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Airbus's demand is not affected by geopolitical factors
Airbus' Asia-Pacific President said on Tuesday that the geopolitical and supply chain challenges have not affected aircraft demand or deliveries. Anand Stanley, Airbus Asia-Pacific's President, said that the demand for Airbus aircraft in Asia-Pacific was "continuing to be strong". He made this statement during a Hong Kong briefing on Airbus' 2026-2045 Market Forecast. He said: "Not only do we see an increase in deliveries, but also a willingness to accept deliveries. This is not just in Asia-Pacific. We are also continuing to deliver in the Middle East." Airbus predicts that 42,000 new aircraft will be needed globally in the next 20 year, with 45% of them going to the rapidly growing Asia-Pacific region. Francois Cabaret of Airbus, the head of global forecasting, stated at an event that Chinese carriers have a lot to catch up on when it comes to renewing their fleets. Cabaret reported that before the COVID-19 pandemic Chinese airlines took about 400 'deliverys a year. Since then, the number of deliveries from Airbus Boeing and Chinese planemaker COMAC has fallen to less than half. Airbus data indicates that China, the'single biggest market for commercial jets', will require 8,830 new aircraft in the next 20 years. India will also need 3,480 and the rest of Asia-Pacific 6,880. Airbus' forecast also showed divergent growth in Asia. Airbus has raised its forecast for India's domestic air traffic growth to 9.3%, from 8.9%. China's is cut to 4.7%, from 5.4%.
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Saudi oil prices rise as pipeline problems and fresh attacks raise supply concerns
Oil prices increased on Tuesday, as fears of supply disruptions continued - after attacks on Saudi Arabian infrastructure that left the Kingdom's East West pipeline offline and cast doubt on efforts made to reduce shipping risks in Gulf. Brent crude futures were up $1.37 or 1.3% to $107.05 per barrel by 0406 GMT. Meanwhile, U.S. West Texas Intermediate futures rose $1.53 or 1.51% to $102.92 per barrel. Both benchmarks were up more than 1% the previous session. Iran-backed Houthi in Yemen launched new attacks on Saudi Arabia Monday. Gulf Arab states postponed scheduled discussions with Iran. This fuelled concerns that the Middle East Conflict could expand and disrupt global oil supplies. In retaliation to Saudi airstrikes in Yemen, the Houthis launched a missile attack and used drones on the Khamis Mushait Military Airbase in southern Saudi Arabia. They targeted aircraft hangars as well as radar systems, runways, and ammunition depots. The attacks were attributed by Riyadh to Iranian-backed fighters based in Iraq. They disrupted Saudi Arabia's East-West oil pipeline that allows the country to bypass the blockaded Strait of Hormuz. Tim Waterer is the chief analyst at KCM Trade. He said that oil traders treat every new attack or infrastructure damage as an incremental "supply risk" and are highly alert to any sign of a possible normalisation in the East-West Pipeline or Hormuz flow. The number of commodity vessels transiting the Strait of Hormuz fell to fewer that 10 a day on the weekend from a 10-day daily average of 14. This is a significant drop for a route which carried approximately one-fifth of the global oil supply before the U.S. and Israeli war?on Iran started on February 28. Saudi Arabia may exhaust its oil exports within days, if it does not restore operations on the East West pipeline. This could remove?as high as 4% of the global oil supply, according to Saudi traders and buyers. The world's largest exporter used the pipeline to redirect around 4 million barrels of oil per day -- about 4% of the global supply -- to port of Yanbu on the Red Sea. There is still a lot of uncertainty about the extent of damage and the duration of outage of the East-West Pipeline in Saudi Arabia. Prices will likely remain stable until we 'get clarity,' ING analysts stated in a?"note". Separately on Monday, Volodymyr Zelenskiy stated that Kyiv would only support the U.S. proposal of a ceasefire between Russia and Ukraine on energy sites if Washington could guarantee that Moscow was truly ready to end its conflict with Ukraine.
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The weather is bad on the third day of searching for 129 people missing in Indonesia after a ferry capsizes.
