Latest News
-
Americans on a tight budget lament the loss of Spirit Airlines, a low-cost airline
U.S. travelers were upset to hear of Spirit Airlines' closure on Saturday. They said that the closure of this ultra-low cost carrier eliminated one of their few options for air travel. Spirit Airlines abruptly canceled flights overnight, leaving passengers and staff stranded in the U.S. Caribbean and Latin America. The airline collapsed under financial pressures, including a sharp increase in fuel prices due to the Iran War. Former Spirit customers have praised the airline on social media sites such as Reddit or X where they vent their frustrations over delayed or cancelled flights. Reddit user AioliUpset7805 wrote on a thread regarding the airline's closing, "They were truly one of the last cheap options -- 'get my there as quickly and cheaply as possible'." "I'll be missing them." Spirit Airlines, which has been operating since the early 1990s and is known for offering?some the cheapest flights available in exchange for limited services and luxuries,' became well-known for its 'limited luxuries, but high quality service. Spirit, a Florida-based airline, charged for bottled waters, for instance, and didn't provide "reclining seats". Spirit Airlines' lack of amenities has been the subject of many online memes. However, many travelers say that Spirit made it possible for Americans to travel with their families or visit relatives in distant parts of the United States. BigBubby305, a Reddit user, said that vacations were now out of the reach of millions of families. The price difference between Spirit Airlines and other carriers such as Delta and American Airlines can be more than $1,000. Other Airlines Seek to Fill Gap Overnight, at the Orlando International Airport, a digital departure sign was filled up with red alerts of Spirit flight cancellations. Destinations ranged from Nashville, Tennessee to San Juan Puerto Rico. After Spirit ceased operations, several U.S. airlines, including Frontier, JetBlue, and Southwest, announced discount fares as well as plans for new routes this summer. Airlines such as?Delta, American Airlines and Frontier offered temporary lower fares for Spirit passengers. Spirit's closing comes as prices are rising across the American economy. This has been exacerbated by the U.S.-Israeli conflict against Iran. According to the latest data, Spirit's demise, and a recent doubled in jet fuel prices are likely to increase costs for American travelers. "I always took pride in saving people money, and allowing them to travel who couldn't otherwise afford it," wrote Reddit users Coryntrevors. They piloted Spirit Airbuses' signature bright yellow Airbuses from Las Vegas for more than a decade. "To close down for good tonight was one of the most saddest moments of my life." Reporting by Laila KEARNEY in New York. Editing by Ross Colvin, Keith Weir and Keith Weir
-
Spirit Airlines passengers stranded after collapse of budget airline are helped by airlines
The U.S. Government and major airlines scrambled on Saturday to assist stranded employees and passengers after the bankrupt discount airline Spirit Airlines ceased operation. This was the first industry casualty associated with the Iran War. The airline's collapse over night following a double-digit increase in jet fuel prices due to the Iran war will cost thousands of jobs. This is a major blow for President Donald Trump who had proposed $500 million in order to save Spirit, despite the opposition of many Republicans and some of his closest advisors. Spirit's failure highlights the unintended effects of the U.S. and Israel war against Iran despite a tense ceasefire. Spirit, which was already struggling to make a profit prior to the fuel shocks, is now facing a surge in jet fuel prices while Iran continues to block nearly all traffic across the Strait of Hormuz. The U.S. Navy also blocks Iranian ports. Sean Duffy, Transportation Secretary, said at a press conference that creditors rejected the deal in spite of the Trump administration's efforts to save Spirit. Spirit Airlines said that the collapse of the airline would result in the loss 15,000 jobs for employees and contractors. Spirit's biggest creditors, such as Ken Griffin's Citadel and a major hedge-fund, were opposed to the government's rescue. They argued that the terms would dilute their claims because federal financing would be placed ahead of existing debt. FOND TRIBUTES SOCIAL MEDIA Spirit Airlines, which accounted for about 5% of U.S. flights in 2010, is the only U.S. airline to have liquidated within the last 20 years. Spirit kept fares low in markets where it was competing with major carriers. Many people posted nostalgic?posts on the social media platform X, which is where many travelers vent their frustrations over delayed or canceled flights. "Goodbye SpiritAirlines. We in Detroit, or what was formerly known as the Second Hub of #DTW will miss you," said @IUTruthtellers2. Other X users posted their stories about?their experience flying on Spirit. They included the hashtag "RIP" as part of?their messages. The digital departure display at the Orlando International Airport was flooded