Latest News
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JetBlue posts smaller-than-expected loss as U.S. demand recovers
JetBlue Airways posted a second-quarter adjusted loss on Tuesday that was less than Wall Street's expectations. This was due to cost-cutting measures and a recovering demand for travel within the U.S. Delta and United, two of the largest peers, have indicated that bookings, although at lower than expected levels, are beginning to stabilize. This indicates an uneven recovery. JetBlue, along with several other major airlines, pulled its financial forecast for 2025 in April. JetBlue cited uncertainty related to the Trump Administration's sweeping tariff policy and federal spending reductions that weighed heavily on consumer travel. JetBlue President Marty St. George said that demand for air travel increased as the quarter progressed. This resulted in a significant increase for bookings made within 14 days of travel as well as during peak travel times. The carrier expects the third-quarter revenue generated per available seat mile, also known as unit revenue, which is a measure of pricing power and an industry metric. The company also revised its forecast for 2025, predicting a rise of between 5% to 7% in unit costs. Analysts had estimated a loss per share of 33 cents. The carrier's adjusted loss was 16 cents. Operating revenue was $2.18 Billion. According to data compiled by LSEG, analysts expected an average of $2.28 billion. (Reporting by Aishwarya Jain in Bengaluru; Editing by Shailesh Kuber)
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Uber loses UK Supreme Court Appeal over Tax on Rival Apps
Uber's competitors in England and Wales who operate taxis will not be charged a VAT of 20% on their margins outside London, after Uber lost an appeal against a previous decision on Tuesday. Uber wanted a court order that private-hire taxis enter into contracts with their passengers. This means they must pay VAT outside London at 20%, as Uber does. The case was brought after the Supreme Court ruled in 2021 that Uber drivers are workers and therefore entitled to minimum wage, holiday pay and VAT on rides. Uber wanted the same conditions to be applied to competitors and the High Court decided in its favor last year. The ruling was for rides outside London in England and Wales, where there is a different regulatory system. The Court of Appeal reversed this ruling in July 2024, following a challenge from private hire operators Delta Taxis as well as platform Veezu. Uber appealed to the Supreme Court which, on Tuesday, unanimously dismissed it, ruling that the operators were not required to sign a contract with the passengers. Uber spokesperson stated that the ruling confirms "that different contractual protections are applicable for people booking trips from London in comparison to the rest England and Wales", however, it has "no effect on Uber's VAT application". Layla Barke Jones from Aaron & Partners is the lawyer for Delta Taxis. She said that a win by Uber would have negatively affected many private hire operators. In another case, the Estonian startup Bolt that offers food and ride-hailing services has defeated an appeal from Britain's tax authority HMRC about what it must pay in VAT at 20%. HMRC was granted permission by the Court of Appeal to contest the ruling that Bolt only has to pay VAT on the margin and not the total cost of the trip. Kimberly Hurd is Bolt's senior UK general manager. She welcomed the Supreme Court decision regarding Uber's appeal but stated that a new regulatory structure was required to ensure rules are consistent throughout the UK. (Reporting and editing by Sarah Young, Susan Fenton and Sam Tobin)
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Union Pacific buys Norfolk for $85 billion in mega US rail deal
Union Pacific announced on Tuesday that it will buy rival Norfolk Southern for $85 billion. This deal will create the first coast-tocoast freight railroad operator in the United States and transform the movement of goods across the country, from grains to automobiles. If approved, this deal would combine Union Pacific’s dominant position in the western two thirds of the U.S. and Norfolk’s 19,500-mile network that spans primarily 22 eastern states. According to the companies, it is expected that both railroads will have a combined value of $250 billion. They would also unlock annualized synergies worth about $2.75 Billion. The merger of Union Pacific, America's largest railroad, and Norfolk, another top player, would be the largest ever in the industry. This would give the combined company a transcontinental advantage. The two companies announced on Thursday that they had begun preliminary discussions about a potential merger. The transaction will face numerous regulatory hurdles, and it will be a test of how President Donald Trump has changed his thinking on antitrust issues. The U.S. Surface Transportation Board has been signaling a more industry-friendly approach to merger reviews since early 2025. Surface Transportation Board (the