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Wesfarmers, Australia's largest retailer, increases retail prices to offset rising freight costs
Wesfarmers Australia's largest non-food retailer announced?on?Tuesday that it would be raising some of its product prices due to higher?freight costs and fuel costs resulting?from the Iran _war. Fuel surcharges levied by domestic and international transport companies, as well as the hardware retailer Kmart and conglomerate based in Perth, are having a "major impact" on cost. Rob Scott, CEO of Macquarie Australia in Sydney, said that when costs increase some prices will have to rise. "There are certain costs that will need to be passed on, such as transport and fuel costs. PVC pipes, and other building materials, are likely to be more expensive as a result. Scott stated that the cost of some products will increase, especially in the building product area. "Our low-cost model allows us to keep our prices at the lowest possible level across all of our businesses." Wesfarmers lithium mining operations also face?some pressure on costs from rising diesel prices. However, Scott said that fuel was only a 'pretty minor component' of the overall operating expenses. Scott said that the conflict had affected the 'price of fertilisers, but Wesfarmers benefited from government-backed purchases. This allowed them to ensure urea deliveries despite the price volatility. Reporting by Christine Chen, Sydney; editing by Sonali Paul
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American Pilots Union Chief says United CEO's idea of a merger showed 'boldness'
The head of American Airlines pilots' union, Scott Kirby, told his?members the merger idea of United Airlines CEO Scott Kirby was the "bold vision" that the airline needed. However, the?union did not endorse a tie-up of the two airlines. Nick Silva, President of the Allied Pilots Association, said in an email sent to pilots on 'Monday that Kirby’s vision was "transformative". This could have a positive impact for American Airlines, its pilots, and passengers. Silva's message demonstrates how Kirby’s rejected proposal is now a major pressure point within American. APA does not support a merger but its president uses the idea to argue American needs a stronger strategy and more ambitious leadership to catch up with competitors. Silva wrote: "(Kirby's) bold vision of the future of air travel could be transformative to our?passengers and the communities we serve. And, most importantly, you, our American employees, whom our C-suite chose to disrespect. American did not respond immediately to a request for comment. United announced last month that it had abandoned its pursuit of a fusion with American, after the rival carrier refused to engage in a dialogue following an initial approach. American said that a merger between United and American would be bad for the competition and consumers. UNION PRESSURE Since years, American Airlines has been behind Delta Air Lines & United in terms of profitability. The unions of the airline have made?that gulf into a governance problem, urging the board to hold the company's top executives accountable. In February, APA urged American to?take?decisive action? and requested a?full-board meeting. Flight attendants' union of the airline also issued a vote of no confidence in Chief Executive Robert Isom, and demanded a leadership change. It is rare for labor groups to publicly call for a change in leadership outside of formal contract negotiations. The unions of American Airlines have tied the airline's performance with strategy and execution. Silva urged American pilots read Kirby’s message. He said the United chief had explained why he thought a merger would be transformational for both airlines, and could withstand regulatory scrutiny. Silva said that while Kirby's vision is only "aspirational" at this time, it shows how far behind domestic and international competitors the United States has fallen. Silva said APA’s message focused on the lack of a strategy for the long term, the "unacceptable state" of the airline and the union’s openness to “any path forward” that would allow pilots the opportunity to work in an airline that values them and "not only competes, but leads the industry." He wrote: "It is clear that bold ideas and leadership will be required to restore 'American Airlines to a place of prominence among global carriers. HURDLES FOR MERGER Kirby brought up the idea of a tie with American at a meeting scheduled with Trump in late February to discuss the future Dulles Airport, according to sources last month. The idea was born out of escalating competition between the carriers in Chicago and elsewhere, but it faced "severe antitrust hurdles" due to their overlap in key markets. Trump has said that he is against a merger of the two carriers. Silva expressed his hope that senior management would give full consideration to all the strategic options which could help?American move forward, rather than dismissing them "quickly and defensively." Silva's email also suggests that people who are interested in the future of American might be contacting APA. He claimed that American management recently asked if anyone was "trying to get APA pilots aboard with an alternative plan" or the airline. Silva wrote: "The answer is yes." He didn't identify the people behind these efforts or whether United was involved. (Reporting and editing by Edmund Klamann, Stephen Coates and Rajesh Kumar Singh)