with red alerts of cancelled Spirit flights, which had destinations ranging from Nashville, Tennessee to San Juan Puerto Rico. United Airlines, Delta Air Lines, JetBlue, and Southwest have all capped ticket prices to help Spirit customers rebook cancelled flights. Customers must present a Spirit flight number in order to qualify. Other airlines offer free seats for Spirit employees to get home. Duffy said, "This is airline industry doing its part." Duffy said that U.S. Low-Cost Carriers have requested $2.5 billion from the government to help them deal with higher fuel prices, but did not believe a bailout "at this time." A LOT OF AIRLINES ARE BANKRUPT OVERNIGHT Duffy took a shot at the former administration under President Joe Biden. He argued that the government's blocking of the merger between JetBlue in 2024 and Spirit was the cause of the airline's demise. Spirit filed for bankruptcy twice in a year, and it had not turned a profit since 2019 Spirit's brand was built around low-cost fares, which were designed for budget-conscious travellers who would not pay extra for checked bags or seat assignments. After the pandemic, passengers opted for comfort and experience-based travel. Ultra-low-cost airlines struggled to adapt. JetBlue and Frontier Airlines will also benefit from Spirit's closure, as they are both suffering from cost shock. Cirium data shows that Spirit has 4,119 domestic flights between May 1 and 15 with 809,638 available seats. Trump said that on Friday, the White House gave Spirit's creditors and the airline a final proposal to save the airline after the talks had reached a deadlock over a $500-million financing package which would have allowed the airline to continue operating even if it went bankrupt. Spirit had struck a deal with lenders to help it emerge from bankruptcy in late spring or early August. The'spike in jet-fuel prices' derailed these plans. It threw Spirit's cost projections off and complicated its bankruptcy exit. Spirit's restructuring plans assumed jet fuel prices of $2.24 per gallon in 2020 and $2.14 by 2027. However, the price had risen to $4.51 per gallon at the end of April. The carrier was unable to continue operations without new financing. About a quarter (25%) of airline operating costs are attributed to jet fuel. Cirium data shows that the airline carried around 1.7m domestic U.S. passengers in February. Its market share was 3.9%, down from 5.1% a year ago. (Reporting and editing by Ross Colvin, Keith Weir, and Keith Weir. Sabrina Valle and Laila Kearney, Ismail Shakil and David Shepardson)
-
US airline industry does not need bailout and has cash
U.S. Transportation secretary?Sean Duffy stated Saturday that he did not 'think the government needed to bail out low cost airlines who?have asked for $2.5 billion in government relief due?to?high jet oil prices. "I'd say at this point, it's not necessary." They have cash. We would be the lender of last recourse if they wanted to go to the U.S. Government. Duffy said at a Newark Airport press conference after the collapsed of budget airline?Spirit Airlines that if they can find dollars on the private market, I think it's best for them. A group of U.S. low-cost airlines, including Frontier, Avelo and others, announced on Monday that they had proposed to 'exchange warrants which could be converted into equity stakes in exchange for $2.5 billion?in U.S. Government assistance. The?Association of Value Airlines has confirmed that it requested President Donald Trump's Administration to create a $2.5billion liquidity pool to be used exclusively for offseting incremental fuel costs. This was "a necessary and targeted step to stabilize operations and maintain airfares at affordable levels during this volatile period." The group has also asked Congress to suspend the federal excise taxes of 7.5% on tickets and $5.30 for each segment. The fees could offset a third of the cost increase due to higher jet fuel. The pitch focuses on one of the 'unintended consequences' of the U.S./Israeli war against Iran: a rise in jet fuel costs that has nearly doubled costs. This has squeezed margins and pushed weaker airlines to the brink. Last week, the chief executives of low-cost carriers and Duffy met with Bryan Bedford, chief of the Federal Aviation Administration in Washington to discuss this proposal. The group arrived at $2.5 billion by estimating the amount of jet fuel it will spend this year in comparison to earlier estimates. (Reporting and editing by William Maclean, with David Shepardson)
-
Taiwan President arrives in Eswatini, after blaming China on cancellation of previous trip
