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Heathrow airport in London is hit with more flight cancellations following an air traffic failure
On Thursday, at least 16 flights were cancelled to and from London Heathrow Airport. This was a day following widespread disruptions caused by technical issues with Britain's air-traffic control system. National Air Traffic Services, which controls air traffic for planes in UK airspace as well as the eastern part North Atlantic, announced on Wednesday that its systems are fully operational and capacity has returned to normal following the switch to a backup system. Cirium, an aviation analytics company, reported that the second NATS outage in two years also affected Gatwick Airport, near London, Edinburgh Airport, Scotland, and other locations. As of 1830 GMT, Wednesday, there were 122 cancellations. Heathrow’s website indicated that 16 flights were cancelled Thursday, including those to and from New York, Berlin and Toronto, as well as departures. Heathrow Airport, Britain's and Europe's busiest, has not responded to an immediate request for comment about the recent cancellations. Neal McMahon, Ryanair's Chief Operating Officer, called for NATS CEO Martin Rolfe's resignation. He said that no lessons were learned since the August 20, 2023 disruption caused due to a malfunction in the automatic processing flight plans. NATS did not respond immediately to an inquiry about McMahon’s remarks after it apologized to those who were affected by this failure on Wednesday. In March, Heathrow also suffered a fire in a sub-station that stranded thousands. (Reporting and Editing by William Schomberg.)
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After 25 people are injured by turbulence, a Delta flight is diverted to Minneapolis.
The airline released a statement saying that 25 people were hospitalized on Wednesday, after a Delta Air Lines flight diverted from Amsterdam to Salt Lake City due to severe turbulence. Delta Airlines said that flight DL56 had been diverted to Minneapolis-Saint Paul International Airport due to "significant turbulence". New York Times, citing airline, reported that the plane carried 275 passengers, and 13 crew. Delta said that medical personnel evaluated all passengers after the A330 900 landed safely at Minneapolis. Twenty-five people on board the plane were taken to hospitals in their locality for treatment and evaluation, it stated without providing any further details. After reaching an altitude of 37,000 feet (11 277.6 meters), the aircraft experienced turbulence. It briefly climbed to 38,000 feet, before descending to just under 35,800 feet. Flightradar24, a flight tracking service, reported that it stabilised at 37,000 feet. (Reporting and editing by Kate Mayberry in Bengaluru, with Disha Mishra reporting from Bengaluru)
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Rolls-Royce increases profit and cash-flow outlook after strong H1
Rolls-Royce, a British aero-engineer, raised its outlook for the full year in terms of both operating profit as well as free cash flow. This was after navigating supply chain challenges and overcoming tariffs. The company's operating profit guidance was increased by 400 million pounds (300 million pounds) to 3.2 billion pound and its free cashflow by 200 million pounds, to 3.1 billion pound. Tufan Erginbilgic is the chief executive of Rolls-Royce, and has been in charge since 2023. He said that his multi-year turnaround continues to produce results. He said that despite the challenges posed by the supply chain and the tariffs, "our actions have led to strong results in the first half of the year." He said Rolls has improved the time that its engines are on the wing, a demand of its airline clients. It also improved the profitability in its maintenance services. He said that the power systems division had grown as a result of gaining business from government and data centre customers.
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Safran invests heavily in France to develop new carbon brakes
Safran, the French aerospace company, announced on Thursday that it would build a carbon brakes plant in France. This is a significant investment in France after a highly-publicized competition against alternative sites in America and Canada. Once completed, the 30,000 sq. ft. facility in Lyon, a partially-state-owned company that builds jet engines, competes with RTX's Collins Aerospace unit to sell other equipment such as brakes and landing gear. The announcement confirms, along with higher earnings for the mid-year period, a report published on Wednesday, that the Paris-based company was set to choose France as its fourth plant, following a highly-sensitive contest, overshadowed in part by concerns about energy supply. In France, President Emmanuel Macron, who has made reindustrialisation a priority in his political agenda, is closely monitoring the outcome of this long-delayed competition. Meanwhile, U.S. president Donald Trump wants Europe to invest more money in the United States. These investments must be planned out years in advance due to the size of factories. However, the decision has been pushed back by energy and trade politics. The original plans to build the site in Lyon (France's third largest city) were scrapped due to the COVID-19 Pandemic of 2020 and the sharp increase in energy prices that followed the Russian invasion of Ukraine. Safran CEO Olivier Andries made a statement in which he acknowledged that the state-owned electricity utility EDF had supported the decision to locate the plant. The plant will be based on biomethane, and it will use low-carbon electricity. The cost of carbon brakes can be accounted for by energy. Industry sources claim that Safran and EDF had clashed over the supply of cheap supplies in the past, but tensions have eased since the recent change of management at EDF. Safran, the company that pioneered carbon brakes on jetliners and Formula 1 cars, claimed they were lighter, more durable, and allowed airlines to save fuel. Safran said that the new site in the Plaine de l'Ain Industrial Park will start operations in 2030. It will allow the company to increase its production by 25 percent between now and the year 2037, by joining a three-site network in France, USA and Malaysia.
