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Spirit Airlines, the pioneer of low-cost airlines, is seeking its second bankruptcy in a matter of months
Spirit Airlines, the pioneer of no-frills air travel in the United States, filed for chapter 11 bankruptcy on Friday. Its turnaround efforts have been stalled by dwindling funds and mounting losses since it emerged from its previous Chapter 11 restructuring in March. Since March, when the carrier emerged from its first bankruptcy, it has struggled with stabilizing its operations. The airline announced on Friday that flights, sales of tickets, reservations, and operations would continue. Spirit Airlines had tried to rebrand itself as a premium airline in order to keep up with the post-pandemic trends of travel that have challenged ultra-low cost model's viability. Spirit's recovery has been further hampered by the uncertainty caused by President Donald Trump's budget cuts and tariffs, which have reduced domestic airfares and cooled consumer expenditure. The airline had to raise its prices going-concern There were doubts in the beginning of this month. Dave Davis, CEO, said: "Since our previous restructuring which focused exclusively on Spirit's funded loan and raising equity capital has been completed, it is clear that much more work needs to be done. There are many other tools available to position Spirit best for the future." First, the Florida-based airline sought You can also find out more about bankruptcy After years of losses, failed merge bids, and mounting debt, the airline filed for bankruptcy protection in November, becoming the first U.S. major carrier to do so since 2011 The company posted a net loss of $1.2 billion last year. This was compounded by the failure of a $3.8-billion merger with JetBlue Airways, and RTX’s Pratt & Whitney engines that forced them to ground many Airbus aircraft. Spirit Airlines began as a trucking company in 1964, before moving into aviation in 1980s. Initially they flew leisure packages under the name Charter One Airlines. Spirit Airlines was rebranded in 1992. It quickly gained a reputation for being a low-cost carrier that caters to budget-conscious travellers who are willing to sacrifice extras such as checked baggage and seat assignments. The pandemic changed the travel industry, forcing ultra-low cost carriers to adjust. (Reporting and editing by Sriraj Kalluvila, Maju Samuel, and Shivansh Tiwary from Bengaluru)
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Trump cancels 679 Million Dollars in Federal Funding for Offshore Wind Projects
The Trump administration announced on Friday that it would cancel $679 million of federal funding for 12 projects involving offshore wind, including $427 for a California project. This is just the latest move in an aggressive campaign by the Obama administration to weaken an industry that played a central role in former President Joe Biden’s climate and energy agendas. U.S. Transportation secretary Sean Duffy stated that the awards made during the Biden administration were a waste "that otherwise could have been used to revitalize America's maritime sector." The Department of Energy awarded $427 Million to Humboldt County in California to build a new maritime terminal for construction and maintenance offshore wind turbines. Humboldt Bay was to be the Pacific Coast's first offshore wind terminal. The funds were intended to revitalize a defunct maritime terminal that would be used for wind-turbine assembly, launch, and project staging. A spokesperson for California Governor Gavin Newsom condemned the action, saying that it was an example of how the Trump administration is "attacking clean energy projects and infrastructure projects" - harming businesses and killing rural jobs and ceding America's economic future to China. The Department of Energy also cuts a $47,000,000 grant for an offshore manufacturing and logistics hub near the Port of Baltimore, Maryland, and $48,000,000 for an offshore terminal project on Staten Island, New York, awarded in 2022. It also reduces $33,000,000 for a port development project in Salem Massachusetts to redevelop an industrial facility that was vacant for offshore wind projects. Massachusetts Governor Maura Maura Healey stated that canceling the Salem grant would cost 800 construction workers jobs. She said that the Trump administration was wasting money by canceling tens millions of dollars from a project already underway to increase our energy supplies. After two major cancellations, U.S. agencies including the Departments of Defense, Energy and Commerce are reviewing the offshore wind farms that were approved by the Biden Administration along the Atlantic Coast. Transportation Department has also cancelled major grants for California's high-speed rail system and other infrastructure projects that are environmentally friendly. (Reporting and editing by David Shepardson, Nichola Groom and Edmund Klamann.
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Southwest Airlines begins flying the first plane with a secondary cockpit barrier
Southwest Airlines announced that it would begin flying on Friday its first jet equipped with a secondary flight deck barrier designed to prevent intrusions. The airline announced that the plane, a Boeing 737 MAX 8 recently delivered to them, will take its first flight from Phoenix to Salt Lake City on Friday afternoon. Pilots unions argue that secondary barriers are essential to aviation safety. They have been sought since the September 11, 2001 attacks, which exposed the dangers of insufficient flight detection protection. This flight marks the start of the deployment of this safety feature on the new U.S. commercial aircraft fleet over the next few years. Boeing and Airbus have said they've begun delivering planes with barriers underneath. Regulation announced for 2023 This took effect on the Monday. The Federal Aviation Administration has agreed to a new agreement. Give airlines until July 2026 Use the barrier in new planes. The FAA has been informed by the majority of major carriers that they will not be using the barriers immediately and instead, take advantage the extension. Southwest Airlines has chosen to comply with the new regulations as soon as it takes delivery of new aircraft. It expects to receive about 25 more Boeing planes in this year, which will be equipped with the barrier. The FAA adopted security standards for the flight deck after the September 11 hijackings of four U.S. planes. These standards are designed to prevent forcible entry and unauthorized access. The rule requires that aircraft manufacturers install a second physical barricade on all new planes in use for commercial passenger services in the United States. Existing planes do not have to be retrofitted.
