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• Rio Summit: Airline executives grapple with fuel crisis, fare tests

  The Iran War is driving up fuel prices and disrupting airspace, while airlines try to cushion the impact with higher fares. The International Air Transport Association's (IATA) annual meeting, which takes place from June 6-8, coincides with the fuel crisis and another issue that airlines are unable to quickly solve: a lack of new aircraft. Boeing and Airbus delays in delivering jets have forced some carriers to continue using older, less-fuel-efficient aircraft for longer. This has increased maintenance costs and fuel costs, just as oil prices are rising. IATA, the trade association for more than 370 airlines that account for 85% of the global air traffic, predicted a record-breaking $41 billion net profit for the industry this year before the war. Analysts and industry executives expect the outlook to be revised downward at the meeting. Deloitte's survey of 21 airline CEOs in the world published this week revealed that fuel price volatility, inflation and other risks are at the top of their risk agenda. This is driving carriers to place a greater emphasis on financial health and cost control. The survey stated that "together, they have turned what was meant to be a record-breaking year into a 'fight for margins. According to CEO John Rodgerson, the Brazilian airline Azul plans to reduce more flights in order to meet demand because of higher jet fuel prices. Air New Zealand CEO Nikhil Ravishankar said that airlines could only increase ticket prices to a certain extent in order to offset rising fuel costs. In an interview, he stated that the market would respond by reducing demand and lowering ticket prices. Fuel and labor are the two main costs for airlines. Fuel increases are difficult to absorb when tickets are purchased weeks or even months in advance. The longer routes are also more fuel-intensive and less efficient for aircraft and crew. It is a challenge to determine how much of this latest fuel cost can be passed onto travelers before the increased fares begin to dampen demand. FARE POWER Travel demand is holding up well in many large markets. This includes premium and corporate travelers. Carriers have more room to increase fares. According to Raymond James, the domestic fares published in the United States as of 25 May showed a robust demand, and a successful pass-through for higher fuel costs. The fares were up 35.8% on an annual basis, while fares four weeks out were up 39.4%. Alexandre Lefevre is Air Canada's vice-president of global sales and network planning. He said, "the willingness to pay from the premium side over the last few years has been very strong. We see that strength continuing." There are still limits. The higher fares may help the airlines recover some of their fuel costs, but they can also push out those with smaller budgets. This risk is higher in regions with weak currencies, where consumer spending is under stress or where airlines lack the pricing power of major network carriers. Some carriers are still planning growth. Singapore Airlines has been in discussions for at least fifty large wide-body planes. Qantas, meanwhile, is considering an order of about 20 Airbus and Boeing wide-body aircraft. Reporting by Rajesh Kumar Singh in Rio de Janeiro and Allison Lampert. Gabriel Araujo contributed additional reporting from Rio de Janeiro. David Gaffen, Louise Heavens and David Gaffen edited the story.

• Bloomberg News reports that Airbus is closing in on a widebody order by a Scandinavian airline

  Bloomberg reported that Airbus was 'closing in' on a large-scale order from Scandinavian Airlines, SAS AB. The order includes a mixture of Airbus A330neos and more advanced A350s, with 15 to 20 aircraft being considered, according to the report. The airline is expected to 'finalise' the deal within the next few weeks, and it will receive the aircraft in the first decade of the new century. According to the report, "people familiar with the matter" were quoted. Airbus and 'SAS AB' did not respond immediately to a comment request. The report could not be verified. Reports said that the carrier was also in talks?with Boeing regarding a large order for widebody jets, but chose to go with the European planemaker instead to maintain "fleet uniformity" and keep costs down. SAS AB, one of the first airlines to reduce flights in March due to the "sharp" and "sudden" increase in fuel prices triggered by U.S. - Israel's war against Iran.

• Brokers bet on winners of various sectors as the World Cup soccer tournament kicks off

