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Delta Air Lines scales back sustainable fuel and net-zero targets, Bloomberg News Reports
Bloomberg News reported that Delta Air Lines removed two important environmental targets from its sustainability page late last week. The report stated that the 'Atlanta-based carrier has rephrased their quest to achieve zero emissions by 2050 as an "aspiration" rather than a goal. SAF, which is largely made from waste cooking oil or 'waste cooking oil', can reduce emissions by a significant amount compared to traditional jet fuel. It is still two to five time more expensive than conventional jet fuel. According to a Delta spokesperson quoted in the Bloomberg report, the airline still considers?SAF one of the best ways to reduce carbon emissions, but the slow progress it has made threatens the climate goals for the industry. Delta did not respond immediately to a comment request. Willie Walsh (director-general, International Air Transport Association) said in February that the shortage of new, efficient aircraft and alternative fuels was pushing up the profits of suppliers and putting the industry's main emissions goal at risk. IATA's 350 member airlines set a target for reducing emissions by?2%-3% of global total in?2021. This effort is heavily dependent on the use of SAF, and timely access to new planes and engines that are delayed by supply-chain problems. Reporting by Heera Ghosh and Kanjyik in Barcelona, with editing by Shashesh Kuber.
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United and American Airlines rise after Kirby merger with Trump
United Airlines and American Airlines stocks rose in premarket trading Tuesday, after United CEO Scott Kirby, according to sources, had reportedly pitched the idea of a merger between the two carriers to U.S. president Donald Trump back in February. The merger of two major U.S. airlines could be the largest airline consolidation since more than a decade. United States shares rose 2%, while American stocks grew by 4%. The two stocks have both fallen in recent weeks as the U.S. - Israel war against Iran has sent jet fuel prices soaring. American is down 14.1%, and United is down 10.4% since the conflict began in late Feb. Kirby brought up the idea at a White House meeting on February 25, which was focused on the future Dulles Airport in Washington, according to sources. He said a combined airline would be able to "better compete on the international stage, where foreign carriers are in control of a majority long-haul capacity from and to the U.S. despite that most passengers were U.S. citizens. Antitrust experts and industry?officials said that approval would be difficult, citing concerns about?competition, higher fares, lost jobs, and significant route overlaps in a highly concentrated U.S. air?market, which is dominated by just four large carriers. United and American refused to comment and the White House didn't respond to requests for comments. (Reporting and editing by Harikrishnan Nair; Rashika Singh)
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As Iran's war chokes jet-fuel supply, airlines urge EU to step up
A document seen by?by shows that European airlines have called on the European Union (EU) to take emergency measures in order to deal with the consequences of the 'Iran War, such as widespread airspace closings and growing concerns about jet?fuel shortages. In a document, the industry group "Airlines for Europe" (A4E), has asked the EU to introduce a number of crisis response actions, including EU level monitoring of jet fuel supply, a suspension of the EU carbon market for aviation and the scrapping of certain aviation taxes. Since the U.S. and Israel war against Iran began on February 28th, the aviation sector has been affected by airspace closings. The European Union Aviation Safety Agency has banned European airlines from operating within the airspace of'several Gulf nations including the UAE's and Qatar up until April 24th. After the Strait of Hormuz was closed, the sector also faces a?crunch in jet fuel. Airports Council International Europe, a group of industry professionals, warned last week that Europe might face a severe jet fuel shortage within three weeks. The A4E paper urged Brussels, which is a type of jet fuel, to consider a joint EU purchase of kerosene. After Russia cut gas deliveries to Europe in 2022, the EU implemented a joint gas purchase program to try to maintain supplies. The model hasn't been used for oil or kerosene yet. A4E's members, which include Lufthansa and Air France-KLM, as well as easyJet, have also called on the EU to amend their legal requirement that?countries maintain?90 day of emergency oil reserve, since this does not currently include a requirement regarding jet fuel. The document also asked for clarifications on the existing legislation. This included confirmation that "airspace closures resulting from conflict and operational effects" will be treated as justified non-uses of slots. The European Commission has said that it will present a package of measures to counter the impact of the Iran War on energy markets on April 22. However, this has not been confirmed to include any specific measures for jet fuel.
