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Travel companies in the US are resilient enough to absorb Middle East shock.
Early earnings reports show that travel companies, including hotel chains and cruise operators, relied on the resilient U.S. leisure and business demand. They also benefited from a temporary boost from World Cup to offset the effects of the Middle East war. Fuel costs have increased and international travel has been disrupted by the?conflict. However, earnings reports released on Tuesday indicate that many consumers are not deterred by economic uncertainty or higher travel costs. The founder of GetCruiseInfo.com, Brian Rooney, said that "JetBlue Hilton and Royal Caribbean have all shown continued strength with higher-valued products. This suggests that travelers still prioritize experiences, even though they are becoming more selective in their discretionary spending." These results confirm that we are still experiencing a K-shaped economy in travel. While higher-income travelers book premium experiences, value-conscious travellers adjust when and how to travel instead of giving up vacations entirely. Hilton Worldwide Holdings has raised its forecast of full-year revenue growth, driven by strong demand for its luxury properties, and the expected benefits to the third quarter from the World Cup. However, the U.S. hotelier's Middle East -and Africa room revenue fell 29.5% compared to the previous period. Hilton CEO Christopher Nassetta stated in a conference call that the World Cup helped boost earnings, but mid-scale hotels saw the greatest turnaround, as they benefited from the business and group travel market. Hilton's RevPAR (room revenues) grew by about 1.7% in the second quarter due to the soccer event. Visa, the world's largest processor of payments, noted an?improvement from the event. Chris Suh, Chief Financial Officer of the United States, said that the total card-present spending in the U.S. increased. Card-present transactions rose as much as 20 percent in certain host cities during match days at the FIFA World Cup. The entertainment and restaurant categories saw the largest growth in cross-border spending. Royal Caribbean, the cruise operator, raised its profit forecast for this year but cut its revenue growth projection as it accounted for a slight drop in bookings due to prolonged geopolitical tensions. The Miami-based company reported an increase of 27% in its quarterly fuel costs to $355 millions from the previous year, but reduced its forecast for full-year fuel expenses from $1.35 to $1.34 billion. Royal Caribbean's chief financial officer, Naftali Hoetz, said: "Consumer interest in our vacation experiences continues to be strong and guests are willing to spend money on memorable experiences." The war in Iran has been a major blow to the airlines. Although most U.S. airlines recovered?nearly 50% of the increased fuel costs caused by the conflict during the second quarter, the outlook for their profits remains uncertain. The price of air travel is expected to remain high. JetBlue Airways reported that higher demand and higher fares allowed it to recover more fuel costs than anticipated, even though the New York-based carrier's quarterly fuel bills ballooned by?nearly 80%, or approximately $407 million. JetBlue's President Marty St. George stated during an earnings call that "nobody likes fare increases" but, at the end, we need to cover costs. As volatile fuel prices resulting from the war have moderated, the airline's visibility for?the second half of the year improved. Travel is the most resilient part of luxury. Adam Sebba is the CEO of The Luminaire, a luxury travel agency based in London.
