Latest News
-
Alaska Air: Fuel surge puts earnings at risk as it holds fares
Alaska Air Group announced on Tuesday that strong travel demand, higher fares and a sharp rise in fuel prices are helping to offset the?rise. The airline also lowered its outlook for the full year and warned about a severe hit to earnings during the second quarter. The surge in jet-fuel prices after the Iran War is the first real stress test for the airline industry since the pandemic. Profits are squeezed even though demand remains steady. The airlines sell their seats in advance, and can't raise the price quickly. This leaves them "exposed" when fuel prices rise. Alaska Airlines said that bookings were stable despite steep fare increases. In recent weeks, Alaska's core U.S. markets have seen a 20% increase in fares compared to a year earlier. This could support strong revenue growth in the second quarter if current trends continue. Benito Minicucci, Chief Executive of the company, said that a strong demand background and a stable fare increase offset some of this pressure. However, the cost increases are not fully covered by higher fares. Alaska Airlines said that it has recovered 'about one-third' of the increase in fuel costs. This gap is expected to affect earnings for the second quarter. FUEL SURGE CLOUDS FOREWARD Fuel prices are also becoming more unpredictable. The airline reported that prices had fluctuated between $4.45 and 5.15 per gallon over the last week, making it difficult to plan. It also prompted it to withdraw its full-year forecast. Refining margins has exacerbated the cost spike. Alaska stated that margins in Singapore increased by more than 400% during the first quarter. This made what was usually one of their cheapest fuel sources into its most expensive source. Singapore is still a major long-term advantage for the airline. The airline is aiming to increase its fuel sourcing from Singapore to up to 30%-40% over time. The demand remains strong across the board. The airline reported that premium travel rose by 8%, corporate travel was up 19% and advance bookings for corporate customers were nearly 30% higher. Alaska has said that it does not anticipate fuel supply disruptions on its network. However, the industry must address long-term issues with jet fuel supply, particularly along the U.S. West Coast where refinery and pipeline capacity are limited. The airline said that it has reduced capacity in certain markets to protect its margins, while continuing to invest on premium seating, expansion internationally and loyalty. (Reporting and editing by Nick Zieminski, Rajesh Kumar Singh)
-
Argentina port protest delays 10 ships waiting for grain
A source said that?truckers blocking access to the terminal in Argentina's Quequen port, who were demanding higher freight rates, caused at least 10 vessels to be delayed on Tuesday. Source: "No trucks entering with grain. We are completely paralyzed." Source: The protest was'staged by truckers camped along the road leading to the port. They are blocking grain trucks from passing while they negotiate tariff increases with grain storage companies and farm producer groups,' the source stated. In 2025, Quequen in the Buenos Aires province loaded 2.4 millions metric tons (that's 20%) of soybeans, which is equal to the oilseeds exported by Argentina in 2018. The port is home to major exporters such as Bunge, Cofco, and the local cooperative ACA. More than 80% of the grain that is shipped to Argentina's ports are transported by trucks. This action temporarily affected the Bahia Blanca port. The Argentine ports Chamber said Monday that the truckers protest had prevented exports?worth $450 million. The Rosario ports, which handle more than 85% of Argentina’s grain exports and almost all its soy oil, soymeal, and other products, are operating normally. (Reporting and writing by Maximilian Heath, Editing by Sarah Morland; Writing by Brendan O'Boyle)
-
Iran has not yet decided whether it will attend the talks as the ceasefire deadline approaches