Taiwan President 'Lai Ching Te' arrived in Eswatini Saturday, two 'weeks after being forced to postpone his trip to a diplomatically allied country because Indian Ocean countries had blocked the flight. Taiwan's Government blamed Beijing for this. Eswatini, in southern Africa, is one of only 12 small countries, mostly from Latin America, Caribbean, and Pacific, which have diplomatic relations to Taiwan. The government of Taiwan, a 'democratically-ruled island that China considers part of its territory, is committed to maintaining ties with the small states. Taiwan said that the Seychelles Mauritius and Madagascar unilaterally revoked Lai's flight permit to cross their airspace because of Chinese pressure. It was the first occasion a Taiwanese president cancelled a foreign trip due to denial of access to airspace, indicating what appeared to a new Chinese policy?to curtail the island's engagement with the international community. In posts?on both his Facebook and X account, Lai stated that he arrived in Eswatini Saturday for a trip which was not announced by either of the two governments. "Taiwan won't be deterred from its goals by outside pressures." "Our resolve & commitment is underpinned by the understanding of Taiwan's continued engagement with the world – no matter the obstacles faced," he wrote on X in English. His posts and a statement from his office about the trip did not mention how he got there. However, he posted a photo of himself getting off what appeared to be an Eswatini Government jet?which brought Deputy Premier Thulisile dladla this week to Taipei. China's Foreign Ministry claimed that Lai had "secretly boarded a foreign aircraft and snuck out of Taiwan while lavishly spending public funds". It said that no matter how Lai's Democratic Progressive Party officials colluded with external forces, or in what form they "bought the loyalty of others," it was a futile attempt?that could not change the fact Taiwan is a part of China. Lai's cancelled flights last month prompted criticism from the United States and concern among the European Union. Britain, France and Germany were also concerned. Lai rejects Beijing’s claims of sovereignty, saying that Taiwan has the right to engage in international relations and that only its people can determine their future. Ben Blanchard reported from Taipei, Engen Tham contributed additional reporting in Shanghai and Keith Weir edited the piece.
-
Sources say that the Air India CEO search has narrowed down to Singapore Air executive Kannan and insider Aggarwal.
Two sources who have direct knowledge of this matter say that Vinod 'Kannan, the Singapore Airlines CEO and Air India's commercial head Nipun Aggarwal will be the two frontrunners for the position of new CEO at Air India. This suggests that the search for the next CEO of India's second largest airline is close to completion. Last month, New Zealander Campbell Wilson announced his resignation as the airline faced persistent losses and regulatory oversight. One source said that the board of Tata Sons - the majority owner of 'airline' - is considering both names. There has not been a final decision and another candidate could emerge as the frontrunner. Tata Sons' spokesperson did not reply to an inquiry for comment. Air India refused to comment. Aggarwal and Kannan didn't respond to texts requesting comment. Singapore Airlines owns a?roughly 25% stake in Air India. The rest is owned by Tata Sons. Air India's choice of a CEO is crucial at this time. The airline has been struggling with high losses, increased regulatory scrutiny following a fatal crash last year and operational disruptions caused by the Iran War, which have driven up costs. In April last year, Pakistan banned Indian carriers in its airspace following tensions between the two neighbours. Kannan was the CEO of Vistara - the joint venture between Tata Airlines and Singapore Airlines which was later merged with Air India. Kannan, an aviation veteran, began his career in 2001 with Singapore Airlines and has held a variety of roles within the airline. Aggarwal became the CEO of Air India in 2022, after Tata Sons acquired the airline from the Indian government. According to Air India, he played a major role in the transformation of Tata Group Companies between 2017 and 2020. He has also worked as an investment banker with Bank of America Merrill Lynch.
-
Kenya flood death toll reaches 10 as dam overflow raises alarm
Police said that at least 10 people died in 'Kenya as a result of heavy rains which caused landslides and flooding across several regions. Authorities warned that rising river levels may threaten communities downstream of a major hydropower system. Seven deaths have been reported in eastern Kenya. Two bridges were damaged by the police in Kwale County on the coast, and in Kitui in eastern Kenya. Landslides also occurred in Elgeyo Marakwet County in the Rift valley. Authorities say that the rains are falling 'within Kenya’s normal wet season from March to May, but intense downpours have increased flooding and landslides. Kenya National Highways Authority reported that traffic was disrupted by a landslide near Kolol which blocked the Iten-Kabarnet Road. Repairs were underway and traffic was diverted. Kenya Red Cross has confirmed that there are 'unconfirmed' reports of missing people and marooned families in Mukuru Kwa Njenga - a densely-populated area of Nairobi - and is providing relief. The interior ministry also placed the lower Tana River Basin on high alert. It warned that heavy rains upstream increased the inflows to the Seven Forks Dam system's reservoirs and raised the flood risk downstream. The ministry warned that the?Tana River Delta could be affected. This area is home to over?100,000.
