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SPACs are a popular investment vehicle for defense and space companies.
The appeal of "flexible capital" and a quicker route to market in a time when investor interest is surging for the space and defense industry has led to an increase of early-stage companies seeking backdoor listings. These listings are different from traditional initial public offering because they involve mergers between special?purpose acquisitions companies (SPACs) -- shell firms who raise money 'through an IPO, and then merge with a privately held company to make it 'public. SPAC mergers allow companies to negotiate private valuations and secure funding before going public. This gives them more certainty about fundraising and reduces their reliance upon favorable market conditions. Experts say that many smaller defense and aerospace companies relying on government contracts, with their unpredictable development cycles, will find SPACs an easier way to access public markets. Kat Liu, Vice President of IPOX, said that a SPAC merger could be a flexible option for companies who have government contracts, strategic backing or a growth pipeline but do not yet have the scale, margin or predictability to generate revenue. As smaller companies look to become public, they can also benefit from the wave of mega-deals. Last month, Ursa Major, a U.S.-based defense company that develops propulsion for missiles and rasssls, signed a SPAC agreement worth $2.3 billion. Ursa Major CEO Chris Spagnoletti said that the SPAC transaction will provide capital to close this gap. Spagnoletti explained that a traditional IPO would mean taking the timing of the market, rather than our customers. "We didn't want to be set up by the defense window next year," Spagnoletti stated. Public market capital allows us to expand domestic production when customers demand more capacity, faster and better pricing. According to SPACInsider, six defense or space-related companies announced SPAC mergers this year. This represents about 10% of the total deals. In 2025, there were only three. TRUMP, SPACE, DEFENSE AND DEFENSE According to LSEG, besides the?SPAC merges, seven other defense and aerospace companies have also gone public via IPOs in 2026. This indicates that issuers want to take advantage of the booming market. Space is a popular sector, largely due to the?increased government and commercial expenditure on satellite networks and communication, and the listing of Elon Musk’s SpaceX. Earlier this week, it was reported that the hypersonic flight firm Stratolaunch is preparing to go public. Private investors are also showing a strong interest in this sector. Sierra Space's valuation grew by more than 50% to $8 billion in its March funding round. The Trump administration has also placed national security at the forefront as it seeks to reinforce U.S. defences and replenish stocks depleted by weapons shipments to allies, and munitions that were used in the Iran conflict. The President Donald Trump proposed an increase of about $1.5 trillion in the U.S. Defense budget for 2027, compared to the budget enacted in 2026, which was $901 billion. Drones are playing a greater role in conflict in Ukraine and Middle East, which is changing the nature of warfare. Startups increasingly rely on newer technologies and low-cost systems to compete with traditional contractors who have held the majority of government contracts for decades. The sector has attracted prominent political connections. Eric Trump is the son of U.S. President Trump is an investor of Space-Eyes - a company that makes anti-drones. It has also backed drone manufacturer XTEND. Trump's son Donald Jr. has been involved in several defense and space investments. This shows the growing relationship between the Trump family and the industry. However, early-stage defense and aerospace companies can be vulnerable to disruptions due to fragile supply chains, delays in orders and reliance on a small group of government clients. SPACS OFFER FLEXIBLE ROUTES SPACInsider CEO Kristi Martin said that nine?SPACs currently seek defense or space targets. With about $2.35bn held in trust, more deals may be forthcoming. Quantum Space, Elroy?Air and others announced SPAC agreements in June. Quantum Space, which develops spacecraft to support orbital mobility, satellite servicing, and refueling and is backed up by over $88 million of secured government contracts, won a multi-year, $46 million contract with the U.S. Army for developing an autonomous hybrid-electric airborne system. SPAC mergers can offer greater flexibility and faster access to capital. However, existing shareholders may be diluted, especially when private equity is involved. Analysts see that the risks are manageable. "SPAC investors do not necessarily need to see profit or revenue to invest in a promising start-up," said Matt Kennedy. He is a senior strategist at Renaissance Capital. Renaissance Capital provides IPO research and ETFs. The 2-year chart is much better looking despite the fact that a few big-name SPACs mergers have dropped from their recent peaks - such as Rocket Lab, Intuitive Machines and AST SpaceMobile.