Iran announced on Tuesday that it had yet to decide if it would attend the last-ditch talks with the United States after U.S. troops boarded an Iranian oil tanker at sea, with only a day remaining before the ceasefire in the Gulf War expires. Donald Trump stated that he was hoping to achieve a "great agreement" to end the war. However, he didn't want to extend the ceasefire and said that the U.S. Military would be "ready to go" in the event of a failure to negotiate. Vice President JD Vance had not yet boarded a plane for Islamabad where the center of the city was closed and a hotel cleared to host the talks. Vance will attend additional meetings on Tuesday in Washington, according to a White House official. IRAN ACCUSES U.S. PIRACY Esmaeil Bahaei, spokesperson for the Iranian Foreign Ministry, said on state television that Iran still had not decided whether it would attend the conference. He called the boarding of the oil tanker and the seizure on Sunday of another cargo ship "piracy at the sea and state terror", saying that it called Washington's commitment to negotiations into question. Baghaei stated that "the aggression against Iranian vessels and the continuing pressure indicates the continuation of the opposing side's contradictory behavior." Attaullah Tarar, Pakistan's Information minister, said on X in a posting that Pakistan is still waiting for Iran to reply to its invitation. "Pakistan has been in constant contact with Iranians. We are pursuing a path of dialogue and diplomacy." TRUMP SAYS MILITARY IS 'RARING TO GO' When asked about the possibility that the truce could be extended, Trump replied to CNBC by saying: "I do not want to do this." We don't really have that much time." He added, "I'm expecting to bomb because that is a better attitude with which to enter the situation." "But we are ready to go." "I mean, the military are ready to go." According to IRNA, the Iranian state news agency, Fatemeh Mohajerani, a spokesperson for the Iranian government, said that: "We don't want to be attacked, but if this happens, we will respond even more strongly than before." U.S. SAYS THAT IT BOARDS A TANKER "WITHOUT INCIDENT" The U.S. Military said that its forces had boarded the Tifani tanker, which was under sanctions due to trading with Iran. This operation took place "without incident". According to tracking data from?MarineTraffic, the vessel reported its last position as being near Sri Lanka on Tuesday morning. The vessel was almost fully loaded with two million barrels of crude oil and had indicated Singapore as its final destination. U.S. Central Command stated that "We will continue to pursue global maritime enforcement to disrupt illicit networks, and interdict vessels providing material assistance to Iran -- wherever they operate." Iranian officials publicly cited the U.S. ship blockade as a reason to not negotiate. Trump stated on social media that Iran violated the ceasefire numerous times, but did not provide any further details. He told CNBC the blockade was a success, and that the U.S. is in a good position to get a "great" deal. OIL PRICES RISE AGAIN Confusion has surrounded the exact timing of the end of this ceasefire. Trump announced that it would last for two weeks starting on the evening of Tuesday April 7th in Washington. He said that this week it will run until the evening of Wednesday, April 22. A Pakistani source who was involved in the negotiations said that they would also expire on Wednesday at 8 pm Eastern Time, which is 3 am Thursday in Iran. Iran has blocked the Strait of Hormuz, which controls the access to the Gulf for all ships except its own. The strait was reopened last week, but the decision was reversed on Saturday when Trump refused to lift the blockade against Iranian ports. The strait is now closed, and the 20 million barrels of crude oil that crossed it each day are no longer available to the world. Ten days ago, a first round of talks ended without agreement. Tehran had ruled out a subsequent round because the U.S. refused its blockade after seizing an Iranian cargo vessel. Trump has threatened that if a deal is not reached, he will attack Iran's civil infrastructure. A source in Pakistan involved with the talks said that there was momentum to resume the talks and Vance would still be expected in Islamabad. Wall Street stocks largely declined, while global equity markets fell as optimism about?peace negotiations faded. Oil prices rose about 3%. IRAN NUCLEAR POWER PROGRAMME - A Critical Issue Trump has said that Iran must not be able to produce a nuclear weapon. He wants an agreement which will prevent future oil price increases and stock market fluctuations. He wants Iran's stockpile of highly-enriched uranium to be destroyed, as it could, if further enhanced, be used in a nuclear weapon. Tehran hopes to use its control over the Strait of Hormuz to reach a deal to avoid a re-start of the war, lift sanctions and retain more of its nuclear program, which, it claims, is for peaceful purposes. Thousands of people have died in U.S. and Israeli strikes on Iran, as well as a parallel Israeli bombardment campaign and invasion. The war has sparked fears of a global recession and a shock to energy supplies. Pakistan has prepared to host the discussions despite the uncertainty. Officials said that nearly 20,000 security personnel had been deployed in Islamabad.