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Citigroup upgrades US stocks as earnings and tech strength soothe Mideast war worries
Citigroup is now bullish on U.S. stocks, joining the flurry?of?brokerages who are betting on robust corporate earnings and attractive valuations following recent pullbacks. They also believe that U.S. tech stocks will contribute more to global earnings growth. In a late-Monday note, the 'Wall Street' brokerage upgraded U.S. equity to "Overweight", from "Neutral". S&P 500 index has recovered nearly 9% since a low of seven months in late March. This is due to optimism that the Middle East conflict will ease the risk of an oil-driven inflation. BlackRock Investment Institute and other Wall Street brokerages, including BlackRock Investment Institute which upgraded U.S. equity on Monday, shared similar views. They favored U.S. stocks above their global peers. Citi strategists wrote in a 'Monday note that the (U.S. market) has derated, and trades now at a premium compared to developed markets excluding the U.S., which is?closer to historical averages. At a time when global earnings growth is slowing down and skewing more towards technology, Citi stated that while all sectors will see a rise in earnings per share by 2026, the tech sector is expected to account for about 50% of this increase. The brokerage downgraded emerging markets equities, however, to a "Neutral", pointing out that many EMs are still highly vulnerable to energy shortages. In addition, the strength of the dollar could exacerbate these headwinds. The MSCI Emerging Markets Index has fallen 2.8% since the start of the conflict. This is due to the fact that the war with Iran has pushed up oil prices. It also caused concerns over inflation, external balances deteriorating, and capital flows in energy-importing countries. Citi also?upgraded their year-end MSCI EM target to 1,770, from 1,540. The brokerage also upgraded the global materials sector to "Overweight", saying that improved earnings momentum and stronger growth prospects have elevated its appeal while it is still cheap. The brokerage downgraded global communication services to "Underweight". Reporting by Joel Jose in Bengaluru and Kanishka AJmera; editing by Rashmi AYICH
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The Iranian war has a major impact on the IEA's global outlook for oil markets
The International Energy Agency has drastically cut their 'forecasts' for the growth of global oil supply and demand. Both are expected to drop from levels in 2025 as wars in the Middle East disrupt oil flows and weigh on a global economy. The IEA has revised its projections for global 'oil demand' to a decline of 80,000 barrels a day by?2026. This is compared to a projected increase year-on-year of 640,000 bpd iin the previous monthly report. The IEA stated that "demand destruction" will continue to spread as long as scarcity and high prices continue. It added that the Middle East and Asia-Pacific have seen the biggest reductions in oil consumption so far. The Paris-based watchdog predicts that global oil supplies will fall by 1.5 millions?bpd in this year. This is a dramatic drop from the?1.1million?bpd increase projected last month. The IEA reported that the 'largest oil supply disruption in history' was caused by attacks on energy infrastructures in the 'Middle East' and Iran effectively closing the Strait of Hormuz. In March, 10.1 million bpd of oil production were lost.
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The IEA reports that Russia's oil export revenue increased in March.
The International Energy Agency reported that Russia's revenue from crude oil and re-fined?products increased in March. They had fallen to their lowest level since the start of the Ukraine conflict in 2022 in February, when prices spiked because of the Iran war. The commodity revenues of Russia are vital to the state budget. They also help support increasing military expenditures. The Paris-based International Energy Agency (IEA)?said that Russia's crude exports increased by 270,000 barrels a day last month, from February, to 4.6 millions bpd. This was mainly due to higher seaborne shipments because the Druzhba Pipeline remained offline. Following the attack on the infrastructure of the Druzhba Pipeline at the end January, the flow to Hungary and Slovakia via Ukrainian territory has remained closed. The IEA said that Russia's oil export revenues grew to $19 billion from $9.75 in February, as global oil prices soared. The report said that Russia’s crude oil production increased last month from 8,67 million bpd to?8,96 million bpd. The agency said that Russia could struggle to increase oil production beyond the early first quarter levels in the near future due to damage to the?port and?energy?infrastructure. Drone strikes by Ukraine have repeatedly caused damage to Russian ports and refineries on the Black Sea and Baltic Sea. (Reporting and Editing by Louise Heavens).
