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Southern Taiwan closes ahead of Typhoon Podul
Thousands of people were evacuated as a large swathe in southern and eastern Taiwan was shut down and hundreds of flights cancelled on Wednesday ahead of Typhoon Podul's arrival later that day. Taiwan is frequently hit by typhoons. These are usually along the sparsely-populated, mountainous east coast of Taiwan facing the Pacific. Weather officials reported that the mid-strength Typhoon, Podul, which was packing wind gusts of up to 191 kph 118 mph, was headed for the city of Taitung in southeast China as it intensified. It was expected to land nearby on Wednesday afternoon. "Destructive wind from typhoon is expected." "Take shelter as soon as you can," said a text message sent to cellphone users early Wednesday in Taitung. The alert warned of gusts exceeding 150 kph in the next few hours. Nine cities and counties, including southern metropolises Kaohsiung Tainan and Tainan, announced Wednesday's suspension of school and work. Taipei's capital, which is home to Taiwan’s financial markets had no effect. Authorities are working to evacuate residents whose homes have been damaged by the typhoon of July, which brought record-breaking winds and damaged Taiwan's electricity grid. The government reported that almost 5,000 people were evacuated before the arrival of the typhoon. On Wednesday, all domestic flights were canceled. Taiwan's main international carriers China Airlines & EVA Air also cancelled a few international flights. The storm will hit Taiwan's densely-populated west coast after making landfall before moving on to China's southern province, Fujian, later this week. Central Weather Administration forecast that rain up to 600 mm (24 inches) could fall on southern mountainous regions over the next few weeks. In some areas of the south, more than a full year's worth of rain fell in just one week, causing widespread flooding and landslides, resulting in four deaths. (Reporting and editing by Ben Blanchard, Yimou Lee)
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No hazardous materials leakage after Union Pacific train crashes in Texas
The company reported that a Union Pacific Railroad train derailed on Tuesday two miles east from Gordon, Texas. Emergency responders confirmed the cars had not leaked any liquids. Emergency responders from Palo Pinto County stated that the derailment is "being treated as HazMat." In a press release, the company stated that approximately 35 Union Pacific cars had derailed at around 2 pm CDT. The cause of the derailment outside Gordon was unclear. Gordon is a small town of about 460 people located approximately 95 miles (153 km) west of Dallas. The company didn't immediately respond to an inquiry about the materials carried by derailed cars. Palo Pinto County Emergency Services District 1 officials said that the derailment caused some small grassfires which firefighters are working to contain. The emergency officials posted on social media that there were no confirmed leaks of hazardous materials at this time. The railroad said no one was injured in the incident, and that all personnel were present. Railroad said that additional crews are in transit, and an investigation into the incident is underway.
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US will retaliate if IMO members support net zero emission plan
The U.S. rejected Tuesday the proposal of the International Maritime Organization's "Net-Zero Framework", which aims to reduce global greenhouse gas emission from the international shipping industry. It also threatened countries who support the proposal with measures. In a joint announcement, Secretary of State Marco Rubio was joined by Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright, as well as Transportation Secretary Sean Duffy. This announcement comes before a vote in October at the United Nations shipping agency on the proposal to go net-zero. The statement stated that "the Trump Administration unambiguously rejects this proposed before the IMO, and will not accept any action which increases costs for our citizens or energy providers, shipping firms and their customers, tourists, or other stakeholders." It continued, "Our fellow IMO Members should be aware that we will seek their support in opposing this action. We will not hesitate to retaliate against this action or to explore remedies for our Citizens should this effort fail." The U.S. exited IMO talks In April, he spoke on the net zero framework and urged IMO members to reconsider their support. The World Shipping Council (WSC), which represents the major global shipping companies like Maersk, a container carrier, and Wallenius Wilhelmen, a car carrier, declined to comment. Many WSC members have already committed to net-zero operations by 2050. The President of the United States, Donald Trump He has also stated that he is Withdrawal United States The Paris Climate Agreement, which set the goal of countries achieving net-zero emission by 2050. The U.S. has been engaged in a number of activities. In a memo, the United States has warned that it is in the midst of negotiations to achieve a global agreement to reduce plastic pollution. Will not support a Pact This bans certain chemicals and limits plastic pollution. Environmentalists and investors have called for more concrete actions, such as a carbon tax, to be taken by shipping, which accounts for 90% of global trade and nearly 3% the carbon dioxide emissions. The United States is a member of 176 IMO states.
