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LATAM Airlines lowers its earnings forecast for 2026 as jet fuel costs rise
LATAM Airlines cut its core earnings forecast for '2026 on Tuesday as higher jet fuel prices resulting from the conflict in the Middle East increased costs despite mitigation measures. The Chilean carrier cut its outlook for full-year adjusted earnings (EBITDA), which includes interest, taxes, and depreciation, to a range between $3.8 billion and $4.2 billion from an earlier forecast of $4.2 to $4.6 billion. Fuel prices have risen dramatically since U.S. and Israeli'strikes against Iran' disrupted air traffic through the Strait of Hormuz. This is the worst crisis for the airline industry since the COVID-19 Pandemic. LATAM estimates a $40-million hit to the?first quarter results. Hedging and price lags have softened the burden, but the company warns that fuel expenses will rise by more than $700,000,000 in the second, assuming an average jet fuel cost of $170 a barrel. LATAM still expects to achieve a low-to-mid single-digit adjusted margin for the second quarter. Revenue measures, capacity adjustments targeted and additional cost control help offset the impact. It said that "LATAM’s strong balance sheet, liquidity position, and ability to manage uncertainty, while maintaining financial and operational discipline, allows it to absorb fuel volatility, continue investment in the business and manage the business." In its new financial forecast, the carrier assumes that?jet fuel will cost $170 per barrel during the second and third quarters of the year and $150 for the fourth. This is a significant increase from the $90 per barrel assumption made in previous years. LATAM has raised its forecast for cost per seat kilometer to between 4.50 to 4.70 cents this year, up from the previous range of 4.30 to 4.00 cents. The first quarter of Latin America's largest airline saw a net profit of $576m, an increase of 62.1% on the previous year, with revenue up 21.7% at $4.15bn. (Reporting and editing by Sarah Morland; Additional reporting by Inigo Alexandr; Reporting by Gabriel Araujo)
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Sentinel Midstream greenlights Texas deepwater oil export port
Sentinel Midstream, a 'transportation and storage of oil' company, announced on Tuesday that it is'moving forward with the construction of its deepwater export project off Texas coast. The Texas GulfLink Project is part of Trump's effort to boost the U.S. Oil Industry and Production and to allow for the export of up?to 1?million barrels per day of crude oil. The port is located about 26.6 nautical mile off the coast of Brazoria County in Texas. The port is one of three projects worth $36 billion that Japan will finance under a deal signed with the U.S. The White House announced in February that Japan will invest $2.1 billion in Texas GulfLink, a deepwater oil export facility. Sentinel will oversee construction, commercial operations and the long-term management for the terminal. Sentinel reported that once operational, the project will support billions of dollars in exports annually. Reporting by Vallari Shrivastava, Bengaluru. Editing by Sahal Muhammad
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US: Mexico to address American airline concerns in Mexico City
Sean Duffy, the U.S. Secretary of Transportation, said on Tuesday that Mexico has agreed to increase aviation access to Mexico City after months of discussions. Duffy, in October, revoked the?approval? for 13 routes of Mexican carriers to the United States, and imposed additional restrictions. Mexico, he said, "illegally cancelled and frozen U.S. carrier flight without consequences" over a three-year period. Duffy stated on Tuesday that the Trump administration had reached a consensus with Mexico regarding a plan to?Mexico's compliance with an agreement signed in 2015 governing air travel between the two countries?. USDOT stated that Mexico would guarantee U.S. carriers fair and transparent access to request and run slots at Mexico City Benito Juarez International Airport. Duffy stated that USDOT would not reconsider restrictions imposed by USDOT on Mexican airlines until Mexico had implemented some of the promised reforms. . "This is a good step, but we must see that these promises are followed through. Duffy stated that until then, the restrictions on Mexican carriers would remain in place. Mexico stated that a number of measures had been agreed upon to implement the bilateral agreement on air transport and?said said conditions were established in order to ensure equitable access to airport infrastructure and to expand operational options, as well as strengthen logistics connectivity. Mexico said that a bilateral "working group" made up of U.S. officials and Mexican officials would monitor the?implementation?of?these commitments, and then evaluate current regulatory measures within the United States. USDOT also tries to force Delta Air Lines,?Aeromexico and other joint ventures to dissolve. A court has blocked USDOT's order to repeal the joint venture, which was established nearly 10 years ago and allows the carriers to coordinate flight?scheduling?, pricing?and capacity? for U.S. Mexico flights. Aeromexico said it valued the efforts made to maintain a constructive dialog "that allows us continue strengthening the bilateral relation for the benefit of development of the nation's airline industry." (Reporting and editing by Alistair Bell; David Shepardson)
