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WFP: Middle East conflict is causing millions to go hungry
U.N. World Food Programme stated on Friday that the Middle East conflict has pushed?millions? of people towards hunger as rising fuel and transportation costs have pushed up food prices, while funding shortages force aid agencies cut back their assistance. The joint U.S. and Israeli strikes on Iran last February triggered a conflict that spread across the Gulf to Lebanon and disrupted key shipping routes including the Strait of Hormuz. This forced vessels to reroute, and severely constrained global energy and supply chains. WFP predicted in March that if oil prices remain around $100 per barrel until June, up to?45 millions people may face acute food security. The WFP said that this scenario is unfolding now, as benchmark crude prices have been above this level since early march. The households in Afghanistan, Somalia, and Sri Lanka have been the most severely affected. They are under increasing pressure because of higher fuel prices, food price spikes and income losses. WFP says that in Somalia, roughly a third (6.5 million) of the population will be facing severe hunger by 2026. In Afghanistan, 17.4 millions people could also be affected. The WFP said that the situation will worsen as an additional 2,5 million Somalis and 2,3 million Afghans could face food insecurity, if disruptions continue. Both countries are dependent on imported food and energy. FOOD SHORTAGES HIT VULNERABLE CHILDREN Aid agencies are facing a severe funding shortage as a result of the Middle East crisis. WFP expects to serve 1,5 million fewer people in 2026 and 9 million less if the situation continues for six months. The WFP is facing a funding gap of 89% in Somalia. This will lead to a shortage of food for Somalian children aged under five who suffer from moderate malnutrition. We are running out of food. "We are running out of food." Jean-Martin Bauer is the director of WFP’s Food Security and Nutrition Analysis Service. Supply chain problems are causing the situation to worsen, as fewer ships stop in Somalia due to disruptions in shipping in Indian Ocean. Some WFP stocks are also being held in the Salalah Port, Oman. This has caused critical delays. The WFP said that the rising jet fuel costs are also causing higher operating costs for the United Nations Humanitarian Air Service, which is the only way to reach hard-to-reach places. The WFP reported that in Afghanistan, rising fuel costs have increased aid transport costs by up to five times, while delivery times have risen from 10 to 75 days because trucks have to use alternate corridors. (Reporting and editing by Kate Mayberry, Sharon Singleton, and Olivia Le Poidevin)
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Azerbaijan confirms five of its citizens were killed in attacks against vessels in the Sea of Azov
Azerbaijan Foreign Ministry announced on Friday that five Azerbaijani citizens died and three were injured in an attack?on two cargo ships?in the Sea of?Azov. In response to a question regarding the vessels that were hit in Taganrog Bay the ministry stated that the ships didn't belong to Azerbaijan, but the crews consisted of 25 Azerbaijani nationals. On Friday, Ukraine said that drones had hit five ships at the ports of Mariupol, Berdyansk, and the Sea of Azov as well as in the coastal waters of Russian controlled territories. Robert Brovdi said that the commander of the Ukrainian drone forces had painted over the names and turned off the radars on dry cargo ships, as well as a tanker, that were "stealing" Ukrainian grain, and transferring fuel and military cargo. Russian Deputy Minister of Foreign Affairs Mikhail Galuzin has blamed Ukraine for the attacks against cargo vessels and expressed his condolences with the families of Azerbaijani crew members. "We are fully aware of the country that uses drones, both aerial and maritime, to attack civilian vessels on the Black Sea or in the Mediterranean. Galuzin, quoted by TASS, said that it is a 'well-known' country. (Reporting and Writing by Maxim Rodionov, Editing by Andrew Osborn & Toby Chopra).
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Azerbaijan confirms five of its citizens were killed in attacks against vessels in the Sea of Azov
Azerbaijan’s Foreign Ministry announced on Friday that five Azerbaijani citizens were killed, and three others injured in an attack?on two cargo vessels?in the Sea of Azov. In response to a question regarding the vessels that were hit in Taganrog Bay, it was revealed that the crews included 25 Azerbaijani nationals in total but the ships did not belong to Azerbaijan. On?Friday?, Ukraine announced that its drones?had?hit five ships at the ports of Mariupol, Berdyansk and in the coastal waters in Russian-controlled territory. Robert 'Brovdi is the commander of Ukrainian drone force. He said that in a statement that his drones had?hit a tanker and two dry cargo ships that were "stealing" Ukrainian grain and transferring fuel and military cargo. The naming of the vessels was painted over, and their radars were turned off.
