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Canada cancels joint celebration of bridge with US, citing Trump's trade threats
The United States and Canada have canceled their planned joint celebration. The opening of the 'Gordie Howe International bridge between Windsor, Ontario and Detroit has been cancelled due to a 'trade threat from President Donald Trump. In an emailed message, Jenna Ghassabeh said that it would not be appropriate to hold a celebration between the two nations in light of the trade action that the United States threatened earlier this week. The bridge will open to traffic on July 27. Windsor Mayor Drew Dilkens told local media that a ribbon-cutting event was scheduled for July 24, with U.S. and Canadian officials attending. Canada is still "committed to" opening the bridge by July 27 but will celebrate the milestone "among Canadians", Ghassabeh stated. Trump announced 50% tariffs for a range of Canadian imports in response to the U.S. Administration's treatment of American cars, alcohol, and dairy products. The $4.7 billion?bridge named after the legendary Detroit Red Wings player was originally scheduled to open in June. Trump had threatened to halt the project in February, citing "Canada's refusal" to stock some U.S. alcohol beverages, as well as its tariffs on milk products and trade negotiations with?"China. After the U.S. & Canada reached a toll agreement this month, the bridge was opened. The new bridge will help to ease truck traffic on the Ambassador Bridge, into Detroit, the U.S. Canada border's biggest freight port. Commercial trucks carried $126 billion worth of trade in 2023. (Reporting and editing by David Gregorio in Toronto, with Ryan Patrick Jones reporting from Toronto)
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Airbus launches buyback program to target near-doubling of earnings in 2029
Airbus announced its medium-term goals on Tuesday. These included a near-doubling of profits, and stronger shareholder returns. This showed confidence in the company's ability to ramp up production at a time when a battered aerospace industry is turning the corner with regard to supply disruption. The largest civil aircraft manufacturer in the world said that it aimed to achieve a core profit between EUR12 billion and EUR13 billion ($13.69 to $14.83billion) by 2029. It also announced a EUR5billion share buyback program. This goal is a significant increase from the EUR7.13 billion in adjusted earnings before taxes and interest that Airbus generated during last year. It also exceeds a target of EUR7.5billion for 2026. Airbus wants to increase profits by increasing deliveries of aircraft to meet strong airline demand, while slowly overcoming disruptions in the supply chain and engine shortages which have constrained production across the aerospace sector. The company expects its commercial aircraft business to generate an operating profit of around EUR10 billion by 2029. J.P. Morgan analysts stated earlier this month that Airbus is likely to achieve this level of profit within its commercial aircraft business in three years. We have never seen such a high level of visibility before. Guillaume Faury, CEO of the company, told investors in London that we have put behind us many challenges and cleared the skies for moving forward. Airbus began the year slowly due to supply-chain and engines bottlenecks, but has since increased deliveries by increasing first-half handed over by 15% on an annual basis. Airbus has not changed its 2026 forecast, which includes an increase of 10% in commercial jet deliveries to 870. "We are in a better position with the supply chain." "We're still experiencing issues here and there, which will likely continue as we go higher. But it's in much better shape in the years coming out of COVID," Faury said to reporters late Tuesday. AIRBUS IS EXAMINING A350 PRODUCTION INCREASES Airbus has said that it is seeing a demand for wide body jets, and will be increasing production of the A350 in coming years. Airbus Commercial CEO Lars Wagner said that he expects protracted engine supply problems for smaller A320neo aircraft to be resolved by the year 2028. Airbus, however, said that it would 'push for more engines to be produced by RTX unit Pratt & Whitney in 2027 after a tug-of-war between new assembly plants and maintenance facilities for scarce supplies. Airbus also wanted to get more from CFM, a supplier that was already delivering the agreed-upon quantities. Pratt and Whitney said earlier on Tuesday the maintenance disruption which?has caused hundreds of aircraft to be grounded is easing. The?numbers of aircraft that have been grounded due to engine-related issues has decreased by 40% since the peak. Airbus confirmed that it is considering launching longer versions A220 and A350, but did not give a timeline for its decision.
