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Urals diffs unchanged, loading plans revision awaited
The differential between Brent and Urals crudes dated on Wednesday remained unchanged, as traders awaited any changes to the grade's September export plans. This is because Russian ports and refineries are still repairing after recent drone attacks in Ukraine. Traders said that oil loadings at Baltic Primorsk continued, but they were delayed several days. Some volumes may be diverted to another port. Kazmunaygaz, the state energy company, announced on Wednesday that Kazakhstan will resume oil supply via the Baku - Tbilisi - Ceyhan pipeline by September 13. PLATTS WINDOW On Wednesday, there were no bids or offers made on Urals, Azeri BTC Blend or CPC blend in the Platts Window. Poland's Energy Minister Milosz Motyka announced on Wednesday that it will help member states of the European Union that still import Russian energy by 2026. RIA reported that Sergei Ryabkov, the Russian Deputy Minister of Foreign Affairs, said on Wednesday, Moscow is ready to intensify discussions with the U.S. about energy cooperation, which includes the Sakhalin 1 Project. (Reporting and Editing by Kirsten Doovan)
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Poland calls on the EU to stop Russian oil imports before 2026, citing risks geopolitical
Poland's Energy Minister Milosz Motyka stated on Wednesday that Poland will help member states of the European Union who are still importing Russian energy by 2026. The Druzhba pipeline transports Russian oil to Hungary, Slovakia and other EU countries that have cut off ties with Russia following the full-scale Russian invasion of Ukraine 2022. After a phone call with U.S. president Donald Trump, EU executive director Ursula von der Leyen announced on Tuesday that the European Commission would propose a faster phase-out of Russian fossil fuel imports. The bloc had planned to stop buying Russian oil and gas on January 1, 2028. The Polish Minister said that this should have happened two years earlier. This is especially true in light of recent events, such as the Russian drone incursion last week on Polish territory. Motyka's letter to the EU energy ministers urged them to reach a consensus on a goal to eliminate all imports of Russian crude by 2026. This decision would demonstrate our commitment to becoming independent of oil supplies that pose political and strategic risk. Due to the opposition of Slovakia and Hungary who receive Russian pipeline supplies, and maintain close ties with Moscow, the EU has imposed sanctions against most Russian oil imports. Slovakia and Hungary have defended the purchases they made, stating that alternatives were more expensive, such as transit fees when oil is transported via Croatia. Denisa Sakova, the Slovak Economy minister, said that she discussed with U.S. Energy Secretary Chris Wright on Wednesday her call to stop Russian supplies and explained how Slovakia needs conditions for diversification so as not to cut off its industry or economy. "We diversify gas supplies, and we want to diversify further in the future." We have to rely upon the transmission capacity of other routes", she added, adding that the situation with oil was similar and left Slovakia at the mercy of other countries. Wojciech Wrochna, deputy to Motyka and Poland's chief energy security official, said that U.S. gas liquefied via Poland can help eliminate Russian gas in Europe. Wrochna, a reporter, said: "I had an excellent meeting yesterday with U.S. Energy Secretary Chris Wright. U.S. Gas flowing south via Poland can help eliminate Russian gas." Orlen, a Polish company, began shipping U.S. Gas to Ukraine in the spring of this year to replenish Kyiv's stores before winter. Slovakia is still reliant upon Russian imports, and has not taken advantage of a gas connection with Poland to secure alternate supplies. (Reporting by Marek Strzelecki. Writing by Anna Wlodarczak-Semczuk. Mark Potter, Ed Osmond and Anna Wlodarczak-Semczuk edited the book.
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Italy's privacy watchdog stops facial recognition at Milan Airport
Documents revealed on Wednesday that the privacy watchdog in Italy has temporarily suspended facial recognition technology from being used at Milan's Linate Airport pending the completion of a lengthy data protection investigation. Concerns about possible misuse of passenger data have been raised by airport facial recognition screenings. The Privacy Watchdog in Italy (known as Garante) justified the suspension of the facial recognition system by stating that there were not enough safeguards in place at Linate in order to prevent the use of the technology on passengers who hadn't signed up for it. The decision, dated 11 September, was made public by the government on Wednesday. The website of Milan airports operator SEA claims that its "Faceboarding technology" is "safe, easy and fast". It allows passengers to pass through security checks without having to show their passports or ID cards. SEA responded to Garante’s action on Wednesday by stating that it complies to current regulations, and is working with the watchdog in order to clarify every aspect of data processing. The company said that it would like to restart the facial recognition service as soon as it can, but only for adult passengers. It added that it improves airport security, and speeds up procedures.