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New York Times Business News - July 31,
These are the most popular stories from the New York Times' business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. President Donald Trump announced that the U.S. would charge a 15% duty on imports from South Korea. This is a reduction from a 25% threatened tariff, and part of an agreement to ease tensions with this top-10 trading partner. President Donald Trump announced that the U.S. will impose a 25 percent tariff on all goods imported from India beginning on Friday. The U.S. president Donald Trump imposed a tariff of 50% on the majority of Brazilian goods. However, he softened this blow by exempting sectors like aircraft, energy, and orange juice. 25 people were hospitalized on a Delta Air Lines plane after it was forced to land in Minnesota due to strong turbulence. The plane was flying from Salt Lake City, Utah, to Amsterdam. (Compiled Bengaluru Newsroom)
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ArcelorMittal South Africa announces plans to close long-staple steel plants by September
ArcelorMittal South Africa announced on Thursday that it will still close its long-losing steel operations by September as discussions with the government failed to provide a solution. Steelmaker reported a headline loss for the first half of the year of 1.014 billion Rand ($56.4m), a little less than its previous loss report, which was 1.1 billion Rand. This is due to low sales and prices that have remained constant. Due to the weak demand in South Africa, its revenue dropped 17% to 17 milliards rand. Sales volumes also declined 11% at 1.05 million metric tonnes. ArcelorMittal South Africa, which originally announced the closure of two long steel plants near Johannesburg and Newcastle in November 2023 to allow for talks with the government, has delayed the closing twice. The goal is to save 3,500 direct job. The company stated that "in the absence of a viable solution, the winding down of the longs' business is scheduled to take place on 30 September 2025." Parks Tau, South Africa's Trade and Industry Minister, told lawmakers that on July 4, the government is in a "firefighting" mode as it attempts to avoid plant closures. The company claims that its long-standing steel operations are under pressure from a weak local market, high electricity rates, poor logistics, and competition from mini-mills for recycling scrap metals in the area, as well as imports from China. Long steel plants provide rail, road and bars for construction, mining, manufacturing and other sectors, as well as automotive components.
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Air France-KLM Q2 profits rise, thanks to premium sales
Air France-KLM announced a higher operating profit for the second quarter on Thursday. The sector is worried about the impact of President Donald Trump’s tariff war. Major European airlines are watching for any possible drop in transatlantic travel, as Europeans have resisted booking trips to America this year. Air France-KLM has highlighted the importance of its new first-class cabin as well as its strong sales in its premium economy cabin. This is especially true for KLM. Ben Smith, Chief Executive Officer of the company said that "we are advancing premiumization and pushing the boundaries for aspirational travel by offering enhanced products and service." The second-quarter operating profits rose from 513 millions euros to 845 million euros compared with the same quarter in last year. This was in line with an analyst poll compiled and conducted by LSEG, which predicted 760 million euro. Summer travel is an important test to see how carriers such as Air France-KLM will fare in the second half of this year. Air France-KLM had previously stated that it had reduced some economy fares in order to remain competitive. It confirmed its full-year outlook.
