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High fuel prices and flight cancellations help Chinese stay close to home during May holidays
As fuel costs rise, the demand for overseas travel is expected to decrease. Travel agents and industry experts expect that most holidaymakers will stay in China. This trend has been seen during recent major holidays, as consumers choose cheaper local destinations due to an economic slowdown. The rising cost of jet fuel following the war with Iran has made travel abroad even more expensive. Price increases have led to a wave cancellations of flights between China and Southeast Asia. Media reports indicate that multiple carriers, including Air China, China Eastern Airlines, Spring Airlines, and Malaysia's AirAsia, have reduced or suspended flights between China and popular destinations like Bangkok, Phuket, and Kuala Lumpur. China Air Transport Association data showed that international flight cancellations increased to 7.4% during May Day, with 785 flights cancelled - more than twice the level of last year. The Iran War is affecting the price and availability of jet fuel. This has led to major cancellations, particularly by low-cost airlines, of flights between China, Southeast Asia and Australia. She also added that the average cost of flights between China, Southeast Asia and Japan that are still in operation is 18% higher than it was at the same point last year. May Pan, 39, a Beijing resident, expressed her gratitude that the trip she had planned with her husband, to Malaysia's Langkawi Island, was not affected. She said, "I bought my tickets six months ago. We planned this trip long ago." "I've heard that many flights to Southeast Asia were cancelled but, fortunately, ours has not been." The domestic demand is on the rise. While it's clear that more people are staying at home, there's still no certainty about whether spending per capita will ever return to levels before COVID. Train travel is cheaper than flying, and it also reduces the risk of flight delays. China Railway Group expects to make 158 million train trips between April 29 and may 6, up from the 151 million it made a year earlier. People can travel by train within the country. Parulis Cook said that they can travel to Hong Kong or Macau via train. Iran's war has a far-reaching impact that goes beyond the cancellation of flights. According to Dragon Trail’s latest Chinese Traveller Sentiment Report 43% of respondents stated that their travel plans were already affected by the conflict. Two-thirds also said the instability has significantly reduced their willingness to travel in the Middle East and North Africa. Bookings for self-driving domestic group tours increased by more than half a year ago, according to Chinese travel agency Tuniu. Demand for independent travel packages also grew by nearly 20 percent. China's May Day Holiday runs for five full days starting May 1. The May Day holiday in China is five days long, starting on May 1. Zhou Weihong, deputy general manager at Shanghai-headquartered Spring Tour, the travel arm of Spring Group, also said domestic trips were likely to outperform during the holiday. He said that the number of domestic trips booked through our platform had increased by 20% in comparison to last year. China's tourism industry has become a key barometer for consumer confidence as policymakers try to boost household spending and domestic demand. Retail sales growth was 2.4% in the first quarter compared to a GDP growth rate of 5%. This highlights Beijing's struggle for a consumer-driven recovery. Local governments are encouraging holiday spending by offering cultural and tourism offers centered on spring outings (flower viewing), educational travel and educational tours. They have also distributed over 284 billion yuan in vouchers for consumption and other subsidies.
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Bloomberg News reports that Spirit Airlines' discussions on $500 million US Rescue Financing have stalled.
Bloomberg 'News'reported that Spirit?Airlines has?hit a halt in their discussions regarding a possible $500 mln U.S. Government rescue financing, citing?sources. The report stated that a group of lenders including hedge fund Citadel is fighting back against proposed terms which could?significantly erode the value of their claims? and limit recovery. Could not immediately verify the report. Citadel and Spirit did not immediately respond to requests for comments. Spirit's rescue funding has hit a roadblock, just hours after it was reported that the airline had secured the support of two of three of its major creditor groups to secure a bailout. Last week, U.S. president Donald Trump said that his administration would consider buying the embattled carrier?at "the right price." A hearing in the New York Federal bankruptcy court could be held on Thursday if all the 'Spirit Creditor Groups' agree on the bailout agreement.
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Reports that the US will prolong its blockade of Iran, causing supply disruptions in the Middle East, have caused oil prices to rise.