-
There are at least 11 deaths in western Mexico following a bus crash.
The Labor Day holiday weekend in Mexico turned tragic on Friday when at least 11 people were killed and 31 injured after a 'tourist bus'?crashed? in the western state of Nayarit. The Nayarit government said that the bus was traveling from Jalisco and veered off of the highway near Amatlan de Canas. Officials said that the passengers were on their?way to a recreation center in Nayarit. Nayarit,?Jalisco and other emergency crews responded to the call. They closed the road and conducted rescue operations as well as investigated the cause of the accident. The Nayarit government shared photos of the bus lying on its side, covered in mud. In Mexico and Latin America, deadly bus accidents are common. At least 10 people died and 61 others were injured when a freight rail collided with a double-decker bus in central Mexico. In February 2025 in southern Mexico, more than 40 people died when a bus travelling to Tabasco (from the tourist city Cancun) hit a trailer truck and caught on fire. In Mexico, passenger rail routes are few and far between. Buses are the main mode of transportation. The government of President Claudia Sheinbaum is working to dramatically expand the nation’s passenger rail network in order to connect many areas of northern and central Mexico. (Reporting and editing by Rod Nickel. Brendan O'Boyle)
-
Trump announces a 25% tariff on EU automobiles
U.S. president Donald Trump announced on Friday that he will increase tariffs to 25% on?cars?and trucks imported from the European Union, claiming the bloc has not adhered to its trade agreement with Washington. In a post on social media, he said: "Based on the European Union not adhering to our Trade Deal fully agreed upon, I will increase Tariffs for Cars and Trucks entering the United States next week." It is understood and agreed by all that there will be no tariff if the Cars and Trucks are produced in U.S.A. Plants." Trump told reporters in the White House that a higher tariff on European cars would force them to move production more quickly to the U.S. "We have an agreement with the European Union on trade. The European Union was not following the agreement. "I raised the tariffs for cars and trucks by 25%. That's millions of dollars going into the United States and forces them to move the factory production much quicker." SLOW IMPLEMENTATION Last year, the Trump administration imposed a 25% tariff on automotive imports from around the world under a "national security trade law". However, in August, they reached an agreement with EU to reduce these duties to 15% net, including previous duties. In exchange, EU agreed to remove duties on U.S. Industrial Goods, including Autos, and accept U.S. Safety and Emission Standards on Vehicles. The EU has passed legislation to reduce tariffs in March, but the process will not be complete before June as EU governments and European Parliament negotiate final texts. Bernd Lange is the chairperson of the European Parliament’s international trade committee. He said that President Trump's behaviour was unacceptable. This latest move shows just how unreliable U.S. is. In the case of Greenland, we have seen the U.S. make arbitrary decisions. This is not the way to treat partners. Lange stated that we must now respond with clarity and firmness based on our position. A Trump administration official was asked to explain Trump’s move. He said: "The EU still hasn't complied with autos agreement after eight months." Ford Motor shares fell by 2%, while Stellantis shares dropped by 1.7%. General Motors shares dropped 1.1%. Ryan Majerus is a former senior U.S. Commerce Department Official who now works as a partner at King & Spalding. He said that the president's decision may also be'related' to Trump's frustration over the fact that some European countries 'balked' at supporting the U.S. and Israeli war against Iran. Majerus stated that "this is not going sit well with the EU and I am not sure the Administration cares because they are so antagonistic towards the EU." Reporting by Daphne Psaledakis; editing by Michelle Nichols & Paul Simao
Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and re-evaluate their financial forecasts.
In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for about a quarter or more of its operating costs.
Here is an alphabetical list of the ways airlines are responding to this issue:
AEGEAN AIRLINES
The Greek airline anticipates that the suspension of Middle East flights and the spike in fuel costs will have a "notable" impact on its first quarter results.
AIRASIA X
Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%.
