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US Aviation Industry urges Congress to allocate $20 billion for air-traffic control upgrades
The U.S. aviation sector asked Congress to allocate $20 billion on Wednesday to complete a massive project to modernize America’s aging air traffic control system and reduce systemic flight disruptions. A coalition of aviation companies, including airlines, aircraft manufacturers, airports and unions, said that $20 billion was needed to upgrade or replace hundreds of old air traffic control systems, to deploy the latest technologies for controllers, and to develop advanced tools to manage airspace traffic to improve safety. The Congress allocated $12.5 billion for the project of replacing outdated technology and increasing staffing in air traffic control towers. The new spending will be largely devoted to developing new software which could make air travel more efficient. The letter signed by Boeing and Airbus as well as Airlines for America, U.S. Travel Association (USTA), Air 'Pilots Association (Air?Pilots Association) and many others stated that "Our nation’s aviation system is an important national asset but is under increasing pressure." Sean Duffy, U.S. Transportation secretary, told Congress in April that he wanted $10 billion to fund the next phase. The U.S. Department of Transportation had initially requested $19 billion. Duffy said that he would like to receive the remaining funds later. Jerry Moran, a Republican senator from Texas, said that Congress may give more funding to the project later in this year. FAA air traffic system was hit by several failures. These included serious outages at Newark Airport last year. Initial $12.5 billion was a result of decades of complaints about airport congestion, flight delays and aging technology. In a report from 2023, it was stated that the FAA’s communication system had been outdated for several years and they could no longer obtain spare parts for some systems. A separate report stated that 51 of the FAA’s 138 air traffic control telecoms systems were not sustainable. By the end of 2028 airports would have 5,000 high-speed network connection on fiber, wireless and satellite, 27,000 radios, and 612 radars. Reporting by David Shepardson, Editing by Chris Reese & Nia Williams
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US strikes Iran once again as Tehran warns about 'existential warfare' with America
After reimposing its naval blockade, the U.S. attacked Iran's missile and coastal defense sites on Wednesday, while Iran threatened more regional energy exports by saying that it was in an "existential war" with America. This latest escalation is coming days after the collapse of a fragile truce, which raised the possibility of full-scale conflict, although analysts see it as less likely. Since Iran announced late Saturday that it had closed Strait of Hormuz, hostilities have increased. The military operations have also prevented ships from passing through the crucial artery that carried about a quarter of the world's oil and gas before the war. Brent crude oil closed Wednesday at an all-time high of $84.95 per barrel, a month's highest price. U.S. Central Command reported that the military attacked coastal defense systems, cruise missile storage sites and launchers on Iran's Greater Tunb Island at around 6 am EDT (10:00 GMT) and completed the wave within 90 minutes. Central Command announced a second round of strikes nine hours later. The strikes target Iranian military capabilities used to threaten vessels freely traversing the Strait of Hormuz - an international waterway crucial to global commerce. Central Command stated on X that the U.S. Military is holding Iran responsible at the direction of Commander in Chief. Three U.S. official?reported that U.S. attacks aimed at forcing the strait open are also targeting Iranian capabilities which the U.S. wants to destroy before it executes more complex operations. Iran's Mehr News Agency reported that four locations in the vicinity of Ahvaz, near the northern end of Persian Gulf and Bandar Abbas - Iran's main port city along the Strait of Hormuz - were attacked following the latest round of attacks. Mehr reported that no casualties were reported in either case. Iran's Tasnim reported that explosions could be heard in Konarak, which is located at the southern tip of Iran along the Gulf of Oman. IRIB, the Iranian state broadcaster, reported that the U.S. attack occurred near a Ahvaz hospital which houses a pediatric center. This forced the temporary evacuation of the hospital. IRIB reported that families have gathered in the streets around the hospital to take care of their children. IRIB said that families had come out to the streets around the hospital to care for their children. Qalibaf stated that "we are in a war of essential and existence with America." The war has caused thousands of deaths and millions of displacements, mostly in Iran and Lebanon where the conflict between Israel and Iran's militant group Hezbollah re-emerged. TRUMP SAYS IRAN WANT TO SETTLE Trump struck an ebullient note, as has been his custom since the U.S. & Israel began hostilities in February 28. He said, "We will have Iran defeated very soon." They will be defeated very shortly. Trump said that the Iranians wanted to "settle" so badly at a roundtable at the Pennsylvania Defense Innovation Summit. "They don’t like what we’re doing and they want to settle." Trump