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Boeing to deliver Air Force One by 2028, but costs will rise
Boeing announced on Sunday that it is still on track to deliver the two new Air Force One aircraft in 2028. However, achieving this target will require more'spending' on a program which was already many years behind schedule and millions of dollars over budget. Boeing won a $3.9billion contract to build the aircraft in 2018, but costs have since risen to over $5billion. The aircraft will replace the Air Force One planes that entered service in 1990. Steve Parker, CEO of Defense, Space & Security, said to reporters in advance of the Farnborough Airshow, that the 'first aircraft will begin testing next year. "I expect some cost increases as we complete the wiring, the structures and our own certifications." In May 2025, the United States accepted from Qatar a luxury Boeing 747-8 for temporary use as a presidential aircraft. Since then, the jet has been used as a bridge aircraft. 'Security concerns caused President Donald Trump not to fly the Qatari Jet home from Turkey and instead chose to return aboard a?older Air Force One. Air Force One is a program that involves the conversion of two Boeing 747-8 aircraft to highly specialized jets,?equipped? with advanced communication and?defensive?systems. The program will still be four years behind schedule even if it is delivered in 2028. (Reporting and editing by Sharon Singleton; Joe Brock)
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The passenger ship that sank off the coast of Guyana is believed to have taken dozens of people with it.
Guyana authorities report that a ferry with 116 passengers, including 15 children, has sunk off the coast of Guyana, in South America, late Saturday night. 67 people, including those who were rescued, have been rescued. According to local media, an air traffic control tower received the distress call from the MV Barima at 11:01 pm on Saturday night, which triggered a search and rescue mission. The ferry capsized, along with?17 other crew members,?off of the North 'Atlantic Coast on its way to Port Kaituma. The ferry's departure point was not known. At a Sunday morning press conference, Prime Minister Mark Phillips stated that the operation will continue until 'all efforts have been exhausted. Deodat indar, Guyana's Minister for Public Utilities and Aviation?said that emergency family support centers had been set up?to give families information and assistance. Reporting by Kemol King, Deisy Bugtrago and Emily Green. Editing by Chizu Nimiyama.
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Boeing focuses on production at Farnborough Airshow, not new orders
Boeing's head of commercial aircraft unit announced on?Sunday that the company is examining a?new?round of _production increases? for its best-selling 737 MAX, after it received regulator approval in may to increase production to 47 a monthly. Boeing was given an unprecedented production limit by the Federal Aviation Administration after a mid-air accident in 2024 revealed widespread safety and quality lapses. Stephanie Pope, CEO of Boeing Commercial Airplanes, told reporters during a roundtable before the Farnborough Airshow that the company uses its safety management system to determine when it is stable enough to move to the next rating. "I have the team focused on stabilising 47." We'll move to 52 once we reach 47. Then we'll continue to study that. She said that the company's focus at the show is on increasing and improving aircraft production. "Not order announcement," she added. The backlog is extremely strong. The demand is not a problem. Pope said that if we announced some orders along with the process, we would 'celebrate' with our customers depending on whether they wanted to. She said that the priority of 'the planemaker is to listen' to its customers and suppliers at this biennial event, which brings together executives of many of the industry's biggest companies. She said, "We will?understand what their challenges are and then update them on our product," (Reporting and editing by Sharon Singleton in London, with David Shepardson reporting from London)
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Israeli officials claim that Israel will receive additional US refuelling aircraft as Iran's attacks intensify.
An Israeli military official revealed on Sunday that Israel is preparing for more refuelling aircraft from the United States, as attacks by 'the United States' and Iran have intensified over the last week. Since a ceasefire agreement signed one month ago fell apart, the U.S. has intensified its strikes against Iran. This raises the possibility that a full-scale war could return. Israel has not been involved in the latest U.S. strikes. According to the?Israeli official, the U.S. has "decided" to "adjust its force posture in this region" and "to reinforce the current fleet of aerial fuelling aircraft stationed at Israel with additional refuelling planes." A senior Israeli official also said that dozens of U.S. fuelling planes are expected to arrive in Israel. The U.S. Embassy at?Jerusalem did not respond to a request for comment. Since the conflict started with?U.S. Since the conflict began with?U.S. Axios, citing three U.S. officials and Israeli officials on Friday, reported that the Trump Administration notified Israel of its intention to send dozens of additional refuelling aircraft to the country in anticipation of an expansion of military operations against Iran. According to an Israeli military official, in order to reduce disruptions of civilian air traffic and based upon operational and?logistical concerns, the U.S. chose to station some refueling aircraft at?Israeli?Air?Force bases" as well as commercial airports. Sharon Kedmi said in May that 70% of Ben Gurion's?activity was restricted?because the U.S. military activities were taking up space and resources. According to a spokesperson of Transport Minister Miri regev, the U.S. has agreed to transfer some aircraft from American bases to Israeli Air Force bases. The spokesperson stated that as of June 25, there were 98 U.S. aircraft in Israel. (Reporting and editing by Steven Scheer, Maayan Loubell, Aidan Lewis).