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Two India-based GMR Group units eye aggregate $500 million debt, bankers say
Two merchant bankers who have a 'direct' knowledge of the plans confirmed the plan on Wednesday. The bankers declined to name themselves because they were not authorized to speak with the media. In August 2025 the company raised 15 billion rupees via an 18-month paper at a return of 10.35%, and 44 billion rupees via three-year papers with a rate of 10.50%. The bankers said that Delhi International Airport (DIAL), where GMR Airports has a 74% stake, also plans to raise 35 billion rupees through longer-duration papers of 15 years. These will have a call-option at the end the fifth year. DIAL and GMR Airports have not responded to emails seeking comments. One of the bankers quoted said, "DIAL raises rupee funds to pay its expensive dollar bond that is due to mature in Oct." DIAL issued dollar bonds in the amount of $523 million with a coupon rate of 6.1250%. They are due to mature by October 31. These bonds will be issued in a form of a STRPP (separately transferable redeemable principle part) and it would be the company's first issue for a period of?over one year. In September 2025 it raised 10 billion rupees via bonds maturing after 15 years. The redemption was staggered, starting at the end of the?sixth to maturity, and a coupon of 8.75%. The bankers said that the companies could complete their fundraising by the end of October. (1 dollar = 95.7000 Indian Rupees). (Reporting and editing by Nivedita Battacharjee; Reporting by Dharamraj Dhutia, Khushi malhotra)
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India's largest refiner is looking to buy stakes in US gas carriers, as it prepares for higher US imports
According to a document describing a bid, India's largest refiner, the Indian Oil Corp. (IOC), wants to buy a 50% stake in large gas carriers. IOC will be the first refiner in India to own VLGCs. The company relies on LPG and crude oil tankers that are leased for a specific period of time. IOC did not respond immediately to an email request for comment. Indian state-owned fuel retailers will increase their purchases of U.S. cooking gas (LPG) from 2027. A trader in Asian LPG said that U.S. LPG was typically more expensive to Indian?buyers due to the longer journey and higher freight 'costs. The trader stated that the biggest problem in purchasing U.S. LPG was not availability, but freight costs. According to the tender document that was sent to a small number of companies, IOC is looking for VLGCs of between 80,000 and 93,500 cubic meters, with a maximum age of 12 years. The document stated that bidders could offer up to two VLGCs. However, IOC did not specify how many vessels they intend to purchase. The document stated that IndianOil LNG is an IOC joint venture and reserves the right of acquiring one or more vessels through the tender. IOC will host a pre-bid meeting on August 5. Commercial and technical bids are due by September 7. The document also stated that the vessels would be re-flagged in India following the acquisition. (Reporting and editing by Kevin Buckland; Nidhh Verma)
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Sources say that China has been in contact with the Houthis of Yemen to allow ships to pass through the Red Sea.
Six sources familiar with the situation said that China held direct discussions with Yemen's Houthi movement to allow its tankers to navigate through the southern Red Sea, without being attacked. The Iran-aligned group had pledged to block access to Saudi ports. The Houthis announced their 'blockade' on July 20th, opening a?new front?against U.S. allies and the Iran war? and expanding attacks on oil tankers transporting energy and other supplies beyond the Middle East. According to sources, including a senior Iranian official, Beijing asked the Houthis to guarantee safe passage for their tankers. Sources who declined to identify themselves due to the sensitive nature of the issue said that China was one of the first countries to directly contact the Houthis about transits across Bab el-Mandeb. Bab el-Mandeb is the strait between the Red Sea and Yemen, located on the eastern bank. Sources say that China cleans vessels individually with a mouthhie. Beijing wants to ensure that oil is exported from Saudi Arabian Red Sea terminals like Yanbu to plug the supply gap caused by Iran's effective closure of the Strait of Hormuz as it exits the Gulf. Requests for comments from the Houthis media office, China's Transport Ministry and Iran's Foreign Ministry were not immediately responded to. China's Foreign Ministry said that it closely follows developments in the Red Sea without confirming any talks with the Houthis. It added that sovereignty and security should be respected by all countries in the area, and the safety and free flow of international shipping should be maintained. Mao Ning, the spokesperson for China's Ministry of Foreign Affairs, said in a press conference on Wednesday that the country calls on all parties to resolve their differences and conflicts through dialogue and consultation and to de-escalate situations on the Red Sea. According to Kpler analysis, LSEG and MarineTraffic data on ship tracking, at least four tankers loaded crude oil from Saudi ports bound towards China and transited Bab el-Mandeb after the Houthis declared their restrictions. Two officials briefed on the situation by Tehran said that both sides had informed Iran about their actions. According to one source, Chinese officials cleared each vessel with the Houthis individually. Houthis sent an email to international shipping companies warning that they may be attacked by the Houthis if their vessels load or discharge cargo in Saudi Arabian ports. Two separate Chinese sources confirmed that some tankers trying enter the Red Sea via Bab el-Mandeb changed their course due to safety concerns. TWO TANKERS CUT OFF THE STRAIT TO AVOID IT According to an