Latest News
-
Data shows that Russian gas exports to Europe increased 37% m/m during July.
Calculations showed that the average daily supply of natural gas to Europe by Russian energy giant Gazprom increased 37% from a previous month when maintenance had reduced it, according to calculations released on Friday. After Ukraine decided not to renew a transit agreement with Moscow that expired in January, the only route for Russian gas to reach Europe is through the TurkStream pipeline and Turkey. According to calculations based on data provided by the European Gas Transmission Group Entsog, Russian gas exports through the TurkStream pipeline increased from 37.6 million cubic metres per day to 51.5 mcm/day in July. This was an increase of 4.7% compared to July 2024, when the mcm stood at 49.2 Calculations show that the total Russian gas supplied to Europe through TurkStream in the first half of the year was around 9.93 billion cubic meters (bcm), compared to the 9.3 bcm delivered during the same time period last year. Gazprom exported 18.3 billion cubic meters of gas to Europe between January and July last year. This figure includes volumes that were transited via Ukraine. The company did not reply to a comment request. It hasn't published its monthly statistics since 2023. Gazprom's data and calculations indicate that in 2022, Russia will have supplied 63.8 billion cubic meters of gas via various routes to Europe. This fell by 55.6%, to 28,3 bcm. However, it increased to about 32 bcm. Gas flows into Europe peaked between 2018 and 2019. The annual gas flow to Europe was 175-180 bcm. (Reporting and editing by Andrew Osborn.)
-
Europe's airline shares surpass US counterparts amid tariff turmoil
In the past six months, European airline shares have surged despite geopolitical uncertainty and economic instability. Meanwhile, U.S. airline stocks have fallen amid a decline in travel spending. Since the beginning of this year, there has been a lot of volatility in the stock market as President Donald Trump’s trade war has shaken business and consumer confidence. Travel spending is a major discretionary expense for consumers and businesses. The prospects of a weak economy in the U.S. coupled with high inflation has impacted shares of Delta, United, and American Airlines. The two main European flag carriers, Lufthansa & Air France-KLM, reported better results for the second quarter on Thursday. They were able to overcome concerns about transatlantic travel while also boosting their share prices as investors benefited from cost discipline. The shares of British Airways owner IAG have continued to rise, although more modestly, than their European counterparts. Analysts said that it helps to have Americans still eager to travel to Europe with European carriers. Air France, in particular, has boosted its luxury image to boost sales of premium seats. Air France-KLM is the leader in terms of share performance amongst major European carriers, followed by Lufthansa, IAG and Lufthansa. All the major American carriers have had a down year for the most part, but there has been an increase in the last few months. SIGNS OF IMPROVEMENT The performance in terms of share and results comes despite complaints from European airline chief executives that they are subjected to undue regulations tied to airport taxes and environmental costs compared to international carriers. As a result of Trump's passage of his tax and spending bill, and the clarity that has been provided on tariffs, some macroeconomic concerns have been eased for U.S. Airlines. Their shares are now recovering from their lows of this year and there is hope for an improvement in travel demand. Dudley Shanley, analyst at Goodbody, said: "Flag carriers are increasingly motivated by the realisation that North Atlantic demand is a little lower but not as bad as investors had feared." Even so, the earnings forecasts for U.S. Airlines in 2025 have been significantly revised down. Conor Cunningham is an analyst at Melius Research. He said that the confidence of consumers and corporate travelers could lead to a change in the travel industry. He said: "We could look back at the tariff-induced pause as a temporary pause."
-
British Airways owner IAG beats second-quarter profit estimates
IAG, the owner of British Airways, reported earnings for the second quarter that were better than expected on Friday. This was due to strong demand from transatlantic travelers despite concerns about possible knock-on effects caused by President Donald Trump’s tariff war. Air France-KLM, Lufthansa and other European airlines have largely avoided the turmoil caused by tariffs. Both companies reported strong second quarters this week and confirmed their annual forecasts. IAG posted an operating profit for the third quarter of 1,68 billion euro ($1.92 billion), compared to the average analyst forecast of 1.4 million euros, according to an LSEG survey. This is up 35% compared to a profit last year of 1.2 billion euro. "We continue benefiting from the trend of structural shifts in consumer spending to travel." We continue to focus on our core geographies and market-leading brands, where we see strong performance," said Chief Executive Luis Gallego in a press release. The group confirmed that it had made its full-year forecasts, and noted that there was strong demand for its products in North America as well as Latin America. U.S. Airlines haven't fared well. Delta pulled its full-year forecast this spring because of concerns over falling demand. IAG was one of the best performers in terms of share performance compared to other European carriers over the past few years. However, this year it has fallen behind rivals Lufthansa & Air France-KLM who have recovered from their cost pressures.
