Latest News
-
JetBlue identifies increased fuel costs and benefits from Spirit's shutdown
U.S. airline?JetBlue increased its fuel cost?forecast for the second quarter on Monday as?the global aviation industry struggles with increasing jet fuel prices in the wake of disruptions caused by the closure of Strait of Hormuz. Fuel costs are expected to be between $4.26 and $4.36 per gallon in the second quarter. This is a significant increase from an earlier estimate of $4.13 to $4.28. JetBlue, however, said that it expected to "recover?40% of the increased fuel costs in the?quarter," thanks to its consistent operational performance. The airline has raised its revenue growth forecast per available seat-mile to between 9% to?12% compared to the earlier range of 7% to 11%. The airline has also reported "outperformances" on routes that were previously operated by Spirit Airlines, which shut down last month. JetBlue said in a filing that, "although?it is still early in the third quarter booking curve," we are encouraged by current trends. (Reporting by Aishwarya Jain in Bengaluru; Editing by Sriraj Kalluvila and Pooja Desai)
-
UK regulator investigates Royal Mail for missing delivery targets
Ofcom, the British media and telecoms regulator, opened an investigation on Monday into Royal Mail after it failed to meet its delivery targets for fiscal 2025/26. The post and parcel group is embarking on new delivery patterns as well as investing in order to improve service. Royal Mail will invest PS500 million (approximately $673 million) over the next five-years to reduce delivery times and costs. This comes after regulator Ofcom set "minimum acceptable deadlines" and launched a price review of its business last year. Ofcom published delivery data last Friday showing that, for the year up to March, only 75.7% (of the Royal Mail First Class) mail was delivered on the next working day. This is below the target of 93%. Ofcom, who has fined Royal Mail over PS37 million in the past, cited delays in reform implementation and called current service levels as "unacceptable". The?regulator stated that while Royal Mail has made progress in the past year, it took almost a year to implement the 'delivery reforms. A spokesperson said in an email that Royal Mail would engage with Ofcom fully throughout the investigation. "Improving the?quality of our service is our top priority. We are implementing a'major program of change by launching our new delivery model, which supports our Improvement Plan."
-
FedEx Freight to launch on the market after spinoff
FedEx Corp announced on Monday that FedEx Freight had?completed a spin-off from the parent company. This paved the way for its trading debut at the New York Stock Exchange, under the symbol FDXF. After announcing that the FedEx Freight division was completed, shares of FedEx rose 2.2% during premarket trading. FedEx Freight, the U.S.'s largest provider of services less than truckload, is the world's leading company in this sector. Its independent debut comes at a moment when the freight rate could 'emerge from a slump of four years, due in part to operators leaving the market because they suffered a 'financial loss and federal regulators pushing to restrict commercial drivers licenses only to U.S. Citizens. Fadi Chamoun, an analyst at BMO Capital Markets, said that the company, as a 'pure-play' entity newly separated from its parent, offers a?large margin improvement opportunity, but this is highly dependent on execution. Chamoun said that the improvement depends on management's capability to translate network advantage into better service, higher revenue per shipment and sustained operating ratio improvements. J.P. Morgan analyst Brian Ossenbeck stated that he values FedEx Freight?at a lesser multiple compared to rivals XPO and Saia, as well as its persistent underperformance in service and volume metrics. Marshall Witt, the Chief Financial Officer of FedEx Freight, said in April that he expected an average revenue increase between 4% and 6% over the medium-term. Witt said that the company expects a core profit increase of between 10% and 12% on average over the medium-term. Witt explained that investments in modernizing the business and separating it from FedEx would dampen profits in the short-term, but cost controls, automation, and the addition more high-profit cargoes will increase margins over the long term. Reporting by Lisa Baertlein from Los Angeles, and Nandan Mandayam from Bengaluru. Editing by Shinjini Giuli.
-
Maguire: The US gasoline market is set to be tested again after a near-record draw of stock.
