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US Postal Service stops non-essential expenditures as cash crisis worsens
As it struggles to meet its financial obligations, the U.S. Postal Service announced Thursday that it will suspend non-essential expenditures on?travel and office supplies as well as consultants. In a memo seen by?officers on Tuesday, Postmaster General David Steiner explained that the move was made "to protect our core operations and to ensure we continue to meet all essential obligations." USPS reported net losses of $120 billion in the last seven years, as the first-class mail, the most profitable product for the USPS, has declined sharply due to the shift from paper to digital communications. The agency also has to maintain expensive nationwide delivery operations. The memo freezes discretionary purchases for office supplies, software, hardware, training, system upgrades, or bulk orders that are not urgently needed. USPS confirmed that the memo was sent and stated that the measures were additional self-help actions "to address our current financial crisis." USPS warned earlier this month that it could be out of cash by February. The volume of mail dropped another 6.3% over the three months ending on March 31. Operating revenue, however, rose by 2.3% from $20.2 billion a year ago. USPS has taken several steps to save money and requested financial reforms from Congress. The Postal Service announced last month that it would suspend payments to federal pension programs by employers and raise the cost of first-class stamps from 78 cents to 82cents. Steiner said this week that while we can certainly work to reduce our costs, long-term, the Postal Service must grow in order to stand alone. Suspending employee pension contributions will save $200 million every two weeks or $2.5 billion by September 30. USPS announced earlier Thursday that it had reached a multiyear agreement?with DHL e-commerce, which is expected to be valued at more than $10 billion. The deal will see USPS handle the German company's final-mile parcel delivery in the U.S. USPS was approved last month for a temporary price increase of 8% for "priority mail" and "package deliveries" to offset the rising costs for transportation and fuel. USPS plans to have the surcharge in place until January 17, 2027. Steiner announced in March that the Postal Service would be hiring restructuring advisors to address its financial problems.
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Southwest Airlines sees no impact on demand from the fare increases, but is looking to expand its premium offerings
Southwest Airlines CEO Bob Jordan said on Wednesday that the airline 'has not seen a drop in demand after joining the industry with seven fare increases from February. This makes him more confident about the airline's ability to offset higher fuel costs through stronger revenues. Jordan, speaking at a Bernstein Investor Conference, said that the fare increase was the largest he had ever seen in his 38-year career. He said that demand was strong for leisure and business travelers, as well as across geographies, and in terms of the booking curve. Jordan stated that there was no decrease in demand with the fares being raised so much. His comments add to the signs that U.S. airlines are still able to maintain pricing power, despite a rise in jet fuel costs. This is due to strong premium and business demand as well as reduced competition from discount carriers. MORE ?PREMIUM OPTIONS Jordan said that Southwest could do more to improve its product. The airline, he said, may offer more cabin options including "true" first class, and will likely expand into international long-haul flying in the future. Southwest Airlines has overhauled its business following pressure from activist investor Elliott Investment Management, and lower profit margins due to the pandemic. Jordan stated that the Dallas-based carrier "doesn't need to become Delta Air Lines or United Airlines with a global long-haul networks." He said that a small number of long-haul routes could make the airline 'highly relevant' to its customers. "I want to give you fewer and fewer reasons for booking another airline," Jordan stated, adding that Southwest will remain focused on the domestic schedule, nonstop flights, operations and hospitality. Southwest Airlines has already made changes to its products, including assigning seats and adding extra legroom. Jordan reported that business revenue increased by 25% from the previous year in March. This trend continued in April and in May. He stated that Southwest's Rapid Rewards program enrollment increased 37% during the first quarter. The number of customers who qualified for higher loyalty status also rose 60%. This is a sign customers are responding positively to the new products. (Reporting and editing by Franklin Paul, Nick Zieminski, and Rajesh Singh)
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Canada's South Bow Flags require a durable US permit prior to Keystone XL restart
South Bow won't proceed with a reactivation of the Keystone XL pipeline until they?have proof that a u.s. Bevin Wirzba said that the permit granted by the U.S. president is "durable" at Thursday's Energy Roundtable Conference in Calgary, Canada. If approved, the Alberta-to Wyoming pipeline proposed by South Bow, along with its U.S. partner,?Bridger Pipeline?, could increase Canada’s crude exports into the U.S.?by over 12%, providing Canada with much-needed pipeline capacity? In April, U.S. president Donald Trump signed an order granting a 'cross-border permit' to a project which would re-energize parts of the 'Keystone XL Pipeline to transport Canadian Oil from the U.S. Canada border to Guernsey in Wyoming. The new proposal would take a different route across the U.S. compared to the Keystone XL project that was canceled by former president Joe Biden after years of Indigenous opposition and environmental concerns in 2021. The company announced in May that it had started work on securing regulatory approvals along the U.S. route for its proposed Prairie connector project. South Bow is a spin-off of TC Energy, the former Keystone XL promoter. It was formed in 2024 by TC Energy to run its oil pipelines. Approximately 150 km of pipe (93'miles) has been built in Canada and is laying idle since Keystone XL was cancelled.