federal agency that regulates railroads) has indicated a more industry friendly approach to merger review. President Trump appointed Chairman Patrick Fuchs to his post in January. He has pushed for a faster timetable for preliminary assessments. Union Pacific's Norfolk deal would need to be supported by labor unions, and it could also invite scrutiny from other federal agencies. The major railroad unions are opposed to consolidation. They argue that mergers could disrupt rail service and threaten jobs. "We will do everything we can to help the STB and the Trump administration," said Jeremy Ferguson of the SMART union's Transport Division, after both companies announced that they were in advanced discussions last week. He said, "This merger will not benefit the workers, rail shipper/customer and the public in general." The SMART TD's Transport Division is the largest railroad operating union in North America with over 1,800 railroad yardmasters. North American rail companies are struggling with unstable freight volumes, rising fuel and labor costs, and increasing pressure from shippers regarding service reliability. These factors could complicate the merger. CONSOLIDATION People familiar with the situation said that these talks also prompted BNSF (owned by Berkshire Hathaway) and CSX to consider merger options. A person familiar with the discussions said on Thursday that agents at the STB have already begun preparing for the possibility of receiving not one but two megamergers proposals. If both mergers were approved, there would be four Class I railroads operating in North America, down from six. This would consolidate major freight routes, and boost pricing power. The $31 billion merger between Canadian Pacific and Kansas City Southern created the only single-line rail network that connected Canada, the U.S. and Mexico. The deal, which was finalized in 2023 and approved by the government, was met with heavy regulatory opposition because of fears that it would reduce competition, disrupt services, and cut jobs.
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The U.S. Transportation Department gives the go-ahead to JetBlue and United's partnership
The U.S. Department of Transportation has cleared JetBlue and United Airlines' planned partnership, allowing them to move forward with implementation. JetBlue was seeking partnerships since a federal court judge in 2023 blocked its alliance with American Airlines. Jetblue and United announced a partnership in May called "Blue Sky". This would allow travelers the ability to book flights using both carriers' websites while earning and utilizing points from their frequent flyer program interchangeably. JetBlue will also give United slots at New York's JFK International Airport, which is currently congested, for up to 7 round-trip flights. This agreement will begin in 2027. Spirit Airlines had in June urged the U.S. Transportation Department to reject the collaboration of the two carriers. It said it was anti-competitive, and that other large carriers would pursue similar deals. Under the Trump administration, antitrust officials have taken a more lenient stance towards corporate deals compared to the stricter approach seen under Biden. In just one week in June, the FTC approved several multi-billion dollar deals, signaling an increased willingness to reach agreements with companies. According to FTC statistics from July, more than 100 transactions were given shorter reviews. JetBlue and United announced that Blue Sky will begin to introduce new customer benefits in the fall of 2025. They plan to roll them out in stages. (Reporting by Aishwarya Jain in Bengaluru; Editing by Shailesh Kuber)
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Union Pacific buys Norfolk for $85 billion in mega US rail deal
Union Pacific announced on Tuesday that it will buy rival Norfolk Southern for $85 billion. This deal will create the first coast-tocoast freight railroad operator in the United States and transform the movement of goods across the country, from grains to automobiles. If approved, this deal would combine Union Pacific’s dominant position in the western two thirds of the U.S. and Norfolk’s 19,500-mile network that spans primarily 22 eastern states. The merger of Union Pacific, America's largest railroad, and Norfolk, another top player, would be the largest ever in the industry. This would give the combined company a transcontinental advantage. The two companies announced on Thursday that they had begun preliminary discussions about a potential merger. The transaction will face numerous regulatory hurdles, and it will be a test of how President Donald Trump has changed his thinking on antitrust issues. The U.S. Surface Transportation Board has been signaling a more industry-friendly approach to merger reviews since early 2025. Surface Transportation Board (the federal agency that regulates railroads) has indicated a more industry friendly approach to merger review. President Trump appointed Chairman Patrick Fuchs to his post in January. He has advocated faster