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Rubio: Ten civilian sailors died in the Strait of Hormuz
U.S. Secretary of State Marco Rubio informed reporters on Tuesday that ten civilian sailors have died as a result of the ongoing conflict along the Strait of Hormuz. Speaking at the White House, Rubio said that the U.S. will continue to deploy assets to defend the freedom of navigation on the main thoroughfare. "They are isolated, they are starving, and they're vulnerable. At least 10 civilian sailors have died because of this," Rubio stated, without giving any additional details. Rubio said that the U.S. is taking a defensive position by enforcing their blockade against Iranian ports. He said that the initial military operation against Iran had ended. "We only respond if we are attacked first." "This is a defensive mission," Rubio said at a press briefing. "If there are no shots fired at the ships or at us, then we won't fire shots. But if we are fired upon, we will." Rubio said that the United States had been in contact with several ships about moving out of the Strait. This echoed remarks made by Pete Hegseth, the Defense Secretary. On Tuesday, the?United Arab Emirates claimed that it was under attack by Iranian missiles and drones. Washington however said a fragile ceasefire was still in place. Hegseth stated that hundreds of ships lined up to pass the crucial waterway. About 20% of the world's oil supply passed through the Strait every day before the U.S., Israel and other countries attacked Iran on 28 February. Rubio said that it was time for Tehran "to accept the reality of the current situation",?adding U.S. Envoys Steve Witkoff, and Jared Kushner continue to explore a diplomatic resolution. Rubio said that the solution must address any nuclear material Iran may still have buried "deeply?somewhere". He said: "The President has been clear that a part of the negotiations must be?not only the?enrichment but also what happens to the material that is buried somewhere and that they can still access if they wanted to dig it out." Rubio refused to give details about the progress made and said that an agreement wouldn't need to be written in a day. He said: "This is a highly complex and technical issue, but we need a diplomatic solution which is very clear on the topics they're willing to discuss and the extent of concessions they're willing to make up front to make these talks worthwhile." Reporting by Steve Holland and Gram Slattery; editing by Michelle Nichols, Alistair Bell and Alistair Bell
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FAA contractor accused of making a threat against Trump
Court documents state that a?man working as a contractor for the Federal Aviation Administration in New Hampshire was arrested and charged after the White House had received an email from the suspect about his plans to "neutralize/kill' the president. Documents show that Dean DelleChiaie, a resident of Nashua in New Hampshire, was arrested on Monday for interstate communication of an alleged threat. The Secret Service filed a court document stating that the FAA suspended DelleChiaie's job in mechanical engineering when it discovered that he used his "work computer" to conduct searches on assassination efforts. The FAA refused to comment. DelleChiaie's lawyer did not respond immediately to a?request for comment. In an affidavit the Secret Service stated that the White House had received the email on the 21st of April, which appeared to be from DelleChiaie. The Secret Service reported that searches made on the computer of his employee included "How to get into a federal building with a gun" as well "percentage that wants the President dead" as "I'm going to kill Donald John Trump." It said that the suspect searched for a number of other locations, including the home of Vice President JDVance and the names, ages, and addresses of his children. He also sought the home of Pentagon Chief Pete Hegseth and the address, names, and ages, of his children. DelleChiaie said to 'authorities' that he conducted the searches because he felt angry with the Trump administration over a number of issues, including the presidential elections, presidential pardons, and the "Epstein Files" concerning the late sex offender and financier Jeffrey Epstein. Since 2024, three assassination plots have been launched against Trump. The most recent was at a Washington press gala last month.
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Spirit Airlines lawyer: High jet fuel prices forced carrier to close due to lack of alternatives.