AIR FRANCE-KLM
The airline group?said that it planned to raise long-haul ticket fares to deal with surging fuel prices, and cabin?fares are set to rise by 58 euros (50 euros) per round trip.
AIR INDIA
The Indian flag carrier announced it would change its fuel surcharge system from a "flat domestic surcharge" to a grid based on distance. The airline said that surcharges for international routes do not compensate the steep rise in jet fuel costs.
AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets.
AKASA AIR
Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights.
ALASKA AIR
The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, as well for Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars.
AMERICAN AIRLINES
The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag on short-haul and domestic international flights. The airline has also reduced certain benefits for passengers in economy class.
The fuel price increase was expected to cause a $400 million increase in the first quarter expenses.
CATHAY PACIFIC
Hong Kong Airlines announced that it will increase its fuel surcharges by 34% on all routes starting April 1, and to review them every 2 weeks. The CEO of the carrier said that it would maintain its flight capacity despite high fuel costs, but warned that its 10% growth plan for passenger capacity could be altered if demand drops due to high fuel prices.
CEBU AIR
The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact.
CHINA EASTERN EXPRESS AIRLINES
Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights over 800km will be charged a surcharge 120 yuan.
DELTA AIR LINES
Delta announced that it would reduce capacity by around 3.5 percent points from its initial plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The price increase will be $10 for the first and second bags, and $50 on the third bag.
The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. Delta CEO stated that it would not update the full-year forecast due to uncertainty about how long fuel prices would continue.
EASYJET
EasyJet CEO Kentonjarvis says European consumers can expect to pay higher ticket prices at the end of summer when fuel hedges end.
FRONTIER AÉRIENS
Fuel prices have risen significantly since the airline's last forecast, prompting it to review its full-year outlook.
GREATER BAY Airlines
The Hong Kong-based firm said that it would increase fuel surcharges for most routes on April 1 while maintaining them at the same level on routes to mainland China and Japan.
The carrier has announced that the surcharge on flights between Hong Kong, Philippines and other destinations will be more than doubled.
HONG KONG Airlines
The airline announced that it would increase fuel surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49).
British Airways' owner IAG stated on March 10, that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel in the short to medium term.
INDIGO
India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for fuel tax reductions by the Indian government.
JETBLUE AERWAYS
Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "rising operating expenses". The airline said that baggage prices would rise either by $4 or $9.
Sources with knowledge of this matter have confirmed that KOREAN Air will be in emergency mode as soon as April begins, due to the rising cost of oil. The airline will implement a phased response based on the oil price level and increase company-wide efficiency to offset rising fuel costs.
PAKISTAN INTERNATIONAL FLIGHTS
Fuel surcharges are cited as the reason for raising domestic fares up to $20, and international fares up to $100.
Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "a couple hundred" flights.
SAS, which has already raised flight prices, stated that the surge in fuel costs would be a major blow to the aviation sector, even if they tried to absorb them.
SPRING AIRLINES
Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES
The American carrier announced that it would increase checked baggage fees by $10 per bag for the first one and the second. This will bring the cost to $45 and $55 respectively for the first bag.
The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues.
THAI AIRWAYS
The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices.
TURKISH AIRLINES LUFTHANSA
SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and Canada from May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1.
Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash.
T'WAY AIR
South Korean low-cost carrier announced on April 13 that it will furlough cabin crew in May and/or June without pay as part of measures to combat the effects of the Middle East war.
UNITED AIRLINES
Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027.
Andrew Nocella, Chief Commercial Officer at United Airlines, said that the airline was able to raise fares in response to a rapid rise in jet fuel and oil prices.
In an email, the carrier said that it would also be increasing the first and second checked bags fees by $10 to customers traveling in Mexico, Canada, and Latin America.
VIETJET
A potential fuel shortage has led to the Vietnamese budget airline reducing flight frequencies on certain routes.
VIETNAM Airlines
Vietnam's Aviation Authority announced that the carrier will cancel 23 flights per day on domestic routes starting in April after it requested assistance from the government to remove an environment tax on jet fuel.
VIRGIN AUSTRALIA
Virgin Australia announced that it would be adjusting its fares in order to reflect the rising costs across the aviation industry, which were reportedly being exacerbated by the Middle East situation.
WESTJET
Canadian Press reported that the airline would add a fuel surcharge of C$60 ($43), and will combine some flights to reduce costs.
(source: Reuters)