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Airline companies urge greater competition for used jet engine parts
Following a European settlement regarding turboprops, global airlines have asked jet engine manufacturers to make it easier for independent companies to provide reconditioned components to airlines. The International Air Transport Association's call, which represents around 300 airlines, is just the latest in a long-running battle over engine shortages and competition. The European Commission concluded its antitrust investigation last month into Pratt & Whitney Canada's alleged anticompetitive behavior after the company agreed to lift the restrictions on used parts. After meeting certification standards, independent suppliers can now easily access dismantled engines. These can be stripped down for their parts and then reassembled to compete with new engines. Pratt & Whitney Canada agreed to change the contractual clauses that restricted the supply and use of engine sections for the?harvesting used parts'. Nick Careen, IATA senior vice president operations, safety, and security said: "That will certainly help the ATR or Dash-8 (turboprop) aircraft operators." In a phone interview, he said: "Now is the time to expand this into the main markets for (jet) engines because that's where the gold lies and where the greatest challenge is." Pratt & Whitney Canada welcomed the agreement reached with the European Commission last month. Parent company RTX had no immediate comment. Since the COVID-19 pandemic, airlines have accused engine manufacturers of restricting competition and increasing prices. Engine manufacturers argue that they take enormous technology and financial risk to develop each new generation of engines, and must recoup these investments over time in order to maintain innovation. Manufacturers vary in their willingness to allow other shops to be involved in the aftermarket. The debate over used parts is also affecting a three-way fight over engine supplies, which has been one of the biggest headaches for industry this year. By repairing more parts from existing fleets, you can reduce the pressure on new aircraft by allowing them to purchase more brand-new parts. IATA estimates that the shortage of engine parts and maintenance capability cost airlines nearly $6 billion in last year. Aviation executives?at an international conference of the International Society of Transport Aircraft Trading held in Copenhagen on Sunday said that they expect engine delays will continue for a while. Jennifer Moulton said that it would take some time to resolve this issue. Pratt & Whitney announced in July that the engine maintenance disruption is easing. IATA has extended an agreement to French-U.S. Engine Maker CFM International, Pratt's main competitor in the aftermarket, earlier this year.
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Second judge blocks Trump's restrictions on voting by mail
On Sunday evening, a second federal judge moved to?block the Trump administration from implementing new U.S. Postal Service regulation that would tighten the requirements for mail-in votes, although the U.S. Supreme Court has yet to?consider the administration's?request to overturn an?order blocking this rule. The Washington-based U.S. district judge Carl 'Nichols made his decision as Trump's Republicans fight to retain control of both houses of Congress during the November 3 midterm elections. Trump has been calling for voting restrictions by mail for years, despite his false claim that voter fraud was to blame for his defeat in the 2020 presidential election. Nichols granted the Democratic Party's request for a?preliminary?injunction to block the rule. The?party called it an?unlawful interference by the federal government in election administration. The judge who was appointed by Trump in his first term as president wrote that "no statute" gave the Postal Service authority to issue the key parts of this rule.
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US rail fuel surcharges for grain have reached record levels, pinching farmers during harvest season
The railroad fuel surcharges on U.S. grain shipment have more than doubled in the last year. This has impacted the entire farm belt, increasing transportation costs at a time when many farmers are also struggling with higher production costs. According to U.S. Department of Agriculture statistics, the average fuel surcharge on grain shipments rose to 48 cents per mile for rail cars in the second?week of September. This is a?153% increase compared to the weighted averaging rate a year ago. Surcharges are used by railroads to recover the majority of fuel costs and add them to long-haul rates. According to the USDA report of September 10, surcharges for corn and soybeans shipping accounted for 11%, up from 5%, in total costs. Farmers are facing a particularly difficult time, as corn and soybean harvests have just begun. The U.S. War with Iran is driving crude oil and refined products prices higher. Diesel fuel surcharges will become a larger part of grain transportation costs as demand for transportation increases. When railroads pass on excess costs to?shippers such as grain elevators who buy from farmers and then ship grain by rail the basis for growers is usually weaker, meaning that they get a lower price for their crops when they sell them. Gary Millershaski is a Kansas wheat and sorghum producer and the chairman of U.S. Wheat Associates, a group that promotes exports, reported the basis of his local grain elevator at around 70 cents below Chicago Board of Trade K.C. Hard wheat futures are usually 40 cents below the Chicago Board of Trade K.C. Millershaski stated, "We don?t even like to look at that because it upsets us." Brent oil futures soared above $104 per barrel last week. This was the highest price since mid-May. The increase in Brent oil prices is due to fears about an escalating Iran conflict. Diesel fuel, the fuel that locomotives use, has reached a new record price of $6 per gallon. Frayne Olson is a crop economist at North Dakota State University and said that the rapid changes in fuel prices have caused "absolute conniptions" and fits. When you consider an industry in which