On Wednesday, oil prices rose, continuing a multi-day rally. This was based on reports that the U.S. would extend its blockade against Iranian ports. This will likely cause supply disruptions in the Middle East's key producing region. The Wall Street Journal, citing U.S. sources, reported that Donald Trump had instructed his aides to get ready for an extended Iranian blockade. The report stated that Trump would continue to'squeeze Iran’s economy and oil output by preventing shipping into and out of its ports. Brent crude 'futures' for June rose by 52 cents or 0.47% to $111.78 per barrel at 0154 GMT. This was the eighth consecutive day of gains. The June contract expires Thursday, and the more actively traded July contract is at $104.84, an increase of 0.4%. U.S. West Texas Intermediate futures (WTI) for?June climbed 57 cents or 0.57% to $100.50 per barrel, after rising 3.7% the previous session. The price has risen seven of the last eight days. The recent increase in oil prices is due to the Strait Blockade. If Trump extends the blockade further, oil prices will continue to rise if supply disruptions worsen. Although there is a truce in the U.S. and Israeli war against Iran, the conflict remains "deadlocked" while both sides seek to end the fighting. Iran has blocked shipping through the Strait of Hormuz - a channel for 20% of global oil and natural gas supplies - and the U.S. has blockaded Iranian ports. The United States is pressing for an end to what it claims is Iran's nuclear weapons programme. Meanwhile, Iran demands some form of reparations from the latest?round of fighting and an easing in economic sanctions. The?U.S. is pressing for an end to the alleged nuclear weapons program of Iran, while Iran demands some form of compensation from the recent?round of fighting and an easing of the economic sanctions. Market sources say that the Hormuz shut down is continuing to cause global inventories to be drained. Late?on Tuesday, the American Petroleum Institute announced a?U.S. The American Petroleum Institute reported?U.S. crude oil inventories were down for the?second consecutive week. Sources reported that crude stocks dropped by 1,79 million barrels during the week ending April 24. Gasoline inventories dropped by 8.47 millions barrels while distillate stocks fell by 2.60million barrels.
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MISO, the US grid operator, says that it has enough buffer to cover peak summer days
The regional grid operator of 15 U.S. states in the 'Midwest' and 'South, said that its annual capacity auction showed there would be enough electricity this summer to meet peak demand. The auction prices of $424 per megawatt day indicate that the risk of summertime blackouts remains elevated in much of the territory controlled by the Midcontinent Independent System Operator. The annual auction ensures that the power plants can meet peak demand for electricity. The U.S. regional grid operators are struggling to keep reserve margins adequate due to the surge in demand from data centers that use a lot of energy and electric vehicles. MISO stated in a press release that "while summer prices reflect a tighter balance between demand and supply, the overall system shows enough capacity to satisfy expected needs throughout all seasons." MISO stated that there was more capacity than the target buffer. The auction cleared 3.5% above the 7.9% summer planning reserve margin. (Reporting by Tim McLaughlin, Editing by Chris Reese).
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HSBC expects UAE's exit to have a limited impact on OPEC+ in the near term
HSBC stated in a research note published on Tuesday that the United Arab Emirates' exit from OPEC, and the wider OPEC+ coalition from?May 20, 2026 will have a limited impact?on the oil markets. However, it could weaken OPEC's ability to manage prices and supply over time. The?UAE?,?one OPEC+'s biggest producers?, announced on Tuesday that it would be leaving both OPEC+ and OPEC, dealing a major blow to the producer's group, as the U.S./Israeli war against Iran disrupts the energy flow. HSBC predicts that global oil supplies will remain stable in the short term as disruptions to the Strait of Hormuz have effectively closed it since late February. The bank stated that?any increase of UAE production is limited while shipping access remains restrictive. The bank said that the Abu 'Dhabi Crude Oil Pipeline which bypasses Hormuz and transports crude to Fujairah has a capacity of up to 1.8 million barrels a day. It is probably already at or near full utilization. HSBC stated that once access to the Hormuz is restored, the UAE won't be bound by OPEC+ quotas, and can gradually increase output. The bank estimates Abu Dhabi National Oil Company's production could reach more than 4.5 millions barrels per day compared to an OPEC+ quota for May 2026 of approximately 3.4 million bpd. The bank said that any increase in the supply of oil is expected to be phased-in over 12 to 18 months, rather than delivered instantly. This is in line with ADNOC’s stated intention to gradually raise production and to adapt to market and demand conditions. The bank stated that additional?UAE barrels will help to'rebuild global oil inventories following recent draws. HSBC stated that the long-term impact of the loss of a key?Gulf Member could be detrimental to OPEC+'s cohesion, credibility and supply management. The UAE's growing production capacity, long-term investments, and $150 billion program until 2030 suggest an intention to monetise the reserves with less output constraints. Loss of UAE participation may also increase the risk that other members will not adhere to their obligations. HSBC stated that if collective discipline is weakened, OPEC+ could struggle to manage the price during periods of softer demands or increasing non-OPEC supplies. (Reporting and editing by David Gregorio in Bengaluru, Anmol Choubey from Bengaluru)
