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Airline cancels flights due to Middle East conflict
The global air travel industry is still severely affected by the Iran War. Many people are unable to fly to their destinations as planned after major Middle Eastern hubs such as Dubai, Doha and Abu Dhabi were closed. The latest flight information is listed below alphabetically: AEGEAN AIRLINES The largest airline in Greece will resume its flights to Tel Aviv on April 28 from Athens, Heraklion and Rhodes. Thessaloniki-Tel Aviv flights are cancelled until June 26. Riyadh will resume its flights on June 21. The flights to Beirut will be cancelled until June 26. Flights to Dubai until June 29. Erbil and Baghdad are not scheduled to fly until July 2. AIRBALTIC AirBaltic, a Latvian airline, has announced that flights to Tel Aviv are cancelled until May 31, 2019. Dubai flights are canceled until October 24. AIR CANADA The Canadian carrier has canceled flights to Tel Aviv, Dubai and Abu Dhabi until September 7. AIR EUROPA Spanish Airlines has cancelled all flights to Tel Aviv till May 31. AIR FRANCE-KLM Air France has suspended Tel Aviv flights to Beirut, Dubai, and Riyadh until May 3. KLM suspends flights to Riyadh and Dubai until the 14th of June. CATHAY PACIFIC Hong Kong Airlines has suspended its flights to Dubai, Riyadh and cargo freighter service to Dubai, Riyadh and Dubai until May 31, and will resume them on June 30. In April, the airline will add extra passenger flights to London Paris and Zurich to meet the surge in demand for travel to Europe. It intends to continue operating all scheduled flights after June. The U.S. carrier cancelled flights between New York and Tel Aviv, and has delayed the start of its Atlanta to Tel Aviv route till September 5. The airline said that the launch of Boston-Tel Aviv, which was originally scheduled for late October, had been postponed until further notice. EL AL ISRAEL AIRLINES From April 27, the Israeli carrier will be operating flights to around 40 active gateways. All flights to Dubai have been cancelled until May 31, 2019. EMIRATES The UAE airline announced that it will be operating a reduced schedule and flying to over 100 destinations. ETIHAD AERWAYS The UAE carrier has announced that it operates a commercial flight schedule from Abu Dhabi to around 80 destinations. FINNAIR The Finnish airline has cancelled all Doha flights until July 2 and continues to avoid the airspaces of Iraq, Iran Syria, and Israel. The airline will only resume its Dubai flights by October. British Airways, owned by IAG, will reduce flights to the Middle East once?services are resumed. Jeddah is no longer a destination and it will be permanently dropped. Plans to reduce service to Dubai, Doha, and Tel Aviv from two daily flights to one daily flight by July? Riyadh service will be reduced from two to one daily flight from mid-May. The changes will apply until the end of the summer season on October 24. One Dubai service will restart on October 16. Iberia Express, the Spanish low-cost carrier of IAG, has cancelled all flights to Tel Aviv until May 31. JAPAN AIRLINES Japan Airlines suspends scheduled Doha-Tokyo and Tokyo-Doha flight schedules until June 1. Japan Airlines will operate additional flights between Tokyo, London and Doha on April 25. The Polish airline has suspended flights to Tel Aviv till May 31. The airline also cancelled flights from March 31 through May 30 to Beirut and Riyadh. The airline will operate its winter route to Dubai in October. LUFTHANSA GROUP Lufthansa and other airlines, including Swiss, Austrian Airlines and Brussels Airlines, have suspended flights from Dubai and Tel Aviv to Dubai until May 31. Flights to Abu Dhabi and Amman, Beirut Dammam, Riyadh Erbil Muscat Tehran, Riyadh Erbil, Brussels Airlines, Swiss, Austrian Airlines, and Edelweiss have been suspended until May 31. Eurowings, a low-cost airline, has suspended its flights to Tel Aviv and Erbil through May 14, and to Dubai and Abu Dhabi until October 24. ITA Airways has extended the suspension of flights from Tel Aviv, Riyadh, and Dubai to May 31. MALAYSIA AIRLINES Malaysian Airlines has suspended all flights to Doha until June 14 NORWEGIAN AIR The low-cost carrier has delayed the launch of its Tel Aviv & Beirut services until June 15 PEGASUS Pegasus Airlines, Turkey's national airline, has cancelled all flights to Iran, Iraq, Amman Beirut, Kuwait Bahrain Doha Dammam Riyadh Dubai Abu Dhabi Sharjah and Abu Dhabi until June 1. QANTAS Australia's flag-carrier is increasing flights to Rome, Paris and other European destinations to meet a surge in demand. The number of flights to Paris will rise from three to five per week, and the Perth to Singapore service will go from daily to ten flights per a week. A new schedule will be implemented gradually for flights starting in mid-April. It will run through late July. QATAR AIRWAYS From April 23, the carrier will resume daily flights from Damascus to Dubai, Sharjah and Abu Dhabi. ROYAL MAROC Moroccan airline said that flights to Doha were cancelled until June 30, and those to Dubai till May 31. SINGAPORE Airlines In response to increased demand, the carrier has extended the suspension of its Singapore-Dubai flights until May 31. It also added services on Singapore-London Gatwick?and Singapore - Melbourne routes from late march until October 24. TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights from Dubai to April 30. WIZZ AIR Low-cost carrier suspends flights from Europe to Amman, Dubai and Abu Dhabi until mid-September. All flights to Medina are suspended indefinitely. (Compiled by Josephine Mason and Jamie Freed. Elviira Loma, Tiago Branao, Agnieszka Olenka, Bernadette HOG, Boleslaw LaSocki, Romolo Tosiani. Sumana Nady, Joe Bavier Mark Potter Milla Nissi -Prussak, Susan Fenton and Susan Fenton edited the book.