The near-record drawdown of gasoline inventories in the United States is flashing a warning to fuel markets. The system is losing its buffer as seasonal demand is peaking. This combination doesn't guarantee shortages, but it increases the chances of unexpected price changes if something goes wrong with replenishing inventory during peak U.S. Driving season is upon us. U.S. gas prices have already risen by 50%, to near four-year highs, since the U.S. war with Israel against Iran began February 28. They currently average $4.33 a gallon. After 15 weeks of reductions in gasoline inventories, the national stockpiles are at their lowest level for this time of the year since 2014. A durable Middle East peace deal that restores tanker traffic quickly through the Strait of Hormuz may help to limit further price increases in the short term and prevent further steep reductions of U.S. gasoline stock. Any resumption of military hostilities which threatens to further hinder oil production and exports out of the Middle East is likely to spark a new rally in U.S. gas prices this summer. This will fuel cost-of-living concerns across the nation. Record Run EIA data show that the 15-week decline in U.S. gasoline stocks since mid-February is "equal" to the longest stock draw on record which took place between mid-February 2012 and late May 2012. U.S. gasoline stocks are now around 211.5 millions barrels. This is down from 253 million barrels just before the Iran conflict began and 5.5% lower than the average five-year figure for this time of the year. If the stock continues to fall, 2026 will be the year that the national gasoline stocks are continuously reduced without being replenished. The next update of EIA stock data is scheduled for June 3. A further reduction is likely, given the fact that gasoline consumption in the country has been steadily increasing as families begin to go on summer vacations. At this time, domestic crude oil stocks are also experiencing a sharp decline due to shortages resulting from the Iran War. The U.S. crude inventories are expected to decline for a sixth consecutive week, the longest stretch of weekly oil decreases since 2024. RISE IN PROCESSING RATES As U.S. refiners increase processing rates to boost refined product output, further declines in crude stock are likely. The U.S. refined 16.9 million barrels last week. This was the largest weekly processing volume since November last year. It should lead to a rise in refined product sales. It is not clear if any of this extra supply will reach the domestic market. This is because many U.S. refining plants are designed to serve export markets, where gasoline and diesel are often more expensive than in the U.S. Retailers will most likely be able to buy up any excess fuel that makes it on the U.S. Market in order to meet domestic demand. The consumption patterns are likely to continue increasing as the end of the U.S. School Year marks the beginning of the busiest time for U.S. motorists, when families hit the road on vacations and for family visits. This rising demand is likely to result in further draws on U.S. gas stocks, which may lead to an increase in gasoline prices. Prices are already near multi-year records. The author is a columnist and he has expressed his opinions here. You like this column? Open Interest (ROI) is your new essential source of 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.
-
Ship operators call for clear rules to restore normalcy to Hormuz
Shipping executives met in Athens, Greece on Monday. They said that a peace agreement between the United States of America and Iran must include 'clear rules' allowing ships to resume normal operations via the Strait of Hormuz. Capital Link, an annual week-long shipping exhibition, began with a Capital Link Conference and other events. The following are some quotes in alphabetical order: PANKAJ KHANNA PRESIDENT, HEIDMAR HOLDINGS COMPANY "What we really need is a framework. A set of rules and regulations, or whatever it takes to tell us how to enter the country, and then get out. Even if there was a signed peace agreement, it would need to be clarified. Khanna noted that the company's vessel was stuck in the Gulf of Mexico for three months and the impact it had on the seafarers. "Of course, the seafarers are missing out on seeing their family, but also on births or deaths or marriages." VASILIS KIKILIAS - GREECE SHIPPING MINISTER Can anyone predict the end of the war? Unfortunately, no. There is no way to predict the future. Conflicts are messy and difficult to resolve. "We hope, of course, there will be a resolution. We can't accept that ships will not be able to travel freely around the world. "I wish they would leave out the shipping industry, seafarers and global trade, but this seems to be 'impossible. YIANNIS PROCOPIOU is the CEO of CENTROFIN MANAGEMENT. "While insurance is available, it doesn't mean the straits are a place you should transit, at least until we have clear rules of engagement for the shipping industry as to how we deal the two nations involved in this, the U.S.
-
Sonatrach and Saudi Aramco cut prices by 18% & 31% respectively.