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EU energy policy caught between US gas and Chinese green technology: Bousso
Since the Russian gas phaseout, EU dependence on US LNG has increased. China dominates the EU's renewable energies supply chain EU-US trade deal sets unrealistic energy target Ron Bousso LONDON, 31 July - The European Union’s extravagant pledge to purchase $750 billion in U.S. Energy by 2028 could increase the bloc’s already excessive dependence on American Gas, at a time when it is increasingly dependent on Chinese technology for its energy transition. Under the new trade agreement with Washington, the EU has committed that it will increase its purchases of U.S. natural gas, coal and oil from $75 billion in 2020 to $250 billion annually over the next three. Eurostat data shows that the U.S. will account for 50% of EU liquefied gas imports by 2024. It also accounts for 17% of EU oil imports and a third of EU coal imports. The U.S. exports the most LNG in the world, and this fuel is super-chilled. The promised purchases are not only unlikely, but also downright unrealistic, due to the huge volumes involved, and the fact the EU's energy trade is determined primarily by the market, not centralized buying. The greater concern is that increased purchases will increase Europe's dependence on U.S. power at a time when it is already precarious. DEPENDANCE RISKY Europe is heavily dependent on LNG imports due to its drastic reduction in Russian pipeline gas purchases after Moscow's invasion into Ukraine in 2022. Before that, Russia was responsible for over 40% of European gas purchases. Brussels has a plan to phase out all Russian energy imports in 2027. This ambitious but achievable goal will increase the demand for LNG from the U.S. It is less risky to rely on an ally who is democratic and Western than to bind oneself with an authoritarian regime, but there are still risks. One of the reasons is that the Trump administration's erratic policies and bullying behavior may cause European leaders to question the sustainability of any U.S. agreement. Moreover, the majority of LNG is produced along the U.S. Gulf Coast which is at risk from extreme weather events like hurricanes, heatwaves, and floods. These disasters can lead to severe and abrupt supply disruptions. The price of natural gas in the United States could also rise dramatically over the next few years, as the domestic demand increases, especially given the massive power requirements for artificial intelligence. The U.S. Energy Information Administration predicts that Henry Hub gas will double in price between 2024-2026, to $4.40 for every million British Thermal Units. These price increases could make American LNG less competitive against other sources. CHINESE WALL Energy crisis following the invasion of Ukraine by Russia taught Europe two hard lessons. Don't rely on a single energy provider, and reduce your reliance on fossil energy, especially with Europe's inadequate and declining domestic production. In order to address this concern, the bloc has increased investments in technologies such as renewables, nuclear, and battery storage. According to a report released by the International Energy Agency, European investments in clean energy are expected to double in size from 10 years ago to $494 billion by 2025. Solar and wind power generated around 20% of the total energy consumed in the region and half of its electricity last year. However, the rapid growth of renewables is not without its own risks. The green energy supply chain, which is dominated largely by Chinese technology, has created a dependency. Solar energy is Europe's fastest-growing renewable source. Around 80% of solar photovoltaic panel production in the EU comes from China. It does this at an incredibly low cost which has been a major obstacle to Europe's efforts in the past years to expand its domestic manufacturing. China is the dominant producer of raw materials such as cobalt, nickel and lithium that are essential to storage batteries and wind turbines. No Good Choices Diversifying EU sources of renewable technologies and essential minerals is crucial for the bloc’s energy security. However, this will take many years to achieve. Theoretically, a cooperative relationship with the U.S. could be beneficial on this front, but it won't if Washington takes advantage of its dominant position in order to extract more concessions from Europe while offering little else. The EU is caught in the middle of two geopolitical forces. The European Union's double concerns about fossil fuels and its increasing dependency on U.S. gas, as well as the over-reliance on China in terms of renewable energy, may eventually cause European leaders to turn back to fossil fuels, who are worried about rising energy costs. The pace and success of EU energy policies will be determined by the balance between energy security and political reality in the next few years. If the recent U.S. Trade Deal is any indication, then the EU's energy policies are not off to a good start. You like this column? Check out Open Interest, your essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
IndiGo's first-quarter earnings are lower due to currency losses
Interglobe Aviation (the operator of IndiGo) reported a decline in its first-quarter profits on Wednesday. The company was hit by escalating forex losses as well as softer growth due to border tensions between India & Pakistan.
India's largest carrier by market share posted a profit for the quarter ending April-June of 21.61 billion rupies ($247.2m), down from 27.27 bn rupies a year ago.
The total expenditure rose by 10% and foreign exchange losses increased by more than double.
Analysts say the carrier's success has been attributed to a combination of factors, including increased incomes, sustained travel demand post-pandemic, and continued network and fleet expansion.
Booking cancellations in April and may following the border conflict between India, Pakistan and Afghanistan impacted the quarterly revenue growth.
In June, following the political unrest in India, a rival airline Air India's plane crashed in Ahmedabad, killing 260 people. This caused flying anxiety in many Indians.
Pieter Elbers, Chief Executive of Pieter Elbers Aviation said that the June quarter was marked by external challenges which created headwinds in the aviation sector.
In terms of available seat kilometers, the company's capacity for the first quarter grew by 16.4% compared to last year. In May, the firm projected a growth of "mid teens percentage range".
IndiGo was able to cushion a 5% decline in yields. Yields are the average amount of money earned per passenger, per kilometre.
IndiGo shares closed down 0.3% ahead of the results.
(source: Reuters)