Lawyer for the defunct Spirit Airlines said that on Tuesday, sharply higher jet-fuel prices forced the budget carrier to shut down. The lawyer is seeking approval for a plan to expedite asset sales and to pay retention bonuses to employees. Marshall Huebner said that at a U.S. Bankruptcy Court Hearing, the airline had learned Thursday afternoon that government financing would not be going forward. He apologized on behalf of the carrier to its customers and the American people. Last month, the Trump administration proposed a $500-million bailout to help Spirit out of bankruptcy. However, some creditors objected. Huebner stated that Huebner, after learning on Thursday that government funding initiative would not be taking place, transported 50,000 passengers to the airport on Friday in order to 'wind down operations' before making the news public. Since the U.S. and Israeli strikes on Iran, which disrupted the Strait of Hormuz traffic, global carriers have been dealing with rising jet fuel prices. This is the worst crisis for the airline industry since the COVID-19 epidemic. Spirit Airlines was already struggling to make a profit prior to the fuel shock, and now faces $100 million in additional fuel costs. He said that fuel costs would be high for the remainder of the year, costing the airline hundreds of millions of dollars. Spirit seeks?court approval for $10.7 million retention bonuses, which will be paid to employees who stay on as the company closes its doors. This amounts to $76,000 per employee. The top three executives will also receive a larger bonus but the amount has not been disclosed. The U.S. The U.S. Spirit claims it lacks the?money? to hold an organized auction of its aircraft, engines, and other equipment and asks for court permission to sell them quickly or abandon them. Let the lender repossess. Mark Porter, Doyinsola Oladipo, and David Shepardson edited the report.
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What is the hantavirus which killed three passengers on a cruise ship?
A hantavirus outbreak on a luxury cruise ship has killed three people and confirmed four more cases. What is the hantavirus and how does its spread affect global?health? What is it? Hantaviruses can cause illness and infection in humans. The World Health Organization estimates that there are between 10,000 and 100,000 cases of human infection worldwide each year. How is the virus spread? Hantavirus is spread primarily by rodents. People can be infected through contact with mice or rats, their urine or droppings or even saliva. It can also spread through contaminated surfaces. The Andes strain, which is mainly found in Argentina and Chile (and other parts of South America), is the only variant known to spread via close, prolonged human-to-human contacts. The WHO has said that this strain may be responsible for the infections aboard the cruise ships, but this hasn't been?confirmed. What are the symptoms of infection? Hantaviruses are found in many parts of the globe and cause different symptoms. Some cause no symptoms at all. According to WHO, symptoms usually begin between one and eight weeks after exposure. They may include fever, muscle pains, and gastrointestinal problems. Hantaviruses are known to cause haemorrhagic syndrome with renal syndrome in?European and Asian countries. This disease primarily affects blood vessels and kidneys. In America, hantavirus can cause cardiopulmonary syndrome. This condition progresses rapidly and causes fluid to accumulate in the lungs, along with other heart problems. The WHO reports that the death rate from hantavirus is up to 50%. This compares to the 1-15% of infections in Asia and Europe. Can HANTAVIRUS infection be treated? As there is no specific treatment, the current approach focuses on supportive measures, such as rest and fluids. Some patients may require breathing support, such as a respirator. The prevention of rodents is based on measures such as keeping surfaces and areas clean. Contact tracing during outbreaks can improve outcomes, and prevent further spread, by allowing others who may have been exposed to the virus to receive hospital care earlier. What are the risks to the general public? WHO states that the outbreak on cruise ships is unusual. It's being investigated by experts from several countries and the WHO, but there's a low risk for the public. WHO's Americas branch warned in December that hantavirus infections are on the rise, especially in Bolivia and Paraguay. Brazil and Argentina, which have the most cases, are also seeing an increase in lethality. Argentina reported 21 deaths in the last year. This is a 32% mortality rate among 66 people who contracted hantavirus respiratory syndrome. The average death rate over the previous four years was 15%.
