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Air New Zealand suspends its FY26 forecast due to rising jet fuel prices in the Middle East
Air 'New Zealand suspended their fiscal 2026 'earnings projections?on Tuesday, citing the?escalation in conflict in the Middle East as well as unprecedented volatility on global jet fuel markets. New Zealand's Flag?Carrier forecast that second-half earnings would be?flatter or weaker than first?half, in its interim results published last month. It had posted a loss of NZ$59 million before tax. Air NZ stated in a statement that the conflict in the Middle East had led to extreme volatility on jet fuel markets since then. Jet fuel prices have increased sharply in recent days, from $85-$90 per barrel before the conflict. Fuel is the second largest expense for air carriers, after labour. It typically accounts for between a fifth and a quarter of operating expenses.
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Businesses shiver at the remote work order after Peru's pipeline rupture
Business groups in Peru are at odds with the interim government about sweeping measures taken after the rupture of the main natural gas pipeline in the country triggered the worst crisis in energy in two decades. This is an early test for President Jose Balcazar’s interim mandate, weeks before the national elections. The breakdown of Transportadora de Gas del Peru’s pipeline has caused widespread gas rationing. This has pushed up energy prices, and exposed long-standing weaknesses in the Andean country's energy system. Balcazar faces a leadership challenge after being appointed by Congress on 18 February, following the ouster of his predecessor. Over a thousand companies have been affected by the halted production of gas, and many business associations are calling for the rollback on emergency directives. Gas flows could not resume before mid-March, according to authorities. The outage may exacerbate?inflation which, despite political turmoil for years, has been among the lowest on the planet. Former Economy Minister Alonso Segura said, "It could affect inflation in a heterogeneous manner depending on how energy affects every activity." Segura stated that the inflation rate reached 0.69% during February, and may exceed the 0.81% registered in March of last year. 70% of LPG used in the United States is produced using natural gas. Around 2.1 million homes rely on gas piped to their homes and approximately?one hundred thousand vehicles run on LPG or natural?gas. Peru is the third largest copper producer in the world. The former Energy and Mines minister Carlos Herrera stated that the rupture highlighted Peru's vulnerability, after an alternative project was cancelled in 2017 because the Brazilian construction firm Odebrecht could not secure financing during a probe into bribes given to secure contracts for public works in Peru. Herrera stated that the crisis highlighted the need for diversification of the energy matrix in the country. The serious problem is that we've never made any exploratory efforts in the past for natural gas. Industry groups reported that more than 1,000 businesses were affected. Some of these companies halted production. Felipe James, the head of SNI (National Society of Industry), stated that emergency rules to allow firms to'switch temporarily to alternative fuels' will be expensive and not all businesses are equipped to make this change. James stated that "not all people can switch... they aren't prepared." The government in Lima ordered all public employees to work remotely during a seven-day period on Friday and encouraged private companies to do the same. During the contingency, schools and universities will switch to virtual classes. Business associations have criticized these measures. They claim that they equate to a partial shut down of the economy. We demand that this decision be reversed. COMEX, a foreign trade group, demanded that this decision be reversed. The Peruvian mining and energy chamber stated that it was working "intensely", to alleviate the crisis, and was seeking?to?import LPG within "record-time." The presidential spokesperson and the Ministry of Energy and Mines have not responded to requests for comments. The TGP pipeline was launched in 2004. It allows the export of gas to Japan and South Korea. (Reporting and editing by Cassandra Garrison, David Gregorio and Marco Aquino)
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Pakistan Navy launches Shipping Security Operation amid Middle East Tensions
The Pakistani navy launched a maritime operation on Monday to protect shipping lanes, energy supplies and other vital sea routes from regional tensions. In a press release, the military media said that the operation?named Muhafiz ul-Bahr, meaning Protector of the Seas, is designed to protect "lines of communications" at sea, and ensure uninterrupted maritime commerce and national energy supply. The statement did not explain what it meant by "lines of communication". The Middle East war raises concern about the safety of shipping routes and the potential for disruptions of global energy supplies through the Strait of Hormuz. This is a major artery of global oil supply, including South Asia. The statement stated that "with approximately 90% of Pakistan's trade being conducted by sea, the operation is aimed at ensuring that vital sea routes remain secure and uninterrupted." Pakistan imports the majority of its energy. The government has announced measures to reduce fuel consumption after the global oil price surged due to the escalating conflict. The finance ministry reported that a government committee that was reviewing the impact of the regional conflict found Pakistan's oil stocks to be at "comfortable" levels. Additional cargoes are being arranged in order to maintain?supply continuity?in the coming weeks. The navy is escorting two merchant ships in coordination with Pakistan National Shipping Corporation,? one of which will arrive in Karachi on Monday. The?vessel-escorts' were not further described. The navy stated that it is "prepared to respond" to emerging maritime security threats and ensure the safety and efficiency of regional and national maritime traffic. Reporting by Ariba Bukhari and Mubasher Bakhari in Lahore. Editing by Gareth Jones.