your profit margins are a few cents per bushel or less, it makes a big difference. Olson stated that many?corn and soybean growers do not have access to inland waters and rely on railroads for long-distance transportation of crops to processors, terminals for export and feeding operations. Everyone is very quick to increase fuel surcharges, but very, very slowly to lower them. This just gives them an opportunity to raise freight rates which further exacerbates our problem," said Steve Compton a Kansas farmer. Fuel surcharges will be added to long-haul tariffs for railroads BNSF and CSX. Union Pacific, Canadian Pacific Kansas City, Canadian National and BNSF are also imposing fuel surcharges. CSX, Norfolk Southern and BNSF declined to respond to comments. BILLIONS OF DOLLARS FOR BUSHELS A spokesperson for Canadian Pacific said that railroads use surcharges to reduce their exposure to fuel price fluctuations. Surcharges are tied to the U.S. On-Highway Diesel Fuel Index. The index is up by about 60% over the past year. They are triggered when fuel costs equal or exceed a strike-price that ranges in general between $2.30 per gallon and $3.25. Surcharges increase as the index increases. Surface Transportation Board, which regulates the industry, reports that railroads collected fuel surcharges of $2.93 billion during the second quarter. This is an increase of more than 90% compared to the previous year's period. This covered approximately 90% of the diesel costs. Canadian National's spokesperson said that surcharges ensure rates are fair and reflect current operating costs. Analysts expect railroad surcharges will remain "higher" for the remainder of the year. Archer-Daniels-Midland and other major shippers have not reported negative impacts from surcharges, according to their latest financial reports. ADM, for example, increased its forecasted profit by 10% last month as a result of rising oil prices. Grain elevators owned by ADM or privately held Cargill factor in fuel and freight surcharges to the cash price, which can sometimes lower the prices farmers receive for grains. ADM and Cargill declined to comment. Olson explained that during periods of high export demand, the transportation costs can shift and be passed onto buyers on key markets like China. If Union Pacific purchases Norfolk Southern, transportation costs may increase. The railroads claim that this deal could improve service and streamline freight movement. Farm groups are concerned that the merger will hurt the cash price of grains. Daniel Munch is an economist at the American Farm Bureau Federation (the leading U.S. agricultural lobby). Attorneys General from major grain-producing states concur. In a letter sent to the STB on August 11, officials from Iowa, Kansas and Montana, among other states, wrote: "There is absolutely no reason for a railroad to be so large that it will take money away from farmers, shippers, and consumers across the nation."
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FOREX Dollar rallies amid rising oil prices and AI concerns
U.S. Dollar rose to two-week-high on Monday, as conflict in the Middle East drove up oil prices and sent investors into the safe-haven currencies. This weighed particularly 'on the recently buoyant yen. The dollar was boosted by the warnings of CEOs of frontier companies about AI's potential dangers. Meanwhile, rising bets placed on the Federal Reserve raising rates on Wednesday also helped the U.S. The U.S. Dollar Index, which tracks currency against six major counterparts, rose last week by almost 0.5%, to 99.59. This is its highest level since September 2. The euro dropped to its lowest level in a month, $1.153. This is a drop of more than 0.5%. Meanwhile, the British pound slid?0.4%, to $1.348. Brent crude rose 3% to $108 per barrel, unnerving investors. Global bond yields also returned to multi-year highs. Concerns about energy supplies were heightened by the Houthi attacks on Saudi Arabia, the world's largest exporter. The kingdom had shut down its main pipeline to bypass the Strait of Hormuz. The diplomatic efforts to resolve the U.S. - Iran war have appeared to be in a stalemate. A meeting between Tehran, and other Gulf countries has been postponed. Supply concerns were exacerbated by attacks on ships in the area. Francesco Pesole is a currency strategist with ING. He said, "Gulf developments are still concerning and some?AI related headlines are weighing down on equities. This environment should support the dollar." The Japanese yen fell sharply, losing some of its recent gains driven by increasing bets about Bank of Japan rate increases. The U.S. Dollar was up 0.7% last week against Japan's currency, at 154.61yen. This is up from the almost seven-month-low below 153. CENTRAL BANKS ARE UNDER PRESSURE This week, the key question on the markets is whether the U.S. Fed hikes interest rates this Wednesday as a response to the surge in energy prices which has driven diesel to new records and helped to push up inflation in August more than was expected. Money?Markets on Monday indicated a 90% chance of an interest rate hike. This is up from 60% a week earlier, according to CME Group’s FedWatch tool. The U.S. Dollar has risen modestly this week as MUFG's senior currency analyst, Lee Hardman, expects the Fed to tighten monetary policy. Hardman also said that the Fed might be reluctant to raise rates too aggressively during an election year. This could limit the dollar's gains. Bond yields have reached multi-year highs or multi-decade levels in the U.S. Europe and Japan due to rising bets that rates will rise. The impact of the rate hikes on the FX markets has been limited so far, as the yields have largely moved together. The markets are almost certain that the Bank of Japan is going to raise interest rates this Friday. They will be searching for any clues as to whether there will be more. Speculators are now taking a net-long position on the yen. This is the first time they have done so since February. After the European Central Bank raised rates last week, traders expect that the Bank of England will keep borrowing costs at current levels on Thursday. However, they now anticipate a rate hike later this year as well as more in 2027.
