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S&P downgrades JetBlue deeper into junk as high fuel costs dent recovery
S&P, a global ratings agency, said that JetBlue Airways was downgraded to "CCC+" on Monday from "B-", pushing it further into junk status as high jet fuel prices?have hampered its recovery. The 'low-cost carrier' has been trying to restore its profitability by cost cutting, network changes, and improving operational reliability. However, higher fuel prices have complicated the turnaround plans. Low-cost and budget airlines are particularly vulnerable to fuel price spikes linked to the Iran War, as they have limited capacity to pass higher costs on to customers without risking their demand in a highly competitive travel market. S&P stated that "given the Middle -East conflict, and the material increase in oil and jet fuel costs, we expect JetBlue’s operating performance to be significantly impacted over the next 12 months." The strong demand environment will continue to support higher fares. However, we do not expect to generate positive free cash flows until 2028. We project leverage of about 10x at the end 2027. JetBlue could face higher borrowing costs if its junk rating is increased. It may also be unable to access capital markets, at a time that it needs additional liquidity to fund its operations. Fitch downgraded New York's?carrier from "B" to "CCC+", citing ongoing operating losses and negative cash flow. S&P maintained its outlook for JetBlue, expecting the airline to have enough liquidity to cover the?projected?free cash flow deficits until 2027. There are no near-term maturities, and no default or restructuring is expected in the next 12 months. JetBlue secured a $500-million debt financing commitment in support of up to 22 aircraft earlier this year. The company also has the option to raise $250-million more.
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Senators want to investigate the US Transport chief's road trip, which was paid for by corporate donors
A group of six Democratic Senators demanded on Monday that the government 'investigate' U.S. Transportation Sec. Sean Duffy after he took a road trip to film a family vacation filmed for a web video series financed by corporate donors whose firms his department regulates. The Senators Patty Murray and Elizabeth Warren asked the DOT Office of Inspector General for a review of the video series. They said Duffy's actions raised "serious concerns about the use of funds and possible misconduct." Nate Sizemore is a Duffy spokesperson who called the "witch-hunt" an effort and claimed that career ethics officials had cleared Duffy of all aspects of his participation in the Great?American?Road trip. Sizemore said, "This is rich, coming from senators who accept millions in campaign donations from companies that they have jurisdiction over, to fund their private jets and steak dinners as well as fancy retreats." Senators pointed out that the trip had been funded by a non-profit organization that received substantial contributions from USDOT companies, such as Boeing, Toyota, United Airlines and Shell. The senators said, "We are concerned about this possible mix between personal activities and professional activities." They argued that, if the trip was for personal reasons, Duffy shouldn't have accepted gas, hotel accommodations, and other travel costs "from a not-for-profit funded directly by the companies the secretary regulates." Companies declined to comment on the matter or didn't respond immediately to comments. The trip, filmed over a period of 24 days, included a visit to Fenway Park, Boston, St. Louis, and Philadelphia, as well as sites in Montana and Philadelphia. USDOT hasn't?yet published the video series. Duffy, father of nine, former reality television star, and member of the?Congress said that neither he nor his family received any salary or royalties from the show. The road trip was a series of "short getaways" lasting one to two days over an eight-month span, and his children's spring break, which lasted nine days in April. The five-part series will be available on YouTube. Citizens for Responsibility and Ethics in Washington filed a?ethics?complaint suggesting that the situation could have violated federal gift rules. The group called for an investigation by the Office of Inspector General of the Transportation Department and pointed out that a Toyota car is prominently displayed in the promotional video of the series. (Reporting and editing by Mark Porter, Aurora Ellis, and David Shepardson)
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Underwater footage of a great white shark during the Mediterranean cleanup caught by the camera
Divers who were removing abandoned nets in the central Mediterranean, between Italy and North Africa have captured what they believe to be the first ever underwater footage of an adult great 'white shark?in the region. The sighting was made when a team, led by the Healthy Seas Foundation, recovered ghost nets from the wreckage of a ship in the Strait of Sicily - a biodiversity hotspot that has been heavily affected by industrial fishing. The video was taken last week and released on Monday. It shows a shark flanked by a dozen striped?pilot?fish. These fish often accompany large predators to pick up leftovers. Derk Remmers, a volunteer diver from Ghost Diving (one of the partners in the project), filmed and took photos of the shark. Remmers stated that an offshore underwater shark encounter is "insane" in a press release. A second member of the diving crew, Pascal van Erp said on Facebook that he believed the shark was attracted to the dead marine life caught in the abandoned nets, which included many sea turtles. The foundation said that although there were 'occasional sightings' of great whites, it is not known the size of their population. Previous encounters have also not been recorded by divers. Veronika Mikos, director of Healthy Seas, said: "Moments such as this remind us that there is still life in the Mediterranean's offshore waters. It is important to protect them from preventable threats such as abandoned fishing gear and overfishing." Researchers working with the mission stated that the sighting would help to improve our understanding of the distribution and behavior of this critically endangered species. However, further analysis is needed before we can draw any broader conclusions. (Reporting and editing by Alvise Armillini, with Crispian Balmer)