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Canadian oil tycoon supports South Bow pipeline in order to boost US exports
The Canadian tycoon, who is the CEO of one of North America’s?fastest-growing oil companies, said he supported a proposal that could potentially revive parts the former Keystone XL pipe and?wants Canada to use the project as a?leverage? in upcoming negotiations with the United States. Adam 'Waterous, CEO of Strathcona, has said that he prefers a new West Coast pipe to gain access to Asian markets. Waterous is one of Canada's leading oil dealmakers and his comments are the first time a Canadian oil shipper has publicly endorsed a new pipeline project led by Canadian firm South Bow, which could increase Canada's crude exports into the U.S. The comments by Waterous, one of Canada's most aggressive oil industry dealmakers, are the first public statements made by a Canadian oil shipper in support of a new pipeline proposal led Canadian company South Bow that could increase the country's crude exports to the U.S. South Bow launched a competitive bidding process last week offering 450,000 barrels per?day of contracted pipeline capacity from Hardisty, Alberta to multiple U.S. delivery points including Cushing, Oklahoma, and destinations on the U.S. Gulf Coast. South Bow began a competitive bid process last week, offering 450,000 barrels of pipeline capacity per?day from Hardisty in Alberta to several U.S. destinations, including Cushing, Oklahoma and destinations along the U.S. Gulf Coast. This was to assess potential commercial use. Waterous refused to confirm if Strathcona would commit barrels for the South Bow Project, citing ongoing negotiations. Waterous cited his company's stated aim to increase its oil production to up to 300.000 barrels per day by 2035, from 125,000 barrels a day in 2026. Waterous stated, "I was a very early supporter of this project." "And we're looking for egress," he said. He was referring to the ability of oil shippers to transport their products to market. Waterous, however, said that the South Bow proposal was not the first choice of the Canadian oil industry to boost crude exports. Waterous says that more than 90% (of Canada's) oil exports are currently shipped to the United States. Canadian oil shippers, he said, have been seeking greater market diversity for years. Waterous stated that Canadian oil companies would like to see a new pipeline built to the Pacific to complement the Trans Mountain pipeline, which currently runs from Alberta up to the British Columbia coast, and provides a route to Asian markets. Four other large Canadian producers of oil sands did not reply to a question about if they supported the South Bow proposal. Potential Political Benefits The Alberta government said that it would submit an application to the federal government for approval of a new crude-oil pipeline from the west coast. However, no private company had said they would build the project. Waterous stated that the South Bow pipeline proposal has the potential to be built?faster, cheaper, and with more political benefit for Canada. He suggested that Canada could use Trump's previous comments to its advantage, saying he wanted to see the Keystone XL Project built. Mark Carney, the Prime Minister of Canada, has also 'raised the prospect with Trump of reviving Keystone XL Oil Pipeline?from Alberta into the United States in his efforts to ease tensions between trade between the two nations. Waterous stated that "the utility of a pipe to the south" is to help achieve a tariff deal to protect Canada's steel and auto sectors while also allowing its oil sector to expand. (Reporting and editing by Caroline Stauffer in Calgary, Deepa Babington, and Amanda Stephenson)
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Oman's Muscat Airport denies restricting private jets following reports
Oman's Muscat Airport confirmed a message seen by charter executives asking private?jets not to use the airport for "additional" flights,?to give government and commercial traffic priority. The airport stated that "Muscat International Airport will continue to facilitate and welcome private jet flights as well as business aviation operations." Financial Times reported the first online message sent by a group of?executives, which featured a letterhead bearing the Oman Airport's logo. The message asked airlines and operators to cancel all flights that did not fall within the approved seasonal schedule. According to a message from March 6, which was seen by us, "due to current crisis management measures at Muscat International Airport," flight movements were restricted to only approved seasonal'scheduled' services. According to the message, the airport claimed that this measure is necessary for managing congestion and ensuring that airport capacity remains within reasonable limits. Flight cancellations in the Middle East have been a result of the U.S. and Israeli military campaign against Iran. Airlines and governments are scrambling to help 'thousands' of passengers stranded. Some people are turning to private jets to escape the airspace that is still closed due to'missiles and drones concerns. Fighter?jets have been known to accompany passengers to their passenger planes when they rush to the?airports.