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Boeing wants the US to intervene in record EU loan to Airbus
Boeing asked the U.S. Government to pressure the European Union on transparency regarding a EUR3 Billion ($3.43 Billion) loan package?to Airbus. This resurfaced trade tensions following the two sides?extending a tariff truce?over jet subsidy. Airbus is reportedly planning to develop a new aircraft as early as 2030. This could spark a new wave of competition on the global jet market. After a 17-year fight at the World Trade Organization, both sides achieved partial victories over their mutual claims about aircraft subsidies. This led to a transatlantic wave of tariffs that hit other industries. The ceasefire, which was due to end on July 6, is now indefinitely extended as both sides retreat from a new trade war in the aerospace industry. Boeing, in a letter sent to U.S. Trade Representative Jamieson Greer and seen by, said that it was surprised to learn of the European Investment Bank's announcement on June 29, announcing its largest corporate loan ever for Airbus. It asked the USTR for a "full account of the terms of the loan" and why it was in line with the 2021 truce accord, which required an "open and transparency process." Greer said to?CNBC that the USTR was looking at the loan with "great care" and he raised the issue with his EU counterpart. Greer stated that "we cannot accept a scenario where Boeing is forced to compete with an Airbus which receives unfair loans, and where Boeing must operate in a market-based system." These comments echoed the 17-year WTO dispute, in which Airbus claimed victory over Boeing and both accused each other that they were benefited by?unfair assistance. The WTO referred to earlier EIB loan as 'Airbus subsidies' but rejected U.S. allegations about their role. Boeing, however, noted that the announcement of the initial tranche of EUR1billion came only four days after the EU had adopted the decision to prolong the standstill agreement. Boeing stated in its letter that "at a minimum, this loan's timing is surprising." The EIB denied that it offered Airbus any unusual assistance. A spokesperson explained that this is a regular loan with interest as part of EIB’s overall financing activities. Thomas Toepfer, Airbus' Chief Financial Officer, told London reporters that the loans were taken "completely on market level". Boeing declined to comment. The USTR, European Commission and other agencies did not respond immediately to requests for comments. AEROPLANE DEVELOPMENTS The EIB announced that the loan package would support Airbus long-term investment through 2030. Boeing pointed out that Airbus CEO Guillaume Faury said Airbus planned to start the development of an A320neo replacement in the same year. Faury revealed the code word "eAction" for the project in an interview with Aviation Week, ahead of the Farnborough Airshow. Boeing's letter sent to the USTR stated that "the timing of this significant loan coincides with Airbus leadership publicly committing to launch date for a new aircraft, which further raises doubts about the size and intent of this historic package of economic assistance." Boeing said that the market conditions were not right yet for a new plane generation, but analysts expect both companies to "start the next development by the mid-2030s." Boeing's letter reveals a wariness about competitor funding, on both sides of this duopoly in the jet market. However, tensions have decreased since the WTO subvention battle. After briefly imposing tariffs, the Trump administration agreed last year to exempt aerospace from tariffs. Washington hasn't officially announced that it will extend the separate truce over tariffs related to the Airbus and Boeing dispute. But four people who are familiar with the issue said that both sides have effectively put the marathon WTO dispute behind them for now. The Trump administration is seen to be reluctant to use WTO tools, which would implicitly acknowledge multilateral rules that the president opposes. Trump has called for a meeting with his trading partners this month to discuss the impact of foreign jet imports.