Saudi Arabian state oil producer Saudi Aramco raised its official selling price for liquefied gas by 1% to 3% between June and July, while Algerian Sonatrach cut it from 18% to 31% because of a higher supply on the Mediterranean market. Saudi Aramco increased its June OSPs by $10 per metric ton, to $760 for propane And?by $20 per ton up to $820 for butane . LPG comes in two types: Propane and Butane. They have different boiling points. LPG is used primarily as fuel for cars and heating, as well as as a feedstock for other chemicals. Sonatrach has reduced its June propane OSP by $125 per ton, to $575 And for?butane?by $270 per ton, to $610 . Saudi Aramco’s OSPs serve as a reference when negotiating contracts to deliver LPG from the Middle East?to Asia-Pacific. Sonatrach’s?OSPs? are used as benchmarks in the Mediterranean and Black Sea regions, including Turkey. (Editing by Kirovan Donovan).
-
Italy's CDP and China's State Grid to renew governance agreement in Italy energy network
Sources say that the Italian state lender CDP, and State Grid Corporation of China, are planning to renew their governance agreement in a?company managing Italy's major energy networks. This is despite Rome's concerns over Beijing's influence on these assets. Sources who asked not to be identified said that the pact will expire in November, but it will automatically renew if neither party uses the option to terminate it six months prior to the expiration date. CDP Reti is one of the most important state-backed Italian companies. It owns about a third?of Terna, and Snam, which operate Italy's gas and electricity grids. Rome's fears about Chinese influence over its key energy assets became apparent in November when Snam canceled plans to buy a stake in Germany’s largest independent gas distribution firm. According to reports at the time, the German 'economy minister' opposed the deal due to State Grid Corporation of China being an indirect investor in Snam. Rome and Berlin both aim to counter China's increasing industrial and political influence in Europe while also trying to maintain vital economic ties with Beijing, which are crucial for their respective industrial sectors. Cassa Depositi e Prestiti, an Italian state lender, sold the State Grid Corporation in China a 35% share in CDP Reti in 2014. CDP Reti owns 31,4% of Snam and 29,0% of Terna, as well as about 26% Italgas. It is Italy's largest gas distributor. Snam?also owns 11.4% of Italgas. Qinjing Shen is a representative from the Chinese state-owned company. She sits on the boards of Snam, Terna Italgas, and CDP Reti. He has a seat on three different boards, which gives him a good view of the Italian energy sector. This raises concerns in government circles about the Chinese shareholder's potential to impede the expansion plans. The golden power rules of Italy, which allow it to shield strategic assets, cannot be applied in the case CDP 'Reti as the renewal of a?governance agreement? falls outside of the scope of the legislation. Sources, however, emphasized that the pact limited the scope of China's State Grid's action over CDP Reti and therefore safeguarded Italy's interests in all three companies. (Additional reporting in Milan by Francesca Landini, edited by Gavin Jones).
-
FedEx Freight set for market debut as spinoff nears completion
FedEx Freight, the spin-off of?FedEx Corp., will begin trading on the New York Stock Exchange Monday under the symbol FDXF. FedEx Freight is the largest provider of less than truckload services in the U.S. Citizens only. Fadi Chamoun, analyst at BMO Capital Markets, said recently that the company, as a newly-separated, pure-play, offers a significant margin improvement opportunity. However, this depends heavily on execution. Chamoun said that the improvement depends on management’s ability to?translate network advantages into better service quality, higher revenues per shipment and sustained operating ratio improvements. J.P. Morgan analyst Brian Ossenbeck stated that he values FedEx Freight lower than its rivals XPO and Saia, as well as Old Dominion Freight Line. "Given execution risks and?transition cost related to the spinning as well as persisting underperformance on service metrics and volume metrics", he said. FedEx Freight's Chief Financial Officer Marshall Witt stated in April that the company expects an?average growth in revenue of 4%-6% over the medium term. Witt said that the company expects a core profit increase of between 10% and 12% in the medium term. Witt stated that investments in modernizing the business and separating it from FedEx would dampen the 'profits' in the short-term, but cost controls, automation, and the addition of more profitable cargoes will increase margins over the long term. Reporting by Lisa Baertlein and Nandan Mandayam, both in Bengaluru. Editing by Shinjini Giuli.