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Defence ministry reports that a drone self-detonates at a port on the Black Sea in Romania.
The defence ministry reported that a marine drone of the type used during the war in Ukraine, a neighbouring country, self-detonated in Romania's Black Sea port of Constanta, near an oil terminal. No casualties were caused, according to the ministry. Raed Arafat, the deputy interior minister, said that two helicopters were scouring the area to look for drones. "We now know that there is a risk of self-detonation. We have... evacuated in case there are other drones," said Arafat. "We're not panicking, these measures are only preventative." Two people were injured by the explosion, which occurred a week after the Russian drone that crashed into the apartment building near the border with Ukraine in Galati in Romania's southeast. This was the first drone strike in the Russia-Ukraine conflict to hit a densely-populated area in a NATO country. The?defence minister has reported that Romania, which is a NATO member and European Union member and shares a border of 650 km (400 miles) with Ukraine, has experienced 28 drone incursions in its airspace since Moscow began attacking Ukrainian ports on the Danube. Also, fragments of Ukrainian drones have landed on Romanian soil. Reporting by Luiza Ili. Mark Potter (Editing by Mark Potter).
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China's Xi will visit North Korea to push for deeper ties
China announced on Friday that President Xi Jinping will visit North 'Korea for a two-day tour starting June '8. This is his first trip in almost seven years. Beijing wants to reassert ties Pyongyang as its only formal treaty ally. Beijing is trying to bring Pyongyang into its fold again after the COVID-19 virus pandemic frozen exchanges. Kim Jong Un has also deepened relations with Moscow, sending troops and arms to support Russia's invasion in Ukraine. John Delury is a senior fellow at the Asia Society. He said, "The implicit message from the Chinese side... is that we are still the main actor when it comes North Korea." "Russia is one of the audiences." The announcement made by the Chinese Communist Party's international department on Friday follows Xi’s summits with Donald Trump, the U.S. president and Vladimir Putin, the Russian president in Beijing last'month. KCNA, the state news agency, reported that Xi was visiting North Korea on Kim's invitation. An official of the Blue House, the president's presidential office, said that South Korea views the trip as a high-level bilateral meeting unaligned with Moscow. The official stated that "we do not see this as a coordinated action by the three countries. Neither are we certain how it could be related to the U.S. China summit." Seoul expects Beijing will continue to play a 'constructive role in peninsula issues', the Blue House said separately. Kim was invited to a large military parade held in Beijing, China last September. He arrived on his green armored train. After a six-year hiatus caused by the pandemic in 2009, passenger train services resumed between the two capitals in March. Air China then restarted flights. Chinese tourists are still not allowed to book, but some business travellers and students on exchange have. First Overseas Trip This Year Xi will make his first overseas trip this year when he visits Pyongyang. The 72-year old, who travels abroad less often, was last seen in South Korea at the end of October, where he met Trump. Delury said that Xi should keep a close eye on the situation in Pyongyang. He said Xi's visit to both Koreas would be a 'big?win' for the peninsula. He added that "the Chinese are fond of maintaining a certain symmetry" between the two Koreas. Trump has said that he is open to another meeting with Kim, the North Korean leader, after having met him three times during his first term. Since Xi was appointed China's leader in 2012 he has visited North Korea twice and its southern neighbor once. In 2008, he visited Pyongyang as vice president and met the then-leader Kim Jong Il. He is the father of?the current leader. Kim, who visited a factory to make nuclear material this week, called for a "significant" expansion of Pyongyang’s atomic arsenal. Experts believe that Kim's visit to the site is linked to his upcoming meeting with Xi. Kim had inspected the plans of a new intercontinental missile called "Hwasong-20" before his visit to Beijing in September. Reporting by Xiuhao chen and Liz Lee, in Beijing; Jack Kim, Kyu -seok Shim, and Brenda Goh, in Seoul. Editing by Himani sarkar, Kate Mayberry, and Clarence Fernandez.