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Venture Global could soon produce LNG at Plaquemines from all blocks, according to filings
Venture Global's regulatory filings indicate that it could produce liquefied gas at Plaquemines in the near future from all of its blocks. The facility produces 27.2 million metric tonnes per year. According to a Federal Energy Regulatory Commission order, the company was granted permission to introduce nitrogen to Block 15 as a first step towards natural gas production. The move by the regulator followed an authorization on Wednesday to introduce natural gases at Block 18. Each block has two trains, which are also known as trains. According to regulatory filings, it had skipped Block 15 at first after being granted permission to start production at the rest of the facility. The second largest LNG plant in America is Cheniere Energy Sabine Pass. Venture Global expects to commission the plant in phases over the next two-year period, earning more liquefaction fees by selling early cargoes before supplying long-term clients such as Exxon Shell and Orlen. Venture Global didn't immediately respond to our request for comment. Plaquemines, which began producing LNG in December of last year, has increased its output each month. This is a big reason why the U.S. was able to export supercooled gas at record-breaking levels by 2025. LSEG data shows that on Friday, Plaquemines pulled 3.2 bcf, or nearly 20% of the gas produced by U.S. plants. Venture Global, a three-year-old startup, has grown into the second largest LNG exporter in America. The company will be number one when it finishes construction of CP2, a 28-mtpa LNG export facility in Louisiana. Plaquemines was the fastest greenfield LNG facility built in the U.S. It produced its first cargo less than three years after its approval. Curtis Williams, Houston Reporter; Nathan Crooks & Nita Williams, Editors
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Turkey restricts airspace and ships to Israel
Hakan Fidan, the Turkish Foreign Minister, announced on Friday that Turkey had decided to ban Israeli vessels from entering its ports and forbid Turkish ships using Israeli ports. It also imposed restrictions on certain planes in Turkish airspace. In his comments to the parliament, he provided little detail that appeared to summarize steps taken by Turkey against Israel in Gaza war or those already in progress. Israel denies the charge. The Turkish government has strongly criticised Israel for its offensive in Gaza. Ankara halted its trade with Israel and called for international sanctions against it. It also urged the world's powers to stop their support of Israel. Last week, sources told us that Turkish port officials had started requiring shipping agents informally to submit letters declaring their vessels were not connected to Israel or carrying hazardous or military cargo bound for that country. Sources also claimed that Turkish flagged ships will not be allowed to dock at Israeli ports. Fidan said at an extraordinary session of the parliament on Israel's attack on Gaza that "we have completely cut off our trade with Israel. We have closed our ports to Israeli vessels and we do not allow Turkish vessels to enter Israel's port." He added that "we do not allow container ships to enter our port carrying weapons and ammo to Israel, nor airplanes to fly in our airspace." Later, a Turkish diplomatic source clarified that Fidan referred to Israeli government flights as well as flights carrying weapons into Israel. The comments of the minister refer to official Israeli flight and flights that carry weapons or ammunition into Israel. The source clarified that this does not apply commercial transit flights. Fidan said that the Turkish president had also approved of airdropping aid to Gaza. He told the lawmakers that "our planes are prepared, and once Jordan approves, we'll be ready to go." The Israeli government didn't immediately respond to his remarks. Tuvan Gumrukcu, Timothy Heritage and Ros Russell edited the article.