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Drones disrupt relative calm for months in Sudan's capital and hit airport
Sudan's military blamed the United Arab Emirates (UAE) and Ethiopia for a drone strike on Monday that targeted Khartoum Airport. This is the latest of a series of attacks in recent days which has broken months?of relative calm?in Sudan's capital. Could not independently verify these claims. The allegations were made late Monday night. Neither country has commented immediately. Sudan accuses the UAE of backing paramilitaries called Rapid Support Forces, an allegation the Gulf state denies. Ethiopia was accused of involvement in the conflict by Sudan earlier this year. Residents report that since Friday, strikes have been launched against military targets as well as civilian areas of a city in which people, ministries, and international agencies began returning after the army regained control in March 2025. Witnesses reported that Monday's drone strikes targeted Khartoum International Airport, where the first fighting between the military forces and paramilitary Rapid Assistance Forces began in April 2023. The airport received its first flight internationally in three years just last week. Asim Awad Abdulwahab, the army spokesman, said that the government has evidence that the attacks on several states that began March 1 originated from Ethiopia's Bahir Dar Airport. He was referring to data from a drone that had been downed mid-March and that had links to the airport as well as the United Arab Emirates. He said that the army had linked a drone launched from Ethiopia's Bahir Dar airport to Monday's attack. Abdelwahab stated that "What Ethiopia and the UAE have done against Sudan is direct aggression and will not be met with silence." DRONES HAVE DOMINATED CONFLICT Locals who spoke under anonymity said that they believed that the Rapid Support Forces was behind the new attacks. The RSF is yet to comment on the attacks. The Information Ministry announced earlier that no injuries or damage were caused in the airport attack. It will resume normal operations following routine safety procedures. Drone warfare is the primary tool in the conflict that has caused what the U.N. describes as the worst humanitarian disaster on earth, with hundreds of thousands of deaths from violence, disease and hunger, and millions of refugees. Over the weekend, witnesses reported that drones struck Khartoum and its twin city Omdurman in addition to the cities of al-Obeid west of Khartoum and Kenana south of it. Emergency Lawyers, a group of activists, reported that one killed five civilians in a bus in southern Omdurman, on Saturday. On Sunday, another?killed the family of Abu Agla Keikal a tribal leader who had defected to the army from the RSF during the earlier war. These attacks follow another defection by al-Nour al-Guba. A senior RSF officer who was welcomed into Khartoum with his forces?late last week, raising fears about tensions in the army coalition. Sudan's conflict erupted when the RSF and Sudanese Army fell out over plans for integrating their forces and transitioning to democracy. RSF "quickly" took over Khartoum, but was forced out last year. Since then, it has consolidated its control over the Darfur region in the west and opened a second front in the Blue Nile State along Ethiopia's border, which is also marked by drone attacks. Ethiopian media reported in February that it was hosting a training camp for thousands of RSF fighters and upgraded Asosa Airport airport to accommodate drone operations. (Written by Nafisa Altahir, edited by Andrew Heavens & Lincoln Feast)
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Chevron CEO: Shortages in oil supply to begin appearing
Chevron's Chairman and CEO, Mike Wirth, said that physical shortages of oil would start to appear around the world? due to a?closure of the Strait of Hormuz. Through this strait 20% of the global crude supply passes. Wirth, during a Milken Institute sponsored discussion, said that economies will shrink first in Asia as the demand adjusts to the reduced supply. The strait is still closed due to the U.S. - Israeli?war against Iran. Wirth noted that the surplus supply on?commercial markets was being consumed, as were tankers in shadow fleets, which avoided sanctions and national strategic reserve. He said that the demand must be able to match supply. "Economies will have to slow down." Wirth stated that Asia is most dependent on Gulf oil production and refinery, followed by Europe. Wirth said that although the United States is a net oil exporter, the impact will be felt in other parts of the world. He noted that the last scheduled shipment from the Gulf of Mexico was being unloaded at the Port of Long Beach, which supplies Los Angeles and Southern California. Wirth stated that the overall impact of the Hormuz shutdown is "potentially?as big as in the 1970s." In the 1970s, two?major disruptions of supply shook economies all over the world. Fuel rationing was common and long lines were seen at retail pumps. Due to the Hormuz shutdown, Spirit Airlines closed its doors over the weekend. Jet fuel prices increased amid tighter supply.