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Germany's DHL hires US Postal Service for last-mile US parcel deliveries
?The U.S. The U.S. Postal Service announced Thursday that it had signed a'multi-year agreement with DHL eCommerce for parcel delivery in the U.S. DHL?eCommerce is a U.S. division of the German logistics giant DHL Group. The deal, according to DHL, will help the company grow on the U.S. Market over the next few years. DHL eCommerce, which has 19 hubs in the U.S., will be responsible for the pickup and sorting of all deliveries before USPS completes the final mile. Deal is crucial for the financially strapped USPS. It has warned that it may run out of money as early as February. Amazon.com announced last month that it had reached an agreement with the USPS regarding package deliveries. In an interview, Postmaster General David Steiner stated that the USPS is the only carrier to deliver to 170 millions U.S. households six days a weeks. The deal allows DHL to "play in 'the largest market of the world. Steiner stated that DHL "would have to invest a lot of capital in order to build an end-toend network or partner with someone who has this last-mile ability" such as USPS. "We've got a win-win situation." DHL eCommerce Americas Chief Executive Scott Ashbaugh stated that the deal will help the company to grow in the U.S., and target slightly heavier "parcels". Ashbaugh added that a company of this size has a wide range of options for the last mile. DHL eCommerce, for example, could have built its own network or acquired a firm to make these last-mile deliveries. He stated that the company could add more hubs in the U.S. He said the company?could add more?U.S. Ashbaugh stated that USPS was the best choice. USPS will raise the price of "first-class" mail stamps by 8% to 82 cents, effective July 12. This follows approval for a temporary 8 %?price increase for priority mail and package deliveries in order to cope with rising transportation costs. Since 2007, the postal service has suffered net losses of $118 Billion as its most profitable product - first class mail - has dropped to its lowest volume in decades. David Shepardson, David Gregorio (Editing)
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US Postal Service signs multi-year agreement with DHL unit
The U.S. The U.S. DHL eCommerce, a division of the German logistics giant DHL Group said that the deal would help the company grow in the U.S. over the next few years. David Steiner, Postmaster-General of the United States, said in an exclusive interview that DHL has the opportunity to "play in the largest market on the planet." He said that DHL would have to "invest a lot of capital" to build an end-to -end network or partner with someone who has the last mile capability, like USPS. DHL eCommerce will handle pickups and sortation at its 19 U.S. hubs, before USPS completes the "last mile" for all deliveries. DHL eCommerce Americas' CEO Scott Ashbaugh stated that the deal will help the company grow in the United States, and "target slightly heavier parcels." He said that the company may add more hubs in the United States. Ashbaugh stated that the company expects to roughly double its business by 2030. The USPS is in dire need of cash and has been warned that it could run out as early as February. Amazon.com announced last month that it had reached an agreement with the U.S. Postal Service on package deliveries. Reporting by David Shepardson
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Swiss Police say knife attack on station is terrorist act
Police said that a knife attack on a Swiss train station, which left three people injured, was an act terrorism. They arrested a suspect, who had been previously reported for spreading Islamic State propaganda. The police said that they had arrested a dual Swiss-Turkish citizen, 31 years old, who was from Winterthur. This is a city located north of Zurich. The attack occurred at approximately 0630 GMT. Mario Fehr, the security director for the canton of Zurich described the attack. He called it "a vile act of terrorism?which was I believe handled very well by police who were able?to prevent something even worse happening." Fehr, at a recent press conference, praised the teacher who protected her students by standing in front of them. Fehr stated that there were "many brave people", including the teacher, who "behaved exemplary". The Zurich cantonal Police commandant Marius Weyermann stated that the suspect was previously reported to police in 2015, for spreading propaganda by the hardline militant group Islamic State. Weyermann stated that the motive behind this act should be found in radicalization and extremism. The Swiss newspaper Blick reported that it had?obtained a video of a man running from?the concourse at?Winterthur Station shouting 'Allahu akbar, an Arabic phrase which translates to "God the greatest". The video was not independently verified. According to police, the three victims were receiving medical care. The police reported that one person was stabbed to death in the leg. Another was stabbed to death?in neck. A third man was stabbed?in thigh. Weyermann reported that the injured were transported to hospitals, and the third person required emergency surgery due to his injuries. Reporting by John Revill, Ludwig Burger and Aiden Lewis.