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Portugal asks Air France KLM and Lufthansa for binding bids to compete in the tight race for TAP
Portugal's government asked Air France-KLM and Germany's Lufthansa on Thursday to submit binding offers?for a minor stake in flag carrier TAP. This set up a 'tight competition' between the two European airline groups after the initial, closely matched bids, which were the only ones it received. Portugal revived TAP’s long-delayed Privatisation in July. It aimed to sell a 44.9 percent stake to a strategic partner to improve the carrier’s global network and competetiveness. A further 5% was reserved for employees. By the end April, the government will issue formal invitations to the two airlines. They will then have until the end July to submit binding bids. Privatization should be completed by the beginning of September. Air France-KLM, Lufthansa and Lufthansa made non-binding bids earlier this month. Details were not revealed. Infrastructure Minister Miguel Pinto Luz stated that the two bids are "largely equal and very ambitious" from a strategic, industrial, and financial perspective, and the government is comfortable with its valuation. The financial valuation of TAP could end up being a decisive factor. "We will wait for binding offers," said Pinto Luz at a press conference. TAP's main appeal is its lucrative and prime slots that connect its Lisbon hub with Brazil, Portuguese-speaking African nations and the United States. Pinto Luz stated that the government is "closely" monitoring the crisis in the Middle East after the?closure of Strait of Hormuz. This has caused concerns about jet fuel shortages for European airlines, and resulted in flight cancellations. However, Pinto Luz believed the issue would be resolved "sooner than later".
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Andy Home: Gulf aluminium disruption has ripple effects on the alumina industry.
The Iran war has caused the aluminum market to focus on what's not coming through the Strait of Hormuz. There is a?equally important problem: What is not coming in. Gulf Aluminium smelters depend heavily on alumina imports, an intermediate product between bauxite and metal, for their operations. Six smelters are located in the region, but only two refineries produce alumina. Emirates Global Aluminium (EGA) Al?Taweelah, a plant of Emirates Global Aluminium, was damaged by Iranian missiles. The same reason is causing the smelter to be out of service at the site, and other smelters have reduced their capacity. As shipments are diverted away from the Gulf, this disruption will have a first-round effect on the alumina markets that is already saturated. Second-round effects could include further reductions in Gulf metal production, as smelters are running low on raw materials. China is the only one who wins here, as it absorbs all of the displaced aluminum. Under Pressure Even before the start of the Iran war, the alumina market was already under pressure. Since the beginning of this year, the London Metal Exchange price (LME), which is based on S&P Global Platts’ assessment of the Australian FOB price, has hovered around $300 per metric tonne. This is a far cry compared to the wild rally in 2024 when prices soared above $800 after a series supply shocks. Since then, the market has shifted from a shortage to a surplus due to the continued expansion of production capacity in China?and Indonesia. Macquarie Bank estimated the global surplus to be 2.54 million tonnes last year, and forecasted a surplus of 1,26 million tons by 2026. The bank just increased its estimate of 2026 oversupply to 2.2 million tonnes as Gulf-bound shipments were redirected onto the seaborne market. The length of time the Strait is closed to shipping will be a determining factor. INPUT RISKS The more time it takes for the Strait to be reopened, the higher the risk that?further cuts will be announced to those already made by Qatar's Qatalum producer and Aluminium Bahrain. Ma'aden in Saudi Arabia is the only fully integrated Gulf producer. It operates its own bauxite mining operation, feeding Ras Al Khair alumina refining plant. According to Wood Mackenzie, Ma'aden has arranged emergency supplies for others and produces more alumina that its smelter can use. Alumina isn't the only problem for Gulf operators. According to AZ Global Consulting, the logistical problems could be even worse for coal tar pitch which is used to make the carbon anodes that are used in the smelting processes. It said that while other carbon inputs, such as calcined coal and petroleum coke, can be "diverted or?stockpiled and rebagged and trucked," liquid pitch needs heated storage, heated trucks, and heated silos to keep it molten between the loading point and discharge point. These facilities are rare and difficult to improvise. "Pitch could be the most difficult logistical problem in 'the carbon chain' if disruptions continue," AZ Global stated. CHINA WINS China is the main beneficiary of the disruption to the alumina processing chain. According to the World Bureau of Metal Statistics which gathers data from customs statistics, it imported 