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US crude oil prices drop by more than 1% as traders assess supply risks
U.S. crude oil prices fell more than 1% on Tuesday, as investors weighed up the impact of?Iranian?attacks?on ships in the 'Strait of Hormuz? and the news that Maersk operated a U.S. flagged ship which had passed through the strait with U.S. Military. U.S. West Texas Intermediate traded at $104.88 per barrel by 2236 GMT, a drop of $1.54 or 1.5%. Maersk announced that the Alliance Fairfax - a U.S. flagged vehicle carrier operated by Farrell Lines - left the Gulf on Monday accompanied by U.S. Military assets, alleviating immediate fears of a supply disruption. U.S. Central Command, Centcom, said on X Monday that American forces are actively assisting efforts to restore commercial ship traffic through the Strait of Hormuz. The oil prices jumped by more than 6 percent on Monday, after U.S. president Donald Trump launched a new effort to reopen Hormuz for shipping. This prompted Iran to retaliate to keep its grip on the vital energy transit route. Several commercial ships were reportedly hit, and a UAE oil terminal was set ablaze 'after an Iranian attack' as Trump's attempts to use the U.S. 'Navy' to free up'shipping' provoked the biggest 'escalation' in the war since a ceasefire declaration four weeks ago. (Reporting and editing by Nia William and Himani Sarkar; Anushree mukherjee, Bengaluru)
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American Pilots Union Chief says United CEO's idea of a merger showed 'boldness'
The head of American Airlines pilots' union told members that United Airlines CEO Scott Kirby's merger proposal showed "the bold vision" that the carrier needed, but the union did not endorse a tie-up. Nick Silva, President of the Allied Pilots Association, said in an email sent to pilots Monday that Kirby's vision was "transformative" and could benefit passengers, communities, and American Airlines pilots. Silva, who did not support the merger of United-American, used Kirby's email as an occasion to criticize American's leadership. The unions are putting pressure on them because they have been underperforming financially. American didn't immediately respond to an inquiry for comment. Last month, United announced that it had ended its pursuit for a merger with American. The rival carrier refused to engage after an initial approach. American said that a merger between United and American would be bad for the competition?and consumers. UNION PRESSURE BUILDINGS The email suggests that, despite the fact that American rejected the merger proposal due to major regulatory obstacles, it has caused a new source of pressure within the airline. For APA it is part of a broader argument stating that American must adopt a more aggressive strategy in order to compete with its stronger rivals. "(Kirby's) bold vision for air travel could be transformative to our passengers, communities we serve and, most importantly, you, our American employees that our C suite has chosen not to respect: You," wrote Silva. Silva said Kirby’s vision might only be an "aspirational" one for the moment, but that its ambition showed?how far American has fallen behind domestic and international rivals. The unions that represent American's flight attendants and pilots have criticised the company's financial performance and its failure to match Delta Air Lines or United. Silva said APA’s message focused on the lack of a strategy for the long term, the "unacceptable state" of the airline and the union’s openness to "any way forward" which would allow pilots to work for an airline who?values and respects them, and that "not only competes, but leads the industry." Silva wrote: "It is clear that bold ideas and leadership will be required to restore American Airlines to its rightful place as a global airline." (Reporting and editing by Edmund Klamann; Rajesh Kumar Singh)
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American Pilots Union Chief says United CEO's idea of a merger showed 'boldness'
