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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
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Why the Houthis, who are Iran-aligned, could have a greater impact on the oil market than previously thought
The Houthis, who are aligned with Iran in Yemen, announced on Monday they would bar ships from the Red Sea that were linked to Israel after Israel re-launched its military strikes?on Iran. This has added to global concerns over shipping and energy flow. Here's why and what it means for the Iran war and global energy crisis. How big is the risk to global energy markets? Iran's closing of the Strait of Hormuz after?Israel attacked and the United States on February 28?has disrupted the majority of oil and energy exports out of the Gulf. This has caused a major energy crisis and pushed up prices. Saudi Arabia responded by diverting 70% of its daily crude oil exports to Yanbu, a Red Sea port. This has helped to lower the global oil price. A sustained disruption of Red Sea shipping by the Houthis, including possible attacks on ports or shipping, could be a major problem. When the Houthis attacked Red Sea shipping in 2023, Gulf Oil exports flowed freely. Cargoes were diverted away from the Red Sea but not stopped. The cargo is being loaded in the Red Sea this time. According to a Houthi source, preventing Israeli ships transiting the Red Sea was "a first?step"; however, if the escalation continues, the group will stop all ships headed towards Israel and take other measures. The group that attacked the shipping during the Gaza War stated its target as any vessel owned by any company using Israeli ports. Its attacks on these ships discouraged most companies from using this route. Who are the HOUTHIS? In the 1990s the Houthis were a military, religious and political movement that fought guerrilla warfare against the Sanaa government. The Zaydi sect is a Shi'a Islam group. After the Arab Spring of 2011, they strengthened their ties with Iran, and took advantage of the instability in order to seize the capital city, thereby sabotaging a Gulf-backed plan for political transition. Saudi Arabia, along with its Arab allies, launched a military operation months later in order to restore the government that was ousted and remove a group they viewed as an Iranian proxy. Iran is Riyadh’s arch rival. The Houthis, as the?Yemeni civil war stalemated, attacked Saudi Arabian oil installations and other infrastructures in the United Arab Emirates and Saudi Arabia with drones and missiles. The truce agreed between Yemen's warring parties in 2022 has mostly held. AREN'T THE HOUTHIS IRANIAN PROXIES? Iran supports the Houthis in its regional "Axis of Resistance", including Lebanon's Hezbollah, and Iraqi Shiite militias. However, its ties to the Yemeni movement is less clear than those with these other groups. Houthis don't recognise Iran's supreme religious leader as their ultimate authority, like Hezbollah or Iraqi groups. Although ideologically aligned to Iran, its motivations are mostly domestic. The U.S. claims that Iran has armed and funded the Houthis, with Hezbollah's help. The Houthis, however, deny that they are Iranian proxy forces and claim to develop their own weapons. What happened when the HOUTHIS attacked RED SEA SHIPS before? The Houthis, who claim to be supporting Palestinians, began shooting at Israel after the Hamas attack of October 7, 2023 and Israel's destructive campaign in Gaza. The Houthi attacks in the Red Sea disrupted shipping worldwide, forcing Maersk, Hapag-Lloyd, and other major companies, to divert through Africa, a much longer, more costly route. The U.S. led mission to restore free navigation on the Red Sea involved repeated strikes against Houthi targets, and a defensive offensive that destroyed hundreds of missiles and drones. Some Houthi attacks continued through the summer of last year, but only ended completely in October with the Gaza ceasefire. WHAT HAS THEY DONE IN THE LATEST WAR WITH IRAN? The Houthis, on the other hand, have been relatively quiet. Abdul Malik al-Houthi, the leader of the group, said on March 5, "Our fingers are ready to trigger at any time should circumstances warrant it." Esmaeil Quaani, commander of the Revolutionary Guards Quds Force, said on June 1, that the Houthis might join the war. Before this week, however, the group was only involved in a few drone and missile attacks on Israel that took place between late March and earlyApril. It is not clear why the Houthis are so quiet. The Iranians and they may have used the threat of a new major energy route closing to scare Israel and the United States into not escalating further. Houthis might also be less concerned about Iran's security compared to other regional allies. The group might not want to anger its wealthy, powerful neighbour Saudi Arabia or risk reigniting conflict in the country. (Compiled by Angus McDowall, edited by Jason Neely).
