Latest News
-
US will retaliate if IMO members support net zero emission plan
The U.S. rejected Tuesday the proposal of the International Maritime Organization's "Net-Zero Framework", which aims to reduce global greenhouse gas emission from the international shipping industry. It also threatened countries who support the proposal with measures. In a joint announcement, Secretary of State Marco Rubio was joined by Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright, as well as Transportation Secretary Sean Duffy. This announcement comes before a vote in October at the United Nations shipping agency on the proposal to go net-zero. The statement stated that "the Trump Administration unambiguously rejects this proposed before the IMO, and will not accept any action which increases costs for our citizens or energy providers, shipping firms and their customers, tourists, or other stakeholders." It continued, "Our fellow IMO Members should be aware that we will seek their support in opposing this action. We will not hesitate to retaliate against this action or to explore remedies for our Citizens should this effort fail." The U.S. exited IMO talks In April, he spoke on the net zero framework and urged IMO members to reconsider their support. The World Shipping Council (WSC), which represents the major global shipping companies like Maersk, a container carrier, and Wallenius Wilhelmen, a car carrier, declined to comment. Many WSC members have already committed to net-zero operations by 2050. The President of the United States, Donald Trump He has also stated that he is Withdrawal United States The Paris Climate Agreement, which set the goal of countries achieving net-zero emission by 2050. The U.S. has been engaged in a number of activities. In a memo, the United States has warned that it is in the midst of negotiations to achieve a global agreement to reduce plastic pollution. Will not support a Pact This bans certain chemicals and limits plastic pollution. Environmentalists and investors have called for more concrete actions, such as a carbon tax, to be taken by shipping, which accounts for 90% of global trade and nearly 3% the carbon dioxide emissions. The United States is a member of 176 IMO states.
-
US Airlines' shares rise as data on airfares signals improved pricing power
The shares of major U.S. airlines soared Tuesday, after positive airfare data for July indicated improved pricing power for the sector. Airlines are bringing capacity under control to align themselves with a softening demand environment. In afternoon trading, shares of United Airlines, American Airlines, and Delta Air Lines all rose between 8 and 10 percent, while Southwest Airlines, a budget airline, gained 4%. Other smaller competitors also grew, with Alaska Air up by 8% and JetBlue Airways around 10%. Low-cost carrier Frontier Group surged 22%. The Bureau of Labor Statistics of the Labor Department released data on Tuesday showing that airfares increased 4% in July, after declining by 0.1% in June. This was their first rise in six months. After months of discounting and margin pressure, airlines have begun to reduce prices due to a weak demand by budget-conscious domestic travellers. Michael Ashley Schulman is the chief investment officer at Running Point Capital. He said that with CPI showing that airfares rose 4% in July carriers have finally regained pricing power. Travelers have been reevaluating their plans and cutting back on discretionary expenses due to the uncertainty caused by President Donald Trump’s tariffs and budget reductions. Since then, airlines have reduced the number of seats they offer and adjusted routes in order to maintain their pricing power and protect margins. Major executives were confident in their ability to reduce capacity and increase airfares by the end of the year during their earnings calls for the second quarter in July. The first increase in six months was the July airfare, which boosted investor confidence that carriers would be able to stabilize prices and profitability through capacity discipline. Schulman stated that the main risk was fuel and labor prices trying to jump ahead of the queue or an unlikely but possible recession. Reporting by Shivansh Tiwary, Bengaluru. Editing by Pooja Deai.
