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Vietnam Orders Airlines to Accelerate U.S. Deals as Washington Trade Probes Mount
Vietnam's major airlines have been ordered to examine the progress of multi-billion dollar agreements with Boeing and Pratt & Whitney and look at new import deals with American firms, as Hanoi tries to bolster its hand in a?trade negotiating with the United States. The directive was issued on June 5, and then reviewed on Tuesday by the Ministry of Industry and Trade. This ministry is in charge of Vietnam's efforts to "demonstrate" to Washington the fact that the bilateral trade agreements are being implemented. The move follows three separate Trump Administration probes that targeted Hanoi over alleged trade distortions through?excessive capacity, intellectual-property violations, and using goods produced with forced labour. The document explains that the Ministry of Transport has asked flag carrier Vietnam Airlines and budget airline Vietjet to give details about the implementation and delivery of deals signed with U.S. Partners, as well as to suggest ways to increase imports. Vietnam Airlines and Vietjet signed a joint agreement to buy 250 737 MAX aircraft. Sun Phu Quoc Airways is the aviation arm of Sun Group, and has separately contracted to buy 40 Boeing 787 Dreamliner wide body jets. According to the document, Vietjet has a contract for engines with Pratt & Whitney (part of RTX Group) for its Airbus planes. Vietnam's exports into the United States have soared. U.S. data shows that the U.S. trade gap with Vietnam was $54.8 billion during the first quarter of this year. This is higher than the deficits with China and Mexico. The Trump administration has said repeatedly that it wants to reduce the trade deficit.
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Fifth Qatari-controlled LNG tanker exits Hormuz strait
Ship-tracking data revealed that a fifth Qatari LNG tanker?transited the Strait of Hormuz carrying a cargo. This brings the total to nine?LNG vessels which have?exited this waterway with a cargo since the onset of the 'war. According to Kper and LSEG, the Al Daayen was controlled by QatarEnergy. It was spotted on ship-tracking data around June 4-5 off the coasts of Qatar. On Monday, it reappeared in ship-tracking data that showed the vessel east of the Strait and heading towards?China. According to Kper, the tanker reportedly loaded a cargo?on 1 June at Qatar's Ras Laffan Terminal. According to Vortexa, an analytics firm, a ballast LNG ship managed to return to the waterway after delivering a shipment to India. The tanker, which is managed by the Abu 'Dhabi National oil Company (ADNOC), had entered the Strait before to load cargo on Das Island between April 19th and May 23th. In a late Monday note, Vortexa said that satellite imagery in the UAE confirmed ADNOC’s Al Hamra carrier had been near the Das Island Terminal late last week after completing a?inbound transit of chokepoint. The vessel's last appearance on AIS (Automatic Identifier System) was on 30 May, before its?dark' inbound transit for a?reload – its second since April. QatarEnergy & ADNOC didn't immediately respond to comments outside normal business hours. The 'U.S. and Israeli war against Iran, which began on February -28, has severely restricted shipping through the Strait of Hormuz. This is a major transit route that accounts for a 'fifth of world oil & LNG supply. ?Shipping traffic through this strait was averaging 125-140 daily passages before the war. Around 20,000 seafarers are still stranded in the Gulf on hundreds of vessels. (Reporting and editing by Edwina G. Gibbs; Reporting by Emily Chow)
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New Zealand's Capital City is hit by a storm, which cancels flights and ferries
On Tuesday, gale-force winds and rough waves battered New Zealand’s capital city of Wellington. This forced ferry and flight cancellations and road closures. Authorities urged hundreds along the?south coast of the city?to evacuate. An airport spokesperson confirmed by email that a light?aircraft was briefly blown over at Wellington Airport after a strong wind gust tipped it onto its wing. It said, "Nobody was hurt and it was quickly rectified." The 'New Zealand Herald' reported that the plane was just landing and the passengers had already disembarked when it tipped. At Wellington Airport, eight flights were canceled. Air New Zealand has informed passengers of the possibility that high winds may disrupt flights out of Wellington, and provided rebooking alternatives. The weather bureau has warned that waves of up to 29.5" (0.9 m) could be expected along Wellington's south shore. We are now in the forecast period of most significant swell effects. The Wellington City Council posted on Facebook that if you are still in the evacuation area and haven't left your home, it is best to "shelter-in-place". The ferry service between New Zealand’s North Island and?South Islands was cancelled on Tuesday. The weather bureau has forecast that waves will rise "rapidly" on Tuesday morning and early afternoon, along the east coasts in the North and South Islands as well as at the Chatham Islands. Island Bay resident Jonathan Delich, owner of Cook Strait Fishing Charters told the New Zealand Herald that he had cancelled all operations scheduled for Tuesday and Wednesday. Delich stated, "We would not take you fishing even if it was your desire... today no one with a sane mind would be on the water." Reporting by Renju José in Sydney, Editing by Lincoln Feast