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A spokesperson for the government says that Jordan has not ordered evacuation from Aqaba seaport or airport.
The Jordanian government has not made any decision to evacuate the airport or seaport of Aqaba on Sunday, despite the U.S. Embassy in Amman stating that they were evacuated because of a credible threat. In a written report,?government spokeswoman Mohammad Al-Momani said that "no potential threats were recorded by the relevant Jordanian Authorities in the last few hours." "The port and airport are operating normally." The U.S. Embassy?had stated that the?airports and seaports were evacuated because of a "specific, credible threat" without providing any further details. The Jordanian authorities advised Americans not to travel to either of the two locations and to continue to "follow all security instructions issued by Jordanian officials." The U.S. Military said that on 'Saturday, two of their personnel were killed in Jordan and one was missing following an Iranian attack. Jordan has said repeatedly over the past?week that it has intercepted Iranian rockets flying above its territory. Reporting by Hiba Issawi, Eman Abbouhassira, Nayera Adallah, and Maya Gebeily, in Beirut, with editing by David Goodman and Kirby Donovan.
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Data shows that Gulf crude exports increased in July, but that shipments slowed down due to renewed hostilities.
Shipping data shows that Gulf countries increased crude oil and condensate exports to their highest level since?before the Iran War began in late Febuary, although the flow through the Strait of Hormuz is now slowing down as the fighting escalates. Kpler data shows that crude and condensate imports from Saudi Arabia and the United Arab Emirates increased by about 16% compared to the entire June daily average, reaching?12million barrels per day in the first half July. Vortexa estimated that exports during the period were even higher at 13.06 million bpd. Kpler reported that Saudi Arabia, Iran, and Iraq led the increase in the first half July. Vortexa estimated Iraq had the largest increase month-on-month, while UAE exports declined from record levels?in June. Oil prices fell as supply concerns eased following the U.S. The United States and Iran agreed to an interim agreement in mid-June that would reopen the Strait of Hormuz, the most important shipping route on the planet for oil and natural gas. Early July, disagreements over the administration of the waterway led to the collapse of an interim agreement. RED SEA CONCERN Shipping data shows that shipments through the strait have already declined as strikes on both sides have re-escalated. On Thursday, there were only three commodity tankers, the fewest transits per day since May. Kpler analyst Johannes Rauball stated that "we're experiencing a slowdown of activity. This means that countries have to reduce their output which will decrease the amount of crude that is shipped." Exports were still 32% lower than February's prewar peak of 17,6?million Bpd. Iran has reportedly told Yemen's Houthis that they should be ready to disrupt the traffic in the Red Sea, if the United States attacks Iranian energy infrastructure. Saudi Arabia diverted the majority of its energy exports via Yanbu, its Red Sea port. Kpler data shows that 75% of Saudi Arabia's 5.29 million barrels per day (bpd) crude and condensate have been exported through Yanbu so far this month. (Reporting and editing by Alex Lawler, Emelia Sithole Matarise, and Ahmad Ghaddar)
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CPC: Caspian Pipeline Consortium suspends oil loadings after drone attacks on tanks
CPC announced on Sunday that two?oil tanks were attacked by a gang of armed men at a terminal near the Black Sea coast in?Russia. Oil loadings have been suspended. CPC reported that the ASIA and NISSOS tanks were attacked during loading operations. CPC said that the ASIA tanker caught on fire and was put out. CPC employees and contractors were not injured or killed. CPC confirmed that there was no oil spill, adding that the tankers were still afloat. CPC has not identified any party responsible for the incident. In the past week, both Russia and Ukraine have intensified their attacks on ships in the Black and Azov Seas. The 'CPC' is a 1,510-mile (1,510-km) oil pipeline that connects Kazakhstan's Caspian Sea oil deposits to Russia's Black Sea port of Novorossiysk. The oil is then transported by 'tanker' to the world markets. CPC is responsible for 80% of Kazakhstan oil exports.