-
US Airlines' shares rise as data on airfares signals improved pricing power
The shares of major U.S. airlines jumped Tuesday, after positive airfare data for July indicated improved pricing power for industry as airlines adjust capacity to align with soft demand. In afternoon trading, shares of United Airlines, American Airlines, and Delta Air Lines each jumped by nearly 10%, while the budget competitor Southwest Airlines rose by 4%. Alaska Air, JetBlue Airways and Frontier Group all grew by about 10%. The Bureau of Labor Statistics of the Labor Department released data on Tuesday showing that airfares increased 4% in July, after declining by 0.1% in June. This was their first rise in six months. Travelers have been prompted to cut back on discretionary spending due to the uncertainty caused by President Donald Trump’s tariffs and budget reductions. The carriers were forced to cut fares due to a soft demand, especially from budget-conscious domestic travellers, even though summer is their highest-profit season. Since then, airlines have reduced the number of seats they offer and adjusted routes in order to maintain their pricing power and protect margins. Major executives in the airline industry expressed their confidence during the second quarter earnings call in July. They said they were confident in the ability of the industry to reduce capacity and increase airfares by the end of the year. (Reporting and editing by Pooja Deai in Bengaluru)
-
Spirit Airlines raises going-concern doubts, months after exiting bankruptcy
Spirit Airlines warned that it was facing doubts about its ability to continue operations just months after its bankruptcy. Weak domestic demand and shrinking cash reserves are straining its operation, sending shares down 42%. In its quarterly report, the airline said that adverse market conditions like increased domestic capacity and low demand for leisure travel during the second quarter have resulted to a difficult pricing environment. The company anticipates that these pressures will continue throughout the remainder of the year and add to operational uncertainty. Spirit Airlines announced last month that it would lay off 270 pilots and demote another 140 to save cash. Tim Hynes of Debtwire, the head of global credit research, said that it was necessary to improve its financial condition faster than expected. After years of losses and debt, the Florida-based airline known for its bright, yellow livery filed for bankruptcy last November. This was the first major U.S. airline to file Chapter 11 bankruptcy since 2011. In March, it emerged from bankruptcy after a court approved reorganization backed by its creditor. Travelers have been forced to cut back on spending due to the uncertainty caused by President Donald Trump’s budget cuts and tariffs. The airline announced on Monday that it has been asked by its credit card processor to put more money aside as collateral, or else risk losing its contract which expires on December 31. Spirit Airlines said that it would increase liquidity by selling aircraft, real estate, and excess airport gate capacity. It said that uncertainty over meeting minimum liquid covenants, and the outcome from talks with stakeholders has raised substantial doubts about the company's continued viability as a going-concern over the next year. (Reporting and editing by Arun K. Koyyur in Bengaluru, Shivansh Tiwary from Bengaluru)
-
Boeing's July aircraft delivery is down 20% from June and trails Airbus
Boeing, the U.S. aircraft manufacturer, announced on Tuesday that they delivered 48 planes in July. This is five more than last year but down from 60 in early June. This was the highest number of deliveries for the company since July 2017, when the company delivered 58 planes. Boeing has fallen further behind European rival Airbus this year in terms of deliveries. Airbus delivered 67 jets to customers in July, despite a growing backlog of aircraft that cannot be delivered due to a lack of engines. Airbus delivered 67 jets in July, down from 77 aircraft in July 2024. However, it brought its year-to date total to 373 compared with Boeing's 323. Airbus also leads Boeing in the number of single-aisle aircraft delivered, with 286 A320neo jets to Boeing's 244 737 MAX. Approximately 66% of commercial jets are one-aisle aircraft. Boeing delivered 37 737 MAX jets, including 20 to aircraft lessors (aircraft leasing companies) and 17 to airlines in July. Boeing delivered eight 787s as well as two 777 Freighters and one 767 Freighter. Airbus handed over five regional A220s, 54 A320neos from its cash cow A320neos family, two A330s, and six A350s. Wall Street closely tracks aircraft deliveries because the planemakers receive a large portion of their payments when they deliver jets to their customers. Boeing received 31 gross orders for jets in July. Thirty of these were for the 737 MAX and one was for a 787. Republic of Iraq cancelled one 787 order but still has seven 787s ordered. The aerospace giant received 699 new order this year by the end of the month, or 655 after cancellations and conversions. After adjusting for U.S. Accounting Standards, its order backlog stood at 5,968. Airbus is experiencing delays in deliveries from CFM International, its largest engine provider, which is owned by GE Aerospace, Safran and GE. However, due to a recent strike at Pratt & Whitney, Airbus's rival RTX, has also experienced delays. Airbus continues to project that it will deliver 820 aircraft by the end the year. This is a 7% increase from last year. Boeing hasn't given any guidance on annual deliveries. After a mid air panel blowout in January 2024 on a new 737 MAX, the U.S. firm is working to stabilise production. (Reporting from Dan Catchpole, Seattle; editing by Jamie Freed).
-
WestJet resumes flight after a system failure caused a brief ground stop
WestJet Airlines announced on Tuesday that normal operations are underway following a temporary outage of its system, which forced the Canadian carrier briefly to halt all departures. Onex Corp, which owns the airline, had requested a ground-stop from the U.S. Federal Aviation Administration earlier in the day. This affected flights that were operated using the WestJet livery, and WestJet Encore, its regional division. Ground stops are temporary air traffic control measures that stop flights from leaving for a particular airport or region. This is usually done due to safety issues, weather conditions, or operational problems. In a press release, the airline stated that the system failure delayed the transfer of aircraft to scheduled operations from the maintenance staff. WestJet has been working to resolve this issue. It is now returning to normal operations.