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The new US-Canada Bridge is nearing completion despite Trump's earlier threats
The new $4.7 billion bridge between Detroit and Windsor in Ontario is set to open within the next few weeks, according to a bridge authority on Monday. This comes despite President Donald Trump's threat to block its opening in February. Sources say a formal ribbon-cutting will take place later this week. Detroit media outlets reported that the Gordie-Howe International Bridge was expected to be open for traffic on June 15, according to reports. In February, Trump cited Canada's refusal to allow some U.S. alcohol products to be sold in Canadian stores, Canada's tariffs for dairy products, and Canada's trade talks with China as reasons why he may not permit the bridge to open. A spokesperson for Michigan Governor Gretchen Whitmer and the Canadian Embassy in Washington both declined to comment. The White House declined to comment immediately. A spokesperson from the Windsor-Detroit Bridge Authority stated that the project team is making good progress towards a June 21 opening, "which will serve as a vital link for economic development between the two nations." Canada financed the construction of the bridge that began in 2018 because the U.S. refused. Tolls will cover the costs over a period of 30 years. Homeland Security Secretary Markwayne Mullin stated at a Senate Hearing last week that the department was "good-to-go" for staffing the Gordie Howe Bridge. The new bridge is expected to ease traffic for trucks on the privately-owned Ambassador Bridge, which leads into Detroit. Detroit is the largest?freight hub on the U.S. Canada border. Commercial trucks traded $126 billion worth of goods in 2023. According to a University of Windsor report, it will?save truckers $2.3 billion in 30 years by cutting 20 minutes from the crossing time. In his second term, Trump has issued a number of threats and dramatically increased tariffs against the U.S.' northern neighbor. In January, Trump said that he would impose 100% tariffs on Canada if they followed through with a trade agreement with China. Trump said in January that the U.S. will decertify some Bombardier planes, and threatened to impose 50% tariffs on imports of all aircraft manufactured in Canada until Ottawa certifies a number if planes made by U.S. competitor Gulfstream. Trump dropped his threat when Canada certified certain U.S. aircraft. (Reporting and editing by Sonali Paul; David Shepardson)
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S&P downgrades JetBlue deeper into junk as high fuel costs dent recovery
S&P, a global ratings agency, said that JetBlue Airways was downgraded to "CCC+" on Monday from "B-", pushing it further into junk status as high jet fuel prices?have hampered its recovery. The 'low-cost carrier' has been trying to restore its profitability by cost cutting, network changes, and improving operational reliability. However, higher fuel prices have complicated the turnaround plans. Low-cost and budget airlines are particularly vulnerable to fuel price spikes linked to the Iran War, as they have limited capacity to pass higher costs on to customers without risking their demand in a highly competitive travel market. S&P stated that "given the Middle -East conflict, and the material increase in oil and jet fuel costs, we expect JetBlue’s operating performance to be significantly impacted over the next 12 months." The strong demand environment will continue to support higher fares. However, we do not expect to generate positive free cash flows until 2028. We project leverage of about 10x at the end 2027. JetBlue could face higher borrowing costs if its junk rating is increased. It may also be unable to access capital markets, at a time that it needs additional liquidity to fund its operations. Fitch downgraded New York's?carrier from "B" to "CCC+", citing ongoing operating losses and negative cash flow. S&P maintained its outlook for JetBlue, expecting the airline to have enough liquidity to cover the?projected?free cash flow deficits until 2027. There are no near-term maturities, and no default or restructuring is expected in the next 12 months. JetBlue secured a $500-million debt financing commitment in support of up to 22 aircraft earlier this year. The company also has the option to raise $250-million more.