Officials said that rough seas hindered Indonesian rescuers as they searched for 129 missing people after a passenger vessel capsized in the Java Sea three day ago. Officials said that if weather conditions improved, rescuers, who are currently only conducting air and sea surface searches for survivors, would 'launch underwater operations to search for them in the sunken vessel. The Virgo transport 8 ship, which was carrying 243 passengers, went missing early Sunday morning due to bad weather. Six people are confirmed dead and 108 have been rescued from the ship, which was traveling from Surabaya (East Java) to Banjarmasin (South Kalimantan). I Putu Sudayana is the head of Banjarmasin Rescue Agency. He said that on day three, rescuers deployed 1,100 coastguard and navy personnel, as well as 10 helicopters and aircraft, and 17 vessels. "Weather remains the same as yesterday. It is not favorable this morning." "Wave still high, between 1,75 metres and 2.5 metres (5.7-8.2 ft)," he said. Mohammad Syafii told reporters that the bad weather on Monday prevented rescuers from carrying out underwater searches for the missing. He added that rescuers had not found any new bodies or survivors during the search on Monday. Syafii stated that the agency's team would continue to monitor the weather conditions on Tuesday to determine if underwater rescue operations can proceed. Syafii stated that underwater rescue will involve specialists from the Navy and rescue agency capable of diving at depths greater than 100 metres (328 ft), Syafii. He added, "Of Course we still hope to find the victims alive." Syafii added that the navy would also deploy its Canopus vessel, which is equipped with a?underwater drone and a multibeam echoe-sounder for locating potential targets, as well as a remotely controlled vehicle (ROV) to make closer assessments. Divers could be safer in low visibility, with strong currents or around a capsized ship. Syafii stated that underwater operations were difficult because the capsized vessel was unstable. It could move unexpectedly due trapped air and empty compartments. Divers may also experience sudden pressure changes. He said, "We're also looking at?how we can turn the ship back up from its current position." The ship has now reached a depth 30 metres (98 feet) and the authorities are looking at pulling it back to the surface.
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Saudi Arabian pipeline disruption and fresh attacks on supply raise concerns about oil prices
The price of oil rose on Tuesday, as fears about supply disruptions continued after an attack on Saudi Arabia's?energy infrastructure knocked the East-West pipeline off line and cast doubt on efforts to reduce shipping risks in Gulf. Brent crude futures were $1.24 higher, 1.18% to $106.93 per barrel at 0026 GMT. They had risen 1% the previous day. U.S. West Texas intermediate futures were $1.29 higher, 1.24% to $102.65 per barrel after rising 1.3% during the previous session. Iran-backed Houthi troops in Yemen launched new attacks on Saudi Arabia Monday. Gulf Arab states delayed planned discussions with Iran. This fuelled concerns that the Middle East Conflict could expand and disrupt global oil supplies. In retaliation to Saudi airstrikes in Yemen, the Houthis launched a missile attack and used drones on the Khamis Mushait Military Airbase in southern Saudi Arabia. They targeted aircraft hangars as well as radar systems, runways, and ammunition storage depots. The attack on Saudi Arabia on Friday, which Riyadh attributed to Iranian-backed fighters in Iraq disrupted Saudi Arabia's East-West Pipeline, which allowed oil exports to bypass the blocked Strait of Hormuz. Tim Waterer is the chief analyst at KCM Trade. He said that oil traders treat every new attack or infrastructure damage as an incremental risk to supply. They are also highly alert for any signs of a possible normalisation in the East-West Pipeline or Hormuz flow. The number of commodity vessels transiting the Strait of Hormuz fell to less than 10 per day on the weekend from an average of 14 over the past ten days. This is a significant drop for a route which carried approximately one-fifth of the global oil supply before the U.S. and Israeli war against Iran began on 28 February. Saudi Arabia may exhaust its oil supply within days, if it does not re-establish operations on the East West pipeline. This could remove as much as 4% from global 'oil supply,' according to Saudi traders and buyers. The world's largest exporter used the pipeline for a rerouting of around 4 million barrels a day --?around 4% global supply?- to the port of Yanbu, on the Red Sea. The big question for traders is how long the East-West blackout will last. Waterer said that any prolonged disruption, and the resulting loss of supply, could easily push prices up to the next level. Separately President Volodymyr Zelenskiy stated on Monday that Kyiv would support the U.S. proposal of a Russia-Ukraine energy ceasefire only if Washington can ensure Moscow is genuinely prepared to end its conflict with Ukraine.
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French power sector strikes shut down 6.5 gigawatts overnight
EDF data shows that a French labor strike in the 'electricity sector' took 6.5 Gigawatts of power offline overnight on Monday as unions protested a recommendation to curb employee benefits like access to cheaper electricity. The main source of electricity cut was seven French nuclear reactors. Several hundred megawatts from?gas-fired or hydroelectric power were also taken offline. France produces about 70% of its electricity with its 57 reactor fleet. It is also a major?exporter at a time where power prices are high, as countries like Germany that rely on gas have to pay a higher price to generate electricity. Data from EDF shows that the disruption lasted until Tuesday morning. The strike is expected Tuesday to continue through the entire day, which means that the outages may be increased or renewed. The French energy sector offers discounted gas and electricity rates to workers and retirees. Their?unions consider this a key part of their compensation package. In July, the French Court of Auditors recommended that EDF stop receiving this benefit. They estimated it would cost EDF more than EUR700 million (808.22 million dollars) in lost revenues by 2024. The court recommended that EDF limit annual wage increases and phase out its energy benefits. EDF is facing major investment costs in upgrading its nuclear fleet, and planning new reactors.