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ONEOK increases its profit forecast for 2026 after increased volumes drive quarterly beat
U.S. Pipeline Operator ONEOK increased its annual earnings forecast 'on Tuesday, after reporting a first-quarter core income that exceeded estimates. This was due to higher volumes in its natural /gas liquids, its gas?processing, and its pipeline systems. The 'company' raised its expectations for 2026 net profit to a range between $3.21 billion and $3.79 billion compared to its previous forecast of $3.19 to $3.71. The company also raised its EBITDA forecast to $8.0 to $8.5 billion from the previous range of $7.9 to $8.3billion. Midstream operators in the U.S. are benefiting from the rising production of shale gas, especially from the Permian basin, and from expectations that record-high flows will be achieved across?the U.S. Natural Gas System by 2026. This is due to stronger LNG exports as well as a rise in power demand from data centers. Pierce Norton, CEO of ONEOK, said, "Strong performance in a number of business segments is bolstering our outlook. It builds momentum throughout the year, and supports increased financial guidance expectations for 2026." According to LSEG data, the adjusted EBITDA for the quarter January-March rose to $1.997 Billion, exceeding analysts' average estimates of $1.95 Billion. Natural gas liquids segment (NGL) adjusted EBITDA quarterly rose by 11%, to $706m?from the year before. The company reported a 15% increase in the?NGL raw feed throughput volume, while refined product shipments increased by 12% and natural gas processing volumes increased by 5%. ONEOK?transports crude oil, refined products, and natural gas through its 60,000 mile-long pipeline network. Over the last two years, the company has acquired a number of companies, including Medallion Midstream, EnLink Midstream, and a Gulf Coast NGL pipeline from Easton Energy. (Reporting and editing by Sriraj Kalluvila in Bengaluru, Sumit Saha & Arunima K.)
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San Francisco and Port of Oakland resolve airport trademark litigation
According to a Tuesday press release, the City of San Francisco & the Port of Oakland have settled their dispute over the trademark "San Francisco". Port?of?Oakland decided to rename its airport to "San Francisco Bay Oakland International Airport" before. San Francisco claimed in a court case that the name would confuse people with its San Francisco International Airport. According to the press release, the agreement allows Port of Oakland to refer its airport as "Oakland San Francisco Bay Airport", but restricts its use of "San Francisco Bay" and "International". Port of Oakland attorney Mary Richardson stated: "We are proud that Oakland fought and preserved the right to keep our airport's name, which puts Oakland first. It also recognizes OAK’s location in San Francisco Bay." San Francisco City Attorney David Chiu stated that the city was "pleased" that they were able to reach a resolution that met Oakland's needs while protecting the San Francisco International Airport trademark. Port of Oakland has announced that it will change its name to Oakland International Airport in March 2024. San Francisco sued Oakland in April for infringement of its trademarks, claiming the Oakland airport would confuse travelers with its similar new name. Thomas Hixson, U.S. Magistrate judge, temporarily blocked the name change later that year. He found "San Francisco Bay Oakland International Airport", would likely confuse consumers into believing it is affiliated with the city of San Francisco. The port argued that this name accurately describes the airport's position on San Francisco Bay and stated that airports in Chicago, Dallas, London, Paris,?and Beijing shared their cities' names peacefully. Oakland International Airport is located just 30 miles (48 km) from San Francisco International Airport. Blake Brittain, Washington Bureau Chief; Daniel Walling, Editor
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US companies show resilience as Iran war threats mount