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Take Five: Houston we have an IPO
SpaceX's public listing will be the main event, as it is likely to become among the 10 most valuable U.S.-listed companies after it goes public. Meanwhile, a rate increase from the European Central Bank seems inevitable on Thursday. OPEC+ meets in the background of the Iran War to decide on its oil production quotas. On Thursday, the World Cup begins in Mexico. Lewis Krauskopf, Gregor Stuart Hunter, Karin Strohecker, Yoruk Bahceli and Ahmad Ghaddar, all from New York, and?Yoruk?Bahceli in London, will provide you with the information that you need about this week's financial markets. IP-OH! Wall Street braces for Elon Musk's rocket-and-satellite company SpaceX to make its initial public offering -- an event that is likely to be the first in a series of mega IPOs over the next few months. SpaceX's Nasdaq launch -- which is expected to take place on June 12 -- is fast approaching, as the high-flying technology stocks have been leading a spectacular rally for major U.S. stock indexes. The company plans to raise $75 billion, a record amount. It aims for a $1.75 trillion valuation. OpenAI, a giant in the AI field, is also expected to make its debut soon after. Anthropic announced on June 1 that it had filed a confidential U.S. IPO. Investors will be focusing on the monthly U.S. Consumer Price Index as they grapple with inflation concerns triggered by higher energy costs. Oracle's quarterly earnings report will continue to keep the tech stocks and AI hot trade in the spotlight. NIP IT IN BUD The ECB will be the first of the world's largest central banks to raise rates since the Iran war. Frankfurt wants to avoid the same mistake as 2022. The 25-basis point rate increase expected on Thursday is seen as an "insurance", signaling that the ECB will not allow inflation to become entrenched, rather than the beginning of a large-scale hike cycle. The current crisis has already impacted the economy, and policymakers must tread a fine line to avoid accelerating the decline. The markets believe that the ECB will only raise rates twice or three times in this year. The 2026 FIFA World Cup begins on Thursday. Mexico, Canada and United States will co-host the world's largest sporting event. Last time, approximately 5 billion people watched the event. With more teams and venues to choose from, we can expect an even larger global binge. As fans flock to the United States, they buy beer, and purchase merchandise. The macro boost The macro boost is less spectacular. Growth tends to be short lived and spending often gets reshuffled. For the office sweepstake, Goldman Sachs' model, based on Elo scores for chessplayers, gives Spain a 26% edge, followed by France. Argentina, and Brazil. Business as usual Sources say that OPEC+ Ministers will agree on a target increase for July production this Sunday as they signal business as usual despite Iran's war. Investors are waiting for progress in the peace talks that could open up the Strait of Hormuz. Prices fell by more than 19% in May, mostly on the hope of a deal. From April to June, seven core OPEC+ member countries have increased their quotas nearly 600 000 barrels per day. Yet, actual production has fallen to 33.19 millions bpd from 42.77 in February. The July quota will be up by 188,000 bpd in line with the June quota. The International Energy Agency warned that global inventories may reach critical levels before summer peak demand. CHINA HEALTH CHECK China will have its monthly health test in the next week. Trade data for May is due to be released on Tuesday and should provide the latest update as to how Asia's largest economy coped with the Iran War's third month. Investors will be able to get a second read on Wednesday, including whether the consumer price inflation will continue on its upward trajectory that it has been on since October. The gauge for producer prices, which turned positive in March after almost four years of negative readings, will also be a focus. The data on lending for May will also be released this week. The total social financing, which is the broadest measure of credit to China's economy, showed the lowest growth in two years for April.
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New York Times Business News - June 5,
These are the top stories from the New York Times' business pages. ? These stories have not been?verified? and we cannot vouch for the accuracy of these reports. Nick Bilton stated that he had spoken to the remaining correspondents of the show, Lesley?Stahl Jon Wertheim Bill Whitaker. They were all considering whether or not they wanted to continue with the show. The nose gear of a Lufthansa operated Boeing 787-9 Dreamliner?collapsed? while the plane was parked in Frankfurt Airport, Germany. Jamie Dimon is the CEO of JPMorgan and he plans to make a pitch to investors about 'Elon Musk rocket company', while banks prepare to make hefty IPO fees. The Supreme Court has ruled that the federal Securities and Exchange Commission (SEC) can recover money from companies or individuals who gained it illegally even if they are unable to prove a loss for investors. (Compiled from Bengaluru Newsroom)
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Maguire: Key reasons why Trump’s efforts to save the US coal industry may fail.