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AirBaltic CEO: AirBaltic is in negotiations with unions about reducing staff as part of restructuring.
AirBaltic has been in discussions with the labour unions in order to reach an agreement regarding an "adjustment of?the workforce", Chief Executive Erno Hilden said on?Monday, after the Latvian airline announced that it had voluntarily entered Chapter 11 bankruptcy proceedings. Hilden stated that a reduction in capacity would lead to a shift in the workforce. It's time to come up with some numbers after all that. AirBaltic filed under Chapter 11 of the U.S. Bankruptcy Code on Monday in New York. It is seeking to restructure its debt, avoid creditors and survive a 'deepening crisis within the sector brought about by the Iran War. Hilden was previously the CFO of Scandinavian Airlines, where he led the company through a similar process. He added that airBaltic operations would not be interrupted or changed during the Chapter 11 proceedings. He said the most significant changes would be made to the "wet leasing" business of the airline, which involves lending out planes and crews to other carriers for a fee. Chairperson of the Latvian Aviation Union,?Dacekavasa, said? The Latvian aviation union's chairperson,?Dace Kavasa, told? The consultations on collective dismissal are still ongoing. Many unknowns exist. Kavasa stated that there are serious disagreements about the objectivity of certain?proposed criterion. They hoped for some positive decisions to be made by the end the week.
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Wizz Air CEO: AirBaltic and other carriers are at risk
Wizz Air's CEO Jozsef Varradi said that the bankruptcy of airBaltic offers few, if any, opportunities and expects other European airlines to be affected by this. These airlines were unable?to hedge against high fuel prices. ?on Monday. Varadi, speaking at a conference organized by the International Society of Transport Aircraft Trading, said that the recent spike in oil prices "sucks liquidity from the industry very quickly." "I believe they'll be in a difficult situation." Wizz, the Latvian state-owned airline and airBaltic are located at opposite ends of Europe’s vast aviation market. Both have been shaped over the past two decades by Europe’s eastward expansion followed by a collapse in relations with Russia. Varadi stated that "there are no Russians now, and airBaltic just is too big for such a small market as Latvia." Does it interest us?" "Very limited to be honest... Latvia is on the 'periphery of Europe, then you have a Russian border. "So, given the current geopolitics, how can you implement that concept?" Varadi founded Wizz with eight other countries in 2003, just as Hungary and Latvia were about to enter the European Union. Moscow's invasion in Ukraine 2022 harmed its network, but it continued to grow. AirBaltic set out to be a regional hub carrier, but the loss of Russian routes, traffic, and high fuel prices left it reeling. Since the beginning of the Iran War, airlines around the world have been struggling with high oil costs. Varadi, a representative of ISTAT, said that Wizz has hedged 80% its oil needs for the next 12 months at half market price. Varadi said that this year will be bumpy for the oil industry as it deals with oil prices and geopolitics, but there could also be opportunities. "We've noticed a vacuum in Italy. He said that we were "pushing" a lot more capacity to Italy, Romania, Albania, and other places.
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Winter is on its way: AirBaltic's debt woes presage a tough season for smaller airlines
The aviation industry is bracing itself for a difficult winter after Latvian airline airBaltic filed Chapter 11 procedures?on Monday. Jet fuel prices are continuing to rise due to the Iran War. AirBaltic, a U.S. competitor, filed for bankruptcy in May, after seeking protection prior to the war. The margins of airlines are relatively small compared to those in other industries, making them more vulnerable to geopolitical instability, especially in winter, when bookings and travel drop, and they lose the money they made in summer. SAVING RETURNS The price of jet fuel is expected to remain high for as long as the Strait of Hormuz is blocked. This will put additional pressure on smaller carriers. Aviation analyst John Strickland said that smaller niche players were most at risk. The fuel price has doubled since the beginning of the war in late February. However, there are some advantages for larger budget airlines. Last month, Wizz 'Air reported that its operating losses had increased in the first three months. It also said it expected revenue per seat in the current third to continue to fall after cutting fares in order to attract more passengers. In August, they reached an 'all-time high of 8.7 million passengers. Wizz Air, supported by strong liquidity and a disciplined hedge programme, continues to grow, invest and serve more customers. James Halstead of Aviation Strategy said that Wizz Air's stock market listing puts it in a stronger position than state-owned carriers. "They're growing fast, which means they're sacrificing current returns for future stability. He said they have a good operating model, a great brand, and support. AirAsia, a budget airline in Southeast Asia, is looking to raise new capital following a restructuring and consistent losses, while Air Transat, a Canadian carrier, has been struggling with rising jet fuel prices. AirAsia stated that it did not see any problems with the sustainability of its business and saw a strong demand at the underlying level. AirAsia stated in a press release that it is committed to maintaining stable operations and business continuity across its markets. We continue to see a strong demand for our services across the network. "We also work closely with our stakeholder to manage our