-
Flight attendants sue Boeing over MAX 9 mid air panel blowout
Four flight attendants from Alaska Airlines 737 MAX 9 who were injured by a cabin panel that blew out in mid-air last January are suing Boeing. They claim they suffered physical and mental injuries. They are suing for compensation in separate lawsuits. They claim that they have suffered physical and mental injury, emotional distress, and other financial costs. Tracy Brammeier said that each of the four plaintiffs had acted bravely by following their training, putting the safety of their passengers first, and doing so while they feared for their own lives. They deserve compensation for the life-changing trauma they have experienced. Alaska Airlines and Boeing both declined to comment. The lawsuits, filed in Seattle's King County Superior Court on Tuesday, accuse Boeing and its subsidiaries of negligence in production, sale and repairs of 737 MAX aircraft and parts. The filings stated that "Boeing was aware or should have been aware of the quality control problems present in the 737 MAX aircraft line." The incident caused a crisis at Boeing and led the U.S. Justice Department, which opened a criminal probe into the company, to declare that Boeing did not comply with the 2021 deferred prosecutor agreement. The National Transportation Safety Board (NTSB), which was established by the United States government to ensure the safety of air travel, said that Boeing failed to provide sufficient training, guidance, and oversight in order to prevent this incident. The board criticised Boeing's safety culture, its failure to install key bolts into the panel during production and the Federal Aviation Administration for ineffective oversight. Reporting by Shivani Tana, Chandni Shah and Gursimran Kour in Bengaluru. Additional reporting by Dheeraj Kumra and Editing Clarence Fernandez.
-
The paper reports that flight attendants are suing Boeing for the MAX 9 panel explosion.
The Seattle Times reported on Thursday that four flight attendants who were on board the Alaska Airlines 737 MAX 9 aircraft when it was hit by a cabin panel blowout mid-air in January of last year have filed a lawsuit against Boeing for both physical and mental injuries. The newspaper reported that in separate lawsuits, filed by the plaintiffs, they sought compensation for economic damages past and future. They cited mental and physical injuries, emotional distress, and other costs associated with the incident. The article quoted Tracy Brammeier as saying that "each of the four flight crews acted bravely by following their training, putting their passenger's safety first, while they feared for their lives." They deserve compensation for the life-altering trauma they have experienced. The paper reported that the lawsuits were filed in Seattle's King County Superior Court on Tuesday. They accused Boeing of negligence and product liability, for delivering an unsafe plane to fly. Boeing, Alaska Airlines, and Brammeier declined to comment. The National Transportation Safety Board (NTSB), which was established by the United States government, said that Boeing had failed to provide sufficient training, guidance, and oversight in order to prevent this incident. The board criticised Boeing's safety culture, its failure to install key bolts during production of a new Alaska Airlines MAX 9, as well as the ineffective oversight provided by the Federal Aviation Administration. (Reporting and editing by Clarence Fernandez in Bengaluru, Dheeraj Tanna and Shivani Tana)
-
Travel along the U.S. Eastern Seaboard is disrupted by heavy downpours and flash flooding
On Thursday, New York Governor Kathy Hochul declared a state of emergency in areas that were threatened by flash floods due to heavy rains. This was a result of the disruption of rail and air travel on the Eastern Seaboard. The National Weather Service issued flash flood warnings in parts of the Northeast urban area stretching from Washington-Baltimore to Philadelphia, Wilmington and Newark (New Jersey) and New York City. The Interstate-95 corridor was also under severe thunderstorm warnings. Stormy weather was a major factor in disrupting commercial flights across the Northeast Thursday. The eight major airports serving the region - Washington Dulles, Baltimore-Washington, Ronald Reagan Washington National, Philadelphia, Newark Liberty, LaGuardia, John F. Kennedy International and Boston Logan - accounted for the cancellation of at least 1,170 airline flights into, out of or within the U.S., according to online flight tracking service FlightAware. Amtrak reported that passenger rail travel between Philadelphia and Wilmington was also affected by severe storms, which caused high