Latest News
-
Price hikes and outlook cuts are used by airlines to combat the fuel price surge.
The aviation industry was blindsided by the sudden increase in jet fuel costs from $85 to $100 to $150 to $200 per barrel during the U.S./Israeli war on Iran. Fuel accounts for as much as a quarter or more of the operating costs, which has forced airlines to raise their fares and revise financial forecasts. 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, as well as the spike in fuel costs will have "a significant impact" on its first-quarter earnings. 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 CANADA The volatility in jet fuel prices has caused the largest Canadian carrier to suspend its full-year forecast. The company announced plans to cut four of its daily flights from New York to New York because fuel prices were higher. AIR CHINA, CHINA SOUTHERN AIRLINES, CHINA EASTERN AIRLINES China's "big three" airlines have reduced surcharges for domestic flights to 60 yuan (8.78 dollars) for flights less than 800 kilometers and 120 yuan (about $13.80) for those more than 800 kilometers, from respectively 10 yuan or 20 yuan. AIR FRANCE-KLM The airline group?said that it expects a fuel bill increase of $2.4 billion this year. It also downgraded the capacity outlook from 2025 to a rise between?2% and 4%. It had previously predicted an increase between 3% and 5%. The group announced previously that it would increase the price of long-haul tickets to reflect rising fuel costs. Cabin fares will rise by 59 euros (50 euros) for a round-trip. KLM, the Dutch subsidiary of the group, announced on April 16 that it would cancel 160 flights across Europe in coming months due to rising fuel prices. AIR INDIA Bloomberg News reported that the Indian carrier had discussed furloughing employees who were not technical and reducing flight capacity more than 20% in the next three month. The company said that it will also revise the fuel surcharge, moving from a flat surcharge for domestic travel to a grid based on distance. The company said that surcharges for international routes do not compensate the steep rise in 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 erupted. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. AIR TRANSAT The Canadian airline announced that it would reduce its planned capacity by 6 percent from May to October of this year. Cuts are expected to be made on routes to Europe, the Caribbean, and Cuba. AKASA AIR Akasa Airlines, based in India, announced that it would be imposing a fuel surcharge on both domestic and international flights ranging from 199 to 1,300 Indian Rupees ($2 - $14). ALASKA AIR Fuel prices are rising sharply, putting pressure on airline margins. The carrier had previously withdrawn its profit forecast for the full year and warned that earnings would be severely affected in the second quarter. The carrier has also reduced capacity in certain markets. AMERICAN AIRLINES The U.S. airline slashed their 2026 profit projection, pushing the lower end of expectations to a?loss, and stated that it expects its jet fuel bills to increase by over $4 billion this fiscal year. The government has increased the fees for checked bags on domestic flights and short-haul flights by $50 for the third bag and $10 for each of the first two bags. It also reduced certain benefits to economy passengers. It said that higher fuel costs would increase its costs by approximately 140 billion yen (890 million dollars) this year. However, the airline expects to reduce the impact of these increases to 60 billion yen through hedging and cost reductions. It has said that it will consider introducing an internal fuel surcharge for the fiscal year starting April 2027. ASIANA AIRLINES Newsis reported that the South Korean airline would cut 22 flights from April to July because of fuel price increases. CATHAY PACIFIC Hong Kong Airlines will reduce fuel surcharges on most flights starting May 16 as part of its "agile" response to the volatile jet fuel price. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review its pricing and network strategy to minimize the impact. 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 increase will be $10 for first and second bags, and $50 on third bags. The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. EASYJET EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds ($732 and $759million), which includes 25 million pounds of extra fuel costs for March. The Wall Street Journal reported that a group of U.S. low-cost airlines, including Frontier Airlines, has proposed a $2.5 billion plan for relief to the U.S. Government. The report stated that the figure was based on the amount of jet fuel the group is expecting to spend this year in comparison to previous forecasts. Fuel prices have increased dramatically since the carrier's forecast, and it has stated that it will be reviewing it. GREATER BAY Airlines The Hong Kong-based firm said that it would increase fuel surcharges for most routes on April 1 and keep them the same on routes to mainland China and Japan. 