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Canada launches loan program for airlines to deal with high fuel costs
In a 'Monday statement, the Canadian finance ministry announced that a new loan programme would be launched to assist domestic airlines in dealing with high fuel costs and maintaining operations and jobs. The 'Iran war' has caused jet fuel prices to skyrocket, eroding profit margins and straining balance sheets. This pressure has led governments to extend support to domestic carriers in order to maintain affordable airfares and preserve competition. The Canadian government said that under the 'loan program', eligible airlines will receive up to C$150,000,000 ($107.5 Million) in repaid liquidity support. The government must also balance the need to protect the free market with its desire to preserve it. WestJet, the Canadian airline, opposed Ottawa's plan to offer loans to airlines. Instead of continuing with "costly and market-distorting subsides," WestJet urged the government to instead help build a future for Canada's aviation sector. WestJet, owned by Onex Corp, said that the United States has not bailed out any airlines, in order to maintain a level playing field. The Canadian government did not immediately respond to an inquiry about WestJet's comments. Air Canada, Canada's largest airline, said it had a "very strong balance sheet" that was built to prepare for events like the recent fuel price spike. It added, "we are able adapt and manage this particular situation." Last month, the U.S. Transportation Secretary Sean Duffy stated that he didn't believe that the government should bail out low cost carriers who had requested $2.5 billion of relief. He encouraged the airlines to instead turn to the private market. In May, the jet fuel crisis claimed its first victim when U.S. Low-cost carrier Spirit Airlines stopped operations.
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Senators want to investigate the US Transport chief's road trip, which was paid for by corporate donors
A group of six Democratic Senators demanded on Monday that the government 'investigate' U.S. Transportation Sec. Sean Duffy after he took a road trip to film a family vacation filmed for a web video series financed by corporate donors whose firms his department regulates. The Senators Patty Murray and Elizabeth Warren asked the DOT Office of Inspector General for a review of the video series. They said Duffy's actions raised "serious concerns about the use of funds and possible misconduct." Nate Sizemore is a Duffy spokesperson who called the "witch-hunt" an effort and claimed that career ethics officials had cleared Duffy of all aspects of his participation in the Great?American?Road trip. Sizemore said, "This is rich, coming from senators who accept millions in campaign donations from companies that they have jurisdiction over, to fund their private jets and steak dinners as well as fancy retreats." Senators pointed out that the trip had been funded by a non-profit organization that received substantial contributions from USDOT companies, such as Boeing, Toyota, United Airlines and Shell. The senators said, "We are concerned about this possible mix between personal activities and professional activities." They argued that, if the trip was for personal reasons, Duffy shouldn't have accepted gas, hotel accommodations, and other travel costs "from a not-for-profit funded directly by the companies the secretary regulates." Companies declined to comment on the matter or didn't respond immediately to comments. The trip, filmed over a period of 24 days, included a visit to Fenway Park, Boston, St. Louis, and Philadelphia, as well as sites in Montana and Philadelphia. USDOT hasn't?yet published the video series. Duffy, father of nine, former reality television star, and member of the?Congress said that neither he nor his family received any salary or royalties from the show. The road trip was a series of "short getaways" lasting one to two days over an eight-month span, and his children's spring break, which lasted nine days in April. The five-part series will be available on YouTube. Citizens for Responsibility and Ethics in Washington filed a?ethics?complaint suggesting that the situation could have violated federal gift rules. The group called for an investigation by the Office of Inspector General of the Transportation Department and pointed out that a Toyota car is prominently displayed in the promotional video of the series. (Reporting and editing by Mark Porter, Aurora Ellis, and David Shepardson)
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Underwater footage of a great white shark during the Mediterranean cleanup caught by the camera
Divers who were removing abandoned nets in the central Mediterranean, between Italy and North Africa have captured what they believe to be the first ever underwater footage of an adult great 'white shark?in the region. The sighting was made when a team, led by the Healthy Seas Foundation, recovered ghost nets from the wreckage of a ship in the Strait of Sicily - a biodiversity hotspot that has been heavily affected by industrial fishing. The video was taken last week and released on Monday. It shows a shark flanked by a dozen striped?pilot?fish. These fish often accompany large predators to pick up leftovers. Derk Remmers, a volunteer diver from Ghost Diving (one of the partners in the project), filmed and took photos of the shark. Remmers stated that an offshore underwater shark encounter is "insane" in a press release. A second member of the diving crew, Pascal van Erp said on Facebook that he believed the shark was attracted to the dead marine life caught in the abandoned nets, which included many sea turtles. The foundation said that although there were 'occasional sightings' of great whites, it is not known the size of their population. Previous encounters have also not been recorded by divers. Veronika Mikos, director of Healthy Seas, said: "Moments such as this remind us that there is still life in the Mediterranean's offshore waters. It is important to protect them from preventable threats such as abandoned fishing gear and overfishing." Researchers working with the mission stated that the sighting would help to improve our understanding of the distribution and behavior of this critically endangered species. However, further analysis is needed before we can draw any broader conclusions. (Reporting and editing by Alvise Armillini, with Crispian Balmer)
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 increase fares and re-evaluate their 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 a spike in fuel costs will have "a significant impact" on its first-quarter results.