The head of American Airlines’?pilots' union,?Scott?Kirby, told his members that the "bold vision'' of United Airlines CEO Scott Kirby's merger 'idea was exactly what the carrier needed. However the union did not endorse a tie-up of the two airlines. Nick Silva, president of the Allied Pilots Association, said in an email sent to pilots on 'Monday that Kirby’s vision can be "transformative" both for passengers and communities, as well as American Airlines pilots. Silva, who was criticized by American's unions for the carrier's poor financial performance, used Kirby’s proposal to criticize the leadership of the company. American didn't immediately respond to an?request for comments on the issue. United announced 'last month that it had ended its pursuit for a merger with American after the rival carrier declined to engage in a first approach. American has said that a merger with United would be bad for the competition and consumers. (Reporting and editing by Edmund Klamann; Rajesh Kumar Singh)
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Southwest considers hiring Spirit Airlines mechanics in advance of the Boeing MAX 7 arrival
Southwest Airlines is interested in hiring aircraft mechanics from the now-defunct Spirit Airlines. A union official announced this on Monday, as Southwest Airlines prepares to receive Boeing's 737 MAX 7 jets early next year. The U.S. airline is hiring mechanics to support its red-eye flights, and in anticipation of the arrival of the MAX 7 jet early in 2027. This will be pending certification by the Federal Aviation Administration this year. Bret Oestreich is the president of Aircraft Mechanics Fraternal Association. He has talked to executives at Texas based Southwest about hiring mechanics who were employed by Spirit when it ceased operations on Saturday morning. Both airlines have members of the union. Oestreich added that Southwest was also replacing retiring mechanics. Spirit landing slots, engines, and aircraft will be in high demand, as the airline industry struggles to find new planes and spare parts and is battling congestion at U.S. airports. American Airlines, too, is reportedly interested in Spirit mechanics. Southwest has informed its pilots that it plans to hire 1,072 new pilots this year. This is 200 more than was expected, according to a source with knowledge of the situation. A second source warned that the number may be lower if jet-fuel prices continue to remain high. Southwest did not comment on hiring targets but stated that it "continually evaluates new talent". Surging jet fuel costs due to the U.S./Israeli war against Iran are squeezing airline margins and pushing some airlines to the edge. Airlines are also trying to introduce more fuel-efficient planes, like the MAX, into their fleets in order to cut operating costs and?ground older planes which consume more fuel. Southwest Airlines will be the first airline to receive a MAX 7 aircraft. CEO Bob Jordan has stated that he anticipates the plane to be certified in August 2026. Boeing CEO Kelly Ortberg stated in April that the U.S. aircraft manufacturer expects certification to take place this year, with deliveries starting in 2027.
Delta Air Lines refinery investment looks more valuable with jet fuel squeeze
The purchase of an aging refinery by Delta Air Lines outside of?Philadelphia, in 2012 was a move that seemed unusual.
Most airlines buy jet fuel directly from suppliers. Delta bought a refinery to convert crude oil into jet fuel, among other products.
This deal, which was intended to reduce fuel costs for airlines, also attracted scrutiny due to the growing pressure on them to cut emissions. As 'jet fuel prices' rise faster than crude during the 'Iran war, increasing airline fuel bills by a wider refining margin, this bet looks more significant.
A wider gap between jet fuel and crude fuel will result in higher fuel prices for most airlines. Delta continues to pay market prices for fuel that is transferred from its Monroe refinery into its airline operations.
Delta said that by owning a refinery, the profits from fuel refining will stay within the company and not go to external suppliers.