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US Airlines' shares rise as data on airfares signals improved pricing power
The shares of major U.S. airlines soared Tuesday, after positive airfare data for July indicated improved pricing power for the sector. Airlines are bringing capacity under control to align themselves with a softening demand environment. In afternoon trading, shares of United Airlines, American Airlines, and Delta Air Lines all rose between 8 and 10 percent, while Southwest Airlines, a budget airline, gained 4%. Other smaller competitors also grew, with Alaska Air up by 8% and JetBlue Airways around 10%. Low-cost carrier Frontier Group surged 22%. The Bureau of Labor Statistics of the Labor Department released data on Tuesday showing that airfares increased 4% in July, after declining by 0.1% in June. This was their first rise in six months. After months of discounting and margin pressure, airlines have begun to reduce prices due to a weak demand by budget-conscious domestic travellers. Michael Ashley Schulman is the chief investment officer at Running Point Capital. He said that with CPI showing that airfares rose 4% in July carriers have finally regained pricing power. Travelers have been reevaluating their plans and cutting back on discretionary expenses due to the uncertainty caused by President Donald Trump’s tariffs and budget reductions. Since then, airlines have reduced the number of seats they offer and adjusted routes in order to maintain their pricing power and protect margins. Major executives were confident in their ability to reduce capacity and increase airfares by the end of the year during their earnings calls for the second quarter in July. The first increase in six months was the July airfare, which boosted investor confidence that carriers would be able to stabilize prices and profitability through capacity discipline. Schulman stated that the main risk was fuel and labor prices trying to jump ahead of the queue or an unlikely but possible recession. Reporting by Shivansh Tiwary, Bengaluru. Editing by Pooja Deai.
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US Airlines' shares rise as data on airfares signals improved pricing power
The shares of major U.S. airlines jumped Tuesday, after positive airfare data for July indicated improved pricing power for industry as airlines adjust capacity to align with soft demand. In afternoon trading, shares of United Airlines, American Airlines, and Delta Air Lines each jumped by nearly 10%, while the budget competitor Southwest Airlines rose by 4%. Alaska Air, JetBlue Airways and Frontier Group all grew by about 10%. The Bureau of Labor Statistics of the Labor Department released data on Tuesday showing that airfares increased 4% in July, after declining by 0.1% in June. This was their first rise in six months. Travelers have been prompted to cut back on discretionary spending due to the uncertainty caused by President Donald Trump’s tariffs and budget reductions. The carriers were forced to cut fares due to a soft demand, especially from budget-conscious domestic travellers, even though summer is their highest-profit season. Since then, airlines have reduced the number of seats they offer and adjusted routes in order to maintain their pricing power and protect margins. Major executives in the airline industry expressed their confidence during the second quarter earnings call in July. They said they were confident in the ability of the industry to reduce capacity and increase airfares by the end of the year. (Reporting and editing by Pooja Deai in Bengaluru)
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Spirit Airlines raises going-concern doubts, months after exiting bankruptcy
Spirit Airlines warned that it was facing doubts about its ability to continue operations just months after its bankruptcy. Weak domestic demand and shrinking cash reserves are straining its operation, sending shares down 42%. In its quarterly report, the airline said that adverse market conditions like increased domestic capacity and low demand for leisure travel during the second quarter have resulted to a difficult pricing environment. The company anticipates that these pressures will continue throughout the remainder of the year and add to operational uncertainty. Spirit Airlines announced last month that it would lay off 270 pilots and demote another 140 to save cash. Tim Hynes of Debtwire, the head of global credit research, said that it was necessary to improve its financial condition faster than expected. After years of losses and debt, the Florida-based airline known for its bright, yellow livery filed for bankruptcy last November. This was the first major U.S. airline to file Chapter 11 bankruptcy since 2011. In March, it emerged from bankruptcy after a court approved reorganization backed by its creditor. Travelers have been forced to cut back on spending due to the uncertainty caused by President Donald Trump’s budget cuts and tariffs. The airline announced on Monday that it has been asked by its credit card processor to put more money aside as collateral, or else risk losing its contract which expires on December 31. Spirit Airlines said that it would increase liquidity by selling aircraft, real estate, and excess airport gate capacity. It said that uncertainty over meeting minimum liquid covenants, and the outcome from talks with stakeholders has raised substantial doubts about the company's continued viability as a going-concern over the next year. (Reporting and editing by Arun K. Koyyur in Bengaluru, Shivansh Tiwary from Bengaluru)
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Boeing's July aircraft delivery is down 20% from June and trails Airbus
