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Southwest Airlines unexpectedly posts Q3 profit due to improved travel demand
Southwest Airlines announced an unexpected profit for the third quarter on Wednesday. The company attributed this to a rise in demand for travel and tighter cost control. Travel bookings are expected to continue strong until December, according to the Texas-based carrier. The company is expecting to achieve record revenues in the fourth quarter with "meaningful" margin expansion. Southwest shares increased by more than 3% after-hours. Southwest Airlines, the largest domestic airline in the United States, is struggling to find its feet after the COVID-19 epidemic and is undergoing major strategic changes. The airline began charging for checked baggage, introduced a basic-economy fares, and in January will implement a new policy of assigned seats, replacing the previous open seating model. The company estimated that revenue per available seat-mile, or revenue per passenger, would rise between 1% and 3% in the fourth quarter compared to last year. The company's non-fuel costs are expected increase by 1.5% to 2.5% in the same time period. According to LSEG data, it reported a profit adjusted of 11 cents per share, compared to analysts' expectations on average of a loss 3 cents. Operating revenue was $6.95 billion compared to analysts' expectations of $6.29 billion. The airline's non-fuel costs increased by 3.4% compared to the previous year, while its forecasted increase was up to 5.5%. The airline said that cost discipline was a key factor, and reiterated its plan to cut $370 million from expenses this year. (Reporting and editing by Richard Chang; Rajesh Kumar Singh)
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How many US attacks on boats near Venezuela has there been?
At least 32 people have been killed in the U.S.'s seven attacks on ships near Venezuela, which it claims were transporting drugs. On Tuesday evening, a separate strike occurred in the Pacific and not the Caribbean. The U.S. described some victims as Venezuelans while Colombian president Gustavo Petro said that others were from Colombia. The family of a man who was believed to have been killed in a striking action has demanded proof that he had been a drug dealer. Venezuela's government said that the strikes were illegal, amounted to murder, and was an aggression against Venezuela. The Venezuelan president Nicolas Maduro has accused Donald Trump, who has bolstered his security and deployed tens-of-thousands of troops throughout the country, of wanting regime change. This is an accusation that the U.S. President has played down. Here's a list: Trump claimed that the U.S. military had killed 11 people during a strike against a Venezuelan vessel allegedly transporting illegal drugs. This was the first operation known since the deployment of warships in the southern Caribbean by his administration. The Venezuelan government denied that any of the eleven were members of Trump's Tren de Aragua criminal gang. Trump claimed that on 15 September, the U.S. Military had carried out an attack against a suspected Venezuelan drug cartel ship heading for the U.S. He added that three men died in the strike and it took place in international waters. Trump did not provide any evidence to support his claim that the boat was transporting drugs. SEPTEMBER 19, Trump claimed that the U.S. had attacked a drug-carrying vessel, killing three men. OCTOBER 3, 2017 - U.S. defense secretary Pete Hegseth confirmed that four people were killed in a strike on a vessel allegedly transporting illegal drugs off the coast Venezuela. Trump announced that six suspected drug traffickers were killed by a U.S. attack on a boat near the Venezuelan coast. Two people were killed by the U.S. military in a strike on October 16th. In the first incident of this kind, two survivors were returned quickly to their countries. They were a Colombian, and an Ecuadorean. Ecuador said that it had no reason to hold its citizen, and has released him. Hegseth stated that a strike had killed three people. The Colombian president Gustavo Petro, involved in a spat that escalated with Trump this week, disputed a statement by the U.S. Defense Secretary that the boat was owned by the National Liberation Army rebels (ELN), saying it belonged instead to a "humble" family. Hegseth has also disputed the ELN's claim.