  Analysts predict that the 2026 FIFA World Cup in host countries will bring billions of dollars to their economies. This will be driven by an unprecedented surge in consumption, which will boost sectors as diverse as retail, athletic wear and tourism. The tournament is set to be held from?June 11, to July 19, and will be the biggest soccer event in history. It could drive consumer spending during a period when broader demand is fragile. According to FIFA's analysis of the socioeconomic impact, which was conducted in conjunction with the World Trade Organization (WTO), the first three-nation World Cup (WC), which includes the United States, Canada, and Mexico, is expected to bolster the global GDP by approximately $41 billion. Here are the stocks and sectors that brokerages believe will benefit from this once every four years event: HOTEL OPERATORS B. Riley estimates that a total 13.1 million World Cup visitors, including both ticketed and unticketed attendees generated 21.3 million hotel room nights across all online travel platforms. Analysts say that U.S. hotel chains Marriott, Hilton, and Hyatt, as well as the online travel platforms Airbnb and Booking Holdings, as well as Expedia, are likely to benefit from this event. Marriott expects World Cup momentum to continue into the third quarter. Airbnb predicts that hosts in New York, New Jersey and Boston will earn the most money during the World Cup. Airline Tickets Goldman Sachs thinks WC could have a?net positive' effect on U.S. Airlines. Goldman stated that "June tends to be a lower season for inbound leisure travel and corporate travel, while a significant portion of the peak outbound travel season occurs after the WC has ended." The war in Iran has caused a sharp increase in the price of jet fuel, forcing U.S. airlines to raise fares, which is causing budget-conscious Americans delay or cancel their summer vacations. BEER STOCKS Jefferies estimates that more than 1 billion pints will be consumed worldwide during the holiday season. This represents a 0.3% increase in?volumes for the industry. Markets such as the U.S.A., Mexico and Brazil are expected to improve. Analysts at Jefferies said that after five years of volatile beer prices, the market should improve in 2026. The timing of the tournament is also a plus. Roughly 75% of matches will be played in the U.S. while 84% of the matches involving participating countries are in the beer-drinking-friendly time zones, the analysts added. Bernstein, Goldman and Jefferies believe that Corona beer maker Anheuser-Busch InBev will be the main beneficiary. Anheuser-Busch InBev is the official beer sponsor of the WC. Heineken, world's second largest brewer, will also benefit from the exposure it has in Latin America and Europe. US RETAIL AND 'SPORTSWEAR Goldman predicts that a surge of merchandise demand by fans will push sales up at Dick's Sporting Goods, and Academy Sports. Analysts said that sportswear brands like Adidas, Puma, and Nike could benefit from increased brand exposure and marketing during the World Cup. Goldman pointed out that Adidas, the official sponsor of match balls, has sponsorship deals with multiple teams. This allows it to gain global exposure at the event. FOOD, RESTAURANTS, AND DELIVERY Citi said that traditional?grocers like Albertsons and Kroger as well as larger retailers such Walmart and Target are likely to benefit during the World Cup from increased household spending. Tourism and group viewings are expected to support a rise in restaurant demand. This could lift McDonald's Pizzas, Domino's Pizzas, Wingstops, and Chipotles, as well as food distributors like Performance Food Group, US Foods, and Sysco. MEDIA AND DIGITAL ?PLATFORMS Deutsche Bank analysts stated that they expect the men's World Cup in 2026 to generate the largest US advertising revenues ever. Morgan Stanley estimated that the tournament would generate between $300 and $400 million in advertising revenue to Fox, the broadcaster of the English-language rights. Deutsche Bank pointed out that Comcast's?Telemundo which holds the Spanish-language broadcast rights is another potential beneficiary. Citi stated that internet companies like?Alphabet?s YouTube and Meta Platforms?s Instagram could benefit from an increase in user activity. BETTING OPERATORS The World Cup is expected to increase overall betting volumes, and Deutsche Bank expects Flutter Entertainment to outperform DraftKings. Macquarie predicted that global wagers would exceed $50 billion, or nearly $0.5 billion each match. This is compared to the 35 billion dollars for the previous tournament in 2022.

• 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.

• 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)

• Air Current reports that Boeing is weighing 737 production ramp-up in order to reach Airbus targets.

  The 'Air Current' reported on Thursday that Boeing is looking at increasing production of its best-selling 737 jet beyond the publicly?stated goal of 63 aircraft a month. Reports citing sources familiar with the situation said that the planemaker was drafting plans and evaluating whether its suppliers would support a production increase of 70 narrowbody jets per month. The ambitious target would test Boeing's supply chain, and bring its production plans closer to Airbus's output goals for the 'competing narrowbody' family. The report stated that the studies were at an early stage, and the higher cadence might not be adopted. Boeing didn't?response immediately to a request for comment. After consulting with the U.S. federal aviation administration, the U.S. planemaker announced in May that it would increase production of its 737 MAX aircraft to 47 per monthly from 42. Kelly Ortberg, CEO of the company, had stated?at a conference in May that "we're on and rolling at a 47-percent rate and should be there within the next couple months." Airbus had long sought to produce 75 A320neo family jets per month, but was forced to push the goal back due to supply chain constraints. Airbus now plans to reach 70-75 jets per month by?end 2027. Production will then be stabilized at 75. The company produces an average of 60 narrowbody aircraft per month. Reporting by Shivansh Tiwary, Bengaluru. Editing by Shilpa Majumdar.