338.315 tonnes?of aluminum in March. This is the highest monthly total since January 2024. AZ Global anticipates that imports will remain strong in the months to come, thanks to an open import arbitrage between local and international prices. China's smelters have been able to enjoy strong margins as the Gulf Crisis has also sent aluminium prices up to four-year levels. According to the International Aluminium Institute, Western production in March fell by 312,000 tons on an annualised basis due to restrictions in the Gulf while Chinese production increased by 88,000 tonnes. China's share in global production grew to a record 60.2% in the last month. This ratio is expected to continue to rise as the Iran War takes its toll on Gulf smelters. Andy Home is a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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Fire breaks out at Transneft pumping station after drone attack, sources say
Two sources claim that a 'fire' broke out in an oil-pumping facility of Transneft, which delivers crude to Russia’s largest export terminal at the Baltic port of Primorsk after a drone attack on Thursday. One source said that the Gorky pumping station, located in Nizhny Novgorod, also supplies crude oil to processing plants in Moscow Yaroslavl, and Kirishi. Transneft didn't respond to a comment request. Ukraine increased its attacks on the Russian energy infrastructure, which is responsible for about one-quarter of the Russian budget revenue. Ukraine's SBU said that Ukrainian drones are responsible for the attack on Thursday. Gleb Nikitin, regional governor of Nizhny Novgorod in Russia, said that an industrial facility located in Kstovo district was also damaged and caught fire overnight after debris from Ukrainian drones struck it. He did not specify if it was the Gorky pumping station. Sources, who were not authorized to speak in public, said that the drone attack caused a fire at least two of the four oil tanks. Each tank has a capacity of about 50,000 cubic meters. A drone attack in February caused a fire at the Kaleykino Pumping Station near the city of Almetyevsk, which is located farther east along the same Transneft Pipeline. This forced the pipeline monopoly, Transneft, to reduce the amount of crude oil it takes into its system. Barbara Lewis edited the report.
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Atlas cites inadequate due diligence as the reason for the failure of BRCK Group's takeover bid
Atlas Holdings announced on 'Thursday that it had no intention to bid for BRCK Group, a UK construction materials supplier. It was denied access to management and company information ahead of a looming deadline. After the announcement, shares of Bracknell's BRCK fell 13.6% to 45.45 pence. BRCK rejected a proposal of 65 cents per share from the U.S. Private Equity firm in 'March, saying that it 'fundamentally underestimated the company. Atlas?said Thursday BRCK only provided limited due diligence material through a virtual dataroom and a 90 minute meeting with its chief exec in April. This was insufficient and limited. The firm requested 'further diligence and an extension...to a deadline imposed by UK takeover regulations, before BRCK board said...it would not....grant any more time for a bid. This forced the firm to.....walk away. BRCK?did not immediately?respond? to a comment request. (Reporting by Yamini Kalia in Bengaluru; Editing by Shilpi Majumdar)
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EU loan gives Ukraine a lifeline, but more assistance is needed to end the war
According to economists and government officials, Kyiv could need additional money this year to meet its military needs. Ukraine's budget projects a huge deficit of 1.9 trillion hryvnias (43 billion dollars) by 2026, which is around a fifth of its economic output. However, economists claim that this figure significantly underestimates the costs of the?war against Russia. Maksym Samoiliuk, an economist at Kyiv's Centre for Economic Strategy (a?think tank), said that military spending will be assessed more realistically now that the delayed loan has been approved. This is because factors like a pay increase for military personnel expected this summer can be taken into consideration. Samoiliuk stated that the loan was crucial because it created space to deal with pressures on Ukraine's defense budget. The remaining 90 billion euro will be paid to Ukraine in 2027. The majority of the loan will be used for military expenditures, while around 17 billion euro per year is allocated to general budget needs like health and education. A group of over 20 allies, in addition to Ukraine’s own budget for military expenditures, funds the purchase of U.S. made weapons through the PURL program. Viktor Orban, the Prime Minister of Hungary, had blocked the EU loan from Ukraine for several months. He accused Ukraine of being slow to repair an oil pipeline that Kyiv claimed was damaged by a Russian drone. The pipeline transports Russian oil from Russia to Hungary and Slovakia. Following Orban's loss in the April 12 elections, the resumption on oil flow Wednesday allowed EU ambassadors to