The top American companies, from GM and Coca-Cola to Coca-Cola, are trying to reassure their investors that they will be able to weather the financial fallout of the Iran War despite the fact that fuel prices and packaging costs have risen. Since the beginning of the conflict, oil prices have increased dramatically. This has pushed up the cost of inputs in industries that are already under pressure from U.S. Tariffs. This increase forces companies to consider price increases at a time consumers are already feeling the strain. Reviewing company statements from the'start of war' revealed that 24 companies had withdrawn or reduced their forecasts. 35 of them have indicated price increases and another 35 warned of financial losses. But on Tuesday, a number of executives sounded confident, relying on hedging and prior purchase contracts, strong demand, or the ability offset costs in other areas. Coca-Cola is one of the companies that has been optimistic, relying on the demand for their sodas. CFO John Murphy stated that, like PepsiCo had secured some lower prices prior to the start of the current disruption. Even though the beverage giant has a higher cost of packaging plastic and aluminum, it still faces a higher price for certain finished products. Murphy stated that the company "is working hard with our bottling partners" to deal with the consequences of the Middle East situation. Wall Street has also been influenced by the optimism. Analysts increased expectations for the first quarter S&P 500 'earnings to 16.1% by April 24, up from 14.3% before the war started. David Morrison is a senior analyst at Trade Nation. He noted that CFOs and CEOs were required to give bullish signals. The market could punish these stocks if they start to sound less bullish, citing increased energy costs, or the war in Iran. United Parcel Service, for example, took a more conservative approach, repeating its revenue targets for the full year, while also warning of the potential impact that rising fuel prices may have on demand. "It's early in the year, and there is war in the Middle East." UPS CEO Carol Tome stated that high gasoline prices may have an impact on demand at the end of the calendar year. Detroit automaker General Motors, for example, signaled they've been through this before and are in a good position to navigate the storm. Mary Barra, CEO of General Motors, said: "We clearly operate in a dynamic environment. This is not unusual for our industry." GM expects raw material, chip and logistics inflation to reduce annual earnings by $1.5 - $2 billion. This is $500 million more than what it had estimated at the end of last year. However, it still raised its earnings forecast for the full year, citing a strong U.S.'market and a tariff refund that was expected. Procter & Gamble, the global consumer goods bellwether, was the only one to be outliers, at least in comparison with airlines. Last week, the company warned that oil prices would cause a $1 billion loss on its fiscal 2027 profits. Jet fuel prices have nearly doubled in the last two months, putting airlines at risk of spiraling costs while also selling tickets. JetBlue Airways will?slow hiring, reduce capacity and raise fares to ease the blow following a larger first-quarter loss which threatens to derail their turnaround. The risk of further margin erosion and the 'limitation on how much cost can be passed along? still looms large. "If energy costs continue to rise, every sector of the economy will be affected." "The cost of manufacturing goods increases, which leads to higher inflation, which is then passed on to consumers, and this means a weaker consumer," said Peter Cardillo. Chief market economist at Spartan Capital Securities, New York. In other words, consumers are cutting back on their spending.
Luxury yacht insurance coverage supplier OMAC is hull carrier for sunken luxury yacht in Sicily, sources state
Luxury yacht insurance coverage supplier OMAC is the provider on the hull for the Bayesian, a 56metrelong (184ft). sailboat, that was hit by a relentless storm on Monday, sinking. off the northern coast of Sicily, two sources with knowledge of. the matter stated.
The syndicates providing insurance coverage include Travelers. Companies Inc, Navium Marine and Convex, while British. Marine is the security and indemnity (P&I) insurance supplier,. the sources stated.
Reuters could not establish the value of the yacht or what. the worth of potential claims might be.
Ships usually have P&I insurance coverage, which covers third-party. liability claims consisting of ecological damage and injury. Separate hull and equipment policies cover vessels against. physical damage.
Convex decreased to comment, while OMAC, Travelers, Navium. and British Marine did not right away respond to Reuters'. requests for comment.
The British-flagged superyacht was bring 22 individuals and. anchored off the port of Porticello when it was hit by a fierce,. pre-dawn storm on Monday. Fifteen individuals handled to get away the. luxury yacht before it capsized.
Four bodies were found on Wednesday aboard the sunken wreck. of the private yacht belonging to the wife of British tech mogul Mike. Lynch, sources close to the rescue operation told Reuters.
The worldwide luxury yacht insurance market has faced significant. difficulties in the last few years, largely due to natural disasters. like Typhoon Maria in 2017 and Typhoon Ian in 2022, which. ravaged many charter bases and numerous private yachts.
In response, insurance companies have increased rates and reassessed. their standards and risk appetite. Insured losses in the market. have mainly stemmed from typhoons, severe storms, floods, and. other weather condition events in North America, the Caribbean, and. Europe, according to a report by broker Marsh.
(source: Reuters)