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Sources: German and French leaders are unable to resolve the FCAS fighter jet dispute
Two?German government officials told?Monday that the German Chancellor Friedrich Merz, and French President Emmanuel Macron, have concluded that companies involved 'in building a?joint fighter jet cannot?reach an agreement. The sources said that both leaders agreed to continue developing a drone system and data networks related to the Future Combat Air System project. Macron's office didn't immediately respond to a request for comment. The failure to reach agreement on the EUR100 billion ($116 billion) project highlights the "struggles" Europe has faced rebuilding its military capability after decades of underinvestment. According to a German government source, Merz and Macron discussed Friday the decision to end the troubled project on the sidelines the EU-Western Balkans summit in Montenegro. They had tried in vain before to convince the European aerospace group Airbus that represents Germany and Spain and France's Dassault Aviation, to come to an agreement. According to a European source who was briefed about the issue, the two sides are moving towards a solution that will save face. The remaining systems, including the "combat clouds" of highly secured links, will continue to be known as Future Combat Air System or FCAS. The source said that with the French elections next year, Macron is reluctant to give up the FCAS project he started in 2017 with the former German Chancellor Angela Merkel. The project's future, which focuses on a fighter jet and drones that are linked through a "combat cloud" classified by the Pentagon, has been in doubt for several months due to disagreements between the two sides over control and specifications. (Reporting and writing by Ludwig Burger and Andreas Rinke; additional reporting and writing by Michel Rose and Tim Hepher; editing by Thomas Seythal, Andrew Heavens and Andrew Heavens).
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Fuel costs for US airlines jumped to $6.5 billion in April
The 'Middle East conflict' is driving up jet fuel costs, according to the?U.S. Transportation Department announced Monday. USDOT's monthly report stated that fuel costs for airlines were up by 26% compared to March. Carriers also used 2.6% less gasoline in April than they did in March. Fuel prices in April were $4.11 per gallon, an increase of $1.81 compared to April 2025. This trend has already affected the industry. Spirit Airlines, a low-cost U.S. airline, shut down in May because of rising fuel prices. Delta Air Lines is the largest domestic airline in the United States, followed by United Airlines, American Airlines, and Southwest Airlines. In its annual report, the International Air Transport Association (IATA), which represents over 370 airlines and 85% of all global air traffic, stated that they expect to see a combined profit of $23billion in 2026. This is well below their previous forecast of $41billion, but up from $45billion in 2025. According to KAYAK data, the average fares of flights from the U.S. have increased by up to 31% this year for domestic trips, and 22% for those abroad, compared with 2025. Airspace restrictions and U.S.-Israeli airstrikes against Iran have triggered a Middle East conflict that has forced airlines to reroute their flights, increasing fuel consumption and straining the already limited capacity. Fears of supply disruptions have caused oil prices to surge, driving jet fuel prices higher and increasing refinery margins. Airlines are now facing a sharp increase in their largest cost. IATA predicts that airlines' fuel costs will rise to $350 billion by this year, up from $252 billion last year. Fuel accounts for almost a third in operating costs. (Reporting and editing by Mark Porter, David Holmes, and David Shepardson)
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Greece charges Palestinian man over suspected Hamas links
The Athens News Agency reported that a 37-year old man who was arrested in Greece at the weekend had been charged with terrorism offenses linked to the Palestinian militant gang?Hamas. Authorities said that the?Palestinian suspected was arrested on Saturday in Crete where he worked at a hotel. The operation was a joint one by the Greek intelligence service and police anti-terrorism units. Police sources say he has been charged for offences related to?Hamas Membership and receiving terrorist training, after investigators found evidence that he ordered explosives online. The ANA reported that he will be required to answer the?charges on Thursday before a prosecutor. The police seized mobile phones, bank cards and a laptop from the residence of his victim in Crete as well as from an Athens apartment. Police sources claim that the man was granted asylum in Greece after arriving from Gaza a little over a year earlier. Authorities are investigating if he has received explosives training in a country outside Europe, most likely Malaysia. They also want to know if he is planning an attack. He was arrested after intelligence officials connected him with two key suspects who were recently detained in Cyprus as well as two alleged associates there. Cypriot police said two men aged 32 and38 have been held since May 22 under suspicion of terrorism-related offenses after explosive materials were found in two premises. (Reporting and writing by Renee Maltezou; Additional reporting Michele Kambas, Lefteris papadimas. Editing by Ros Russel)