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Europe's struggling retailers are unprepared for a new energy price shock
The rise in energy prices following the U.S. and Israeli 'war on Iran' puts further pressure on the?retail sector in Europe. Already struggling with a?weak - consumer demand, as well as diminished spending power. Investors and analysts were expecting a spillover effect from higher gas and petrol prices. This is despite the fact that the retail sector, which includes Marks & Spencer and Inditex, has barely recovered since the spike in gas prices following Russia's invasion. The prices of food manufacturers, supermarkets and clothing retailers increased significantly after the energy price shock that occurred in 2022. However, the situation today could be even worse, as the economies in the Eurozone and the UK are barely growing. Retailers also had to deal with the added costs and disruptions caused by a global war of trade launched last year by President Donald Trump. "If prices rise?now, the consumer might react more strongly, given that demand is already fragile," said Christian Eufinger. A professor of finance at IESE, Barcelona, who has studied how energy price shocks affect consumer prices. The demand was relatively high when the Ukraine crisis struck in early 2022 as economies recovered from the pandemic. Eufinger said that after years of high prices, the people now have less money. According to an index released in January by restructuring firm Weil, the retail and consumer goods industry was already in the worst shape in Europe even before this surge in oil prices. The index is based on indicators such as reduced profitability and increasing insolvency risks. COST PRESSURES CHAIN REACTION Francesco Gangemi, consultant at Simon-Kucher, says that the most immediate impact on retailers is the cost to truck goods around. Road?transport accounts for between 5% and 10% of an average retailer's operational expenses. Costs for supermarkets and shopping malls are increased by energy-intensive refrigeration, heating, air conditioning and lighting. Oil prices have also risen due to the sudden increase in oil. This has directly affected food producers. Massimiliano Giansanti is the president of Italian farmers group Confagricoltura. He said that a cost-driven inflationary spiral appears inevitable. Simon-Kucher’s Gangemi stated that clothing retailers are most vulnerable to inflation because fashion is what people first cut back on when prices of food and essentials increase. RBC analysts have cut their predictions for M&S profit, saying that the rise in oil and gas costs will likely increase British household bills later this year. The British retail association has called on the government to limit the impact of the new taxation laws on consumers. Andrew Opie is the director of food sustainability and British Retail Consortium.
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Hormuz blockage diverts bauxite and alumina ships bound for the Middle East
The closure of the Strait of Hormuz has made it impossible for ships to travel to their intended destinations. Since the U.S. and Israeli attacks against Iran began on 28 February, the Middle East is responsible for about 9% of the global aluminium supply. Its smelters are unable to import the bauxite or alumina that they need to continue producing. MarineTraffic.com data showed that three bauxite carriers – the Richmond, the Glory Energy, and the Penelope Oldendorff – were diverting away from the United Arab Emirates. According to LSEG, their combined cargo size is 371,000 metric tonnes. Bauxite is refined into alumina and then smelted for aluminium, which can be used in transport, construction, and packaging. Emirates Global Aluminium is the main bauxite supplier in the region and has an alumina refinery near the UAE port Khalifa. LSEG data show that the Richmond, which left Freetown (Sierra Leone) on January 24, bound for Khalifa, came to a sudden halt in early March off the coasts of Oman as the war escalated. On Friday, it reversed its course and moved eastward towards India. However, since then, the ship has stopped again with no clear destination. Both the Penelope Oldendorff and the Glory Energy, which left Ghana in early February, were originally heading to the Gulf, after having travelled up the East African coast, but they have now moved eastward, suggesting that their route may be diverted towards Asia. Ben Ayre, Kpler's lead Metals Analyst, said that another vessel, Alisios was taking bauxite to the Gulf from Amrun, Australia, but now he is heading north towards China. The vessel was east of the Philippines when it last carried 79,000 tons. The owner of the vessel is being identified to receive comments. ALUMINA AVAILABLE It also appears that two vessels transporting alumina bound for the?Gulf are changing their course. According to LSEG, the Timorsun (also known as the African Sanderling) and the African Sanderling (also known as the African Sanderling) left Australia for Bahrain in February. The African Sanderling was the last ship to leave Sri Lanka's coast, while the Timorsun was further west. Aluminium Bahrain, the only aluminium smelter in Bahrain and which declared force majeure last week on its contracts, did not respond immediately to a comment request. Reporting by Tom Daly & Lewis Jackson. (Editing by Pratima Deai and Mark Potter.