timelines for preliminary assessment, a greater emphasis on competitive balance instead of blocking consolidation, as well as a willingness enforce conditions after a merger rather than deny it preemptively. People familiar with the situation said that these talks also prompted BNSF (owned by Berkshire Hathaway) and CSX to consider merger options. Union Pacific's Norfolk deal would need to be supported by labor unions, and it could also invite scrutiny from other federal agencies. The major railroad unions are opposed to consolidation. They argue that mergers could disrupt rail service and threaten jobs. North American rail companies are struggling with unstable freight volumes, rising fuel and labor costs, and increasing pressure from shippers regarding service reliability. These factors could complicate the merger. The $31 billion merger between Canadian Pacific and Kansas City Southern created the only single-line rail network that connected Canada, the U.S. and Mexico. The deal, which was finalized in 2023 and approved by the government, was met with heavy regulatory opposition because of fears that it would reduce competition, disrupt services, and cut jobs.
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UPS reports disappointing quarterly results due to shifting trade policies
United Parcel Service announced a drop in profit and revenue for the second quarter on Tuesday. The decline was due to new "de minimis tariffs" on low-value Chinese imports and rising risks from President Donald Trump’s trade policies. In May, the White House began charging tariffs for shipments from China under $800 that were previously exempt. As part of the trade truce, these levies have been reduced from 120% to 54%. However, consumers are still expected to suffer a decline in demand. Experts believe the removal of the exemption likely creates a greater-than-expected volume headwind for the company's international segment, as customers may cut back on discretionary online purchases, reducing shipments from bargain e-commerce sellers such as Temu and Shein on UPS's most profitable China-U.S. trade lines. For the second quarter in a row, UPS did not update their full-year forecast due to macroeconomic uncertainties. UPS's last forecast from January projected revenue of $89.0 Billion by 2025. It reported a net profit of $1.55 per common share for the three months ended June 30 compared to $1.79 per common share a year ago. UPS and FedEx, which compete with it in the market, are seen as indicators of the health and prosperity of the global economy because they serve clients from all industries and geographical areas. In premarket trading, UPS shares were down by 1.4%. The shares have dropped by more than 19% from the beginning of the year compared to a drop of about 14% in the shares of FedEx. Reporting by Abhinav Paramar in Bengaluru, Editing by Devika Syamnath
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LSEG data shows that India and Taiwan were the top two buyers of Russian naphtha during June.
According to traders and LSEG, India and Taiwan were the top destinations for Russian seaborne Naphtha exports during June. Lower volumes and domestic demand attracted buyers. Naphtha, a feedstock used in the petrochemical sector, is a key ingredient for the production of olefins. These are then used as a raw material to make a variety of products such as plastics. The main destination for Russian naphtha has been the Middle East and Asia since the European Union's embargo against Russian oil products came into force in February 2023. In June, the total export of naphtha from Russian ports to India was 250,000 metric tonnes, down by 5% from last month. This will exceed 1.4 million metric tons in 2025's first half. Shipping data revealed that Russian naphtha was delivered to the ports of Mundra, Hazira and Sikka in western India. In order to reduce import prices, India replaced some of the naphtha purchased from the United Arab Emirates by cheaper Russian supplies. According to LSEG, the total amount of naphtha exported from Russian ports to Taiwan between January and June was 1.27 million tonnes. This is double what it was in May. In June, the top export destinations of Russian naphtha were Singapore, Malaysia and Turkey. Data from ship tracking showed that in June, no cargo from Russian ports reached Fujairah (United Arab Emirates). In May, Russia supplied 80,000 tonnes to the UAE. The Cape of Good Hope in Southern Africa is the route that vessels carrying 300,000 tonnes of Russian naphtha that were loaded last month will take to Asia. Asia received 150,000 tonnes in May. Since December 2023, traders have diverted Russian oil product cargoes to Africa to avoid the Red Sea because of a higher risk of attack by Yemen's Iran aligned Houthi Group. All shipping data are based on date of departure. (Reporting and editing by Joe Bavier in Moscow)
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After cyberattack, Russia's Aeroflot cancels additional flights but claims that the schedule has now been'stabilised.'