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. British Airways' owner IAG has warned that the annual profit will be lower than expected, due to rising jet fuel prices and supply disruptions. It had previously announced that it would increase ticket prices in order to reflect the higher costs of jet fuel. Despite its fuel hedges it was still "not immune" from the wider fallout caused by fuel price volatility. INDIGO India's largest airline announced that it will introduce fuel charges for domestic and international flights starting March 14. The charge for flights into the Middle East is 900 rupees and for flights into Europe, 2,300 rupees. JETBLUE AERWAYS JetBlue announced that it would reduce hiring, reduce capacity, and raise fares in order to mitigate the impact of the rising jet fuel prices. CEO Joanna Geraghty stated on a earnings call that the airline had suspended its outlook for the full year. Sources with knowledge on the subject have confirmed that KOREAN will be entering emergency management mode in April as oil prices continue to rise. LATAM AIRLINES The Chilean carrier has cut its core earnings forecast for 2026 after rising jet fuel costs pushed up costs. LUFTHANSA The German airline group has said that it will be hit by jet fuel prices of 1.7 billion euros in 2026. Its subsidiary ITA Airways announced that it would increase ticket prices by between 5% to 10% in 2026, to compensate for rising fuel costs. The group announced in April a new low-cost "Economy Basic", which limits free carry-on luggage to a "laptop or small backpack". The group had previously announced that 20,000 short-haul flight would be removed from their schedule until October, which is equivalent to approximately 40,000 metric tonnes of jet fuel. PAKISTAN INTERNATIONAL FLIGHTS Fuel surcharges are cited as the reason for raising domestic fares up to $20, and international fares up to $100. QANTAS AIRWAYS Qantas, an Australian airline, said that it has delayed a planned A$150-million ($108-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5-billion to A$3.1-3.33 billion. 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 "couple hundred" of flights. SPIRIT AIRLINES U.S. Low-Cost Carrier shut down abruptly due to financial pressures. Fuel costs rose sharply because of the Iran War. 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 U.S. airline forecast a second-quarter profit that was below the market's expectations. Its CEO also warned of the impact the spike in jet fuel would have on the airline. The first and second bags were now charged $45 and $55 respectively. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRASIA The Thai low cost carrier announced that it would reduce its overall seat capacity between May and July by 30% on average to offset the impact of rising aviation fuel costs and a softening of demand. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. The European airline, tour operator and travel agency cut their full-year profit forecast and suspended revenue guidance. They said they had incurred extra costs of about 40 million euro due to the March war, including repatriation and operational disruptions. LUFTHANSA, TURKISH AIRLINES SunExpress is a joint venture of Turkish Airlines and Lufthansa. It announced that it would charge a temporary fuel fee of 10 euros for each passenger traveling between Turkey and continental Europe. 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 2025 net profits, choosing to keep the earnings in order to conserve cash. T'WAY AIR As part of the measures taken to combat the effects of war, the South Korean low-cost airline said that it would furlough cabin crew in May and/or June without pay. UNITED AIRLINES Scott Kirby, CEO of the U.S. airline, said that ticket prices could need to increase by up to 15% or 20% in order to offset an increase in jet fuel costs. The company has already implemented five fares increases in late first quarter along with increased baggage fees that it says have begun to offset rising fuel prices. The carrier's second-quarter profit and full-year earnings are also below Wall Street expectations. It is expected to recover just 40-50% of fuel prices through fares in the second quarter. This will improve to 70-80% by the third, and up to 85-100% in the fourth. VIETJET Due to possible fuel shortages, the Vietnamese budget airline has adjusted flight frequency 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 ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia has said that it expects an increase of jet fuel costs of between A$30 and A$40 million in the second half of the fiscal year. It also anticipates a 1% decrease in capacity for the fourth quarter. VOLOTEA The Spanish low cost airline has introduced a new pricing strategy that links ticket prices with fuel costs. This could add an additional surcharge after purchase of up to fourteen euros per passenger per flight. WESTJET Globe and Mail reports that the Canadian airline has reduced seat capacity in June. The Canadian Press reported previously that the airline would add C$60 ($44.50) to certain bookings, and combine flights due to rising costs.