water levels to flood the track. The Weather Prediction Center's daily rainfall forecast map shows that the risk of "excessive showers" capable of triggering a flash flood is 40% or more for an area of the mid-Atlantic region and Northeast, which has 37 million residents. Hochul said that the most intense bands of showers could bring up to 5 inches (12 cm) of rainfall across New York City and Long Island, as well as the Hudson River Valley. The rainfall rate may exceed 2 inches an hour. Hochul said, "I urge all New Yorkers stay vigilant, be informed and exercise caution, as we are expecting excessive rain with the possibility of flash flooding." In a statement, Tahesha Wad, the acting Governor of New Jersey, said that New Jersey should expect rainfall totals between 1 and 3 inches in general, but localized downpours could reach 5 to 7 inches. She warned that extreme rainfall in New Jersey could cause landslides and rock slides, as well as flash flooding on roadways. The damaging winds of thunderstorms would also pose additional dangers. Way, lieutenant-governor, issued a statement saying that residents should stay off the roads, and inside, unless it is absolutely necessary. She temporarily serves as the chief executive of the state while Governor Phil Murphy is on vacation. The Weather Service said that the storm threat was due to a frontal cold system bringing an unstable air mass, as well as a large amount of atmospheric moisture. Reporting by Joseph Ax, Los Angeles; Additional reporting by Steve Gorman; Editing by Sandra Maler & David Gregorio
-
Southwest Airlines names Doug Brooks board chairman
Southwest Airlines announced on Thursday that Doug Brooks, an insider, will be the new independent chairman of its board. This appointment takes effect August 1. Rakesh Giangwal, who was previously the chairman, resigned due to other commitments, unrelated to Southwest Airlines, but remained on board. He became board chair last November. Southwest announced the formation of a "Fleet Oversight Committee", which will assist the board with its oversight of the airline's fleet acquisition strategy. Gangwal will serve as the chair of this committee. The company announced that Gangwal would continue to serve as a member of the Finance and Nomination & Corporate Governance committees. Brooks was previously the chief executive of Brinker international. He has been a director with the airline since 2010. Southwest is still struggling to get its bearings after the COVID-19 Pandemic. The company's poor earnings have increased pressure on it to change its business model. Southwest Airlines has made a number of changes. It ended the open-seating policy that had been central to the brand image of Southwest for over 50 years. They also introduced a new basic economy fares and in the last quarter began charging for checked baggage, ending an exclusive free policy. The trade war of Donald Trump has only exacerbated the challenges. Southwest Airlines, the biggest U.S. domestic airline, reduced its profit forecast for the year last week by up to $1.1 billion. Reporting by Rajesh Kumar Singh and AnshumanTripathy in Chicago; editing by Alan Barona
-
FAA audit finds that SkyWest maintenance issues are not resolved by FAA
A government report on Thursday said that the Federal Aviation Administration failed to address persistent problems with SkyWest Airlines maintenance practices, which its inspectors feared could lead to an accident. SkyWest, the largest regional airline in the United States, operates flights for United Airlines as well as Delta Air Lines and American Airlines. A report by the Transportation Department Office of Inspector General found that FAA safety inspectors had been unable to resolve issues related to SkyWest's remote maintenance practices over a period of more than four year. The report stated that under this practice, which was introduced in 2018, SkyWest or contracted mechanics who perform maintenance at an aircraft's location are overseen by centrally located maintenance control at SkyWest headquarters in Utah. According to the audit, FAA inspectors discovered that SkyWest "inappropriately delayed maintenance for items on SkyWest's minimum equipment list, dispatched aircraft for flights without requiring inspections, used pilots for maintenance tasks not authorized in SkyWest’s maintenance manuals." SkyWest stated that it is committed to maintaining high standards of safety and conformity in all areas of its operation. It also said that it had taken a number of actions to assist the FAA in "identifying and resolving any issues with either our processes or SkyWest's Safety efforts." The FAA has worked to resolve 32 issues with SkyWest