financial requirements and operational needs." Air Transat didn't immediately respond to our request for a comment. More routes for bigger players Executives and investors have said that a tough market may force some smaller national carriers to cede their routes to bigger, more well-funded rivals. Analysts say that budget airlines like Ryanair and Wizz air could pose a threat to them. These airlines have taken over secondary airports in an effort to grow and are now offering better prices for consumers. Wizz Air CEO Jozsef Varadi told reporters in August that the airline was eager to take over routes from Romanian state-backed carrier TAROM. TAROM didn't immediately respond to a comment request. The more difficult market conditions may accelerate the long-term trend in Europe of consolidation. This could push some smaller carriers to larger?groups, such as British Airways' owner IAG, Lufthansa, and Air France-KLM. Norse Atlantic has started in July a process of?sale' or?merger. It did not respond immediately to a comment request. Since years, the state-owned Polish carrier LOT is suspected of being a target for consolidation. LOT did respond immediately to a comment request. AirBaltic said that it was 'looking for another strategic investors, but no one has yet publicly expressed interest. Lufthansa has a 10% stake but says it doesn't intend to increase that stake. It refused to comment on its possible next steps in light of airBaltic's Chapter 11 proceedings. Analysts said that airBaltic could still survive and recover from Chapter 11 proceedings, unlike Spirit. Strickland cited the Scandinavian competitor SAS as an example of how to turn things around.
Document reveals US plans to fund the deportation of Costa Ricans
According to a document obtained by, the U.S. State Department plans to spend $7.85m to help Costa Rican deport immigrants. This is similar to an earlier Biden program that was criticized by advocates for migrants.
The document states that the State Department will transfer funds from its "economic assistance fund" (which is used to support economic development in countries with allies) to the Department of Homeland Security which oversees immigration enforcement. DHS will work with Costa Rican officials to facilitate the deportation of Central American citizens.
Costa Rica accepted a request from the Trump administration earlier this year to accept 200 illegal immigrants who came from Africa, Asia, and Europe. Costa Rica was supposed to send these immigrants back to the countries where they originated, but dozens of them remain in the Central American nation.
When asked for comment, State Department said that the funds would be used to deport immigrants who were deported by the United States, and not to repatriate them.
A spokesperson stated that the program would help the Costa Rican Immigration Authorities to build their capacity in order to prevent illegal migration from crossing its borders. It will also provide training and resources for asylum screening.
The document provided details on the money transfer but did not specify when or if the deportation would take place.
The document states that the Costa Rica agreement is "in part", based on an arrangement signed in 2024 by the administration of the former U.S. president Joe Biden with Panama. Under this deal, the U.S. paid Panama to detain migrants traveling through the country while they were travelling from Colombia to U.S.A.
At the time, some migrant advocates as well as elected Democrats claimed that the agreement could prevent vulnerable populations from accessing the U.S. Asylum system.
The document was sent to certain congressional offices in the last few weeks. It stated that the Department intended to assist the Government of Costa Rica to conduct deportation operations of migrants who do not have international protection or any other legal basis to remain.
The activities would provide Costa Ricans with technical and logistical advice, including air transport, for deportation processes.
Costa Rica's public security and immigration ministries referred all questions to the President's office and foreign affairs ministry. Both entities did not respond to requests for comments.
NEW ARRANGEMENTS FOR DEPORTATION
Since Donald Trump became president of the United States in January, his administration relies on several novel arrangements to facilitate deportations.
There have been deals made with other countries, including Costa Rica, to accept illegal immigrants into the U.S. regardless of their connection to the nation where they were sent. Some of the countries that accept deportees are weak or have poor human rights records. This raises safety concerns.
The arrangement described in the document may be similar to that of the Biden administration with Panama in 2024, but there are some differences between the current situation in Costa Rica and the 2024 situation in Panama.
The northward migration from Colombia through the Darien gap to Panama, then on to Costa Rica and to the U.S.A. has been dramatically slowed.
Some Venezuelan migrants are also transiting through Costa Rica to continue their journey southward after they gave up trying to enter the U.S. because of Trump's crackdown against illegal migration and the elimination of Biden’s humanitarian parole program.
The document didn't specify which countries Costa Rica will deport migrants to, so it is possible that some may be sent to third-party countries.
It is not known if the Trump Administration plans to create similar programs for funding deportations of Latin American nationals.
Kristi Noem, Homeland Security Secretary, has visited several Latin American countries to discuss immigration, including Costa Rica. El Salvador, and Chile. (Reporting and editing by Don Durfee and Alistair Bell in Washington, Additional reporting and Editing by Alvaro Murillo and Michael Perry in San Jose)
(source: Reuters)