-
Cycling-Magnier wins opening stage of Giro d'Italia by sprinting and avoiding a crash
Paul Magnier of France (Soudal Quick-Step), beat Tobias Lund Andresen of Denmark (Decathlon CMA CGM), to win the first stage?of Giro d'Italia on Friday in Burgas after a 'crash' near the finish line marred the bunch sprint. Magnier won his first Grand Tour Stage after a 'crash' occurred around 600 metres before the finish. Briton Ethan Vernon of the NSN Cycling Team came in third. Magnier stated, "I am so proud of my team and performance." It was very?hectic because everyone was fresh, and we knew that the narrow road would be difficult in the final so we tried to get into good?position." The flat 147 km ride from Nessebar was relatively calm until the chaotic finish. The peloton kept a two-rider early breakaway consisting of Italian Manuele Tarozzi, and Spaniard Diego Pablo Sevilla under control and reeled them in with just 22 km to go. Jonas Vingegaard, the pre-race favourite and his Visma Lease a Bike team chose to play it safe at the back of the peloton. This allowed others to fight for the top spot in the final kilometre. Magnier and two teammates were at the front when several riders fell just behind the leaders. The rest of the group was blocked behind these fallers, which included Australian Kaden Grosves who would have been expected to be in the race. Jonathan 'Milan, of Italy, was one the favourites for the sprint. He had Lidl Trek colleague Max 'Walscheid in front but he was unable respond and ended up fourth. Magnier will be wearing the leader's shirt for Saturday's second stage, which covers 221 km from Burgas towards Veliko Tarnovo. Trevor Stynes is reporting, Toby Davis and Christian Radnedge are editing.
-
US launches probe into Avride crashes in Texas
The National Highway Traffic Safety Administration announced Friday that it is launching an investigation into a number of crashes involving Avride’s autonomous vehicles. These crashes raised concerns about the?performance?of these vehicles. NHTSA said that the behavior of vehicles may be indicative of excessive assertiveness or insufficient capabilities, which "may also constitute violations of traffic safety". Several of the crashes caused property damage, and there was one minor injury. NHTSA stated that the vehicles failed to avoid vehicles or objects on the road and had performed lane changes. NHTSA stated that Avride operated?some of their AVs on Uber’s platform and offers passenger services in Dallas, where many incidents occurred. NHTSA identified 16 accidents as being of concern. Avride welcomed the opportunity to "provide the agency with an in-depth understanding of our safety protocol and technology." It added that "in?all cases, the vehicle was under supervision by a trained safety officer on board." The vehicle was usually traveling at a low speed and most of the incidents were caused by other road users. The company has said that it has "implemented specific technical and operational mitigations to address our findings in each reported incident." Avride uses Hyundai's Ioniq 5 platforms and said it had a fleet of 200 vehicles last month. It is also adding dozens each month. In recent years, NHTSA opened "several investigations" into self-driving vehicles and advanced driver assist systems. According to the agency, a preliminary analysis of crash?videos revealed instances where vehicles changed lanes and into other's path, failed to slow down or stop in time for traffic, and struck stationary objects that partially blocked lanes. The investigation will evaluate the extent and severity of any potential problems or risks to passengers and other road users. This includes technical and operational factors as well as safeguards. Uber and Hyundai didn't immediately respond to comment requests. Reporting by David Shepardson, Editing by Chizu nomiyama and Mark Potter
-
Greece investigates Ukrainian-made Naval Drone Found in Cave at Island
Sources from the Greek police and coast guard said that they are investigating a 'drone boat' found by fishermen in a cave of the ionian island?Lefkada. The exact route taken by the unmanned surface vessel (USV) made in Ukraine to reach Greek waters was unclear. The unmanned surface vehicle (USV) was found by fishermen late on Thursday. Officials, speaking under condition of anonymity, said preliminary findings indicated that the MAGURA V3 type sea?drone had three detonators. The Greek army was unable to confirm that the ship was?loaded with explosives', according to a source. Divers were on the scene as bomb disposal experts dismantled the drone and removed its batteries. A military official said that security forces would lead the investigation into determining 'its technical characteristics and potential purpose. A coast guard source said that investigators are investigating if the drone was meant to target ships containing Russian oil in the wider Mediterranean. Sources in maritime security?said that the ship could have been part a shipment of such drones or it may have drifted after a failure to signal. Reporting by Yannis Souiotis. Renee Maltezou is the writer. Mark Potter (Editing)
-
Amadeus' CFO predicts a decline in air travel bookings
The Spanish travel technology company Amadeus expects bookings for air travel to decline in the second quarter due to the war in the Middle East and the airline strikes in Western Europe, said its chief financial officer on Friday. Carol Borg, in a call with analysts after the earnings report, said: "We still believe we will continue to see negative growth in second quarter bookings." "April was better that March, but we are still in negative territory". She added that the improvement was due to the moderation of cancellation rates, the reopening airspace in the area, and the airlines' positive comments on the?demand profiles. Amadeus delivered stronger-than-expected results ?on Friday and maintained its ?full-year guidance despite cancellations and concerns about jet fuel shortages, although Borg said revenue growth in the high single digits would be at the lower end of that range. Borg said that the company had implemented cost-cutting measures to better withstand impact of war in the Middle East. They will continue doing so until the situation improves. She cited the company's 'last year's' results as an illustration of its cost discipline and resilience, 'as earnings before taxes and interest outgrew revenues. "We can adjust our resources, especially in R&D, to maintain momentum in investing at the right times and in the right places.