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Federal regulator suspends review of Union Pacific and Norfolk Southern's $85 Billion merger
The U.S. Surface Transportation Board announced on Thursday that it had paused its review of Union Pacific's and Norfolk Southern's $85billion merger application, as it sought a?larger?amount of information from the companies. In morning trading, shares of Union Pacific dropped 4.2% while Norfolk's fell 5.4%. STB, who has exclusive jurisdiction for railroad mergers, said that the companies' merger request had been accepted but that proceedings, including environmental review, were put on hold. The Department of Justice may provide non-binding legal advice. The STB stated that "Several aspects of revised application are unclear or underdeveloped, and need to be supplemented at this stage." After an initial proposal?was sent in January, the companies submitted a revised application in April to merge and create a coast-tocoast U.S. Freight Rail Operator. A coalition of business organizations, rival railroads, and organized labor unions have all been against the deal. They claim that it will stifle competitiveness and increase costs for consumers, manufacturers, and farmers. The board has asked railroad operators to provide additional information by July 27, including projections of market share, downstream merger effects and enhanced competition. The board stated that "given the relatively narrow procedural question, completeness", the issues raised by the commenters did not warrant the rejection of the revised application. The STB will review the evidence for a year and determine if the transaction is in the public's interest. It will then make a decision. The merger was originally planned to be completed by April of next year. However, this may have been delayed because the board might not reach a decision before September 2027. Union Pacific and Norfolk Southern have not responded to the request for comment. Walter Spracklin, an RBC analyst, wrote that a delay would not affect the likelihood of the deal being completed. He also said that he views Thursday's report as "neutral" to sentiment. Reporting by Aishwarya and Apratim in Bengaluru. Additional reporting by Rashika, Diti Pujara.
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Airport chief: US military aircraft affecting Israeli commercial activity
Ben-Gurion International Airport near Tel Aviv is operating at only one-third capacity because of the presence of U.S. fuelling aircraft. This could lead to heavy flight cancellations in summer, according to the head of Israel Airports Authority. Director general Sharon?Kedmi told Kan's Reshet Bet that the military activities at the airport are limiting 70% of airport activity. He said, "We only use one-third the operational capacity of the airport." "We have reached the limits of our abilities." We will cancel some flights in the next few days. He added that foreign carriers would not be able to return in the near future, and up to 3 million passengers' flights will be cancelled. Dozens of U.S. Ben-Gurion is currently home to a number of?U.S. The loss could be in the billions of Shekels The U.S. Embassy in Jerusalem asked the State Department to comment on this, but they did not respond immediately. Kedmi said to the station that the authority had lost 700 million shekels (about $248 million) in the past two months. If the situation continued, the loss could reach billions. He said that 18 million passengers were expected to pass through the airport but "right away it looks like we will not exceed 15 millions." We have no idea when the U.S. Military's activities will cease at the airport. Kedmi stated that "we are in a state of constant flux." Shmuel Zaka, head of the Civil Aviation Authority, was quoted by Israeli media as saying that U.S. aircraft were causing delays for foreign airlines and affecting civilian flights at Ben-Gurion. According to reports, he told Israel's Transport Minister that Ben-Gurion had?turned into an airfield with limited civilian activities" and was "harming local carriers." The media reported that Israeli carriers had moved their aircraft overseas at the beginning of the Iran War and have not returned. Reporting by Steven Scheer, Editing by David Holmes.
US bans drone flights above World Cup sites
The U.S. Federal Aviation Administration announced on 'Thursday that it would ban drones from flying over FIFA World Cup?matches 2026 and other related fan events in the u.s. to bolster security.
All aircraft operations (including drones) are prohibited during match days within a three nautical mile radius and up to 3,050 feet above the ground around stadiums, unless authorized by air traffic control.
Fans will be prohibited from using drones within a nautical mile radius, and at a height of up to 1,000 feet.
The FAA has warned drone operators that if they enter restricted airspace without permission, they could face fines up to $100,000 as well as criminal charges and the confiscation of their drone.
As an additional layer of security, the FBI will also have drone mitigation teams that it will station around World Cup stadiums.
Jessica Tisch, the New York City Police commissioner, said that last week her department received new authorities "to work with federal partners...to confront credible drone threats during major events." Jessica Tisch said that "we have spent $6.5 million on drone-mitigation gear over the last few months."
She said that drones could be easily adapted to "weapons" of war and New York is on high alert for events marking the 250th Anniversary of?the U.S.
Lawmakers, among others, have expressed concern about drone incidents that occurred near sporting events and airports.
A Massachusetts man was charged for flying an illegal drone near the finish of the Boston Marathon in April 2024, prompting law enforcement to land and seize the drone in mid-air. (Reporting and editing by David Shepardson)
(source: Reuters)