approve the loan. Yuliya Marcuts, Vice President for Macro and Public Finance, at the KSE Institute in Kyiv (an economic think tank), estimated that budgetary spending on defence could be increased by as much as 10 billion euro, depending on the outcome of the conflict on the front lines. Markuts stated that Ukraine?also increased its military expenditure estimates last year. Part of this was covered by government bonds as well as loans from the Extraordinary Revenue Acceleration Loans (ERA), a G7 initiative. "How will this year be?" She said that, although it's difficult to predict, "there could be a repeat of this," adding that the EU loan may cover the revised budget. Confidence in Tomorrow If the EU loan is not paid by June, economists predicted that Ukraine will run out of cash and have to cut back on public services. The approval of the EU aid package by ambassadors was welcomed by many Ukrainians. Under President Donald Trump, the U.S. has cut back on aid to Ukraine. Hanna Fedotova is a 58 year old nursery caretaker who said that EU funding provides stability to Ukraine's institutions of state "and, most importantly, for education". Fedotova, a nurse in the basement of a nursery in Zaporizhzhia in the south-east, said: "This aid is all about confidence for tomorrow. The certainty that we'll be able to continue doing our job." The EU loan must only be repaid in the event that Russia pays war reparations to Ukraine. Volodymyr Zelenskiy, the president of Ukraine, has stated that Ukraine needs additional funds to fight even though it received an EU loan. "We say 90 billions and that's enough to cover everything." "That's not true," Zelenskiy said in an interview with a Russian newspaper last month. More Money Needed Zelenskiy stated that the loan "only allows Ukraine order 60%" of the weapons it can produce. Ukraine needed 5 billion Euros to upgrade its electricity sector in the wake of Russian attacks. Zelenskiy stated that Ukraine needed $15 billion, despite the fact that allies spent $5 billion last year on PURL weapons, mostly for air defence equipment. We can't protect all of it, but we should. Where can we get the money? He said he was hopeful that the defence cooperation agreements with Gulf states could provide additional financing. The EU admits that its two-year loan covers only around two thirds of Ukraine's needs for external financing. Valdis Dombrovskis, EU Economy commissioner, said that international partners will still have to commit funding for 2027. However, the funding needed this year is covered. Ukraine has access to other financing sources. Yulia svyrydenko, the Prime Minister of Ukraine, announced last week that it would receive 2.7 billion euro from the EU Ukraine Facility after parliament had approved some long-overdue reforms. Ukraine agreed to a $8.1 billion IMF four-year loan in February. All this money is tied to a number of conditions, including tax and governance reforms that are not popular. Last week, the IMF agreed to delay the imposition on VAT for entrepreneurs following a backlash from the parliament. Samoiliuk stated that "Ukraine’s ability to maintain the momentum of reforms" will be the main issue moving forward. "Ukraine’s international partners need to apply more pressure...and stress that Ukraine needs these reforms."
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Union Pacific beats its first-quarter earnings estimates thanks to strong pricing
Union -Pacific exceeded Wall Street expectations for the 'first quarter profit' on Thursday. This was due to gains from a sleaner operation and stronger pricing, which helped offset an increase in operating costs. In premarket trading, shares of the company increased by about 1%. Over the years, U.S. railroads have benefitted from precision-scheduled railroading. Leaner staffing and increased efficiencies have helped to overcome challenges posed by freight demand, higher labor and fuel prices and an increase in freight costs. Results come after Union -Pacific signed a $85 billion deal last year to purchase smaller rival Norfolk Southern. This was a landmark agreement to create the United States' first coast-tocoast rail operator. freight rail operator. The deal was stymied by a regulatory obstacle in January when the U.S. Surface Transportation Board returned the deal proposal for revision because of missing information. Union Pacific, based in Omaha, Nebraska, did not give any updates on the deal Thursday. Union Pacific's operating costs rose by 2.8% during the?quarter, primarily due to a 7% increase in fuel costs. The company has confirmed its annual outlook, and stated that it is on target to meet these targets. According to data compiled by LSEG, the adjusted profit of West?Coast Railroad for the third quarter was $2.93. This is above Wall Street?estimates which were $2.86. Analysts had predicted $6.2 billion. Total operating revenue for the first quarter rose by 3.2%, to $6.22billion. Apratim Sarkar, Bengaluru (Reporting) and Leroy Leo (Editing)
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The US airline industry is still suffering from the Iran War fuel shortage despite record demand.