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Alaska Air forecasts quarterly profit below estimates as jet fuel prices stay high
Alaska Air forecast third-quarter profits below Wall Street expectations on Tuesday as fuel prices rose due to renewed U.S. - Iran?fighting. Seattle-based airline Alaska Airlines expects its third-quarter adjusted profits to be between $0 and $1 per share. According to data compiled and analyzed by LSEG, analysts had on average estimated a profit per share of $1.38. In extended trading, shares of the airline fell 3%. U.S. airlines will face additional fuel costs of billions of dollars this year due to the increased oil and jet-fuel price caused by the war in Iran, and the prolonged disruption of shipping through the Strait of Hormuz. United Airlines alone anticipates an additional $6 billion in fuel expenses for '2026 compared to its original plan. After a fragile ceasefire between Washington and Tehran, prices of jet fuel fell sharply from their spring highs. However, after the hostilities resumed in July, the prices rose again. Alaska's economic fuel costs are expected to average $3.75 a gallon during the?July-to-September period. This is lower than the $4.43 it paid per gallon in the previous quarter. About a quarter or so of airline operating costs are fuel-related. This volatility has led carriers to increase fares, reduce flying and seek additional cost savings. Alaska is especially exposed to West?Coast markets where limited refining capacity and pipeline capacities can cause prices to be more volatile and expensive. It is trying to diversify by importing more fuels from Singapore. However, Singapore's refining margins have also risen earlier this year. Alaska currently sources about a fifth (or a little more) of its fuel from the United States and says it will eventually increase that percentage to 30-40%. Delta ?Air Lines earlier this month gave a stronger-than-expected third-quarter outlook, ?while United Airlines' forecast fell short of Wall Street estimates. Both carriers claimed that higher fares and strong demand helped offset the 'increased fuel prices, with premium travel remaining especially robust. Alaska's adjusted loss?of 92c per share was narrower than the analysts' average estimate, which was 99c per share. Data compiled by LSEG. (Reporting by Nandan Mandayam in Bengaluru; Editing by Pooja Desai)
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Hawaiian Airlines increases capacity on inter-island flight
Hawaiian Airlines announced 'Tuesday it will retire a total of 19 'Boeing 737s that are more than 20 years older and replace them with larger 737 Next Generation jets in order to keep up with the growing demand for inter-island short flights starting in 2028. The 737 NG has around 160 seats compared to the?717s' 128. Hawaiian CEO Diana Birkett Rakow said in an interview that the airline needs extra capacity for the middle of each day. Alaska Airlines, the parent company of Hawaiian Airlines, announced it would be leasing four 737-800 freighters to nearly double its capacity. Alaska Airlines will use the jets in 2028, increasing its freighter fleet from five to nine aircraft. (Reporting from Dan Catchpole, Farnborough England; editing by Nick Zieminski).
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Aircraft startup Electra invests $850 million in Ohio factory
Hybrid-electric airplane?startup Electra announced Tuesday that it would invest $850 millions to?build a facility to assemble nine-passenger, hybrid-electric aircrafts in Springfield. The company, backed up by Honeywell 'Aerospace, Safran, and other major investors said?the move would help get the EL9 Ultra Short out of development and into significant commercial production, and create 1,975 new jobs. The EL9, a fixed-wing aircraft with hybrid-electric propulsion that can take off and land as quickly as 150 feet, is designed to provide air travel on point-to-point distances up to 250 miles. This would otherwise require cars. The timing of investment is determined by a clear understanding of the market. Marc Allen, CEO of Electra, said in an interview with the Farnborough?airshow that "the product and demand are there". "We are on the FAA certification path, and making good progress." It's time to start a factory. Allen stated that 32 million trips are made across the U.S. each day between 50 and 250 miles, with only 0.6% of those being by air. They can land anywhere because they don't need a large runway. The company hopes to fly in 2027 or 2028. Initial phase capacity will be up to 400 aircrafts per year. The companies are investing billions in next-generation solutions for air mobility, such as flying air taxis or electric vertical takeoff and landing aircraft. Electra's investors include?Lockheed Martin Ventures and Honeywell. Electra announced last week that it had signed a production contract with Safran Helicopter Engines, which?includes a first order of 250 turbogenerators. Turbogenerators are a combination of a gas turbine and one or more generators, as well as a voltage and power regulation system. Electra is one of the 'companies' selected by the U.S. Government pilot program to speed up the deployment of flying air taxis, and other advanced technology in air mobility. Electra wants to have the EL9 enter service by 2030. Electra is awaiting delivery of 2,200 aircraft that 63 customers have ordered. (Reporting and editing by David Shepardson)
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Middle Eastern airline executives project stability at Farnborough, despite conflict