analysis of data from MarineTraffic and Lloyd's List Intelligence, both the New Champion and New Prime supertankers sailed out of the Gulf of Aden and into open water. According to Kpler, and other ship tracking and industry data, the New Champion was 'due' to call at Yanbu to load oil. The New Prime, however, had already been loaded with oil. The Hong Kong-based operator of the vessels, Associated Maritime did not respond immediately to a comment request. Last week, the Houthis claimed that they carried out drone and missile strikes on two Saudi oil tanksers -?the Encelia' and?the Layla. The Encelia was confirmed by maritime security sources, but the Layla attack could not be immediately confirmed. Average time to travel from Yanbu, through Bab el-Mandeb, to Asia is 16 days. The ship would take 50 days to sail around Africa and the west and south of Africa after turning north for the Suez Canal. Two sources close to Houthis said that the Houthis maintain good relations with China, and they have worked closely together in the past, particularly on oil shipments from Saudi Arabia to China. Reporting by Jonathan Saul; Parisa Hafezi; Mohammed Ghobari; Timour Azhari; Florence Tan; Aizhuchen; Siyi Liu; and Sam Li. Additional reporting by Ethan Wang, Beijing; Editing and Kevin Liffey, Kevin Buckland.
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Adani Ports' first-quarter profits rise on strong cargo volumes
Adani Ports &?Special Economic Zone announced a 9.2% increase in its first-quarter profit on Wednesday. The net profit for the quarter ended June 30 rose from 33.15billion rupees to?36.2billion rupees (?378.37m) compared with a year earlier. The positive results are amidst a challenging global?shipping climate, where uncertainty in trade flows clouds the 'outlook for the logistics sector as a whole. The ports and logistics industry has been supported by a steady domestic demand despite disruptions in global trade flows. In afternoon trading, shares of Adani Ports (which operates 19 ports in four countries) were down 2.1%. Adani Ports 'forecast a slower growth rate in 2027 for April. They expect core earnings to increase?9%-14%, and revenue to rise 11%-16% due to disruptions of global trade caused by the?U.S. - Iran conflict and the Strait od Hormuz Blockade.
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Iran rejects regional management of the Hormuz Strait, destroying hopes for a breakthrough
A senior Iranian official said that Iran had rejected Oman's proposal to manage the Strait of Hormuz regionally. This quashed hopes of a quick diplomatic breakthrough. Official: The plan has no chance of success. The official said that Iran and Oman should manage the Strait of Hormuz in their own respective control areas, without other powers' involvement. He spoke after sources reported that Gulf states had supported the Omani plan. The plan suggested that voluntary fees could collected for the use of the strategic waterway to?end disruptions in trade caused by conflict. Officials from the United States, Saudi Arabia, and Oman are 'trying to pressure Oman to accept what they call unrealistic plans. They said that the Strait of Hormuz inbound and outbound routes would all be under Iranian control. He said that Iran respected Oman as a valuable neighbor and mediator but that a 50/50 agreement under which both countries would have equal control was not in Iran's best interests. He said that Oman should supervise the section of the Strait under its control. Southern routes through the Strait which pass through Omani waters could be dangerous to shipping. The U.S. and Iran war has been stalled by the struggle to control the Strait. This narrow waterway connects the Gulf with the Indian Ocean and is the main shipping route for a fifth or more of the world's oil and other essential goods. Since the beginning of the war, it has been blocked in large part. A Gulf source and an?Western diplomatic told us on Tuesday that Oman proposed putting the Strait under regional control with voluntary fees to help pay for navigation, environmental protection and search and rescue services. Plan is based upon similar arrangements made for the Strait of Malacca, which connects the Indian Ocean with the Pacific Ocean, where Indonesia Malaysia and Singapore ask for voluntary contributions to pay for service. Prior to the war, shipping was allowed through the Strait. It is located in the territorial waters of Iran and Oman, but is regarded by most as a 'international waterway. As the war continues, Iran, along with Oman, has claimed a right it claims to have to control the Strait of Hormuz and impose shipping fees. (Written by Elwely Elwelly, James Mackenzie and Andrew Heavens; edited by Muralikumar Aantharaman)
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Aena increases traffic forecast due to Middle East unrest re-directing travellers to Spain
Aena, the Spanish airport operator, raised its forecast for 2026 passenger traffic growth to 3% on 'Wednesday. This was due to higher first-half profits and a surge in tourist arrivals as Middle East unrest diverted travelers to destinations along the southern Mediterranean. Aena predicted a 1.3% annual passenger traffic increase for 2026, up from 3.9% in 2017. Aena released a statement that said, "Since the beginning of (Strait of Hormuz), we have observed an increase in travel demand to Spain. It is perceived as being a safe destination for tourists." In the first six months of this year, the company's Spanish airports welcomed?156.2 millions passengers, an increase of 3.7% over the same period last year. Spain is the second most visited country in the world after France. Aena's performance was in line with analyst expectations. The increased passenger traffic helped to boost the first-half revenue by 10%, or EUR3,28 billion. Due to the increased uncertainty surrounding the Middle East conflict, the operator said it would have limited visibility in the second half of the year.