said that we'll see if we can settle with them or if we need to finish the deal. Trump claimed that U.S. negotiators were in contact with Iranian counterparts on Tuesday to urge them to "make a deal." IRAN THREATENS OTHER SHIPMENT ROUTES Iran is trying to establish permanent control of shipping in the Strait of Hormuz, and to charge fees to vessels that pass through it. This would represent a "major shift" in the power balance in a part of the world where the U.S. was long the guarantor of safety. The Islamic Revolutionary Guard Corps announced on Wednesday that it had attacked U.S. military sites in the region including Bahrain, Kuwait, and Jordan. Kuwait reported that its armed forces had intercepted four missiles and twenty drones fired by Iran on Wednesday. However, no injuries or damage was reported. CEASEFIRE DEAL FAILS An interim ceasefire agreement signed last month was supposed to lead to future negotiations, including Iran's Nuclear Program, and a permanent truce. However, a return to discussions has stalled. Tasnim News Agency quoted Esmaeil baghaei, a spokesperson for the Iranian Foreign Ministry as saying: "We do not have any plans to negotiate at this time and we are focused on our defense." Qalibaf is the speaker of Iran's Parliament and said, if Iran did not gain from its Memorandum of Understanding with the U.S. "we would have no reason to adhere to this understanding." Qalibaf stated that Iran has never been a fan of war, but must be prepared to fight to the bitter end to protect its national security and interests. Qalibaf said Iran should also use "the instruments of diplomacy, and negotiation," adding that choosing war or negotiation as the only course of action is deemed illogical. (Additional reporting from Jarrett Renshaw, Carlisle, Pennsylvania; Muhammad Al Gebaly, Cairo; Writing and editing by Aidan Lewis and William Maclean; David Brunnstrom, Daniel Trotta, Alexandra Hudson and Ros Russell; Sanjeev Milglani, David Gaffen and Alexandra Hudson)
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United's profit in 2026 is at the high end of its forecast, despite a renewed fuel price surge
United Airlines said Wednesday that it expects a 'full-year profit to be at the upper end of its previous forecast, betting on strong travel demand, higher fares, and a renewed rise in fuel prices, despite its earnings outlook for the third quarter falling short of Wall Street's expectations. In extended trading, shares fell 5%. The Chicago-based airline now forecasts that its fuel bill will be approximately $6 billion more than what it predicted at the beginning of the year. The top of the range is?about 5% higher than the $10.46 expected per share by LSEG's analysts. United expects adjusted earnings for the third quarter of $2.50-$3.50 per share, and an average fuel cost of $3.69 a gallon. According to LSEG, the $3 midpoint is compared with the average analyst estimate of $3.60 per share. The airline reported adjusted earnings per share of $1.99, which was higher than the analysts' expectation of $1.88. Revenue increased 16% to $17.7 Billion. PRICING POWER COVERS 'FUEL HIT' Major U.S. Airlines have enjoyed strong pricing power following a series fares increases that were pushed through this year during the fuel shock. Investors are watching to see if carriers can continue recovering higher costs while maintaining capacity growth. United Airlines said that it recovered approximately 50% of its fuel cost increase during the second quarter. It expects to recover between 80% and 90% of this increase in the third. It expects to offset the cost increase in the fourth quarter. Oil prices have risen by about 15% in the last month, as a result of renewed hostilities between Iran and the U.S. United based its third-quarter forecast and full-year projections on the prices of Tuesday, 14 July. United's fuel expenses are expected to have increased by $575 million in the last two weeks due to rising costs. Fuel prices would have remained stable since the beginning of July, according to United Airlines' third-quarter earnings estimates. Fuel prices are on the rise again, and this highlights the risks that airlines who raised fares in the past face. United still expects that its total revenue per seat mile, which is closely watched as a measure of "pricing power", will grow faster than the 12.1% increase posted in the 2nd quarter. The company expects that the current schedules for the fourth quarter will be reduced. United will discuss the financial results of its company in a conference call with investors and analysts on Thursday morning. (Reporting and editing by David Gaffen, David Gregorio and Rajesh Kumar Singh)
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United's profit in 2026 is at the high end of its forecast, despite a renewed fuel price surge
United Airlines announced a 'full year profit forecast at the upper -end of its previous 'forecast, as strong travel demand and increased fares offset a new surge in fuel prices. Chicago-based airline now forecasts 2026 adjusted earnings per share to be at the top end of its previous range of $9 to $11, despite a fuel bill that is expected to be $6 billion more than what it anticipated at the beginning of the year. The top?end?of this range is about 5% higher than the $10.46 expected by LSEG's analysts. United expects adjusted earnings for the third quarter to range from $2.50 - $3.50 per share, and an average fuel price between $3.69 and $3.69 per gallon. According to LSEG, the $3'midpoint' compares to analysts' averaging estimate of $3.60 a share. (Reporting and editing by David Gaffen; Rajesh Kumar Singh)