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Repairs to the Norway-Denmark cable will reduce its capacity by 245 MW until September
Statnett, the Norwegian grid operator, announced on Monday that one of four transmission cables connecting Norway and Denmark will be out of service for three months for repairs. This will reduce available capacity by 245 MW. Statnett released a statement that the Skagerrak cable has not been in operation since 2 June. The fault is now located 'around 30 kilometers (18.6 mile) off the coasts of Denmark. The report added that there were no traces of anchors, or any other activity on seabed in the last few years which could have caused the damage. In recent years, the Nordic and Baltic States have experienced a series of cable and pipe outages. Some were caused by sabotage and others by accident. Statnett stated that the outage of the Skagerrak?2 cable in operation since 1970 appears to be the result of "wear and tear" or minor damage that has accumulated over time. The company stated that repairs are expected to take?until the 2nd of September?in an additional transparency message posted on Nord Pool, a power exchange. Statnett and Energinet, the Danish counterpart to Statnett, jointly own the?four-cable Skagerrak Interconnection with a?total capacity of 1,632 MW. (Reporting and editing by Terje Solsvik, Nora Buli)
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LATAM Brasil reduces fuel cost plans and capacity plans, with cuts expected into the third quarter
CEO Jerome Cadier said on Monday that 'LATAM Airlines Brazil's Brazilian unit will reduce?capacity in July by 3% compared to its initial plans for the period because of a?rise in fuel costs. Cadier, in an interview at the International Air Transport Association annual general meeting held in Rio de Janeiro, said that the move would be a repeat of a reduction made in June. Fuel price shocks related to the Iran war have forced airlines worldwide, including LATAM, to reduce capacity on certain routes and adjust ticket prices upward. LATAM Brasil has adjusted its expectations to 11% growth by 2025. This means that the carrier continues to expand capacity, but at a slower rate than originally planned. The executive noted that prices in Brazil have increased between 20% and 30%. He also said it takes time for price increases to be felt, as some tickets sold before the war were still valid today. "We adjust everything we can," said Cadier, adding that airlines also expect the effects of war to start to fade over time. LATAM will?take delivery of 12 Embraer 195-E2 aircraft later this year, with another 12 arriving in 2027. This will allow it to increase flight frequency on existing routes and add new destinations despite the difficult scenario. The 'company' expects to announce destinations that will be served by the E2 at the end July, delaying the announcement originally expected for this month. "It wasn't necessarily a war-related decision, but rather one that was influenced by a more volatile climate," said Cadier. "We're obviously more conservative with our decisions about capacity increases and allocation of these planes." Reporting by Luciana Arauj and Gabriel Arauj, Editing by Louise Heavens, Nick Zieminski
Canada launches loan program for airlines to deal with high fuel costs
In a 'Monday statement, the Canadian finance ministry announced that a new loan programme would be launched to assist domestic airlines in dealing with high fuel costs and maintaining operations and jobs. The 'Iran war' has caused jet fuel prices to skyrocket, eroding profit margins and straining balance sheets.
This pressure has led governments to extend support to domestic carriers in order to maintain affordable airfares and preserve competition. The Canadian government said that under the 'loan program', eligible airlines will receive up to C$150,000,000 ($107.5 Million) in repaid liquidity support.
The government must also balance the need to protect the free market with its desire to preserve it.
WestJet, the Canadian airline, opposed Ottawa's plan to offer loans to airlines. Instead of continuing with "costly and market-distorting subsides," WestJet urged the government to instead help build a future for Canada's aviation sector. WestJet, owned by Onex Corp, said that the United States has not bailed out any airlines, in order to maintain a level playing field.
The Canadian government did not immediately respond to an inquiry about WestJet's comments. Air Canada, Canada's largest airline, said it had a "very strong balance sheet" that was built to prepare for events like the recent fuel price spike. It added, "we are able adapt and manage this particular situation." Last month, the U.S. Transportation Secretary Sean Duffy stated that he didn't believe that the government should bail out low cost carriers who had requested $2.5 billion of relief. He encouraged the airlines to instead turn to the private market. In May, the jet fuel crisis claimed its first victim when U.S. Low-cost carrier Spirit Airlines stopped operations.
(source: Reuters)