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Portugal is awaiting binding bids from Air France-KLM and Lufthansa for TAP
Portugal will?receive binding offers on Wednesday from 'Air - France-KLM and Lufthansa to acquire a minority stake of TAP. This is the beginning of the final battle over one Europe's last remaining independent flag carriers. Lisbon has relaunched the long-delayed TAP privatisation, with a view to selling a 44.9% share to a strategic partner that can boost TAP's global reach and competitiveness. TAP should be part of an airline group. The government says that EU rules on state aid prevent the company from receiving further public funding, leaving it vulnerable to global shocks in future. Air France-KLM and Lufthansa were the only contenders in the April non-binding bids. The government described both offers as "largely equal?and extremely ambitious" from a strategic, industrial, and financial perspective. Wednesday,?5 pm (1600 GMT), is the deadline for binding offers. The latest target of Europe's airline merger drive is TAP's 'CONSOLIDATION WINDS'. This year, Lufthansa acquired a stake of 41% in Italy's flag airline ITA Airways. It joins a stable which includes SWISS Austrian Airlines, Brussels Airlines, and SWISS. Air France-KLM expanded its investment portfolio to include Scandinavian airline SAS. Both groups said that they were interested in buying TAP, and their experience of integrating airlines and preserving brands and hubs will help secure TAP’s future. Beyond the highest bidder TAP's main attraction is the lucrative and prized slots that link its Lisbon hub to?Brazil and Portuguese-speaking African Countries?and U.S.A., which are key routes for Portugal’s diaspora and tourism, as well as investment. In contrast to a traditional privatisation, Infrastructure minister Miguel Pinto Luz stated this?month "this is a strategy decision that shouldn't be reduced merely?to the price". The Government wants TAP to be the next partner in supporting growth in Portugal. This includes Porto, Faro, Azores, and Madeira. Bernstein analysts valued TAP's stake of 44.9% at approximately EUR700 million ($798m), based upon a valuation for the airline of EUR1.5billion. The government hasn't disclosed the values of non-binding offers.
Germany working to ward off UniCredit's bid for Commerzbank, sources say
Germany is working to annoy a possible takeover of one of its greatest banks by an Italian competitor, a stance that pits Berlin versus Rome and Europe's regulators, a number of people acquainted with federal government and regulators' thinking informed Reuters.
Berlin was surprised by UniCredit's swoop to construct a big stake in state-backed Commerzbank, a. relocation the Italian bank says might lead to a merger.
Officials are now bracing for a potential hostile quote that. might connect Berlin's fortunes to those of Italy, whose debt load. overshadows Germany's.
Integrating the banks poses a possible danger to monetary. stability, they say, as UniCredit owns 10s of billions of euros. of Italian government bonds.
A number of individuals in the German government are now pinning. their hopes on a regulatory evaluation by the country's manager. BaFin, and are lobbying the regulator versus a deal.