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UN Aviation Assembly: Global emissions deal is a top priority for airlines
The head of the trade association IATA told journalists on Wednesday that a global emissions agreement is crucial for airlines before a U.N. Aviation gathering next week. Despite skepticism about the industry's ability to meet its own environmental goals, the chief of the trade body IATA said. In 2016, the U.N. CORSIA agreement was signed to limit rising emissions on international flights by requiring airlines to purchase carbon credits and using green jet fuel. IATA, however, has questioned the U.N.'s goal to achieve a 5% decrease in industry emissions by 2020 due to a lack of credits and fuel made from used cooking oil. Even though the Trump administration does not prioritize environmental protection, reducing plane pollution remains a goal. Willie Walsh, director general of the International Air Transport Association, said: "I believe that changing geopolitical environments may have a short-term effect on how people perceive these issues." The vast majority of industry players have consistently told us that they understand that the industry has a role to play. The triennial meeting of the International Civil Aviation Organization, which takes place from September 23 to October 3 this year, will see regulators from 193 nations discuss topics such as the environment, the raising of the retirement age for pilots from 65 to 67, and safety concerns regarding radio frequency interference from the Global Navigation Satellite System in certain parts Europe. The countries will decide if Russia receives enough votes to be re-elected to the 36-member ICAO council in 2022 after it failed to gain enough support following its invasion of Ukraine. Walsh said that the Trump administration was "quite correct" in dropping a proposal by former president Joe Biden, which would have required airlines to compensate passengers for flight disruptions caused by them. He said that the recent Trump Administration order to terminate a joint venture between Delta Air Lines, Aeromexico, and United States concerns about Mexico's violation of bilateral air agreements was "a natural progression of geopolitical matters." The Department of Transportation claims that Mexico has violated an air agreement bilaterally by cutting slots for passenger flights, and forcing all cargo carriers to relocate their operations. Walsh warned that joint ventures between airlines, which allow them to coordinate pricing, scheduling and capacity decisions, can improve service for consumers. He said, "I believe we have to separate the consumer impact from the political impact" of these joint ventures.
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Oil prices drop on US demand fears ahead of Fed rate decision
The oil prices fell on Wednesday as data revealed an increase in U.S. Diesel stockpiles. This stoked concerns about demand while investors awaited the U.S. Federal Reserve decision on interest rate. Brent crude futures fell 44 cents or 0.64% to $68.03 per barrel at 11:29 am EDT (1529 GMT), while U.S. West Texas intermediate crude futures also dropped 44 cents or 0.68% to $64.08. The Energy Information Administration reported on Wednesday that U.S. crude stocks fell dramatically last week due to a spike in exports and sharp drops in imports. Analysts said that a surge in distillate stocks fueled demand concerns, and held prices down. The markets seem to be responding on diesel which is the underbelly of this entire complex, said Phil Flynn a senior analyst with Price Futures Group. Investors also awaited the outcome of U.S. Federal Reserve’s meeting on September 16-17. Later on Wednesday, the Fed is expected cut interest rates by quarter of a percent. After Ukraine intensified its attacks on Russia's infrastructure, the risks to Russian oil supply were also brought into focus. Three industry sources said that Transneft, the Russian oil pipeline monopoly, warned producers on Tuesday that they may have to reduce production after Ukraine's drone strikes on key export ports and refineries. Kazmunaygaz, the state energy company, announced on Wednesday that Kazakhstan has resumed oil supply through the Baku-Tbilisi Ceyhan pipeline as of September 13. Last month, supplies were suspended due to contamination concerns. Reporting by Nicole Jao, Seher Dareen, and Enes Tugagur in London; Jeslyne Lerh and David Goodman in Singapore.
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Embraer confirms that Brazil's plants are operating normally despite metalworkers' strike.