-
EU finds Chinese bidder for Lisbon subway line benefitted from unfair subsidies
The European Commission announced on Tuesday that a Chinese company, which was chosen to build a new Lisbon metro line, received 'unfair' foreign subsidies. This forced the consortium leader Mota-Engil, to hire a Polish firm instead. In a statement, the European Commission stated that the Metropolitano de Lisboa commissioned the 'Violet Line' and was authorized to hire Mota-Engil led consortium provided they replaced the Chinese rolling stock maker CRRC Tangshan by the Polish competitor PESA. In a statement, the Commission said that it began an 'in-depth' investigation in?late 2025. It found that the unit of Chinese state owned CRRC had benefited foreign subsidies which distorted the procurement process and gave them "an unfair competitive edge" at the expense of other bidders. Portugal CRRC Tangshan has not?immediately responded to a comment request. The 'Violet Line' is a surface light-rail metro that connects Odivelas to Loures, both located north of Lisbon. The base price for the project is around?600 millions euros ($705.72 million) and it's scheduled to be completed in 2029.
-
US Senate Republicans move ahead with budget plan to Trump immigration enforcement
John Thune, Senate Majority leader, said that the U.S. Senate Republicans would move forward with a budget plan this?week to increase funding for?Immigration and Customs Enforcement and Border?Patrol for the?next?three?years. Thune's comments come as the Republican-controlled Congress aims to end a partial shutdown of the Department of Homeland Security. Thune, in an address to the Senate, said that the budget resolution we are considering this week would unlock funding for border law enforcement at DHS over the next three years. The additional $70 billion outlined in the budget plan for DHS will be available until the end of President Donald Trump’s tenure as president on January 20, 2020. Chuck Schumer, Senate Democratic Leader, attacked the bill. He said it would "pour money" into "ICE and Border Patrol 'without putting any restrictions on their rampant violence that is rogue agencies in our'streets." Before signing off any new funds for ICE or Border Patrol (which operate under DHS), Democrats have pushed for a series of new restrictions. They have argued ICE and Border Patrol must follow the same rules as other police forces in the United States. This includes a requirement that judicial warrants are obtained before agents enter private homes. The negotiations between Republicans and Democrats over a period of several weeks on such changes failed to bear fruit, leading to partial shutdowns at some DHS agencies. Republicans now have chosen to "end the deadlock" and ram through new funding using a rarely-used procedure that allows budget-related legislation bypassing Democratic opposition. To pass, most?bills require a supermajority?of at least 60 votes?in the 100 member Senate. Republicans control the Senate currently with a majority of 53-47. The Senate and House of Representatives would need to pass this non-binding budget blueprint before it could become law. (Reporting and Editing by Katharine?Jackson and Richard Cowan, Editing By Doina?Chiacu, Editing By William Maclean).