Travel restrictions tightened as Ebola threat rises
World Health Organization declared the Ebola outbreak that has been occurring in Democratic Republic of Congo a Public Health Emergency of International Concern on May 17, and warned of a high-risk of it spreading to neighboring countries.
This decision has led?governments?to step up containment measures related to travel. The following is a list with the screening measures and travel restrictions announced and implemented by various countries.
UNITED 'STATES In may, Washington prohibited non-citizens from entering 'the United?"States after they had traveled to the DRC, Uganda, or South Sudan within the last few weeks. The Centers for Disease Control and Prevention extended the ban on May 22 to green card holders that had visited these countries within the last 21 days. On May 23, the CDC added Hartsfield-Jackson Atlanta International Airport, along with Washington Dulles, to its list of travel funneling airports. The CDC will take U.S. citizens returning from affected areas to designated screening zones for temperature checks, travel histories verification and symptom tracking.
CANADA On May 26, the Canadian government announced that all residents of DRC, Uganda and South Sudan will be prohibited from entering Canada for 90-days starting on May 27.
Canadian citizens, permanent residents?and foreign nationals?who have visited affected areas recently and have not shown symptoms?will be quarantined for 21 days starting May 30.
THE BAHAMAS On May 26, the Bahamian Government announced that an immediate ban would be placed on residents of DRC, Uganda, and South Sudan. The ban will remain in effect for 30 days.
The Bahamas announced that they would also be conducting enhanced health screenings, and possibly quarantining foreigners arriving within 30 days from the date of their arrival in the Caribbean nation.
CAYMAN ISLANDS
The Cayman Islands Government announced on May 20 that it would be implementing enhanced screening measures to prevent any further incidents after a flight with?two passengers who had recently traveled to the DRC landed.
MEXICO
David Kershenovich, Mexico's health secretary, addressed the media in a press conference on May 25. He outlined tighter Ebola-screening measures at airports and urged the public to avoid travel to the DRC.
JORDAN
According to Jordanian State Agency, the Jordanian Government suspended entry on May 19, for travellers coming from DRC and Uganda.
Kenyan Ministry of Health announced on 25 May that it has enhanced screening of travelers at high-risk entry points, coordinated by the Kenya National Public Health Institute in full activation of National Incident Management System. The ministry said that in order to help contain potential incidents, it has activated holding and isolation facilities at border locations.
ZAMBIA After two suspected Ebola cases were cleared, the authorities in Zambia have increased screening and surveillance.
The health ministry announced on May 29, "Zambia's screening tools and protocol are being used at the entry points to Zambia, and among people who exhibit Ebola-like signs and symptoms within the country."
BAHRAIN
Bahrain announced on May 19, that it would suspend for 30 days, the entry of all foreign travelers arriving from South Sudan and Uganda.
INDIA India has implemented screening and surveillance at airports and entry points. It also issued advisories about precautions and encouraged citizens to avoid travel to South Sudan, the DRC and Uganda that is not essential.
THAILAND
Thailand's Public Health Ministry announced that, starting May 27,?passengers from the DRC or?Uganda will only be permitted to enter Thailand through Suvarnabhumi Airport where they will undergo a screening.
If they show symptoms of Ebola, travellers from or through these countries must quarantine themselves for at least a week.
EUROPEAN UNION
The EU Health Security Committee stated on May 22 that screenings at entry points were not required for passengers arriving from DRC or Uganda. They cited low risks to the population.
The Dutch airline announced on May 29, that it had cancelled flights from and to Entebbe Airport, near Kampala in Uganda. This was due to restrictions related to the Ebola outbreak 'in Central Africa. The airline said that it was unable to operate its planned routes because of the travel and entry restrictions imposed by some countries for those who have recently traveled through Entebbe. This includes their crew.
Brussels Airlines announced on Monday that the Ebola outbreak had not affected its flight schedule. However, it has changed the rosters for its long-haul crew, because if any of them have been to the DRC, Uganda, or both in the last 21 days, then they will be denied entry into the United States. (Reporting from bureaus, compiled by Mirko MIORELLI, Alexander KLYVE GUDBRANDSEN and Arda DIPOVA in Gdansk; Editing by Matt Scuffham & Milla Nissi Prussak.
(source: Reuters)