Planemaker Embraer announced on Wednesday that their plants in Brazil are operating normally, after a union representing the metalworkers called a strike indefinitely to demand higher salaries. The union of metalworkers from Sao Jose dos Campos where Embraer headquarters and the main production lines for commercial aircraft are located said they had gone on strike earlier due to "the refusal to apply a true increase in wages" by the firm. This move is made at a time that the company wants to increase production in order to reach its annual targets, since the second half of the year is typically busier for aircraft manufacturers. Embraer delivered 26 commercial jets before the end of June, compared to a target for the full year of 77-85. The company played down the effects of the move by saying that its operations in Brazil weren't disrupted. In Sao Paulo, shares of the planemaker fell 1.3% while the benchmark Bovespa index rose 0.8%. Fiesp, the entity that represents the aerospace industry, according to the Sindmetal Union, proposed during negotiations an adjustment in salary based only on inflation. They also suggested a reduction of job stability for those who are injured or have occupational diseases. The union stated in a press release that this proposal was rejected and a strike was approved. It added that the offer for an increase of 5.05% was turned down, while the workers wanted an 11% hike. Embraer released a statement in which it expressed surprise at the union's actions, as negotiations were ongoing. The union had not yet made its latest proposal, it stated. Fiesp offered a salary adjustment of 5.5% on Tuesday. The third largest planemaker in the world, with shares that reached an all-time high Earlier this year, the tailwinds have been on the back of robust demand For its jets. The factory has broken records for profitability, revenue, and order backlog. Herbert Claros, union director, said that it was time to share the results with workers on the production lines. Reporting by Gabriel Araujo, Alberto Alerigi Jr., Isabel Teles and Mark Potter; Editing by Aida Pelaez-Fernandez and Ed Osmond.
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Italian island Pantelleria plans to rename its airport in honour of Giorgio Armani
Pantelleria, a small island in Italy, plans to rename their airport after the late fashion designer Giorgio Armani. Armani often spent his holidays at his estate on this island. Armani, who passed away earlier this month at the age of 91, owned a large property on the Mediterranean island that lies between Tunisia and Sicily. He would retreat there with his family and friends during August when he was taking a rare vacation from work. Armani's home was a collection of seven "dammusi", rural traditional buildings made from white lava stones with a dome roof and surrounded by over 150 palm trees. Italian civil aviation group ENAC announced on Wednesday it supported the proposal for a name change, which was made by the local council. Matteo Salvini, the Transport Minister also endorsed the plan. ENAC President Pierluigi Di Palma stated that the renaming was in line with the company's plans to improve and promote tourism on the island, which is accessible via flights to Rome or Sicilian Airports such as Palermo. (Reporting and editing by Alvise Armellini and Richard Chang; Reporting by Keith Weir)
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Frontier Airlines CEO: Ultra-low-cost model "alive and well"
Frontier Airlines CEO Barry Biffle stated on Wednesday that despite claims by a peer in the industry that the model had failed, the ultra-low cost carrier model was "alive and thriving" in the U.S. Denver-based airline Frontier Airlines said that it was committed to becoming the U.S.'s leading low-fare carrier and would help fill the gaps left by Spirit Airlines. Spirit Airlines filed for bankruptcy last month, for the second consecutive year. Frontier Airlines has announced 42 new routes in total since late August. This will allow it to expand its presence into some of Spirit Airlines' top markets, including the U.S. and Latin America. Biffle stated that the cost advantage for ultra-low cost carriers continues to grow, and so "the model is alive and well." Biffle said that the industry is suffering from too much domestic demand, which hurts yields and hurts everyone. He spoke at a travel conference held in New York City on Wednesday. Biffle stated that there will be less seats in the industry over the next year or two, not only for ultra-low cost carriers like Spirit, but also for legacy carriers. TD Cowen data shows that ultra-low-cost carriers' capacity will fall by 3.7% in the fourth-quarter, primarily due to Spirit's cuts. Scott Kirby, CEO of United Airlines, has repeatedly questioned the viability of low-frills airlines' business models. He described the ultra-low cost airline model as "an interesting experimental" that "failed", and compared Frontier Airlines to the last man on a sinking vessel. It's absurd. The people who fly Frontier aren't people who spilled from United. "They are people who would never have flown with (United)," Biffle said. Frontier Forecast The company has been betting that network changes, capacity reductions and better product offerings will help it improve its earnings. Frontier Airlines said that Southwest Airlines' decision not to allow free checked baggage and the financial problems at Spirit Airlines have helped it gain market share. Biffle stated that the company experienced a surge in bookings after it announced its free baggage policy, only to see bookings flatten after a week. He added, "Customers didn't seem to care... Southwest probably would have charged for bags 20 years earlier." Frontier is planning to introduce first class seating by early 2026, and aims to double its revenue. You can also find out more about our loyalty program. Revenue to $6 per passenger next year. Reporting by Doyinsola Oladipo, New York; editing by Chizu Nomiyama and Mark Porter.