U.S. Airlines are experiencing their highest passenger numbers in history, packing more people into their planes to boost revenues. Yet, in a cruel irony, a war thousands miles away is destroying profits due to a crippling fuel cost burden. United Airlines has cut its profit forecast for the full year by about a third. Alaska Air retracted its entire outlook. Delta Air Lines canceled its growth plans for the quarter while Southwest Airlines refused to update their full-year forecast, saying that it "wouldn't be productive at this point." Fuel costs have risen faster in each case than airline fares. This is the first time that the Iran conflict has forced major American companies, without any certainty as to when it will end, to reduce operations, lower their forecasts, and pass on costs to consumers. United has flown more passengers than ever before in the January-March period of its history. Chicago-based United Airlines also brought in more revenue than any other first quarter in its history, as ticket prices rose across the network. The company still cut its profit projection. The industry is in a bind: the demand is high, but the costs are rising faster. Since the United States and Israel launched their attack on Iran in late Feburary, jet fuel prices have nearly doubled. Costs are rising so rapidly that fares are not keeping pace. Southwest Airlines said that it anticipates fuel prices in the second quarter to be between $4.10 and $4.15 per gallon. This is up from $2.73 during the first quarter. Delta will only recover 40 to 50 cents for every dollar spent on fuel in the second quarter. United is also expecting a similar gap, before it improves later?inthe year. Alaska only recovers about a third of the cost increase, a gap so large that it forced them to withdraw their forecast and warn they would be losing money this quarter. United reduced its earnings range for the full year from $12 to 14 per share just two months earlier to $7 to $11 per shares. The unusually large range was due to fuel uncertainty. Alaska didn't publish any ranges. Trimming the marginal Flies Fuel prices are forcing airlines to cut flights even though planes are full. Scott Kirby, CEO of United Airlines, said: "It doesn't make any sense to fly flights with marginal profits in an environment where fuel prices are higher." Delta has removed all growth plans for the quarter and reduced capacity by over 3.5 percentage points compared to earlier targets. United has reduced its planned flights by about 5 percentage points. Southwest Airlines has reduced its routes in Chicago O'Hare, Washington Dulles and Mexico. Alaska Airlines has also cut back on late-night departures. The focus of the reductions is on flights with lower margins -- overnight trips and midweek travel, as well as thinner leisure routes. Higher fuel costs quickly reduce profitability. Delta Chief Executive Ed Bastian stated that the best way to recapture fuel is not buying it in the first place. FIRE RISING BUT NOT ENOUGH Delta's revenue grew by nearly 10% during the first quarter of the year, and bookings continue to increase. United Airlines has increased fares and baggage fees multiple times. Prices rose by about 12% early in March, and then continued to rise later in the month. Alaska Airlines said that fares have increased by more than 20 percent in recent weeks in their core markets without affecting demand. Alaska Finance chief Shane Tackett stated that the rapid increase in fares and the stable bookings of the past few weeks suggest that people are really "wanting to travel". It takes time for the increases in fares to be felt. Fuel prices rose before many passengers booked their flights, which limits how quickly airlines are able to recover the higher costs. Pricing lags even when the industry works together. Alaska claimed it would have made money this quarter, if not for the fuel. The pressure is starting to spread Impact is not limited to airlines. GE Aerospace which produces engines for the majority of U.S. Commercial Jets said that it had built a more conservative second half into its forecast, reflecting the risks that airlines may delay maintenance, engine overhauls, and spending if fuel prices continue to rise. Larry Culp, Chief Executive of the Company, said that the outlook was unchanged despite the positive results. He cited the uncertainty caused by the conflict. Culp stated, "We are at a war and this creates uncertainty."
Lufthansa's 'Economy Basic" is the latest salvo in the battle over carry-on luggage size.
Lufthansa Group announced plans for an "Economy Basics" fare, which adds a new spin to the 'fighting between 'passengers over size restrictions on carry-on luggage.
The German airline group announced on Thursday that those who want to bring more baggage can add it as an add-on.
The new low-cost fares will be available online from May 19, for all brands including Lufthansa and?SWISS.
The "entry-level" fare is designed to complement the existing "Economy Light", which would then be enhanced with a rebooking option for a small fee.
Lufthansa said that the enhanced fare structure allows for a "clear and transparent" selection, tailored to each individual's needs.
(source: Reuters)