The Russian airline Aeroflot has cancelled dozens of flights again on Tuesday, but says that it now has a stable schedule following a major cyber attack a day before. On Monday, two pro-Ukraine hacking teams claimed to have conducted a year-long effort to penetrate Aeroflot’s network. They claimed to have crippled 7,000 server, taken data from passengers and employees, and taken control of the computers of senior managers. Interfax reported that Aeroflot cancelled 59 return flights to Moscow from a total of 260 planned on Monday. The news agency said that 22 more flights were cancelled out of Moscow on Tuesday and 31 in the capital. Aeroflot's timetable online showed that, except for one flight, all 22 flights cancelled on Tuesday were scheduled to depart before 10 a.m. Moscow Time (0700 GMT), though the schedule of the rest of the afternoon appeared largely unchanged. The company stated that "as of today, 93% (216 out of 233) of the flights to and from Moscow will be operated in accordance with the original schedule." Aeroflot's flight schedule stabilised after the selective cancellations of flights until 10:00. The attack on Monday caused many cancellations and heavy delays in air travel throughout the largest country in the world. Affected passengers were angry. The Belarusian Cyber Partisans - a group with a long history of opposing President Alexander Lukashenko - and a hacking group more recent and shadowy, Silent Crow, claimed responsibility. The cyberattack in Russia was described by Russian lawmakers as a wakeup call. They said that investigators must not only focus on those responsible for the attack, but also on those who allowed it to occur. Reporting by Mark Trevelyan, Anastasia Teterevleva and Andrew Osborn; Editing by Andrew Osborn
Waymo will launch autonomous ride hailing in Dallas, Texas next year
Alphabet Waymo announced on Monday that it would launch its autonomous ride-hailing services in Dallas by 2026. This will accelerate its U.S. growth as Tesla, the electric vehicle manufacturer, pushes its newly launched robotaxi service.
Waymo, after years of cautious expansion, has recently accelerated its pace. It is now launching in more cities, through partnerships with ride hailing platforms and fleet operators.
Waymo announced in a blog that it will be operating in Dallas through a multi-year partnership between the car rental company Avis and Budget Group. Avis will manage fleet operations including maintenance, depot infrastructure and depot management.
Waymo provides more than 250.000 paid trips per week in cities like Phoenix, San Francisco and Los Angeles.
Waymo launched its Austin service exclusively through the Uber platform this year. Tesla had already started a limited robotaxi test in the city, with about a dozen Model Y vehicles and a human safety monitoring system in the passenger seat.
Tesla CEO Elon Elon Musk said that the company would rapidly expand its robotaxi service to other U.S. Cities and seeks regulatory approval from California Nevada Florida and Arizona.
Commercializing autonomous cars has proven difficult, as several companies, such as GM Cruise, have shut down following collisions, recalls and federal investigations.
Amazon-backed Zoox, which is preparing to launch its commercial service later this year, is one of the few remaining services.
Waymo, the company that operated the paid driverless taxis for the United States until the Tesla trial in Austin, was the sole operator of these vehicles.
The Waymo App will offer rides. As part of a broader nationwide rollout, the company also plans to launch in Miami and Washington, D.C., 2026.
Avis has a broader strategy that includes transforming from a traditional car rental company to a mobility service provider. (Reporting from Akash Sriram, Bengaluru; Abhirup Roy, San Francisco; editing by Tasim Zaid)
(source: Reuters)