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The yields on UK gilts have reached new multi-year records
British government bond yields climbed again in the early trading on 'Monday. They reached new multi-year peaks across a range of maturities as oil prices rose in response to an accelerating deterioration in supply in the Middle East. According to LSEG, the 30-year gilt 'yield' reached its highest level since march 1998 at 5.951%. It last stood 2 basis points higher on the day. The 5-year yield reached its highest level since July 2008, and rose 6 basis points in one day. Investors have 'doubled down' on their bets that rising oil prices would force the BoE to tighten policy over the next 12 months. The move further erodes the buffer between Britain’s existing 'budget plans' and fiscal rules that Finance Minister John Healey pledged to adhere to as he prepares his first budget due next month. Short-dated gilts have underperformed similar bond markets in other?major countries -- a familiar pattern on days when the oil and gas price surges, reflecting Britain's dependence on imported energy. The oil prices increased by about 3% Monday after the Saudi Arabian government and Iranian forces launched attacks against civilian and energy infrastructure in Saudi Arabia. These attacks, coupled with Iranian attacks on Gulf ships, compounded the supply concerns that had been raised following the closure a major?Saudi pipeline. Sahil Mahtani is the director of Ninety One Investment Institute, a manager of assets. The market wants to compensate for the inflation risk in Britain by substantially higher amounts. "That's the part of the saleoff that the government can't?ignore as imported." Investors priced in 90% of the possibility that the BoE would implement two quarter-point increases in interest rates by the end of the year compared to only 10% last week. The economists polled unanimously agreed that the BoE would hold its interest rates at 3.75% during Thursday's meeting.
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East Timor delays the start of Greater Sunrise gas production
The Greater Sunrise Natural Gas Project has pushed its earliest production start back by?two year to '2034, East Timor’s?petroleum? minister said. This tightens up a timeline that is already plagued with decades of delays. East Timor Minister of Petroleum & Mineral Resources Francis da Costa Monteiro said at the Gastech Conference in Bangkok that production at the multibillion-dollar gas field will begin in 2034-2035. East Timor's Australian partner,?Woodside, forecasted last year that the project would be producing gas between 2032 and 35. This was the first time both parties had announced a timeline. Timor-Leste is the poorest nation in Southeast Asia. It needs to export LNG from the Timor Sea to show investors that the bets made on LNG are profitable and to attract them to other gas reserves. Monteiro stated that "Timor-Leste can play a significant role in the region, and even a global one." He said that Sunda Gas is working on commercialising the Chuditch Gas discovery. Monteiro stated that the 'last round of negotiations regarding the Greater Sunrise gasfield' were finalised in last week and Timor-Leste hoped to reach a final decision on investment by 2029.
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Maersk and Hapag-Lloyd will sail more container vessels through the Suez Canal
Maersk, the shipping group, announced on Monday that it will resume four of its joint container services with Hapag-Lloyd in Germany. They are gradually returning to using this shortcut between Asia and Europe. Most shippers abandoned the Asia-Europe trade route through the Suez Canal earlier this decade after Houthi attacks in the Red Sea forced ships to take the longer trip around Africa. In a statement, Maersk of Denmark said that the Suez Canal was a "vital maritime corridor" between East and West. It is also a major driver for efficient global supply chains. The company added that "by transferring the AE5, AE11 and AE12 services to the transSuez corridor, instead of sailing around Cape of Good Hope," we would be able to offer customers more efficient transit times. Maersk stated that the two companies would continue to'monitor the situation in Middle East closely. Any changes in their'services in the Gemini network will be dependent?on a lack of an escalation of conflicts in the area. Maersk and Hapag Lloyd announced in early July and again in August that they would resume certain services connecting Asia, Europe and the Mediterranean through 'the Suez Canal. Last year, the two companies formed the Gemini network to reduce their shipping costs and increase schedule reliability.
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)