Boeing, the U.S. aircraft manufacturer, announced on Tuesday that they delivered 48 planes in July. This is five more than last year but down from 60 in early June. This was the highest number of deliveries for the company since July 2017, when the company delivered 58 planes. Boeing has fallen further behind European rival Airbus this year in terms of deliveries. Airbus delivered 67 jets to customers in July, despite a growing backlog of aircraft that cannot be delivered due to a lack of engines. Airbus delivered 67 jets in July, down from 77 aircraft in July 2024. However, it brought its year-to date total to 373 compared with Boeing's 323. Airbus also leads Boeing in the number of single-aisle aircraft delivered, with 286 A320neo jets to Boeing's 244 737 MAX. Approximately 66% of commercial jets are one-aisle aircraft. Boeing delivered 37 737 MAX jets, including 20 to aircraft lessors (aircraft leasing companies) and 17 to airlines in July. Boeing delivered eight 787s as well as two 777 Freighters and one 767 Freighter. Airbus handed over five regional A220s, 54 A320neos from its cash cow A320neos family, two A330s, and six A350s. Wall Street closely tracks aircraft deliveries because the planemakers receive a large portion of their payments when they deliver jets to their customers. Boeing received 31 gross orders for jets in July. Thirty of these were for the 737 MAX and one was for a 787. Republic of Iraq cancelled one 787 order but still has seven 787s ordered. The aerospace giant received 699 new order this year by the end of the month, or 655 after cancellations and conversions. After adjusting for U.S. Accounting Standards, its order backlog stood at 5,968. Airbus is experiencing delays in deliveries from CFM International, its largest engine provider, which is owned by GE Aerospace, Safran and GE. However, due to a recent strike at Pratt & Whitney, Airbus's rival RTX, has also experienced delays. Airbus continues to project that it will deliver 820 aircraft by the end the year. This is a 7% increase from last year. Boeing hasn't given any guidance on annual deliveries. After a mid air panel blowout in January 2024 on a new 737 MAX, the U.S. firm is working to stabilise production. (Reporting from Dan Catchpole, Seattle; editing by Jamie Freed).
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WestJet resumes flight after a system failure caused a brief ground stop
WestJet Airlines announced on Tuesday that normal operations are underway following a temporary outage of its system, which forced the Canadian carrier briefly to halt all departures. Onex Corp, which owns the airline, had requested a ground-stop from the U.S. Federal Aviation Administration earlier in the day. This affected flights that were operated using the WestJet livery, and WestJet Encore, its regional division. Ground stops are temporary air traffic control measures that stop flights from leaving for a particular airport or region. This is usually done due to safety issues, weather conditions, or operational problems. In a press release, the airline stated that the system failure delayed the transfer of aircraft to scheduled operations from the maintenance staff. WestJet has been working to resolve this issue. It is now returning to normal operations.
Air Canada asks for government intervention after contract negotiations with flight attendants fail
Air Canada announced on Tuesday that it had asked the federal government to intervene in contract negotiations with its union of flight attendants after declaring an impasse in the negotiation.
The company warned that it was also preparing for possible flight disruptions and had made arrangements with Canadian and foreign carriers in order to offer customers alternatives.
Air Canada Rouge and Air Canada, which carry together about 130,000 passengers a day, could be affected by the standoff in contract negotiation as early as this Saturday.
The Canadian Union of Public Employees (CUPE), which represents over 10,000 flight attendants in Canada, had earlier rejected the airline’s proposal of binding arbitration. They wanted a negotiated solution.
The airline announced that it would offer a 38% total increase in compensation to flight attendants in four years. A 25% raise was offered in the first year.
The offer included improved pensions, benefits and ground pay.
The union, however, said that the offer was still "below inflation and market value and below minimum wage" and would leave flight attendants without pay for all hours worked.
Most airlines have only paid their cabin crew when the plane is in motion. In their most recent contract negotiations, North American flight attendants have asked for compensation for all hours worked. This includes tasks such as boarding passengers or waiting at the airport between flights.
Air Canada has offered to compensate flight attendants at only 50% of their hourly wage for certain unpaid work, according to the union.
After 72-hour notice, flight attendants can strike as soon as August 16th.
Air Canada claimed that the union was "insisting" on unsustainable wages.
POTENTIAL FLIGHT DISRUPTIONS
The Canadian labor code gives the government the authority to order both parties to arbitrate binding interests to avoid major economic disruptions. Government intervention has been seen in the transportation industry before.
Tom Fitzgerald, an analyst at TD Cowen, said that the government would most likely intervene in this situation.
Fitzgerald stated that it was difficult to imagine why the Canadian government would allow such a disruption to occur to the economy and travel public in the summer peak season. Reporting by Allison Lampert and Rajesh K Singh in Montreal; Editing by Lisa Shumaker, Stephen Coates
(source: Reuters)