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ITA Airways will raise ticket prices but not reduce flights due to fuel costs
ITA Airways does not plan to reduce flights 'because of rising jet-fuel prices,' its chief executive stated on Tuesday. He added that?the group is 80% covered in fuel for the remainder of the year. Joerg Erberhart, CEO of the Italian airline, which is controlled by Lufthansa said that the company was looking to raise ticket prices by between 5% to 10% this year to compensate for fuel cost increases resulting from the U.S./Israeli war against Iran. As the Middle East conflict drives up jet fuel prices and disrupts major routes, airlines in Asia and Europe are raising fares, adding fuel surcharges, and adjusting schedules. Fuel is now twice as expensive as it was before the crisis. Jet fuel is responsible for 30% of all our costs. Eberhart said to reporters in Rome that without hedging, we would need to increase our prices by 30%. This would be very difficult. He said that the company is also "looking at increasing fuel-efficiency through technical measures", expanding its destination networks and long-haul route and tapping into opportunities in a buoyant Asian Market while the Middle East faces major disruptions. As part of ITA's current strategy, the company is also aiming at reducing the average age in its fleet by replacing older jets with newer ones to reduce fuel consumption. CONSOLIDATION PLANS Eberhart responded that it was up to Lufthansa to decide when they would increase their stake from 80% to 90%. The German airline holds 41% in ITA. The remainder is owned by the Italian Economy Ministry. According to an initial agreement with Rome, Lufthansa can do this until June 2026. Eberhart stated that ITA was optimistic that Lufthansa will proceed with increasing its stake, as this would allow it to gain from a?closer integrated with the German parent company. "ITA will become the specialist in South American destinations once it is consolidated," he said. "It already serves more routes in that region than the entire Lufthansa Group combined." Eberhart stated that the group did not see the need to revise its long-term or this year's strategy, even though it would take at least six months to "normalise" oil flows after the end of war. The executive said that the majority of additional costs (resulting from jet fuel) could be compensated by higher air fares and hedging. He said that a decision has not yet been taken regarding flights to 'Tel Aviv, Riyadh, and Dubai – all of which have been cancelled until the end the month – and that ITA will suffer a loss of approximately 10 million euros ($11.70 millions) if the three destinations remain closed for the whole year.
AirAsia and Airbus to announce 150-jet A220 order on Wednesday, according to sources
Airbus will announce a new order for 150 A220 jets on Wednesday. This is a major boost for the planemaker's small jetliner, which has lost recent orders to Brazil-based Embraer.
Quebec holds a minor stake in the A220 Program, which is produced in Mirabel to the north of Montreal and on a separate assembly in Mobile, Alabama. Mirabel is where A220 planes are manufactured for non-U.S. clients.
Sources said that Mark Carney, Canadian Prime Minister will attend the announcement. The matter is confidential. Airbus Canada and Carney's spokesperson declined to comment about the order or the event, which may change or be postponed.
AirAsia, based in Malaysia, could not be reached immediately outside of normal business hours. La Presse, a French-language publication, reported on the news of AirAsia's major A220 purchase on Tuesday. Bloomberg also broke the story on Monday. In February, Bloomberg reported that AirAsia was expecting a large order for the 110 to 130-seat A220. The report cited sources who claimed that 150 firm orders could be included in this deal.
AIRBUS INTENDS TO BREAK EVEN WITH A220 This is good news for A220. Its rival, Embraer E2, won a Finnair campaign in March and outsold Airbus A220 by three to one last year.
Airbus wants to increase A220 production in order to break even on the program that it took from Canadian planemaker Bombardier for free. Airbus, the world's biggest planemaker, has announced that it will only assemble 12 A220 aircraft per month in 2026. This is down from its previous goal of 14. The company blames supply issues and the fact that airlines are still waiting for upgraded engines.
Canada's aerospace industry has suffered less damage than other sectors such as the auto industry, from a trade conflict with its largest partner, the United States. Washington exempts imports of aerospace from tariffs.
AirAsia led the boom of low-cost carriers across?the region over the last two decades, as incomes rose. AirAsia is one of European planemaker's largest customers, with over 350 larger A320-family aircraft already ordered.
Tony Fernandes, AirAsia's co-founder, had told the airline that it was prepared to expand its fleet to include smaller aircraft to serve new destinations.
The airlines have cut back flights due to turbulence caused by high jet fuel costs as a result of the U.S./Israeli war against Iran.
(source: Reuters)