-
Ukraine is short on air defence missiles
The Ukrainian air force said on Friday that it was running out of air defence missiles following Russia's massive winter campaign. The launchers that are assigned to certain batteries and units today are only half full - to put it mildly. Ukrinform reported that the air force has a limited supply of'missiles. Ukraine has used domestically developed technologies, such as interceptor drones and mobile gun units, to take down Russian long-range drones. But for the?interception of missiles, Ukraine remains heavily reliant on foreign air defence system. In the more than four-year war in Ukraine, deliveries of air defence systems from its allies have been delayed and disrupted. Ukraine faces increased pressure to supply these systems, as they are now being extensively used in the U.S. and Israeli war against?Iran. Ihnat stated that "we?are on a short supply of missiles today due to certain supply problems." Mark Potter edited this article. Mark Potter edited this article.
-
A new hantavirus is suspected in a remote island, as the contact tracking continues
Health authorities announced on Friday that a new case of suspected hantavirus has been found in a British passenger who had been on the luxury cruise shipMV Hondius, which was hit by hantavirus. The British man is now residing on the remote South Atlantic Island of Tristan da Cunha. The UK Health Security Agency?did not?disclose any further details about the new suspected case in the British Overseas Territory where the cruise ship stopped on April 15th. Tristan da Cunha is the world's most remote inhabited island. It has only 200 inhabitants and is located halfway between South Africa, South America, and Africa. The nearest inhabited island to Tristan da Cunha can be reached by boat in six days and after travelling more than 1,500 miles. Stephen Doughty said that an islander was hospitalized and his wife had self-isolated, in a post on the local government's website. He added that four islanders had taken a ride on the Dutch flagged vessel to St Helena. Philip Kendall, the administrator of Tristan da Cunha, said that these islanders were advised to isolate themselves there as a safety precaution. The new case was still suspected. However, the precautions announced will increase concerns over the Andes strain hantavirus that was found on board the ship. This strain can in rare cases spread from one human to another. After the outbreak, three people - a Dutch family and a German national – died. Two Britons, one Dutch, and one Swiss are currently being treated at hospitals in South Africa, the Netherlands and Switzerland. According to the World Health Organization, there is a fifth suspected case. These figures do not include the suspected cases on Tristan da Cunha. World Health Organization stated that it would update the situation later on Friday. Low Risk?OF Widespread Contagation The U.S. Centers for Disease Control and Prevention have classified the hantavirus as a 'level 3 emergency response', the lowest level for emergency activation. Experts have emphasized the low likelihood of a wide-spread outbreak. However, the outbreak has brought authorities to high alert. They are urging all those who had contact with passengers that left the Hondius ship to be on the lookout for any symptoms. A number of states in the United States have stated that they monitor residents who returned home from a cruise ship with no symptoms. Singapore has isolated and tested 2 residents who were aboard a ship. NON-REPLICATION OF NEW INFECTIONS IN THE NETHERLANDS The Dutch Health Authorities announced on Friday that three?people? who were close to the Dutchwoman before she was removed from a flight in Johannesburg, on April 25, have now tested negative for this virus. The World Health Organization reported that a flight attendant was among them. She had been admitted into a hospital in Amsterdam, with symptoms of an infection. Christian Lindmeier is a spokesperson for the World Health Organization. He told reporters in Geneva, that the flight attendant was in "close contact" with the passenger, but still tested negative. He said: "That should have convinced nearly everyone that this virus is dangerous, but only for those who are infected. The risk to the general population remains very low." No SYMPTOMATIC Passengers on Board Ship Oceanwide, a cruise operator, said on Thursday that there were no passengers with symptoms of an infection on board. The ship was scheduled to dock at Tenerife on the Canary Islands on Sunday morning. The WHO said that it is working on a step-by-step guide for the passengers who remain on board the ship to disembark. The Dutch government announced on Friday that it is still working on plans for the repatriation of 10 Dutch citizens on board and that it is too early to reveal details. Foreign Affairs Minister Tom Berendsen stated that the Netherlands only had responsibility for the Dutch passengers aboard the ship sailing under Dutch flag. However, it felt responsible to ensure all passengers returned home safely.