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Sign up now to be the first Londoners to ride a robotaxis before it launches 'in a few months'
Uber announced that its users can sign up for the chance to ride the 'first robotaxis' in London as soon as the regulators approve the launch. This is expected in the next few months. Ride-hailing firm said that the cars would use AI technology developed by British startup Wayve, to drive themselves around the streets of London, but initially, trained operators will be behind the wheel, monitoring the system. Robotaxis are already in use in many cities across the United States including San Francisco, Phoenix, Los Angeles and China. Europe, however, has taken longer to adopt them due to the complexity of historical street layouts and local legislation. Uber's introduction of the technology is a priority for it as it competes with its rivals in adopting this technology that promises cost-savings and more efficient trips. Kaity Fischer, Wayve's Vice President of Commercial and Operations, said in an interview that this is the first time in the UK the public can hail an autonomous car. BUSY LONDON ST STREETS TESTED Ford Mustang Mach-E cars, branded Uber x Wayve have a surround?camera and radar that provides data?that's processed in the car. Since 2018, the technology has been tested in London, according to Fischer. In a test drive on Friday, the vehicle was able to handle heavy London traffic. This included buses pulling into and out of lanes, cyclists weaving through cars, and pedestrians crossing at crosswalks. Annie Duvnjak is Uber's global head of autonomous mobility operations. She said that customers matched with an autonomous Wayve ride can choose to accept it or to switch to a traditional service. The AV rides won't cost more, said Duvnjak. In 2025, the British government announced that it would speed up pilots for taxi services without safety drivers this year in preparation for a possible wider rollout next?year. Before launching, commercial services must be approved by local authorities such as Transport for London. Heidi Alexander, the UK's transport minister, said that the technology of self-driving cars could transform the way people travel. It would reduce road accidents and create high-skilled job opportunities across the UK. She said: "Wayve, a British success story, is now partnering with Uber. This partnership is a vote of confidence for their technology." Waymo is a subsidiary owned by Alphabet and also tests autonomous vehicles in London. It plans to launch its commercial services in London this year. The companies said that Uber and its rival Lyft would also be testing Baidu's Apollo Go self-driving cars in London this year. Wayve, who partnered with Uber 2024, claimed that its technology was adaptable to multiple vehicle platforms and could scale quickly. In February it raised $1.5billion, including money from Uber and Mercedes-Benz. Stellantis, Nissan, and Stellantis also contributed. The company was valued at $8.6billion.
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India confirms that the crew of an Indian oil tanker is safe after a fire was reported off the coast of Oman.
India's shipping ministry said that 24 Indian sailors were onboard an oil tanker which caught fire off the coast Oman. They added that they were all safe. Opesh K. Sharma, director of the Federal Port and Shipping Ministry, said at a press conference that the vessel flying the flag of Madagascar, Marivex, was not carrying any cargo. "At the moment, all Indian seafarers appear to be safe. "We are coordinating with our Indian missions overseas, the Indian Navy and the Ministry of Defence in order to ensure their safety," said?Sharma. The cause of the fire that broke out on the vessel around 1.30 pm local time (0800 GMT) was not known immediately. The Indian embassy posted on X that Indian officials were in contact with Omani authorities for the safety and rescue of the sailors.
There are some flights to the Middle East that have resumed but there is still disruption.
As regional carriers rebuild their schedules following war-related disruptions, some airlines are gradually restoring flights to the Middle East. However, the conflict continues disrupting wider traffic flows. Middle Eastern airlines have increased capacity following the severe disruption caused by the Iran War, but many other carriers are still diverting Europe to Asia flights in order to avoid the Middle East.
The latest flight information is listed below alphabetically:
AEGEAN AIRLINES
Thessaloniki-Tel Aviv flights were cancelled by Greece's biggest carrier until June 26. The flights?to Dubai have been cancelled until August 31 and those to Erbil,?Baghdad and?Baghdad are cancelled until July 2.
AIRBALTIC
AirBaltic, a Latvian airline, has canceled flights to Tel Aviv and Dubai until the 28th of June.
