued for refunds. Bessent, NBC's reporter, said that Subramaniam "should explain how he will get the money back to the consumers if he has passed on those costs," according to a transcribed version of the interview. Bessent said that the role of the company in the council was "very interesting" because China is the biggest payer of U.S. Tariffs, without going into detail. This statement contradicted an earlier report by the New York Federal Reserve that said Americans were paying almost all of Trump’s new tariffs. FedEx posted a?alert' at the top of their website to inform customers about the impact the court ruling could have on them. A spokeswoman from the company, when asked about Bessent’s comments, said: "If FedEx receives refunds, we will refund?the shippers who paid for those charges and to consumers." The exact timing of this and the process to request and issue refunds depends 'in part' on the future guidance provided by the government and court. Over $175 billion of U.S. tax collections could be refunded. Bessent told CNN on Sunday that lower courts would be responsible for any refunds following the Supreme Court's ruling. Bessent responded to NBC's question Tuesday night, "We will obey the lower court's ruling." Reporting by Susan Heavey and Lisa Baertlein, Los Angeles. Editing by Paul Simao.
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Profits of Spanish hotel chain Melia rise by 24% due to higher luxury rates
Melia, Spain's largest hotel chain, announced a 24 percent increase in profit for the full year on Wednesday, thanks to higher prices at its luxury resorts. Melia's yearly net income of?200.2 millions euros ($236million) exceeded analyst expectations by 151.23million euros, as predicted by LSEG. Melia reported that revenue per room increased by 5.4% in the past year. This is down from an 11% increase in 2024. However, room rate increases were more important to Melia's revenue than occupancy. Melia has been focusing on opening luxury hotels and expects the room rates in its Spanish resorts will rise by about 5%, according to CEO Gabriel Escarrer, last month. Spain, the company's main market, will help offset the weaker sales in the Caribbean. The world's second most visited country after France is on track to receive nearly 100 million visitors by 2026. Melia reported that bookings were up 11% compared to a year earlier, despite the fact that Spanish airport operator Aena stated on Wednesday it expected the number of passengers using its airports in Spain will grow at a lower pace than last. Melia's hotels in Cuba and Mexico may be affected by the economic?and?political?crises that are affecting those countries. Melia, Cuba's largest hotel chain, has closed three of the 30 hotels it operates in order to concentrate on more modern properties. The company stated that operations in Mexico have not been affected at all by the violence that broke out after the death of Mexican drug lord Nemesio seguera. However, it added that the outlook for the year 2026 may be affected short-term.
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Google will test new search results, a source claims as EU fines loom
Alphabet’s Google will soon begin testing changes to its search results in order to give competitors more prominence. A person with first-hand knowledge of the situation said this on Wednesday. The company is trying to avoid a fine from the EU for allegedly favoring their own services when searching for hotels, flights, and restaurants. Since it was accused of violating the Digital Markets Act in March last year, Google has made a number of proposals to appease rivals and EU regulators. After rivals complained about the insufficiency of these measures, Google has not implemented any of its proposals. Google is pitted against vertical search engines (VSSs) that are linked to specific sectors, such as airlines, hotels and restaurants. Source: Top-ranked RIVALS to be?displayed by default, source says Source: The previously unreported changes will display both VSS results and Google results by default. The list of vertical search engines will include hotels, airlines, restaurants, and transport services, all with data in real-time. Source: The changes are soon to be rolled out throughout Europe. Initially, they will focus on lodging searches, but later, flights and other services will also be added, she said, without giving further details. The European Commission refused to comment. These changes may help appease the European Commission, who enforces EU competition. The fines for Digital Markets Act violations can reach up to 10% of the company's annual global revenue. Google has been fined 9.71 billion Euros ($11.5 billion), or $9.71 billion, for antitrust violations in Europe. The EU's crackdown on Big Tech, which squeezes out competitors, has heightened tensions with the United States. A former European Commission official spearheaded a landmark digital services law that required online platforms to do much more to combat illegal and harmful content. Reporting by Foo Yeon Chee, Editing by Adam Jourdan & David Goodman
Hong Kong's Court of Appeal reverses the fraud conviction and sentence of tycoon Jimmy Lai
The Hong Kong Court of Appeal ruled on Thursday that a lower court ruling against the conviction and sentence of Jimmy Lai, a pro-democracy journalist in jail for fraud was wrong.
In their judgment, Judges Jeremy Poon and Anthea Pang said that they had allowed Lai and another defendant to appeal.
The judges summarized their judgment in a press release: "The Court of Appeal granted them permission to appeal against their convictions, accepted their 'appeals, set aside their sentences and quashed their convictions."
Lai, who was found guilty of violating the lease of Apple Daily's headquarters by concealing the operations of Dico Consultants Ltd in the building, was sentenced to five years and nine months of jail in December 2022.
Wong Wai Keung, 61 was found guilty of 'fraud' and sentenced to 21 months in prison. Reporting and editing by Anne Marie Roantree Jacqueline Wong Saad Sayeed.
(source: Reuters)