Airline company pilots, crews voice concerns about Middle East routes
In late September, an experienced pilot at lowcost European airline Wizz Air felt distressed after learning his plane would fly over Iraq at night amid mounting tensions in between nearby Iran and Israel.
He chose to query the decision given that just a week previously the airline company had deemed the route hazardous. In reaction, Wizz Air's. flight operations group told him the airway was now. considered safe and he needed to fly it, without providing even more. explanation, the pilot said.
I wasn't truly happy with it, the pilot, who asked for. privacy from worry he might lose his task, informed Reuters. Days. later, Iraq closed its airspace when Iran fired missiles on Oct. 1 at Israel. It validated my suspicion that it wasn't safe.
In response to Reuters' inquiries, Wizz Air said safety is its. top priority and it had actually carried out detailed danger assessments. before resuming flights over Iraq and other Middle Eastern. countries.
Reuters talked to four pilots, 3 cabin crew members,. 3 flight security professionals and 2 airline company executives about. growing safety issues in the European air market due to. intensifying stress in the Middle East following Hamas' attack. on Israel in October 2023, that triggered the war in Gaza.
The Middle East is a key air passage for airplanes heading to. India, South-East Asia and Australia and in 2015 was. criss-crossed everyday by 1,400 flights to and from Europe,. Eurocontrol data show.
The safety debate about flying over the region is playing. out in Europe mainly because pilots there are protected by. unions, unlike other parts of the world.
Reuters evaluated nine unpublished letters from 4 European. unions representing pilots and teams that expressed worries. about air safety over Middle Eastern nations. The letters were. sent to Wizz Air, Ryanair, airBaltic, the European. Commission and the European Union Air Travel Safety Agency (EASA). between June and August.
Nobody should be forced to operate in such a harmful. environment and no business interests should outweigh the. safety and well-being of those on board, checked out a letter,. dealt with to EASA and the European Commission from Romanian. flight crew union FPU Romania, dated Aug. 26.
In other letters, staff gotten in touch with airlines to be more. transparent about their decisions on routes and required the. right to refuse to fly a hazardous route.
There have been no casualties or accidents impacting. industrial air travel connected to the escalation of stress in the. Middle East because the war in Gaza emerged in 2015.
Air France opened an internal investigation after among its. business airplanes flew over Iraq on Oct. 1 during Tehran's. rocket attack on Israel. On that event, airline companies rushed. to divert lots of aircrafts heading towards the impacted areas in. the Middle East.
The ongoing stress in between Israel and Iran and the abrupt. ousting of President Bashar al-Assad by Syrian rebels at the. weekend have raised issues of further insecurity in the. region.
The use of missiles in the region has actually restored memories of. the downing of Malaysian Airlines Flight MH17 over eastern. Ukraine in 2014 and of Ukraine International Airlines flight. PS752 en path from Tehran in 2020.
Being inadvertently shot-down in the mayhem of war is the top. worry, 3 pilots and two air travel security professionals told. Reuters, in addition to the threat of an emergency situation landing.
While airlines consisting of Lufthansa and KLM. no longer fly over Iran, carriers consisting of Etihad,. flydubai, Aeroflot and Wizz Air were still crossing. the nation's airspace as just recently as Dec. 2, data from tracking. service FlightRadar24 show.
Some European airlines consisting of Lufthansa and KLM allow. crew to opt-out of paths they don't feel are safe, but others. such as Wizz Air, Ryanair and airBaltic don't.
AirBaltic CEO Martin Gauss said his airline satisfies an. global safety requirement that does not need to be adjusted.
If we begin a right of rejection, then where do we stop? the next person feels dissatisfied overflying Iraqi airspace. since there's tension there? he informed Reuters on Dec. 2 in. reaction to questions about airBaltic flight safety talks with. unions.
Ryanair, which periodically flew to Jordan and Israel. until September, stated it makes security choices based on EASA. guidance.
If EASA states it's safe, then, honestly, thank you, we're not. thinking about what the unions or some pilot believe, Ryanair CEO. Michael O'Leary informed Reuters in October, when inquired about staff. security issues.
EASA said it has actually been associated with a number of exchanges with. pilots and airline companies on route safety in recent months worrying. the Middle East, including that disciplining staff for raising. safety concerns would run counter to a just culture where. employees can voice concerns.