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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and revise their financial forecasts. In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for a quarter or more of its operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AEGEAN AIRLINES The Greek airline anticipates that the suspension of Middle East flights, and a spike in petrol prices will have a "notable impact" on its results for the first quarter. AIRASIA X Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%. AIR FRANCE-KLM The airline group announced that it would increase the price of long-haul tickets to offset rising fuel costs. Cabin fares will rise by up to 50 euros (58 dollars) for a round-trip. AIR INDIA The Indian flag carrier announced that it would change its fuel surcharge system from a flat-rate domestic surcharge to one based on distance. The airline said that surcharges for international routes didn't compensate for the "exponential rise" in jet fuel costs. AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict erupted. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. AKASA AIR Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights. ALASKA AIR The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, including Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars. AMERICAN AIRLINES The U.S. carrier announced that it would increase the fees for checked bags on domestic flights and short-haul flights by $50 for the third bag and $10 for each of the first two. The airline has also reduced certain benefits for economy travelers. The fuel price increase was expected to cause a $400-million increase in the first quarter expenses. CATHAY PACIFIC Hong Kong Airlines said that it will cancel about 2% scheduled passenger flights from mid-May to the end of June. HK Express, its budget airline, is also cutting 6%. The carrier had previously announced that it would increase its fuel surcharge across all routes by 34% from April 1, and to review the charges every two weeks. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review its pricing strategies and network strategies, and try to minimize the impact. CHINA EASTERN EXPRESS AIRLINES Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge 120 yuan. DELTA AIR LINES Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and increase fees for checked baggage - a $10 increase on first and second bags, and a $50 fee on third bags. The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. Delta CEO said that it would not update its full-year forecast due to uncertainty about how long fuel prices would rise. EASYJET EasyJet CEO Kentonjarvis stated that European consumers can expect to see a rise in ticket prices at the end of summer when fuel hedges are no longer available. FRONTIER AÉRIENS Fuel prices have risen significantly since the airline's forecast, and it is now reviewing its full-year outlook. GREATER BAY Airlines The Hong Kong based company announced that it will increase fuel surcharges for most routes starting April 1. However, they will remain unchanged for routes in mainland China and Japan. The carrier has announced that its surcharge on flights between Hong Kong, Philippines and other Asian countries will more than double. HONG KONG Airlines The airline announced that it would increase fuel surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49). British Airways' owner IAG stated on March 10, that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel in the short to medium term. INDIGO India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for fuel tax reductions by the Indian government. JETBLUE AERWAYS Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "increasing operating costs". The airline said that baggage prices would rise either by $4 or $9. Sources with knowledge on the subject have confirmed that KOREAN will be in emergency mode as of April due to rising oil costs. The airline will implement phased responses based on the oil price levels and increase company-wide efficiency to offset rising fuel costs. PAKISTAN INTERNATIONAL AIRLINES The airline said that it would increase domestic flight fares by $20, and international fares up to $100. It cited higher fuel surcharges as the reason for this. QANTAS AIRWAYS Qantas, an Australian airline, said that it has delayed a planned A$150-million ($106-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5-billion to A$3.1-3.33 billion. Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couples of hundred" flights. SAS, which has already raised flight prices, stated that the surge in fuel prices would be a "blow" to the aviation industry, even if they tried to absorb them. SPRING AIRLINES Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course. SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES The American carrier announced that it would increase checked baggage fees for the first bag by $10 and for the second bag by $55. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. TURKISH AIRLINES LUFTHANSA SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and Canada from May 1. Bookings made after April 1 will be subject to the surcharge. Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash. T'WAY AIR As part of its efforts to combat the effects of the Middle East war, the South Korean low cost carrier announced on April 13 that it will furlough certain cabin crew members without pay in May and in June. UNITED AIRLINES Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027. United was able to increase fares in response to the rapid rise in oil prices and jet fuel, said Chief Commercial Officer Andrew Nocella. In an email, the carrier said that it would also increase first and second checked bags fees by $10 to customers traveling in?the U.S. and Mexico, Canada and Latin America. VIETJET Due to possible fuel shortages, the Vietnamese budget airline has adjusted flight frequencies on certain routes. VIETNAM Airlines Vietnam's Aviation Authority announced that the carrier will cancel 23 flights per day on domestic routes starting in April after it requested assistance from the government to remove a tax on jet fuel. VIRGIN ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia announced that it would be adjusting its fares in order to reflect the rising costs across the aviation industry, which were said to have been exacerbated significantly by the Middle East situation. WESTJET Canadian Press reported that the airline would add a fuel surcharge of C$60 ($43), and will combine some flights to reduce costs.
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Australia Inc. begins to feel the fallout of the Iran war, increasing stagflation risks
Two of Australia's top companies have issued profit warnings, and the 'crash in sentiment in the business community indicates that rising prices are causing pain, increasing the risk of stagflation. Qantas Airways, the?country's?top airline?and Westpac Banking Corp., the second-largest lender?both warned that their earnings might be affected by rising fuel prices. Westpac stated that the expected slowdown in economic growth would create a challenging environment for certain customers. "The supply shock from energy market disruption is expected to lead to higher inflation and interest rates," Westpac said. The 'updates' are the most clear indications to date of how the Middle East conflict, and fuel crisis that has resulted from it, is impacting on the bottom line?of Australian companies. The comments came on the same day that surveys showed that consumer and business confidence had plummeted, and Reserve Bank of Australia's Deputy Governor Andrew Hauser warned of a "central bank nightmare": stagflationary stress - high inflation and low activity. Qantas said its jet fuel bill could be as high as A$800,000,000 ($567,000,000) for the second half?of?its financial years ending in June, or 32% more than they had previously predicted due to a rise in oil prices. They also announced that it has cut flights and raised fares. Qantas, in an update on the market, said that jet fuel prices had more than doubled. They remained highly volatile. The airline added that it closely monitored the "dynamic" environment and was prepared to take additional steps to counter the fuel price increases. Qantas said that it has also delayed a planned A$150m share buyback because of the increased uncertainty. Westpac increased its credit provisions because it anticipated that borrowers would face a more difficult outlook as a result of rising interest rates and prices. The provisioning level was the highest since the COVID-19 pandemic. The longer the war, the more it will hurt Investors were more surprised by Westpac's warning than Qantas's. The bank's share price fell 3.7% while Qantas's dropped 1%. Omkar Joshi is the chief investment officer of Opal Capital Management. He said, "Westpac's talk about higher bad debts for some?of its energy-exposed clients" was interesting. Investors say that the longer the Middle East conflict continues, the greater the material impact it will have on the economy, leading to a rise in profit warnings. National Australia Bank’s index of business optimism fell?29 to -29 in march, a magnitude that is only seen in major crises such as the 2020 pandemic. Separate survey shows consumer sentiment fell by 12.5% in April, its lowest level in over a year. In New Zealand, on Monday, a2 Milk cut its profit guidance for fiscal 2026, citing disruptions in its supply chain due to the Middle East conflict. Joshi, of Opal Capital Management, said that recession or stagflation were "definitely real risks". Has the risk increased over the past six weeks?" "I'd say it has definitely increased."
Maguire: How China is filling the energy gaps left by the US-Iran conflict.