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The busiest US container ports sets a record for cargo in June
Port of Los Angeles, the busiest U.S. seaport for container shipping, said on Wednesday that it had set a record for June cargo as shippers, from retailers to data center builders, rushed to import goods in order to avoid increased fuel costs and U.S. tariffs. Executive director Gene Seroka stated that the Southern California port handled 1,002,734 TEUs last month. This is 12% more than June 2025. It marks the "third time" the 118 year old trade gateway has exceeded the 1,000,000 TEU mark. Port data shows that June imports increased by 13%, to?530.558, and exports rose 0.2%, to 126.365. Long?Beach, a port adjacent to the city, said Tuesday that it handled 779,331?TEUs?last?month, marking its?third busiest volume in June on record. This was boosted by an 11% increase in imports. Data from Descartes Systems Group, a provider of supply chain technologies, showed that overall, U.S. containers imports increased 8.2% from a previous year in June. The U.S. and Israeli war against Iran has disrupted shipping around the Middle East. Marine fuel prices have increased and some retailers and manufacturers are also concerned that key 'raw materials' and a 'factory good could become too expensive or scarce to ship. This month, the administration of U.S. president?Donald Trump will implement a new tariff strategy that relies on Section 301, a provision of U.S. Trade Law, allowing investigations into 'unfair trade practices. These 'new duties' are intended to rebuild Trump’s emergency tariffs that were struck down by the U.S. Supreme Court last February.
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Airbus and Boeing fly parts to the giant Antonov plane to ease supply problems
Airbus and Boeing 'chartered' one of the largest cargo planes in the world in recent weeks to speed up the shipments of aerostructures of some civil and military aircraft, a sign that the aerospace supply chain is still under strain. Three industry sources and two regulatory documents indicate that the Antonov An-124 is a four-engine giant transport aircraft chartered for airlifting parts for Europe's A350 plane and the Boeing 767 frame used for tankers and freighters. This follows a similar flight earlier this year carrying parts for a 777 freighter. Boeing's spokesperson stated that it uses "a variety transportation methods to ensure stability in our production," but did not comment directly on the An-124. Airbus' spokesperson stated that "we sometimes use the Antonov" without mentioning if this included its A350 wide-body jet, which has experienced delivery delays. This story, which details the An-124 for the first-time, highlights the pressure that manufacturers face to keep their assembly lines up-to-date and address pockets of delays, which threaten a recovery of production schedules. To move large parts from one production site to another, planemakers use a combination of dedicated sea freight networks, trucks and converted cargo jets. The cost of switching from one transport mode to another is high and it indicates that buffer stock are scarce. Analysts claim that the supply chain for aerospace has improved since the COVID-19 outbreak, with deliveries increasing this year. However, there are still concerns regarding the 'health of the aerostructures sector as well as other parts such seats. DELIVERY OF GIANT PLANE PARTS Sources in the industry said that Airbus's choice to fly A350 components rather than ship them by sea was due to deterioration of a former Spirit AeroSystems facility in Kinston, North Carolina. Airbus acquired this plant last December, as part of its joint breakup with rival Boeing. One source said that at the time parts were being shipped by sea, and a buffer stock was available of four sets. The source said that air freight was needed now to avoid further delays. Airbus informed customers in May of delays in A350 deliveries in the second half of this decade, due to difficulties in securing factory sections. "With regards to Kinston, we're making progress in separating from the former owner and integrating?into Airbus' landscape. The Airbus spokesperson stated that it is a multi-year complex journey. Airbus told analysts in a Wednesday pre-results presentation that it had not altered its assumptions about the impact of the Spirit acquisition on profits by 2026. Boeing, according to U.S. filings in late June, chartered the same Antonov to transport two 'upper fuselage sections' from a Daher Aerospace facility in Florida to its plant in Everett near Seattle. Boeing requested the use of the?An 124 between U.S. city in a letter dated June 22, which was reviewed by. If not avoided, "These delays would have a significant economic cost," the report added. Boeing sent a second?letter on July 1 supporting Antonov's exemption to transport the same Daher-made component. Daher declined to comment on operational issues. The 767 airframe, which was originally designed to be a passenger jet, is now being used for US refueling tanks and in its final stages of development as a commercial cargo aircraft. (Reporting by Allison Lampert, in Montreal, and Tim Hepher, in Paris; Editing and production by Joe Brock and Nick Zieminski).