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Kinder Morgan's third-quarter profits rise on higher natural gas demand
Kinder Morgan, a U.S.-based pipeline operator, posted an increase in its third quarter profit on Wednesday. This was largely due to higher volumes of gas being transported through the pipelines. Kinder Morgan, for example, is betting on the growing demand for natural gas from LNG export installations as well as an increase in electricity generation due to AI operations and cryptocurrency mining. Kim Dang, CEO of the company, said that "total demand for gas will grow by 20 percent through 2030. This growth is primarily due to LNG exports. We are exploring opportunities to supply more than 10 billion cubic feet per day to the natural gas energy generation sector." As new terminals are brought online after President Donald Trump lifted the pause on permits in January, there is a surge in activity within the U.S. Liquefied Natural Gas sector. This is due to expectations that exports will increase. The company, which accounts for roughly 40% of all natural gas produced in the country, reported that the backlog of projects stood at $9.3 Billion. During the third quarter, approximately $500 MILLION of projects were put into service, and an equal amount of new projects was added. The company reported that it transported approximately 47,461 billion British Thermal Units of natural gas each day during the third quarter. This compares to 44,827 Btu per daily last year. During the third quarter of 2018, its total deliveries, including refined products like jet fuel and diesel, dropped to 2,11 thousand barrels per day from 2,15 MBbl/d. Houston-based company, Texas said that its net profit for the three months ending September 30 was $628 million, compared to $625 million one year ago. (Reporting from Sumit Saha, Bengaluru. Editing by Alan Barona.)
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Sources confirm that the merger of Europe satellites is still intact, despite the announcement being withdrawn.
People familiar with the discussions said that European aerospace giants held investors back for an extra day on Wednesday, as lawyers and advisors sifted through the fine print, but the merger plans were still intact. This week, it was reported that Airbus Thales and Leonardo have reached an agreement to pool their satellite-making activities in order to challenge Elon Musk's Starlink. The initial plans for an announcement on Wednesday were slipped, but no new obstacles appeared. A deal seemed to have been delayed by no more that 24 or 48 hours unless there was a more substantial problem. The announcement is ready, but that doesn't necessarily mean you haven't worked out the last details. One person said, "It is technically, industrially and financially complex." Thales, Airbus, and Leonardo have all declined to comment. The talks are the latest attempt at bringing together Europe's fragmented satellite industry. SpaceX, led by Musk, has dwarfed Europe's leading players: Airbus as well as Leonardo in Italy and Thales in France. Sources say that they plan to combine satellite assets with a new holding firm, each receiving about a third after a series balancing payments. However, the new structure could take two years to implement, pending regulatory approvals. The EU has imposed antitrust restrictions on previous attempts to merge. SHIFT TO LOW EARTH ORBIT According to insiders, the trio has realised that they can't prosper on their own in a market undergoing a dramatic transformation. According to global data for 2010-25 from the specialist advisory firm Quilty Space, the merger will make Maxar, Northrop Grumman, and Lockheed Martin the third largest manufacturers of commercial geostationary space satellites. The space market has declined due to the proliferation of low-Earth orbit satellites, like Starlink. Caleb Henry is Quilty's director of research. "Europe had a commanding advantage in many geostationary satellites manufacturing and it was arguably never lost," he said. It's just this market has shrunk significantly in front of these new titans: the low Earth-orbit bandwidth constellations. The companies will outline the general structure and goals of the merger plan code-named Projet Bromo without dwelling on the details of corporate governance, which would be decided later, after a time of separate operations. In past European aerospace mergers including Airbus, the balance of power, and who appointed the chairperson, CEO, and CFO, caused friction. Sources said that the parties were committed to working together on satellites. This was partly due to losses and a declining market share. (Reporting and editing by Alexander Smith, Aidan Lewis; Reporting by Tim Hepher)
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Hilton is the latest company to highlight the impact of the US Government shutdown on business.
Hilton Worldwide's chief financial officer warned Wednesday that the U.S. Government shutdown is affecting travel demand. This echoes concerns expressed by other corporate leaders, as they prepare for wider fallout if this impasse does not end soon. The shutdown has now entered its fourth week, amid a deadlock over funding in Washington, and it has caused concern across the corporate world regarding disruptions of consumer spending, travel for business, and financial developments, such as stock listings. Kevin Jacobs, CFO of Hilton Hotels Corporation said that the closure "is having a slight impact on the numbers." Hilton has lowered its forecast for room revenue growth in 2025, citing the fact that the closing is now reflected. Jacobs' warning is in line with similar comments made by other industry leaders and corporate leaders who claim that prolonged uncertainty can dampen bookings, forcing companies and government employees to delay their trips. Marc Casper said that Thermo Fisher's CEO, Marc Casper, expects the U.S. federal government to delay some of its expenditures due to the shutdown. Unilever, a consumer goods giant, has postponed the spin-off of its Magnum icecream unit because the U.S. SEC is unable to approve registration for the shares to be listed on the New York Stock Exchange. United Airlines CEO Scott Kirby warned last week that a prolonged government shutdown could have a negative impact on bookings and flight operations. Shaun Kelly, analyst at BofA Securities, said that revenue per available room in hotels around Washington is "underperforming". This is due to a combination of difficult comparisons with the election cycle of last year and the effect of the shutdown. He said that the D.C. area hotels performed worse than the rest of the United States during the two most recent shutdowns, by approximately 8 percentage points. The industry has warned that staffing shortages in federal agencies such as the Transportation Security Administration (TSA) and the Federal Aviation Administration could result in longer airport waiting times and flight delays. This could discourage travel. U.S. Travel Association estimates that the disruptions could cost the travel industry about $1 billion per week.