The U.S. president's efforts to revive the coal industry in the United States tap into a powerful mix of energy policy, industrial policy, and electoral politics. But the data shows that coal's decline has been driven by structural factors that are unlikely ever to reverse. This means that even if the administration allocates tens or hundreds of millions to coal producers and utilities, it is likely to result in a misallocation, increased emissions and higher electricity costs for consumers. There are four reasons that efforts to support coal may ultimately fail. 1. ECONOMICS ARE STUBBORNLY UNFAVORABLE Why subsidizing coal could backfire. Subsidizing the coal industry is contrary to market fundamentals. Taxpayers are left to support a non-competitive sector while power prices rise. The share of coal in the U.S. electric generation fell from 60% in 2000 to 16% by 2025. Natural gas has become more popular, cheaper and more energy dense. It is also easier to transport. The market tells a different story. Since the early 2000s, no U.S. utilities have attempted to build any new coal-fired plants. During the same time period, many gas-fired power plants were built, reflecting a much stronger economics as well as operational advantages. The difference is apparent in the levelized costs of energy. Lazard data shows that the cost of power from a new gas plant is about $64/MWh, compared to $115/MWh with a coal plant. When utilities are focused on minimizing customer costs, they have little incentive to select coal. The economics of existing coal plants are even worse due to their age, high maintenance costs and inefficiency. Government subsidies may prolong the operation of coal plants, but only if they extend?the lives of assets that are already obsolete economically. 2. CONSTRUCTION COMPLEX AND RISKY This could be a bad idea: Because coal plants are slower and harder to build, they're more likely to experience delays and overruns in cost even with government support. Construction of modern combined-cycle gas generator (CCGT?) plants is relatively fast and easy. By contrast, coal plants require large boilers, fuel handling systems and specialized infrastructure. Gas plants can burn fuel without any pre-processing. Coal plants must handle large volumes of solid fuels, which require transport, crushing and storage yards. They also need elaborate combustion systems. These systems also require expensive emissions-control technologies and ash disposal system, which adds to capital costs and regulatory complexity. The land requirements are also typically larger. The industry has lost a lot of knowledge. Few utilities or contractors have experience in building coal plants after decades of prioritizing the use of gas. Execution risks are increased, increasing the possibility of delays and unanticipated costs. These factors together make coal projects more costly, slower and less predictable. This is true even when the environment is favorable. 3. LOGISTICAL BURDENS The heavy transport and handling of coal can cause local opposition and increase costs. Gas is much easier to transport than coal. Gas can be transported continuously and cheaply via pipelines, while coal is hauled either by rail, truck or barge. According to the U.S. Energy Information Administration (EIA), approximately 1.14 pounds coal is needed to produce one kilowatt hour of electricity. One gigawatt of coal can be used to generate around 9,000 metric tonnes of coal each day. This is the equivalent of 90 freight cars in a freight train. A gas plant of the same size, on the other hand, would consume approximately 170 million cubic foot of natural gas per day, a volume which can be easily pumped through existing infrastructure. In order to expand coal power, it would be necessary not only to build new plants, but also make significant investments in storage, handling, and rail systems. These extra requirements increase costs and can create bottlenecks. Local challenges are also posed by these projects. The increased rail traffic, dust and noise can cause opposition in communities. This makes it harder for projects to be approved and sustained. The logistical and social constraints that coal faces further reduce its competitiveness. 4. LIMITED EXPORT UPSIDE This could be a disaster: Key overseas markets may not export coal because they produce it themselves or are moving away from it. As part of the coal revival plan,?boosting export capability is included. This includes proposals for a Gateway linking Wyoming production to ports along the U.S. West Coast that are aimed at supplying Asia. Asia dominates the global coal industry. China, India and Indonesia account for collectively more than 80% global coal supply. This region is also the leader in coal exports, which indicates a structural preference for supplying coal rather than importing it. Although U.S. coal does reach Asian markets, India is a notable purchaser. These flows are driven more by short-term price dynamics than by long-term dependency. India is heavily dependent on coal and investing in alternative sources of energy. If demand does not materialize, then large-scale infrastructure for export could be underutilized or stranded. Projects backed by the public could generate limited returns and lock in significant upfront costs. COAL CRUX These factors, when taken together, point out a fundamental mismatch in policy ambitions and economic reality. The government can intervene to slow the decline of coal, but cannot change the structural forces which have made it less attractive than other alternatives. Subsidies instead risk prolonging the life of an aging infrastructure and encouraging expensive new projects that have uncertain returns. They also support export strategies which are unlikely to be sustained over time. What appears politically appealing in the short-term could prove to be economically counterproductive. These are the opinions of the columnist, an author for. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X 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 7 days a weeks.
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)