-
JetBlue's use of personal data in setting ticket prices is questioned by lawmakers
After a social media post by JetBlue Airways sparked concern, two?Democratic legislators asked the airline to explain if it used customer data to set ticket pricing. JetBlue's X -account - suggested to a customer on Saturday that they try clearing "cache and cookie" or booking incognito after the customer complained of a $230 price increase after just one day. The customer claimed they were "trying to make it to a burial." JetBlue did not comment immediately on the letter but told? On Monday, JetBlue said that the letter sent to a customer in response was an error. Prices are not determined by personal data or cached data. Representative?Greg Casar, and Senator Ruben Galego asked JetBlue for detailed answers on pricing and said the post still "raises questions about how JetBlue determines prices -- specifically how JetBlue defines personal data and if personal data are used to inform prices." Surveillance Pricing is a method whereby companies use personal data of consumers, such as their browsing history, location, and shopping habits, to create individualized algorithmic pricing for products. This is an alternative to using standard market pricing. Delta Air Lines was asked by two dozen House Democratic members in November if it would use AI to help set ticket prices. Delta replied that "there are no fare products Delta has ever used, is currently testing, or plans to use, which target customers with personalized offers based upon personal information, or otherwise." Congress is concerned about the use of AI, and surveillance pricing. The Republican chair of the U.S. House Oversight Committee questioned the CEOs of major travel companies last month about whether they were using surveillance pricing to increase costs. James Comer, Republican chair of the committee, stated that surveillance pricing could create opportunities for companies to "weaponize personal data" and pad their profits at the expense providing transparency to consumers. Reporting by David Shepardson, Editing by Chizu nomiyama and Nick Zieminski
-
Trump rejects United-American merger and signals support for Spirit
Donald Trump, the U.S. president, said on Tuesday that he opposed a potential merger between United Airlines & American Airlines. This would have reshaped the U.S. aviation industry. Trump told CNBC that he doesn't mind mergers, and added that he "would love someone to buy" Spirit Airlines which is currently in bankruptcy. "But American is doing well, and United does very well." I know United, and they are doing well. He said, "I don't want them to merge." Trump's opposition highlights the political and economic risk of backing a deal that antitrust experts claim would cut competition in a market dominated by four major carriers, giving them more power to increase fares?and fees. Political and Price Risks The idea of a combined United-American has been met with opposition from conservatives and Trump-aligned figures. It is an awkward fit for the White House, which wants to focus on affordability before the midterm elections. Sources told The Guardian last week that Scott Kirby, United's CEO, had brought up the idea of a tie-up with American Airlines during a meeting Trump held in late February. The meeting was'scheduled' to discuss the future of Washington’s Dulles airport. American announced on Friday that it was not interested in pursuing the merger with United. Trump's advisors also did not endorse the idea. Officials see his lack of public support since that meeting as a sign that any deal will face a long shot. The administration also pays close attention to the impact of rising jet fuel prices on airfares in advance of summer peak travel. United-American's merger idea comes amid escalating competition between the two carriers. This includes a fight for market share and flights in major hubs like Chicago. The overlap between the airlines in major markets would make it difficult for a deal to be approved. Regulators will likely focus on routes and airports that the two airlines directly compete with each other. According to OAG data, United and American will be the two largest airlines in terms of available capacity by 2025. United's stock rose about 1% during morning trading while American's dropped about 1%. Both airlines did not immediately respond to requests for comments. SPIRIT? A DIFFERENT CASE Spirit makes a different argument. In?2024, the administration of Joe Biden took JetBlue Airways to court to stop its proposed acquisition of a low-cost airline. They argued that it would eliminate a carrier which helped to keep fares low. Spirit's financial situation has deteriorated since then and the fuel crisis is now straining a broader low-cost airline industry. Spirit Airlines and other discount carriers have asked Washington for a temporary tax break, citing the high cost of fuel that could force them into raising fares and fees. Trump said, "It is 14,000 jobs and maybe the federal should help this one." Reporting by Rajesh Singh in Chicago and David Shepardson; editing by Michelle Nichols and Chris Sanders.
-
Zelenskiy: Druzhba Oil Pipeline can resume operation
The Druzhba pipeline, which pumps 'Russian oil into Europe, is ready to resume operations. Ukrainian President?Volodymyr... Zelenskiy?said this on Tuesday. This signals that Kyiv expects to receive a 90 billion-euro aid package. "Ukraine completed repair works on the section of the Druzhba Oil Pipeline that was damaged by a Russian strike. The pipeline is ready to resume operations," Zelenskiy told X. The suspension of the flows has prompted outrage in?Hungary, and Slovakia which are still dependent on Russian oil imports. In response, Hungary's incoming government threatened to reduce energy aid to Ukraine. Prime Minister Victor Orban then blocked the package of aid for Kyiv that was agreed upon by the European Commission. Zelenskiy said that Ukraine's wartime budget, which is heavily dependent on foreign financing, expects money to be dispensed as agreed after the Druzhba repair. He said: "We link this to the unblocking of the European Support Package?for Ukraine which was already approved by the European Council." The Kremlin said on Tuesday that Russia was technically prepared to resume oil flow through the pipeline. (Reporting and editing by David Goodman.)