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White House dismisses NTSB Board member after receiving reports of concern behavior
The White House announced on Monday that it had terminated Todd Inman, a member of the National Transportation Safety Board. This was after reports were received about his inappropriate behavior and failure to attend meetings. White?House spokesman Kush?Desai?said?Inman's removal from the NTSB was legal after receiving "highly concerning reports" of inappropriate alcohol consumption on the job. He also received reports of harassment of staff and misuse of government resources. Inman has categorically denied all allegations contained in the White House Statement. It has become increasingly apparent that this was a political hit-job. Inman stated that, "While not my original intention? I look forward to defending me through all legal means." Inman and Jennifer Homendy, the NTSB chairperson, had clashed at times during Inman's tenure. Monday, the NTSB declined to comment. On Sunday, it was reported that Inman had fired. Inman claimed on Sunday that he was fired by the White House on Friday without being given any reasons. Inman was a Republican who served as chief of staff for Transportation Secretary Elaine Chao in the first term of President Donald Trump. He had been on the NTSB's board since March 2024. He was a board member on the scene at the American Airlines crash with an Army helicopter near Reagan Washington National Airport in January?2025 that killed 67 and the November crash involving a UPS cargo aircraft on takeoff from Louisville,?Kentucky airport that killed 15. In May, the White House dismissed Alvin Brown as vice-chair of the NTSB. Brown, a Democrat and the first African American to be elected as mayor of Jacksonville in Florida, has sued over his?dismissal. Brown's departure was not explained. The NTSB investigates all civil aviation accidents. The board also investigates accidents that occur in other modes of transport, such as highways, marine, pipelines, and railroads, to determine the probable cause, and makes safety recommendations. Last month, the Senate confirmed John DeLeeuw as Brown's replacement on the NTSB. DeLeeuw was a Boeing 787 Captain and former American Airlines managing director for safety and efficiency.
US airport security queues worsen as screeners face a missed paycheck
As the spring break travel season ramps up, airlines are becoming more concerned about the?absences of airport screeners. Houston Hobby Airport reported on Monday that lines at the standard checkpoints were averaging three hours by 2 p.m. In the past two days, longer than usual lines have been reported at several U.S. airports. Officials advised passengers to arrive three to four hours prior to their flight. On February 13, funding for the Department of Homeland Security lapsed after Congress failed reach an agreement on immigration enforcement reforms requested by Democrats. This halted funding for several government departments, including the Transportation Security Administration. About 50,000 TSA airport screeners were forced to work without pay.
Airlines are worried. Chris Sununu is the CEO of Airlines for America. He said that Congress and the Administration must act urgently to find a solution which?reopens DHS, and ends this shut down. "America's Transportation Security workforce is too valuable to be used for political leverage."
The spring travel season is expected to be a record one for airlines, with 171 millions passengers flying, an increase of 4% compared to the same period last year.
Sununu stated that Spring break travel will be a rush as TSA workers are not paid for the first time on Friday. Republicans used social media to blame Democrats for the delays and urged them to approve funding. Sheldon Whitehouse said, 'Democrats have offered to fund TSA, but they want reforms in Immigration and Customs Enforcement. "No conditions. ?Republicans refused. Whitehouse stated that they 'want to take the hostage in order to extract more ICE funds. On Monday, passengers at Houston's Central Concourse were once again crammed and had to wait outside in order to check their bags.
Karlee Schmidt (23), said that she had attempted to fly with friends to Florida for a vacation on Sunday. After waiting for three hours in the security line, Schmidt said they missed their flight.
After following the advice of airport staff, who recommended arriving four hours before departure time, they were able to leave on a Monday flight. Schmidt said, "At this stage, I'm just looking to get on a flight going somewhere."
(source: Reuters)