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Kyiv reports that Russian drone and missile strikes on Ukraine killed six people, including energy grid targets.
Officials said that Russian drone and missile attacks on Ukraine resulted in the deaths of six people including two children and caused nationwide power outages. Moscow was implementing a targeted campaign against Ukraine's energy system. Timur Tkachenko of the Kyiv military administration said that debris from weapons dropped caused fires to spread in several districts. Svitlana Svitlana said that "most regions of Ukraine" were targeted. This is the second attack of this kind in the last month. It indicates a systematic campaign by the enemy, to destroy Ukraine's power sector before winter. Hrynchuk stated that Russia is now targeting also repair teams at energy facilities. The Ukrainian Air Force reported that Russia launched 405 drones as well as 28 missiles in the attack. Air defence units destroyed 333 drones as well as 16 missiles. Ukraine's emergency services said that two people died in the attack on Kyiv, and four others, including two children were killed after Russian airstrikes in a nearby area. Vitali Klitschko said that ten people were saved from an inferno in a highrise building in the Dniprovskyi district of Kyiv. A child was among those admitted to hospital. Fires have broken out in the Kyiv Pechersk Lavra, which is the last place to be found. It was a symbol of Ukrainian culture and spirituality. Officials in Ukraine said that the attack began at night, and continued through Wednesday morning. The first attacks were ballistic missiles followed by drone strikes. "At 7 a.m., there was a loud explosion. Within a few seconds, I felt pain in my face. I started screaming immediately. "I thought I had tears on my hands when I wiped my face. But I was bleeding," Nadiia Ziinchuk, 24, a shop employee in Kyiv, said. The Russian Defence Ministry announced that it had attacked Ukrainian energy infrastructure as a reaction to Ukrainian attacks against civilian targets in Russia. NATIONWIDE POWER ERRORS As a result, there were power outages in many regions of Ukraine. The regional governor stated that oil and gas installations in the district of Myrhorod, located in central Poltava region, were damaged. Ivan Fedorov, the regional governor, said that overnight attacks in the frontline Southeastern Zaporizhzhia region, which is being subjected by Russian forces to continuous strikes and shelling, have resulted in 13 injuries. The city and regional officials are again deploying "points invincibility" where residents who experience power, heating, and water outages can charge their phones, get hot drinks and food, and warm themselves up. Since the 2022 invasion, Russia has repeatedly attacked Ukrainian energy installations. They maintain that they are legitimate targets in the war.
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Sources confirm that the merger of Europe satellites is still intact, despite the announcement being withdrawn.