AIR CANADA
The Canadian carrier has canceled flights to Tel Aviv, Dubai and Abu Dhabi until September 7.
AIR EUROPA
Spanish Airlines has canceled flights to Tel Aviv till June 28.
AIR FRANCE-KLM
Air France suspends its Tel Aviv flight until June 14 and flights to Beirut, Dubai and Dubai until June 17
KLM has suspended flights from Riyadh, Dammam and Dubai until the 12th of July and until August 2nd.
CATHAY PACIFIC
Hong Kong Airlines has suspended its flights to Dubai and Riyadh through August 31.
The U.S. carrier suspended service for the Atlanta-Tel Aviv routes through December 18, 2018. The airline plans to resume New York JFK-Tel Aviv flights starting September 6. However, the launch date of Boston-Tel Aviv, originally planned for October, has now been pushed back until further notice.
FINNAIR
It has cancelled all Doha flights up to October 2 and continues to avoid airspace in Iraq, Iran Syria, and Israel. The airline will resume its Dubai flights in October, which are only operated during the winter.
British Airways, owned by IAG, delayed the return of flights to Doha and Riyadh to August 1. Flights from Amman, Bahrain, Amman, Dubai, Tel Aviv and Doha will be suspended until the summer ends. They are expected to resume on 25 October. When it resumes, the airline plans to reduce its services to Dubai and Doha to just one flight per day, while dropping Jeddah from the list of destinations.
JAPAN AIRLINES
Japan Airlines has suspended its scheduled Tokyo-Doha and Doha-Tokyo flight until August 1, as well as Doha-Tokyo until July 31.
Polish Airlines has cancelled all flights to Riyadh and Beirut until 30 June. LOT will begin operating its winter route from Dubai in October.
LUFTHANSA GROUP
Lufthansa has announced that it will resume Tel Aviv flights as soon as July 1. ITA Airways also confirmed they would resume Tel Aviv flights as of July 1. SWISS delayed the return of flights to August, while Brussels Airlines suspended its operations until October 24.
The suspension of Dubai flights by Lufthansa SWISS and ITA Airways continues until September 13th.
Lufthansa and SWISS have suspended flights until October 24 to Abu Dhabi, Amman Beirut Dammam Riyadh Erbil Muscat Tehran.
Eurowings, a low-cost carrier, has suspended flights from Tel Aviv to Beirut and Erbil to June 22, and Dubai to Abu Dhabi and Amman to October 24.
ITA Airways also extended its suspension of flights to Riyadh through June 30.
MALAYSIA AIRLINES
From July 2, the Malaysian airline will resume limited service to Doha.
NORWEGIAN AIR
The low-cost airline has delayed the launch of its Tel Aviv, Beirut and Beirut services until June 15.
QANTAS
Australia's national carrier has added flights to Rome, Paris and other European destinations to meet the increased demand. The number of flights to Paris is increasing from three to five weekly return flights, and the Perth to Singapore service will go from daily to ten a week. A new schedule will be implemented gradually for flights starting in mid-April. It will run through late July.
ROYAL MAROC
Moroccan airline announced that flights to Doha have been cancelled until 30 June.
PEGASUS
Pegasus Airlines, Turkey's national airline, has cancelled flights scheduled for June 8 and 9 to Erbil, Amman Bagdad, and Beirut.
SINGAPORE Airlines
In response to increased demand, the carrier has extended the suspension of its Singapore-Dubai flights until August 2 and added services on Singapore-London Gatwick (late March) and Singapore-Melbourne (late March-October 24).
TURKISH AIRLINES
SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights until June 30, including to Dubai, Bahrain and Erbil.
WIZZ AIR
Low-cost airlines have suspended flights from Europe to Dubai, Abu Dhabi and Amman until mid-September. (Compiled by Josephine Mason and Jamie Freed. Elviira Louma, Tiago Branao, Agnieszka Olesnska, Bernadette HOG, Boleslaw LaSocki, Romolo Tosiani, and Bernadette HOGG. Matt Scuffham and Alexander Smith edited by Milla Nissi, Susan Fenton, Jonathan Ananda, Milla Nissi-Prussak, and Jonathan Ananda.
(source: Reuters)