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US strikes Iran again after Iranian attack kills two military personnel
Central Command announced the United States had launched new attacks against Iran. This was after it previously reported that two U.S. soldiers were killed and one missing in Jordan following an Iranian attack. Iran's supreme Leader said that Washington would pay for "striking up the conflict" before the Saturday strikes. Central Command announced in a press release that airstrikes had begun at 6 pm. ET (2200 GMT), at President ?Donald Trump's direction. The statement did not provide any further information. "The strikes are intended to further undermine Iran's capability to threaten commercial shipping through the Strait of Hormuz, and to swiftly punish Islamic Revolutionary Guard Corps (IRGC) forces that launched attacks on American servicemen in Jordan last evening," it stated. Iran's Mehr News Agency reported that the U.S. launched an attack near Sirik, in southern Iran. It added that no injuries or infrastructure damage had been reported. Since an interim ceasefire agreement signed a month earlier fell apart last weekend, the U.S. has intensified its attacks on Iran. This raises the possibility of all-out warfare. Central Command confirmed that the two deaths took place on Friday, and that one U.S. serviceman was still missing. This announcement brings the total number of U.S. military deaths since the beginning of the war to 16. More than 420 U.S. soldiers have also been injured. U.S. Secretary of Defense Pete Hegseth wrote on X, "Their sacrifice only strengthens our resolve." Iran seemed to be targeting Saudi Arabia and other?U.S. Gulf allies, including Jordan and Jordan, were targeted by the U.S. on Saturday following attacks against Iranian infrastructure such as bridges and power plants. Ayatollah Khamenei, the supreme leader of Iran, said in a statement that was carried on social media by his official accounts and Iranian state-run media that U.S. action has shown Trump's signature to be "utterly worthless" and "devoid of credibility." The statement warned that the United States would face "even greater costs and humiliation". A request for comment was not immediately responded to by the White House. Khamenei’s whereabouts are still a mystery. The conflict began after the U.S., Israel and other countries launched attacks on Iran at the end of February to disable the missile program and regional proxies. It has caused major disruptions in energy supplies and fears of global inflation. IRANIAN STRIKES REPORTED IN KUWAIT, BAHRAIN, JORDAN, SAUDI ARABIA The armed forces claimed to have intercepted Iranian drones and ballistic missiles. They also said that firefighters and oil workers were injured in the response. Iran's IRGC claimed it had destroyed a radar at Ali Al Salem Air Base and struck a U.S. Military Support Centre at Kuwait's Camp Arifjan. Kuwait Petroleum Corporation said that one of its oil installations had been damaged by "repeated Iranian strikes", which caused significant damage, and also some injuries. Iranian media reported that the IRGC targeted a site at Sheikh Isa Air Base in Bahrain, where U.S. fighter aircraft and a data centre for intelligence were gathered. According to Iranian state TV, the Guards destroyed two U.S. aircraft fighters and three others during an early Saturday morning missile and drone strike on a U.S. military base in Al Azraq. The reports could not be independently verified. Saudi Arabia's early-warning system sent out alerts on Saturday morning urging residents in Al-Kharj to take shelter. Al-Kharj is east of Riyadh and hosts a U.S. military base, while Yanbu on the Red Sea has an important oil export terminal. Two people who were briefed in the matter stated that an Iranian missile strike, the first one on Saudi Arabia for more than three month, was the cause of the alerts. The government media office did not reply to a request for comment. The IRGC did not mention any attacks on Saudi Arabia. On Saturday, the U.S. State Department sent out a travel alert to Americans living abroad. The warning cited increased tensions in the Middle East and the "potential for an unforeseen escalation." Flight cancellations and airspace closures on a periodic basis could cause travel disruptions, according to the advisory. BATTLE FOR CONTROL OF STRAIT. Earlier, U.S. Central Command announced that it had struck Iranian surveillance sites and military infrastructure. It also said it hit underground weapons storage, maritime capabilities, and military logistics. U.S. Airstrikes on Saturday morning killed 3?people, wounded 8 others, and damaged two bridges and road tunnels in southern Hormozgan Province, which borders the Strait of Hormuz. Iran's Health Ministry announced on Saturday that U.S. air strikes against the country in the last three weeks had killed 50 people and injured more than 500 others. Esmaeil Baghaei, a spokesperson for the Iranian Foreign Ministry, accused the United States of trying to control the Strait of Hormuz. This is the area that handles about a fifth of the world’s oil. Both sides have targeted shipping traffic. The U.S. says it enforces a naval blocade, while Iran claims it targets vessels that violate its rules for navigating the Strait. According to a statement released by Saudi state TV, the European Union and Gulf States called on Iran on Saturday to stop all attacks on maritime navigation immediately and without condition and to keep it open to traffic. Reporting by Bureaus; Writing by Gareth Jones Aidan Lewis Michael Martina; Editing Alison Williams Ros Russell Rod Nickel
Fuel price shock widens product gap between US Airlines
Fuel?shocks that hit U.S. Airlines are doing more than just squeezing the margins. They're widening an existing product gap, which may take many years to close, as strong carriers continue to invest in lounges and premium seating, along with technology, international networks, that their weaker competitors may not be able to match.