One key argument is that Berlin may end up footing the. expense if UniCredit were to be dragged into an Italian debt. crisis.
BaFin, which plays a crucial function in whether UniCredit can. try to acquire control of Commerzbank, has actually begun to analyse. UniCredit's request to permit it to develop its approximately 9.9%. shareholding to practically 30%.
The guard dog will make a proposal to the European Central. Bank, the lenders' regulator, which has the last word, based on. a handful of criteria such as the monetary strength of the. buyer and the reputation of supervisors.
While Rome carefully supports the offer, Berlin hopes its. concerns may prevent or at least delay the approval of. UniCredit's plan by the ECB.
BaFin has a delicate balancing act. While it is duty-bound. to deal with UniCredit's application even-handedly, it needs to likewise. consider the issues of the German federal government, as the. company reports to the finance ministry.
Numerous sources with understanding of the ECB's thinking, stated. there was prevalent difference with Germany's opposition,. although the nation stays prominent and can depend on. effective figures within the organization.
The ECB has said large, European banks can much better support. the economy and take on bigger rivals in the United States.
Even though the 20 countries of the euro zone share a. currency, banking remains primarily national.
For the ECB, its handling of UniCredit's interest in. Commerzbank, balancing the interests of two of the bloc's. biggest countries, will be one of its most significant tests because. ending up being the area's main watchdog a years ago.
BaFin and the European Reserve bank work closely together,. stated a spokesperson for BaFin, including that BaFin had a right to. advise to the ECB whether a deal need to be approved, leaving. the final say with the ECB.
This treatment makes an essential contribution to financial. stability, he stated. BaFin declined to talk about the particular. case.
A spokesperson for the ECB stated it was in consistent. interaction with national authorities on such matters,. describing choices as collective.
The ECB's chief supervisor Claudia Buch stated recently the. organization would do anything to get rid of hurdles to. cross-border bank mergers, after president Christine Lagarde. explained such deals as desirable.
Italy's Treasury, Germany's finance ministry, Commerzbank,. and UniCredit decreased to comment.
Italy's main banking union FABI, warned on Friday that a. successful bid by UniCredit would usher in an age in which. governments would be unable to stop foreign takeovers.
DANGER
BaFin has a seat on the ECB's supervisory board along with. authorities from the 20 other nations that form the banking. union plus a smattering of ECB agents. The ECB has. roughly 90 days to review the case.
At the heart of Germany's issue is UniCredit's 40 billion. euros ($ 44 billion) of Italian government bonds.
This is seen as a possible threat since Italy is greatly. indebted. Commerzbank, which is smaller and financially weaker. than UniCredit, likewise has billions of euros of Italian bonds.
If Italy were to run into problem after a merger, authorities. fear Germany might need to action in.
However some ECB officials see a service. Commerzbank could. became a subsidiary within UniCredit, with clear plans on how to. deal with it individually in a crisis.
In the sovereign debt crisis of the early 2010s, some. European nations had to bail out their banks, which were also. deteriorated by their sovereign, illustrating how intertwined they. were in a crisis that nearly reduced the euro.
Berlin's reaction signals an absence of faith in the European. architecture put in place to prevent a repeat of the 2010-11. debt crisis, as well as a deep-seated scepticism over Italy.
The German government thinks UniCredit's move on. Commerzbank was aggressive and anticipate a hostile bid within. months, 3 sources acquainted with federal government thinking informed. Reuters.
Individuals near the government likewise stated trust between. Berlin and UniCredit CEO Andrea Orcel had almost collapsed.
They indicated Orcel's surprise proceed Commerzbank,. consisting of utilizing derivatives that offer him an option to get more. shares, despite earlier recommending he was acting in line with. Berlin's wishes.
Orcel just recently informed an audience he had actually spoken consistently. with stakeholders in Commerzbank and was eager to resume. dialogue.
2 of the people with knowledge of the federal government's. believing stated Berlin and Commerzbank's working assumption was. that UniCredit could try to buy the bank within months.
(source: Reuters)