The Math Behind the Squeeze
In recent weeks, jet fuel prices have increased sharply. This has led to a widening of the crack spread - the difference between crude oil prices and fuels made from them.
According to the International Air Transport Association, North American jet fuel prices averaged $179 per barrel in the week ending March 20. Brent crude was around $110, according to their data. U.S. spot fuel prices rose even more, to $4.56 per gallon or $192 per barrel on March 20. This was according to the trade group Airlines for America.
This spread is included in the fuel price that airlines pay. If the spread widens, fuel costs for airlines can increase quickly, even if crude oil prices are not moving as sharply.
Alaska Air Group CEO Benito Minicucci stated last week that the airline consumes approximately 100 million gallons per month. This means a $1 increase to jet fuel costs adds around $100 million to monthly costs.
REFINERY OFFSET
Delta didn't say how much the current Monroe spike could be offset, but filings show that it has kept fuel costs down in periods where refining margins have widened.
Delta reported that Monroe had lowered its average fuel prices by 23 cents per gallon, 10 cents a year in 2023 and 4 cents a year in 2025. According to its reported fuel consumption, these reductions are equivalent to $785, $393, $41 and $171 millions, respectively. Monroe?generated $777 millions in operating income by 2022 when the refining margins surged following Russia's invasion in Ukraine, which disrupted global markets.
Delta's fuel cost benefit has historically increased as refining margins widen and decreased when they shrink.
Morningstar analyst Nicolas Owens says the structure can help to reduce the impact of spikes on refining margins.
Owens said that when crack spreads increase, Delta pays itself the crack spread on the fuel portion. It does reduce the impact of fuel price increases for Delta.
Refineries can also become a hindrance when margins are tight. Delta's filings reveal that Monroe suffered a $216-million operating loss in 2020 when the pandemic slowed jet fuel demand, and disrupted markets for refined products.
How does it compare?
The last time fuel prices spiked, the difference was noticeable.
Delta's fuel costs rose from $2.02 to $3.36 per gallon, in 2022, bringing its annual fuel bill up from 20% to $11.5 billion. United Airlines paid $3.63 per gallon on average in 2022 compared to $2.11 a year earlier. This pushed its fuel bill up from 22% to 31%, or $13.1 billion.
The mix of fleets, routes and other factors affect the price per gallon that airlines pay.
RIVALS FEEL SQUEEZE
Minicucci stated that Alaska is shifting fuel away from the U.S. West Coast -- including tankering from Singapore to Seattle -- because refinery margins in Alaska have driven jet fuel prices up about 20 cents a gallon. American Airlines said that higher fuel prices have added $400 million to the first quarter fuel bill. This is since their last update late in January. United CEO Scott Kirby told employees last week that fuel prices had risen by more than two-thirds in just three weeks. If sustained, this could result in an increase of $11 billion on United's fuel bill annually, which is more than twice its best ever yearly profit.
Denton Cinquegrana is the chief oil analyst for Oil Price Information Service.
Costs and Limitations
Delta is still exposed to fuel price increases. The refinery's profits may fluctuate depending on market conditions.
Refineries also incur regulatory costs. Delta reported that its expenses?for compliance with the U.S. Renewable Fuel Standard?rose to $312 millions?in 2020 from $203million in 2024.
These compliance costs can eat away at the financial benefits Monroe offers in years where refining margins have been tight.
DELTA'S EDGÉ
Delta CEO Ed Bastian stated last week that rising jet fuel costs had increased the airline's fuel bills by about $400 million in March.
He said that the refinery is a "meaningful hedge", in terms of the refining margins between crude oil, jet fuel and other products. He said that the refinery would not cover all of the cracks. "But it gives us an important hedge."
Bastian stated that Monroe's profits would begin to contribute in the second quarter. (Reporting and editing by Rod Nickel; Additional reporting from Nicole Jao in New York, Chicago; Reporting by Rajesh Kumar Singh)
(source: Reuters)