People familiar with the talks say that European aerospace giants held investors back for an extra day on Wednesday, as lawyers and advisors poured over the fine print, but the merger plans were still intact. This week, it was reported that Airbus Thales and Leonardo have reached an agreement to pool their satellite-making activities in order to challenge Elon Musk's Starlink. The initial plans for an announcement on Wednesday were shifted, but no new obstacles appeared. A deal seemed to have been delayed by no more that 24 or 48 hour, unless there was a more substantial problem. The announcement is ready, but that doesn't necessarily mean you haven't worked out the last details. One person said, "It is technically, industrially and financially complex." Thales, Airbus, and Leonardo have all declined to comment. The talks are the latest attempt at bringing together Europe's fragmented satellite industry. SpaceX, led by Musk, has dwarfed Europe's leading players: Airbus as well as Leonardo in Italy and Thales in France. Sources say that they plan to combine satellite assets with a new holding firm, each receiving about a third after a series balancing payments. However, the new structure could take two years to implement, pending regulatory approvals. The EU has imposed antitrust restrictions on previous attempts to combine. The companies will outline the general structure and goals of the merger, codenamed Projet Bromo. They won't go into details about corporate governance, which will be determined later, after a period in separate operations. In the past, European aerospace mergers have been fraught with tensions over power balances and who appointed CEO, CFO, and chairperson. This was even true at Airbus. Sources said that the parties were committed to working together on satellites in part due to losses and declining market share. (Reporting and editing by Alexander Smith; Tim Hepher)
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Greece bans protests outside Parliament near memorial
The Greek parliament on Wednesday banned public demonstrations outside a prominent memorial to the war in Athens, despite opposition parties' criticism that these new restrictions violated citizens' rights to gather in public. The large area of paved ground around the Tomb of the Unknown Soldier (a century-old relief depicting an fallen warrior wearing a shield, and a helmet from ancient Greece) was the focal point of the anti-austerity demonstrations that took place during Greece's debt crisis between 2009-2018. The conservative government introduced the amendment this month after a father who lost his child in a train crash that occurred in 2023 held a 23 day sit-in, hunger strike near the accident site to demand more accountability for what was the country's worst rail disaster. This year, there were mass rallies over the train accident. It has become a symbol of state ills. People have spray painted in red the names of the victims on the ground nearby the crash site. The new law prohibits all rallies in the vicinity of the cenotaph (facing Syntagma Square) and any other alteration or use except for paying tribute or viewing the relief. The law stipulates that offenders could face a maximum year in prison. It also mandates the Defence Ministry to keep the cenotaph under 24-hour presidential guards. "It is a sacred space that does not belong to any party, government or individual," said Prime Minister Kyriakos Mistiakos during Tuesday's debate. Leftist parties and critics have vowed to protest the ban on the street. "We will eliminate it." Zoe Constantopoulou is the leader of the Plefsi Eleftherias small party. She told Parliament that "action, life itself will undo this". Reporting by Renee Maltezou and Louisa Gouliamaki; editing by Philippe Fletcher
Trans Mountain pipeline and Canada oil shippers are in discussions to resolve the shipping cost dispute
Oil shippers and the operator of Canada’s Trans Mountain Pipeline are currently in negotiations to resolve a dispute over shipping costs that has hampered the use of Canada’s only east-west pipe and slowed down government plans to sell it.
Trans Mountain Corp. and a group including Cenovus Energy and Canadian Natural Resources and ConocoPhillips Canada filed documents with the Canada Energy Regulator Tuesday stating that the parties were in "active commercial discussion."
The talks could settle how much the companies pay to ship oil on the expanded 890,000-barrel-per-day pipeline, which offers direct access to China and other Asian markets at a time Canada is trying to diversify oil exports away from the United States.
Trans Mountain confirmed via email that discussions are ongoing and requested the regulatory proceedings to be stopped in order to reach an agreement.
The Canadian Energy Regulator confirmed that it is reviewing this request. Shippers did not respond to an immediate request for comments. The dispute over tolls, which has lasted for more than two years, has made the Canadian government's plans of selling the Trans Mountain Pipeline uncertain.
Ottawa, which purchased the pipeline in 2018 for C$4.5billion ($3.21billion) to save the expansion project from years of regulatory delays, cost increases and cost increases, started informal talks with Indigenous groups in 2023 to explore their interest to a possible equity stake.
Analysts believe it will be difficult for a private or Indigenous group to purchase the pipeline until the dispute over tolling is resolved and Trans Mountain's revenue potential in the long term is known.
Uncertainty about the final toll
The C$34-billion expansion completed in 2024 tripled pipeline capacity but the price was almost quintuple of a 2017 estimate.
Trans Mountain Corp will cover approximately 70% of the cost overruns, but the remaining $9 billion is to be covered by tolls in accordance with a formula that was agreed upon by shippers and approved more than 10 years ago by the Canada Energy Regulator.
Trans Mountain estimated that contracted shippers would pay almost twice as much in 2017. Spot shippers are charged even more.
Shippers are pushing back on the higher tolls. They claim they're not responsible for construction cost overruns. Canada Energy Regulator was scheduled to hold an hearing on tolls in the next month. Trans Mountain has had less traffic than expected since the start of the expansion in May 2024. This is partly due to the higher tolls.
Analysts say that if the toll structure is lower than what Trans Mountain wants, it could affect the price of the pipeline and make it more difficult to recover its construction costs.
Mark Maki, CEO of Trans Mountain, said in June that he believed the Canadian government could recover its investment in pipelines but should delay the sale until the uncertainties surrounding tolling and usage are resolved.
(source: Reuters)