• Sources say Qantas is considering ordering 20 wide-body aircraft from Boeing or Airbus.

  Industry sources claim that Qantas has been in talks with aircraft manufacturers about a potential order for 20 wide-body Airbus or Boeing jets. Sources who declined to be identified as the discussions are confidential said that the 'Australian carrier is 'considering additional Boeing 787s, or the'main -variant?of Airbus A350. Airbus and Boeing declined comment. Qantas' spokesperson stated: "We are in regular contact with the aircraft manufacturers to plan our fleet and we always update the market when there is something new to announce." We have no orders or updates to announce at this time. Airlines have expanded their wide-body fleets despite geopolitical uncertainties to alleviate industry shortages. Singapore Airlines, which reported earlier on the matter, has begun discussions with Qantas about buying at least 50 of its largest jets in order to prepare for growth over the next decade. Qantas has a fleet of 128 jets, and it is currently undergoing a 200-aircraft fleet renewal program. The airline has orders outstanding for 12 Boeing 787s as well as 24 larger Airbus A350-1000s. This includes 12 of the new "Ultra-Long Range", which is designed to fly non-stop from Australia's East Coast to London or New York, under "Project Sunrise". Airbus and Boeing have been equally split in the options that are available to purchase more jets. Sources said that some of them could be exercised in the context of this latest study. Qantas is a "regular battleground" for Airbus and Boeing. Airbus' decision to abandon its less ambitious A350 design in favor of Boeing's composite 787 20 years ago was partly due to the airline's choice to choose Boeing. Qantas is yet to order its main A350-900 variant, but these lightweight jets are now at the core of the wide body market. Due to supply chain problems, the first A350-1000ULR specially adapted for 22-hour record "Project Sunrise", made its maiden flight Tuesday. However, due to the delay of about four months until April 2027, it will not be delivered until then. Reporting by Tim Hepher. (Editing by Hugh Lawson, Mark Potter and Hugh Lawson)

• A Boeing 787 nose gear collapse caused injuries in Frankfurt

  The nose gear of a Boeing 787?jetliner collapsed unexpectedly at a gate in Frankfurt airport, according to its operator Lufthansa. A spokesperson for the company said that passengers had not yet boardinged the plane in an email?statement. They added that ground staff and crew were on board at the time the incident occurred, first reported by Bloomberg News. The?company said that "multiple staff members were injured and are receiving medical treatment." Photographer spotted multiple emergency vehicles around the two engine widebody aircraft that was partially lying on its belly. Lufthansa reported that the incident happened at 12:45 pm (1045 GMT) and the plane was due to leave for Los Angeles on flight LH450. The company said that it was investigating "the exact circumstances" with the authorities. The 787 is relatively new for the group. It plans to phase out older, less efficient jets and simplify its fleet. (Reporting from Kai Pfaffenbach and Thomas Seythal, with editing by Linda Pasquini.)

• Singapore Airlines is in negotiations for a major new jet order.

  Singapore Airlines (SIA), according to two industry sources, is in discussions with Airbus and Boeing about buying at least '50' of the?largest jets of the industry. This will be part of a?next growth phase starting next decade. They said the Southeast Asian carrier was looking for offers to purchase more 400-seat Boeing 777Xs, the largest model in the industry, or the slightly smaller Airbus A350-1000s. The talks are still in their early stages but may include options to purchase dozens of additional jets. SIA stated that it reviews fleet'renewal plans regularly and refused to comment on any "confidential discussions" we might or might not be having. Airbus and Boeing declined comment. SIA is one the world's largest buyers of long haul jets. It has a reputation of meticulously negotiating aircraft contracts that influence fleet decisions around the globe. Last month, it said that it would expand its capacity despite the fact that some competitors were cutting flights due to rising oil prices. The airline has been a long-time operator of the Boeing 777 Mini-Jumbo and was a very early customer of its successor, the 777X. However, the 777X has experienced significant delays. Larger Variants Sources?said that the?Singapore discussions could also help manufacturers like Airbus gauge demand for larger aircraft still in the planning stages. Airbus announced last year that it was looking at a larger A350, "dubbed the A350 2000", to compete more directly with 777X. However, it played down reports about an imminent project. It first floated the idea 10 years ago during an SIA 'contest, when Boeing was mulling over its own 777X extension. Boeing has agreed to revisit "studies" for a bigger plane after Emirates ordered more 777X in November last year. However, it is cautious due to the limited demand for a jumbo-sized aircraft and its focus on industrial recover. Reporting by Tim Hepher & Julie Zhu. Barbara Lewis, Mark Potter and Barbara Lewis edited the report.