AIRASIA X A Malaysian airline said that it will suspend its services between Melbourne and Denpasar, and Adelaide and Denpasar on June 18, due to higher fuel prices.
Executives had previously stated that the airline has cut 10% of its flights and imposed a fuel surcharge of around 20%.
AIR CANADA
Fuel price volatility has caused Canada's largest carrier to suspend its full-year forecast.
The company had announced previously that it would reduce four of its daily flights from New York to just 38 due to rising fuel prices.
AIR CHINA, CHINA SOUTHERN AIRLINES, REGIONAL CHINESE CARRIER
Chinese airlines are increasing fuel surcharges on domestic flights starting May 16. Surcharges will range from 30 to 90 Yuan ($4-$13) for flights less than 800 km. Surcharges for longer routes will rise by up to 170 yuan.
AIR FRANCE-KLM
The airline group expects to pay $2.4 billion more in fuel this year. The airline group has downgraded the full-year forecast for capacity growth to an increase between 2% and 4%. Previously, it had guided to a 3% to 5 percent increase.
The airline announced earlier that it would be increasing the price of long-haul tickets to address rising fuel costs. Cabin fares will increase by 50 euros ($58).
KLM, the Dutch subsidiary of the group, announced on April 16 that it would cancel 160 flights across Europe in the next month due to increasing fuel prices.
AIR INDIA
Between June and August, the Indian carrier will temporarily reduce flights on several international destinations.
Bloomberg News reported that the airline was considering furloughing employees who are not technical and reducing flight capacity more than 20% over the next three month.
Air India said that it will also revise the fuel surcharge, moving from a flat surcharge for domestic flights 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
The New Zealand airline said that it will review its capital expenditure plans and the timing for aircraft deliveries in order to better align themselves with market demand.
It was one of the first carriers to announce a large increase in ticket prices as the conflict began. The airline warned that further capacity consolidation could occur if fuel costs remain high.
AIR TRANSAT
Canadian Airlines said that it will reduce its planned capacity of 6% between May and October this year. The airline expects to make cuts on routes to Europe, the Caribbean and Cuba, while suspending service until October.
AKASA AIR
India's Akasa Airlines introduced a fuel charge ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights.
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 lower expectations to a deficit, and stated that it expected jet fuel costs to rise by more than 4 billion dollars this year.
The government has increased the fees for checked bags on domestic flights and short-haul international flight by $50 for the third bag and $10 for the second bag. It also reduced certain benefits for economy passengers.
According to the Japanese airline, higher fuel costs will increase its costs by approximately 140 billion yen (883,3 million dollars) this year. However, cost reductions, fares, and hedging are expected to reduce that impact to about 60 billion yen. The airline is also looking at a domestic fuel charge for the fiscal year beginning 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 said it will reduce fuel surcharges on most flights starting May 16, as part of its "agile response" in response to the fluctuation of jet fuel prices.