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A Canadian energy executive is tasked with accelerating project approvals
Canada appointed Dawn Farrell, a senior executive in the energy industry on Friday as head of a new office that will expedite the approval and review of natural resource projects like mines and pipelines. This process can take up to a decade. The office was announced by the Prime Minister Mark Carney earlier this year. He said that streamlining would boost the gross domestic product, and offset the impact of U.S. Tariffs. Farrell and her team, which includes Farrell who served as CEO of Trans Mountain Pipeline between 2022 and 2024, will identify projects that are in the national interest, and they will help accelerate their development. Carney's Office said that this should allow major projects to be approved in two years or less. The construction of major infrastructure projects has been held up by inefficient and lengthy approval processes for far too long. This has left huge investments on the table. Farrell's office is located in Calgary, Canada's oil capital. Ottawa has not yet designated any projects of national importance. The Canadian Association of Petroleum Producers stated that Farrell's nomination and the creation of this office were "concrete measures towards making Canada an Energy Superpower and sending a positive message to industry and investors." Farrell was CEO of Trans Mountain from 2012 to 2021. She oversaw the completion of a multi-billion dollar expansion in capacity of the pipeline. She served as CEO of TransAlta, a utility company, from 2012 until 2021. (Reporting and editing by Richard Chang; David Ljunggren)
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Amaggi and Inpasa to partner in building new corn ethanol factories in Brazil
The firms announced on Friday that ethanol producer Inpasa, and Brazilian grain exporter and processor Amaggi, have formed a joint venture for the construction of at least three corn based ethanol factories in Mato Grosso. This is Brazil's largest grain-producing state. Why it's important The corn ethanol industry's growth is key to Brazil's growing demand for renewable fuel. Inpasa, the largest corn ethanol manufacturer in Brazil, is privately owned Amaggi. By the Numbers The companies stated in a press release that each plant should initially have the capacity to process around 2 million metric tonnes of corn annually. They said that Rondonopolis will receive the first investment, but they are also looking at investments in Campo Novo do Parecis, Querencia and Campo Novo do Parecis, without disclosing financial details. KEY QUOTE The companies stated that "this partnership will combine Amaggi’s solid footprint in grain sourcing and logistics with Inpasa’s leading expertise in corn based biofuel production". What's Next? The statement said that the joint venture will be formalized once the Brazilian antitrust authorities have approved its formation. (Reporting and writing by Ana Mano, Gabriel Araujo, Kirby Donovan).
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Sources say that the Kuibyshevsk refinery in Russia ceased operations following drone attacks.
Two industry sources claim that oil processing at the Kuibyshevsk Russian refinery, operated by Rosneft, has been stopped since August 28, following Ukrainian drone strikes. Sources claim that the attack on the refinery damaged the CDU-4 (crude distillation units) and CDU-5 (each with a capacity 70,000 barrels a day (bpd). Some secondary refinery units have also been damaged. Sources claim that the Kuibyshevsk oil refinery resumed refining operations on August 21 after completing a major overhaul, which had been ongoing since July 1. Rosneft didn't immediately respond to a question. The Kuibyshevsk Refinery is a part of the Samara Group of Rosneft refineries. This group also includes Novokuibyshevsk, Syzran and other refineries. The Syzran oil refining plant is currently also out of service, as it was shut down on 15 August due to drone damage. The Novokuibyshevsk oil refinery, which was attacked on August 2, also suffered drone damage. Kuibyshevsk's capacity is approximately 140,000 barrels of oil a day, or 7.0 million tonnes of oil a year. According to industry sources, the Kuibyshevsk Refinery will process 4.7 million metric tonnes of crude oil by 2024. It will produce 0.8 million tons motor gasoline, 1.4 millions tons diesel fuel and 1.3million tons fuel oil. (Reporting and Editing by Louise Heavens).
MercadoLibre misses profit estimates as Brazil free-shipping boost hurts margins
MercadoLibre, the Latin American ecommerce giant, reported a 1.5% drop in its net profit for the second quarter of 2014, falling short of analysts' expectations. Free shipping in Brazil boosted sales, but it also hurt margins.
MercadoLibre reported a net profit of $523 millions for the three months ending June 30, below the $596 that analysts had predicted in a LSEG poll.
MercadoLibre is a Uruguay-based e-commerce company that operates Mercado Pago and an ecommerce platform. It sells in more than 20 countries in Latin America.
Sales measured by gross merchandise values increased 37%, compared to the $6.7 billion estimate, on a currency-neutral basis.
MercadoLibre launched its early June sale
Cut the threshold
After reducing shipping costs in May for users and companies selling on the platform, Amazon has now made purchases in Brazil eligible for free delivery. This comes amid fierce competition within Brazil's ecommerce sector.
Brazil, the main market of the company, and Mexico helped MercadoLibre increase the total number of items sold in the third quarter by 31%, the highest rate year-on-year seen since mid-2021.
Martin de los Santos, Chief Financial Officer, stated that this also affected margins.
In an interview, he stated that "we don't want the growth opportunities to pass us by." "This might create some structural margin pressure but we are very confident about the long-term trend of our profitability."
EBIT (earnings before taxes and interest) hit a record of $825m, but fell short of the forecasted $869m. EBIT margin was 12.2%, down on 14.3% from a year ago.
The CFO stated that investments in free shipping, marketing and growth of its 1P business (which sells directly to the customer) were amongst the biggest impacts on margins.
The CFO of MercadoLibre said that the fintech division grew its portfolio by 91%, to $9.3billion, and the 15-90 day default rate fell 1.5 percentage points, to 6.7%. This is the lowest figure since the company began releasing the figures seven years ago. Reporting by Andre Romani, Editing by Richard Chang
(source: Reuters)