• Report: US investor Castlelake contacts MSC to bid for easyJet

  Corriere della Sera, an Italian newspaper, reported that Castlelake, a U.S. investment company, is interested in MSC, which is the largest shipping group in the world, as a possible partner for a takeover bid of 'British budget airline easyJet. EasyJet's shares were up by 2.3% at 0803 GMT. They are up about 15% since Castlelake announced last week that it is in the preliminary stages of considering an easyJet takeover. The price would be over 403.23 pence a share. According to British takeover rules, the firm only has until 26 June to either make a bid or walk away. Analysts say that while easyJet called Castlelake's timing as "highly opportunistic", the low valuation of the carrier, its slots at major airports and stable fleet make it an attractive takeover target. Corriere, citing sources familiar with the discussions, reported that if Castlelake decided to "present a formal offer for 'easyJet" by the deadline it hoped to team up with MSC in order to ensure that its bid met EU ownership rules. The article also stated that MSC was a possible suspect and that it had been contacted by two other sources. MSC and easyJet refused to comment on the reports. Castlelake has not responded to the request for comment. MSC is a Swiss-based global group that includes container shipping, logistics operations, terminal and inland transport, as well as passenger cruises. It's run by Italian billionaire Gianluigi Aponte. It also holds a 49 percent stake in the Italian high-speed railway operator Italo. The report said that a combination with 'easyJet' would allow MSC control of the leisure travel chain, from flights to cruises, similar to the German travel group TUI. EasyJet owns and operates a holiday package business that was launched in 2019. This business is a major contributor to the company's profits, boosting its overall performance. (Reporting from Giulia Segreti, Rome; and Tuhina Ankita Bora, Pushkala Aripaka, Bengaluru. Editing by Gianluca Smeraro and Louise Heavens.

• Report: US Castlelake is looking to MSC as a partner for easyJet's bid.

  Italian daily Corriere della Sera said that U.S. investment company Castlelake was looking to MSC, the world's largest shipowner, as a possible partner in a consortium interested in a potential takeover bid for British budget airline easyJet. Castlelake announced last week that it is in the initial stages of evaluating a possible easyJet offer, which would be above 403.23 pence a share. However, no approach has been made to easyJet's board. According to UK takeover regulations, the company has until June 26th to submit a firm offer or walk away. Corriere reported that two sources familiar with the discussions said that if 'Castlelake' decides to make a formal offer for the carrier before the deadline, they 'hope to work with MSC in order to ensure their?bid is compliant with EU ownership rules. The article added that MSC was a possibility for two other sources and that they had contacted the group. MSC is a Swiss company run by Italian billionaire Gianluigi Aponte. It's a global group that not only manages container shipping, but also inland transport, terminals, and passenger cruises. It has a 49% stake in the Italian high-speed railway operator Italo. The report said that a combination with easyJet could allow MSC to control "the entire leisure travel chains, from flights to cruise ships" in a similar model to the German travel group TUI. EasyJet owns and operates a holiday package business that was launched in 2019. MSC declined comment. EasyJet, Castlelake and MSC declined to comment.

• Air Canada's A321XLR delivery delays still cause system "friction"

  Air Canada's COO stated on Wednesday that the carrier still experiences "friction" in the system due to delays in the deliveries of Airbus A321XLR single-aisle jets. The airline will begin flights with this longer-range aircraft?this month. Airbus and Boeing are working to increase production of new, fuel-efficient aircraft. However, airlines around the world face delays in delivering multiple models due to labor shortages, supply-chain issues, or other factors. Mark Nasr, Air Canada's Executive Vice President and Chief Operations Officer, stated in an interview that the XLR Program has been delayed by more than two years compared to what was originally?anticipated at the time of the order. Nasr spoke on the sidelines of a Montreal event to welcome the new model. Canada's largest airline plans to use XLR for routes such as Toulouse and Copenhagen. The demand for European travel is still strong, despite the rising costs of jet fuel due to the Middle East war. Air Canada has also seen a return of Canadians who flew to the United States as a leisure traveler, after this type of travel had slowed last year and earlier in 2020 due to trade tensions. Alexandre Lefevre is the VP of network planning and global sales at the carrier. Nasr said Air Canada uses its smaller A220 aircraft to service several markets in the United States. The company is waiting for Airbus' technical specifications on a stretched version of this aircraft. He said, "Once we have the final specs of the aircraft, we'll study them." He added that "one of the questions which we will?have to answer is the range?of the aircraft." This is why the technical specs are so important. "We need all the specs in order to properly study it," he said.