INSUFFICIENT REASSURANCES
One Abu Dhabi-based Wizz Air pilot told Reuters he was. comfortable flying over the conflict-torn region as he believes. the market has an extremely high security standard.
But for some pilots and team members operating at budget plan. airlines, the peace of minds of the companies are insufficient.
They told Reuters pilots should have more choice in refusing. flights over possibly hazardous airspace and asked for more. info about airline security evaluations.
The fact that Wizz Air sends e-mails asserting that it's. safe is unimportant to business workers, read a letter from. FPU Romania to Chief Operating Officer Diarmuid O'Conghaile,. dated Aug. 12. Flights into these conflict locations, even if they. are rescue objectives, ought to be carried out by military personnel. and airplane, not by business teams.
Mircea Constantin, a previous cabin crew member who represents. FPU Romania, stated Wizz Air never ever provided an official response to this. letter and comparable ones sent previously this year, however did send out. security assistance and updates to personnel.
A pilot and a cabin team member, who decreased to be named. for worry of retaliatory action, said they got warnings from. their employers for declining to fly on Middle Eastern routes or. calling in sick.
CONGESTED SKIES
Last month, 165 rockets were released in Middle Eastern. conflict zones versus simply 33 in November 2023, according to the. most current offered information from Osprey Flight Solutions.
However airspace can just be enforcably limited if a nation. chooses to shut it down, as when it comes to Ukraine after. Russia's full-scale invasion in 2022.
Several airline companies have decided to briefly suspend flights to. locations like Israel when tension increases. Lufthansa and British. Airways did so after Iran bombarded Israel on April 13.
However this limits the airspace in usage in the already crowded. Middle Eastern skies.
Choosing to fly over Central Asia or Egypt and Saudi Arabia. to avoid Middle Eastern locations is also more pricey as aircrafts. burn more fuel and some nations charge higher overflight charges.
Flying an industrial aircraft from Singapore to London-Heathrow. through Afghanistan and Central Asia, for example, cost an. airline $4,760 in overflight costs, about 50% more than a route. through the Middle East, according to two Aug. 31 flight plans. examined .
Reuters might not name the airline as the flight strategies are. not public.
Some private jets are preventing the most crucial locations.
At the minute, my no-go areas would be the hotspot points:. Libya, Israel, Iran, just due to the fact that they're sort of captured up in. it all, stated Andy Spencer, a Singapore-based pilot who flies. personal jets and who formerly worked as an airline pilot.
Spencer, who has twenty years of experience and flies through. the Middle East regularly, said that on a current flight from. Manila to Cuba, he flew from Dubai over Egypt and north through. Malta before refuelling in Morocco to prevent Libyan and. Israeli airspace.
EASA, regarded by market professionals as the strictest local. security regulator, issues public bulletins on how to fly safely. over conflict zones.
However these aren't obligatory and every airline chooses where. to take a trip based on a patchwork of federal government notifications,. third-party security consultants, internal security teams and. details sharing between carriers, leading to divergent. policies.
Such intelligence is not normally shown staff.
The opacity has sown fear and skepticism amongst pilots, cabin. crew and passengers as they question whether their airline has. missed something providers in other countries know, said. Otjan de Bruijn, a previous head of European pilots union the. European Cockpit Association and a pilot for KLM.
The more information you offer to pilots, the more. notified a decision they can make, stated Spencer, who is likewise an. operations expert at flight advisory body OPSGROUP, which. offers independent functional guidance to the air travel market.
When Gulf players like Etihad, Emirates or flydubai suddenly. stop flying over Iran or Iraq, the industry sees it as a. reliable indicator of danger, pilots and security sources said, as. these airline companies can have access to comprehensive intelligence from. their governments.
Flydubai informed Reuters it operates within airspace and. airways in the region that are authorized by Dubai's General Civil. Air travel Authority. Emirates said it constantly monitors all. routings, changing as needed and would never run a flight. unless it was safe to do so. Etihad said it only runs. through authorized airspace.
Guest rights groups are also requesting for travellers to. receive more info.
If travelers decrease to take flights over dispute zones,. airlines would be disinclined to continue such flights, stated. Paul Hudson, the head of U.S.-based passenger group Flyers. Rights. And travelers who take such flights would do so. notified of the dangers.
(source: Reuters)