Executives from financially strong carriers such as United Airlines, Southwest Airlines, and Alaska Air spoke at the International Air Transport Association (IATA)'s annual meeting in Rio de Janeiro. They said that a growing divide exists between those airlines who have the ability to upgrade their services and those who are forced to conserve money and slow down investment.
In the U.S., there is also an increasing K-shaped economy where consumers with higher incomes continue to spend without restraint while travelers who are price sensitive pull back. Investments in premium products are designed to appeal to high-spending travelers.
In an interview, Scott Kirby, CEO of United Airlines said that air travel was not a commodity. Customers care about technology, service, reliability and product. They want to have a wonderful experience. "They don't want just a seat."
Kirby stated that United will recover all of the cost increases in fuel by increasing fares at year's end, even though he expects some pressure to be placed on demand. He said that the airline continues to invest heavily into aircraft, technology, and customer-facing product, all of which are supported by an earnings advantage.
IATA's North American outlook this week predicted a growing gap between low-cost operators and resilient network carriers.
The collapse of Spirit Airlines, a U.S. low-cost carrier, last month has raised concerns about carriers with lower margins and weaker balance sheets. Fuel costs are also increasing cash pressures.
S&P Global Ratings cut JetBlue Airways credit rating further into junk territory on Monday, citing "higher fuel prices and its heavy debt burden."
JetBlue CEO Joanna Geraghty stated in an internal note to viewed by that the company was not contemplating bankruptcy. However, she said fuel prices made the situation more difficult and "the decks were stacked against us" citing the larger competitors' loyalty, network and credit card advantages.
United and JetBlue have a reciprocal loyalty agreement and network collaboration, and Kirby stated that he didn't expect JetBlue to file for Chapter 11 protection "anytime in the near future" citing the cash it has and its?unencumbered? assets.
JetBlue didn't immediately respond to an inquiry for comment.
INVESTMENT GAP
Fuel prices are influencing how much airlines are willing to spend on premium seating, airport lounges and other products that passengers want.
Southwest Chief Operating officer Andrew Watterson stated that the investment gap would likely widen, as borrowing costs increase and become a greater burden on more indebted companies. This is especially true for those who rely on aircraft leasebacks or new debt.
Watterson stated in an interview that "if you borrow money, your interest expenses will go up." Watterson said in an interview that the higher your costs are, the lower the growth rate and the lower the investment you make in products.
Southwest was able to invest because of its strong profits and solid balance sheet. Rivals were forced into defensive mode.
Southwest is evaluating the products that were once associated with network airlines -- from airport lounges, to transoceanic flights and premium seating -- which could mark a possible shift away from its low-cost traditional model. Watterson says that the lounges are most advanced, and a decision could be made this year.
LOYALTY BUFFER
Alaska Air's Chief Financial Officer Shane Tackett stated that airlines without strong loyalty and premium revenue streams are facing the most strain following a near-doubling of fuel prices since Iran war began.
He said that some airlines have a business model that is really challenged by the current environment.
Alaskan demand is holding steady. Tackett stated that corporate bookings for the next 90-day period were up 20-30% from the year before, across all geographies and sectors. Fare increases will be expected to offset the majority of fuel costs in the second half. He said that if demand remains stable, operating cash burn may fall to zero, or even turn slightly positive.
Alaska can continue to expand its premium and long-haul ambitions following its purchase of Hawaiian Airlines. Tackett stated that the airline plans to upgrade Hawaiian Airlines' Airbus A330 cabins with fully enclosed suites, international premium economy and international premium economy.
Alaska's need to borrow shows the impact of higher fuel prices. Alaska Airlines raised $1 billion in secured debt and unsecured debt earlier this year, which was its first unsecured offering. Tackett stated that the deal had been well received by investors, and Alaska did not plan to increase liquidity or reduce capital expenditure.
He said that credit markets assess airlines individually and rebutted concerns that multiple airline tapping the capital markets will automatically increase funding costs for the entire industry.
In an interview, he stated that he did not believe the credit benefits or credit expenses are applied to all industries. It depends on your profile, balance sheet and ability to generate operating cash flow. (Reporting and editing by Jamie Freed; Rajesh Kumar Singh)
(source: Reuters)