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OECD: Global minimum tax boosted revenues, not jobs
The Organisation for Economic Co-operation and Development (OECD) said that countries applying a global minimum tax on multinational companies have seen a rise in corporate tax revenues without a loss of jobs or investments. The global minimum tax is designed to stop the decades-long race for the lowest corporate tax rates by allowing countries the option to charge top-up taxes if profits are taxed at less than 15% in other jurisdictions, thus reducing the benefits of recording profits in low tax jurisdictions. Over 60 countries and territories already have the rules in place, while many others are getting ready to implement them. The Paris-based OECD estimates that the tax increased revenue to governments by EUR79 billion up to EUR109 billion ($90 to $124 billion), equivalent to 2,4% to 3,4% of global corporate tax receipts. The study looked at how companies responded to the global minimum tax that was introduced in 2024. This tax is a cornerstone of international efforts to overhaul taxation for corporations and to deter large multinationals from shifting profits into low-tax jurisdictions. The tax is aimed at multinational groups that have annual revenues above EUR750 millions. It aims to make sure companies are taxed at a rate of 15%, wherever they operate. The OECD compared companies just above and below a threshold of revenue to determine the impact. The OECD found that firms covered by the new rules had higher effective tax rates. However, there was little evidence of an effect on employment or investment. The study is based on actual company behavior, as opposed to previous OECD estimates that relied on modeling. The estimate of revenue is lower than the OECD's projection before implementation that the reform would generate additional corporate tax revenues worldwide between $155?billion and $192 billion a yea. This is because the study only covers the first year. The study only covers?2024. It does not reflect the subsequent?agreement that was negotiated by Trump's administration to exempt U.S. multinationals from the key elements of this regime via a separate "sidebyside" arrangement which recognises the United States’ existing minimum tax.
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Canadian wildfire smoke chokes Toronto and threatens US cities
Toronto's air quality was the worst in the world on Wednesday, as smoke from wildfires in?northwestern?Ontario smoldered the skies and spread to the northeastern United States. Residents were warned about their health and asked to limit outdoor activity. Environment Canada reported that Toronto's Air Quality Health Index (AQHI), which is classified as "very risky," was 10+. Forecasts indicated that hazardous conditions might persist until Thursday night. New York City started feeling the effects a few days before the World Cup Final in New Jersey on Sunday. Local authorities issued a warning when air quality reached a dangerous level. They urged residents to reduce "strenuous outdoors activity" on Wednesday and Thursday and to take extra breaks. Smoke could persist into the weekend, according to the National Weather Service. IQAir, a Swiss company that specializes in air quality, ranked Toronto the world's worst city for air pollution, beating out Kinshasa, Delhi, and other cities. New York was ranked No. 5. In recent years, wildfire smoke from Northern Canada was a frequent summer event across large swaths in the United States. The video of a Canadian National train being engulfed in flames near Armstrong, Ontario that was shared on social networks went viral. Residents of Armstrong and Canadian National employees were evacuated from the area on Monday night. As a precaution, the company suspended rail operations in Armstrong, which is more than 500 kilometers north of Toronto. A poor air quality forced the City of Toronto to cancel the FIFA Fan Festival at Nathan Phillips Square and the England-Argentina World Cup Watch Party. More than 80,000 New Yorkers are expected to watch the World Cup Final in an open-air stadium located in New Jersey, on Sunday. Central Park, in Manhattan's hazy skies, will host another 50,000 people to watch the World Cup final. New York State Governor Kathy Hochul stated on social media that smoke from Canadian wildfires was creating unhealthy air conditions in the state. She encouraged people to be cautious, especially those who have health problems. The Government of Canada said that the wildfire season started more slowly in 2026 compared to 2023 or 2025 - the two "worst" seasons for wildfires - but warned that the fires are likely due warmer temperatures than usual across the country. According to the government, 835 fires were burning across the country on Wednesday. Of those, 112 were considered out-of-control. So far, the fires have spread over 4.7 million acres (1.9 million hectares). The majority of fires occurred in central provinces such as Manitoba, Saskatchewan and Ontario. Greg Evans, professor of Chemical Engineering & Applied Chemistry at the University of Toronto, said that Toronto was simultaneously affected by severe?heat' and wildfire smoke. He said, "I anticipate that this will happen more often in the coming decades. Cities and residents should prepare for it." Paula Oreskovich is a Toronto resident who noticed the haze as well as the smell of smoke when she went outside early in the morning. She expressed concern about the poor air quality, especially since wildfire smoke is a frequent feature of summers in recent years. "You have to be stupid if you don't care about climate change," said Oreskovich. Oreskovich stated that climate change is a fact.
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)