Trump promises to'remember companies' that do not seek tariff refunds
The President Donald Trump said Tuesday that he would "remember" the companies that don't seek refunds of tariffs that were paid and deemed illegal by Supreme Court. He implied that they might benefit from not using the new refund portal for the U.S. Government.
Trump said that on the second day that Customs and Border Protection began accepting electronic refund requests, he was 'pleased' to hear that Apple, Amazon and other large companies had not sought refunds.
Trump told CNBC anchors in a live broadcasted phone call that "it's brilliant" if they didn't do it.
If they don't, I will remember them. "I will tell you this, because I want to make our country strong," said the Republican President.
Trump, who has described the payment of tariffs to U.S. importers by U.S. companies as a patriotic action, appeared on Tuesday to describe American companies that seek refunds as "enemies."
Trump, who was apparently referring at the time to these companies, said that "in many cases,?the enemy, the enemy, is getting this money."
"We're sending checks worth billions of dollar to the people who have hated America. It's sad to see, Trump said without naming specific companies or countries that the products were imported from.
Trump claimed that the Supreme Court could have "helped us" by upholding his sweeping tariffs on global goods he imposed under a 1977 national emergency law. Trump denounced court's February ruling that Trump had exceeded his power. The decision of the court led to a ruling by Judge?Richard Eaton of New York's U.S. Court of International Trade, that the CBP should create a system for processing up to $166 Billion in refunds. The system called?CAPE was launched Monday with few major glitches. Eaton?on Tuesday issued an interim stay ordering CBP submit a report on its first phase of refund processing by April 28.
The impact of the delay on refund processing was not immediately apparent. The CBP was not expecting to issue payments until 60-90 days after the submission of refunds.
Matthew Seligman is the founding partner of Grayhawk Law, which advises companies on tariff litigation strategies and refund strategies. He said that he did not believe the stay would change CBP's processing and suggested it could be due to a change with the lead plaintiff.
Seligman stated, "It is an acknowledgement that CAPE was launched yesterday."
CBP did respond immediately to a comment request on the status of refund processing.
Eaton has also given the Trump Administration a deadline of June 7, 2018 to appeal his decision requiring refunds.
Damon Pike is a customs specialist at BDO USA. He said that, if the appeal of the administration goes forward, the companies could be required to file lawsuits in order to receive their refunds. This would slow down the process.
Pike added that the Justice Department wanted to make it as difficult as possible. An appeal would also likely stop refunds from being processed.
LAWSUITS OF COMPANIES
Costco, FedEx, and Mondelez are among the big companies that have sued the U.S. Government to preserve their ability of obtaining tariff refunds as soon as possible. Some experts believe that Walmart and Amazon did not file lawsuits to avoid Trump's ire.
Trump said to CNBC that alternative tariffs, which his administration plans to impose under Section 301 of 1974's Trade Act, could produce a higher revenue, but would be more complex. The Section 301 unfair practices tariff 'process' requires public comments and investigations. These tariffs will not be implemented until July.
"So, we're going to do it in a different manner. We'll still end up the same, or even bigger, but it will be a bit more difficult to manage. "But it's how it's always been done," Trump said. (Reporting and editing by Will Dunham; Additional reporting by Tom Hals; Andrea Shalal; Nicholas Brown; Arriana McCLymore, Tim Aeppel; Will Dunham; Will Dunham, Will Dunham, Will Dunham, Will Dunham, Will Dunham, Will Dunham, Will Dunham, Will Dunham, Will, Dunham, Dunham, Dunham, Dunham, Dunham, Dunham, Dunham, Dunham, Dunham, Dunham, Dunnham, Dun
(source: Reuters)