-
TUI raises profit guidance on record hotel, cruise demand
TUI, the European travel group, raised its earnings guidance for its fiscal year on Tuesday. This was due to strong results in its first nine months and encouraging signs for July. The shares of the German company that warned in May 2025 would be a difficult year rose 1.6% at 1445 GMT, after the company announced a "record performance" in its Hotels & Resorts and Cruises business in the nine-month period ending June 30. TUI, Europe’s largest tour operator is expected to announce preliminary results for the third quarter on Wednesday. TUI announced on Tuesday that the operating profit for nine months ended June 30 was 199 millions euros ($232million) in constant currencies. Summer travel is a crucial time for many airlines and tourism businesses. Many operators make up losses from earlier in the year during the holiday season. TUI's shares dropped in May after it reported a decline in summer bookings. CEO Sebastian Ebel warned that the year could be challenging, given Germany's continuing economic challenges. TUI expects its underlying earnings (before interest and taxes) to increase between 9%-11% on an annual basis for the fiscal year ending September 30, up from the previous forecast range of 7%-10%. Revenue growth, however, is expected at the lower end, with a range of 5-10%. TUI is diversifying its revenue streams by expanding into Asia and Central Europe.
-
Venture Global's core profit increases on the back of increased sales from lifting LNG export permits
Venture Global's core profit for the second quarter was higher than expected, thanks to the resumption in export permits of liquefied gas from the U.S. This boosted sales and sent the shares of the producer of LNG up more than 6% on Monday. After President Donald Trump's January inauguration, he lifted the moratorium on new LNG permits. Venture Global, America's second largest LNG exporter has increased commercial operations in its Louisiana export facilities at Calcasieu Pass and Plaquemines. The company sold a total of 329 trillion British Thermal Units of LNG in the third quarter. This is a 149% increase from the 132 TBt of super-cooled fuel that it sold a full year ago. LSEG data shows that its quarterly revenue of $3 billion exceeded expectations by $2.89 billion. This was due to the start of LNG at the Plaquemines Project. The company is expecting to export between 227 and 240 cargos from the Plaquemines Project this year. Meanwhile, the Calcasieu Pass Project will export between 144 and 149 cargos. Changes in fixed liquefaction charges would impact its adjusted annual earnings before interest taxes, depreciation and amortization between $230 million and $240 million. This is compared to expectations previously of an impact of $460 million to 480 million. RBC Capital Markets' Elvira Scotto stated that the results could lead to outperformance of Venture Global stock, given its recent fall of nearly 50% since going public in January. Arlington, Virginia-based firm reported an adjusted EBITDA for the three-month period ended June 30 of $1.39 Billion, compared to analysts' expectations of $1.2 billion. Venture Global, which has been involved in arbitration proceedings brought by BP, Shell and other global energy giants, is expecting a "immediate" decision on one of these proceedings. According to J.P.Morgan analyst Jeremy Tonet, the ruling could be precedent for other proceedings. Reporting by Vallari Shrivastava from Bengaluru, Editing by Anil d'Silva and Arun K. Koyyur
Baidu robotaxi crashes into construction pit in China raising safety concerns
Local media reported that an autonomous vehicle operated by Baidu’s Apollo Go robotaxi fell into a deep excavation pit in southwest China while it was carrying a passenger.
According to Southern Metropolis Daily, and Huashang Newspaper, the incident took place on Wednesday in Chongqing. Local residents used a ladder to rescue the female passenger, who was not injured.
On Chinese social media, videos showed a vehicle with a Baidu Apollo badge at the bottom what looked like a trench. Huashang Newspaper reported that a local shopkeeper said the construction site was equipped with warning signs and barriers, but it was unclear how the vehicle managed to bypass these safety measures.
The location of the videos on social media has been verified, but there is no information about how the car arrived at that place.
Baidu has not responded to the request for comment made on Friday.
The incident has sparked a wide-spread discussion in Chinese social media about the safety of robotaxis.
Baidu has one of China’s largest fleets of autonomous vehicles and is conducting robotaxi commercial operations in many cities, including Wuhan Beijing and Chongqing.
Recently, the company signed partnerships with U.S. ride hailing platforms Uber Technologies and Lyft to expand their robotaxi service globally.
Social media videos showing one of Pony.ai's cars on fire in Beijing were widely circulated. In May, the Chinese rival Pony.ai was under scrutiny. Later, the company said that a malfunction in a car's system caused it to catch fire as service staff were handling it. No passengers were aboard.
A controversy erupted last year after an incident in San Francisco, where a crowd set fire to a Waymo robotaxi that had driven through streets packed with revellers. Reporting by Liam Mo Tiffany Le and Brenda Goh. Mark Potter edited the article.
(source: Reuters)