Since the U.S.-Israel war against Iran began over a year ago, the world's biggest energy importer and consumer has changed its supplier mix to respond to the turbulence in the Middle East oil, gas and fuel flows.
Kpler, a commodities intelligence company, shows that China will import roughly half its total crude oil, refined fuels and liquefied gas (LNG) as well as liquefied petrol gas (LPG), from the Middle East by 2025.
The onset of the?U.S. The war between Israel and the United States against Iran has slowed down tanker shipping from the Middle East into other regions. This has forced China and other major importers of energy to'search for alternative sources'.
This article will show you how China has historically relied on Middle East energy products and which countries are increasing their shipments to China now that the war against Iran has stopped all shipping through the Strait of Hormuz.
CRUDE OIL AND REFINED PRODUCTS
Kpler data indicates that China will import 642 million tons of crude and refined fuels in 2025. Of these, 317 million tons, or 49.4%, are from Middle Eastern suppliers.
The Middle East is the only region that comes close to meeting China's energy import needs. South America ranks second with a share of 12%, while East Asia and West Africa each have a share of about 8.5%.
The Middle East will supply around 52% (or 1.9 billion barrels) of China's total crude oil imports by 2025.
The Middle East's share in China's total imports of oil has plummeted due to the reduction of outbound oil shipments since the beginning of the war at the end February. It fell to a record low of 31% only in May.
The total crude oil exports to China from the Middle East were 581 millions barrels between January and May. This represents a 28% drop from the same period in 2025.
China is increasing imports from South America, Eastern Europe and Russia to make up for the shortfalls in Iran and Saudi Arabia. Brazil and Russia have both seen a strong increase year-over-year so far this 2026.
China's total crude oil imports through the first five month of 2026 are roughly 10% lower than the same period in 2025. This shows China's ongoing difficulties replacing Middle Eastern supply.
China's fuel imports have decreased by 11% from January to May, compared with the same period in 2025. They now total around 51 million barrels.
Kpler reports that Middle Eastern suppliers will account for 41% of China’s total imported refined products in 2025. However, they supplied less than 1% of the product in May due to the closure of shipping routes.
China's fuel exports to the Middle East have dropped by 20% from January to May to 19.2 million barrels. Imports from other regions are also down around 4% compared to last year, to 31.6 million barrels.
Algeria and Egypt have both seen a steep increase in fuel exports from China in 2026.
LNG & LPG
In 2025, China imported about 40% of its LPG and LNG supplies from Middle Eastern countries. The closure of outbound traffic has affected China's gas market.
China's total LNG and LPG imports from the Middle East fell by 43% between January and May to just over 9 million metric tonnes from 15 million tons in the same period last year.
The total gas shipments of all other regions also decreased this year but only by 12%. This shows that the Middle East has seen a much greater drop in volumes than other suppliers.
Total LNG exports to China from the Middle East during January-May are estimated at around 6 million tonnes, or about 2.5 million tonnes, or approximately 30% less than in the same months of 2025.
Australasia, another major LNG exporting region, has also seen a year-over-year decline in LNG sales to China. This is primarily due to the continued weakness in China's key industrial sectors so far in 2026.
China's total LNG exports are still down only 15% this year. This means that the Middle East has seen a drop in imports twice as large as China's total LNG exports.
China's total LPG imports - used mostly by petrochemical companies and rural areas to heat and cook - are down by about 25% compared with a year earlier.
The war against Iran has not had a material impact on China's imports of LPG from the Middle East.
The country's chemical sector is still struggling, and this means that the overall demand for LPG has remained muted in comparison to last year. Meanwhile, demand for household heating will have peaked in early January, at the height of winter.
The Middle East conflict could have a greater impact on China's LPG export volumes if the Middle East conflict continues for several months longer and impacts restocking patterns ahead of winter next year.
These are the opinions of a columnist who writes for.
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(source: Reuters)