-
Senior executive says Ryanair will close Thessaloniki in Greece because of high fees
A senior executive announced on Friday that Ryanair would 'close its operating base' at?Greece’s?Thessaloniki Airport this winter due to increased fees by airport operator Fraport. Ryanair's Chief commercial officer Jason?McGuinness told reporters in Athens that there had been no progress made in talks between Fraport and the low-cost airline. Fraport has increased fees for airlines operating at some Greek airports. McGuinness stated that Fraport Greece has continued to raise charges which are 66% higher than the pre-Covid levels. He added that the combined moves would result in the loss of 700,000 flights and 12 routes throughout Greece, as well as the suspension of operations at Chania Airport and Heraklion Airports during off-peak seasons.
European stocks fall as Middle East tensions escalate
European?shares fell on Friday, with broad losses, as a flare up in the Middle -East conflict impacted risk sentiment at the end of a geopolitical week.
The pan-European STOXX 600 ended down 0.7%, at 612.14, but it recorded a small second consecutive weekly gain. The major regional markets also fell, led by Germany's DAX which dropped 1.3%.
Washington expects an Iranian response to its latest proposal for ending the Gulf conflict as early as Friday, despite the fact that U.S. forces and Iranian forces are clashing and the United Arab Emirates is being attacked again.
Richard Flax is the chief investment officer of Moneyfarm. He said that investors "understand?that the path to peace will not be smooth, linear, or clean. There?will be disagreements and setbacks on the way."
European stocks are sensitive to geopolitical headlines. The region's dependence on energy fuels concerns about inflation and economic growth.
The?U.S. Donald Trump warned that the European Union could face "much greater" tariffs in July if they failed to meet their trade commitments.
Financials and Industrials were the two biggest losers, falling 0.7% and 1.5 % respectively.
Rheinmetall's shares fell 9.2% after JPMorgan lowered the defense group from "overweight" to "neutral". The company's first-quarter results, released this week, showed revenue that was below analyst expectations. Defence sector fell 3.6%.
IAG, the owner of British Airways, shed?2,8% after forecasting a lower annual profit due to rising jet fuel prices. The travel index dropped 1.4%.
Commerzbank announced that it will cut 3,000 positions to increase profits and ward off an Italian UniCredit takeover. The stocks closed down by 3.9% and 1.3% respectively.
Amadeus climbed 1.9% after the Spanish company of travel technology reported a quarterly core profit that was above market expectations. It also maintained its guidance.
While Executive Board member Isabel Schnabel has warned about the increased inflation risks associated with the Iran War, President of the European Central Bank Christine Lagarde stated that the central bank was well positioned to react to any increase in inflation.
The markets are pricing in at least two ECB rate increases this year.
Employment in the United States increased more than anticipated in April. This indicates a robust labour market, and reinforces expectations that Federal Reserve will maintain rates for some time. Reporting by Twesha Dhikshit and Avinash p in Bengaluru. (Editing by Eileen Soreng, Mark Potter and Eileen Soreng)
(source: Reuters)