since 2021. According to the report, at the time the inspector general conducted its analysis in 2010, the FAA had already resolved 26 issues. However, non-compliance with SkyWest's practices for remote return-to service maintenance remained. Despite the fact that several FAA inspectors had identified similar systemic hazards, it was not until two years later that an agency-wide review of systemic risks began. The report stated that FAA inspectors are frustrated by the delay in their work and "concerned about how remote maintenance practices of the airline could lead to an accident." The FAA stated that it agrees with six out of seven recommendations, and plans to implement them before July 2026. The FAA also acknowledged that delays in submitting submissions can affect safety assessments. A report stated that an accident occurred in New York on March 20, 2020. The accident revealed pilots performing unauthorized maintenance procedures. The report said that in 2023, the remote return-to service maintenance actions could have led to flights not meeting FAA safety standards. The report mentioned an aircraft that was released for flight with no required operational altimeter, and another flight which included a fuel fault warning message improperly delayed. (Reporting and editing by Alexandra Hudson, Jamie Freed and David Shepardson)
Safran shares rise as French jet engine maker raises outlook
Safran, the French aerospace company, raised its annual forecasts on Thursday after reporting higher-than expected first-half profit. Its shares rose more than 4% thanks to a brisk demand of spare parts for jet engine.
Safran, who together with GE Aerospace produce engines for Airbus medium-haul aircraft and Boeing long-haul jets reported higher maintenance profits, and its cabin interiors business, which had been struggling, saw further progress in the black.
After certain adjustments, the company's closely-watched recurring operating income increased 27% to 2,51 billion euros ($2,87 billion) as revenues rose 13% to 14,77 billion euros.
According to a consensus compiled by the company, analysts expected an average operating profit of 2,39 billion euros for the first half of 2014 on revenues of 14,74 billion euros.
Safran has raised its forecast for the full year of the same profit measure from 4.8 to 4.9 billion euros to a range between 5.0 and 5.1 billion euro. This is an increase over a previously stated range. It forecast revenue growth of the low teens instead of 10%.
Analysts at Bernstein said that Safran's aftermarket indicators, which are used to determine how much money engine manufacturers make during their regular visits to engine shops, exceeded expectations.
Analysts say that the growing demand for air travel and the shortage of planes caused by a lack of deliveries from aircraft manufacturers have forced airlines into flying planes longer. This has led to extra maintenance.
Safran shares rose 3.9% at midday. Shares of UK engine manufacturer
Rolls-Royce rose also
After improvements in its large wide-body engines led to strong first-half performance, it raised targets.
ENGINE AGREEMENT
Airbus, a jet maker that has been firing at engine manufacturers for delays in delivering new engines into jet factories because parts are diverted to repair shops to keep existing aircraft flying.
Airbus and CFM have been strained by the tug-of-war between airplane hangars and aircraft factories over parts, while Pratt & Whitney, a rival engine manufacturer is gaining ground.
Also under scrutiny
Safran CEO Olivier Andries admitted that CFM was behind on deliveries to Airbus, partly due to a French strike. But he told reporters that the plans to catch up were "challenging, but totally achievable".
He confirmed that CFM and Airbus had reached an agreement on the number of engines to be delivered in the remainder of the year, as the planemaker strives towards its delivery target.
Airbus CEO Guillaume Faury
On Wednesday
The engine makers have agreed to help meet its delivery targets.
Safran announced separately plans to build a carbon brakes plant in France, near Lyon. This follows a competition with Quebec and Oregon State, U.S.A. for the new major site.
Safran, which was founded 20 years ago by the merger of Snecma, a state-owned engine manufacturer, and Sagem Electronics (now part of Sagem), acquired the Collins Aerospace actuation and control business for $1.8 billion last week.
The company also sold a small U.S. operation to comply with the demands of regulators for the Collins acquisition.
Safran estimated that the combined transactions will add between 600 and 700 millions of euros to the group's revenues for the remainder of the year.
(source: Reuters)