CEBU AIR
In response to the rising fuel prices, the Philippine-based airline announced that it has implemented fare adjustments as well as surcharges in various parts of its network.
DELTA AIR LINES
Delta announced that it would reduce capacity by approximately 3.5 percentage points compared to its original plan, and increase fees for checked baggage in order to offset the costs of jet fuel. The increase will be $10 on the first and second bags and $50 on third bags. The U.S. carrier pulled back on all capacity increases for the second quarter, and forecast profits below Wall Street expectations.
EASYJET
EasyJet has warned that it will suffer a larger half-year loss before tax of 540-560 millions pounds ($721-748million), which includes 25 million pound in additional fuel costs for March.
FRONTIER Airlines According to The Wall Street Journal, 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 company 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 (US$49).
IAG, the owner of British Airways, warned that its annual profit will be lower than anticipated due to rising jet fuel prices and supply disruptions.
It had previously stated that it would increase ticket prices in order to reflect the higher fuel costs. Despite fuel hedges, the company was "not immune" from the wider fallout of 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 has suspended its full-year forecast and announced that it will slow hiring, reduce capacity and raise fares in order to mitigate the impact of rising fuel costs.
Sources with knowledge on the subject say that KOREAN Air entered emergency management mode in April as oil prices rose.
LATAM AIRLINES
Fuel prices have increased, causing the airline to cut its core earnings forecast for 2026.
LUFTHANSA
The German airline group has said that it will be hit by jet fuel prices of 1.7 billion euros in 2026.
ITA Airways, a member of the group, announced that it would increase ticket prices by between 5% to 10% in 2026, to compensate for rising fuel costs.
The Lufthansa Group announced in April a new low-cost "Economy Basic", which limits free carry-on luggage to a laptop bag or small backpack.
The airline had previously cut 20,000 short-haul flight from its schedule until October, claiming that it was the equivalent of 40,000 metric tonnes of jet fuel.
PAKISTAN INTERNATIONAL FLIGHTS
The airline said that it would raise domestic fares up to $20, and international fares up to $100. It cited higher fuel surcharges as the reason for this.
QANTAS AIRWAYS
Qantas, an Australian airline, said that it has delayed a planned A$150-million ($107-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.
RYANAIR
Michael O'Leary, CEO of Ryanair, warned that the airline's profits could be "a little under pressure" if oil prices continue to rise in the fiscal year that ends March 2027.
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
Low-cost carriers in the United States have abruptly shut down after collapsing due to financial pressures. This includes the steep rise in fuel prices.
SPRING AIRLINES
Chinese budget airline, China Airlines, announced that it will increase fuel surcharges for domestic flights starting April 5.
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 a fuel price spike that would cost the airline billions in the quarter.
The previous increase in the cost of checked bags was $10.
The Portuguese airline claimed that price increases would partially offset the impact of fuel price changes on revenue.
THAI AIRASIA
Thai low-cost airline said that it would reduce its overall seat capacity by an average of 30 percent between May and July to offset the impact of rising fuel prices 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.
TURKISH AIRLINES LUFTHANSA
SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would charge a temporary fuel fee of 10 euros for each passenger on routes connecting Turkey with mainland Europe. The fuel surcharge will apply 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, South Korean Low-cost Airlines, announced that it would furlough cabin crew in May and/or June without pay as part of measures to address the effects of war.
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 fuel costs. The company had already implemented five fare hikes late in the first-quarter, along with increased baggage fees that it claimed were helping to offset rising fuel prices.
The carrier forecasted second-quarter and annual profits that were below Wall Street expectations. It said it would recover only 40-50% through fares and revenue measures during the second quarter. This figure was expected to improve to 70-80% by the third quarter and up to 85-100% in the fourth.
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 ATLANTIC
Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will be difficult to achieve profitability.
VIRGIN AUSTRALIA
Virgin Australia has said that it expects fuel costs to increase by around A$30-40million in the second half of the fiscal year and a reduction of 1% 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.
WIZZ AIR
Low-cost carrier revised upwards its guidance, citing strong bookings in advance and quick action to offset rising fuel prices and flight cancelations by adding capacity on new and existing routes and using promotional rates. The company had warned of a possible profit drop at the beginning of the Iran War.
(source: Reuters)