The Middle East's aviation industry is open for business, aviation executives from regional companies, including Emirates President?Tim Clark on Tuesday, sought to calm fears about spiralling conflicts. Clark said on Tuesday that as long as the current situation is manageable we can continue with our work. The airline is flying at 90% capacity, and premium cabins are full. Iran attacked U.S. targets in Bahrain, Kuwait, and Jordan on Wednesday, tearing apart a fragile interim agreement signed last month. Last week, Europe’s aviation safety regulator issued an advisory to avoid airspace in this region until July 29. Air France-KLM suspended flights from and to Riyadh, Saudi Arabia as well as Dubai on July 27. Middle Eastern carriers are seeing their traffic fall since the Israel-U.S. War on Iran began? on February 28. Some have cut capacity to protect themselves from spiraling costs. At Farnborough regional leaders stressed that the Middle Eastern aviation industry is booming. Paul Griffiths CEO of Dubai Airports said, "I think that the closer you get to the Gulf operation the more normal things seem." CANCELLATIONS BUT CALLS TO POSITIVITY Airline Analyst John Strickland noted that the region has weathered many crisis in the past. However, it is unlikely that airline profits will remain untouched. Strickland said, "It will hit the bottom-line, of course. It has an impact." They will want their hatches to be battened as much as possible to avoid loss of cost when things get tough and return to profitability. Qatar Airways canceled its attendance to the show following the death of the former emir, Sheikh Hamad Bin Khalifa Al Thani. Etihad's Chief Executive Antonoaldo Neves likewise opted out of the airshow. As Emirates' Clark said, the sector must "think positively, act positively, and be positive" when it comes projecting the recovery of the?region. Clark said that the airline has no plans to delay orders, and that its ambitions to open "a new airport" in the United Arab Emirates by 2032 are still on track. Griffiths confirmed the Dubai airport would still be opening on its scheduled date. In recent years, many of the largest regional carriers have placed substantial orders for aircraft. Marc Nichols said that their presence at the show reflects more on strategic priorities and maturity in fleet planning, than a change in confidence and growth ambitions.
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Abra orders 28 E2 jets from Embraer
The Brazilian planemaker Embraer announced on Tuesday orders for 28 E2 aircraft at the Farnborough Airshow, England. These included 20 jets ordered by South 'American airline group Abra Group and orders placed by existing clients Luxair and?Binter?. Abra's purchase of E195-E2 aircraft marks the first Embraer aircraft purchased by the group which controls Brazilian airline Gol, and Colombian carrier Avianca. Both airlines' fleets are currently Boeing and Airbus. Abra has not yet revealed how the aircraft will be allocated, but Gol would join rivals Azul and?LATAM as Embraer jet operators in the home market of the planemaker if Abra added them to its fleet. Azul has been an Embraer customer for many years, and LATAM ordered a plane last year. Embraer and Gol have been discussing a possible order for some time, as the Brazilian government has been pushing all major Brazilian carriers to fly Embraer jets. Abra's agreement includes 10 options to purchase and 15 rights to purchase. The first aircraft delivery is anticipated to be in late 2027. Unclear Product Plans Arjan Meijer, CEO of Embraer Commercial Aviation, told reporters that the company has not yet decided on its future product plans. "We are a very competent company, but first we have to decide what we want." Embraer expects to see its record-high order backlog continue to grow. "A larger backlog?gives us greater security for future sales." Meijer stated that they wanted to expand the business. We're going to sell more in the future and we are seeing a?continued need. Embraer announced an order for five E195E2?jets from the Spanish airline Binter. Luxair, the flag carrier of Luxembourg, converted its purchase rights for three E190E2 jets into firm orders while also securing a second purchase right. Embraer announced that Japan's Fuji Dream Airlines ordered two E175 first-generation aircraft. Itau BBA analysts estimated that?firm orders are worth about $1.3 billion assuming a discount of 50% off list prices. This compares to Embraer’s backlog of $32.1 billion at the end the first quarter. The analysts sent a client note that stated, "Positive news from Embraer could keep the?sentiment surrounding the Farnborough Airshow elevated throughout the week." (Reporting and writing by David Shepardson, Gabriel Araujo and Maria Rugamer; editing by Andrew Heavens, Rod Nickel and Andrew Heavens)
Trump announces that US airlines will be able to fly to Lebanon again for the first time since 1985
After meeting with Lebanon’s President Joseph Aoun on 'Tuesday', Donald Trump announced that the U.S. government would allow all domestic airlines to fly direct to Lebanon. In 1985, all U.S. flight were suspended after the hijacking TWA Flight 847, which was flying from Athens to Rome. The plane was forced to land in Beirut. A U.S. Navy Diver?died during the 17-day ordeal. U.S. officials must conduct an extensive security review at the Beirut Airport and certify it's safety before flights to Lebanon can resume. The U.S. airlines' willingness to resume flights was not clear. U.S. major airlines American Airlines, United Airlines, and Delta Air Lines have all halted their flights to Tel Aviv citing security reasons. The FAA stated that it was "looking forward to working with airline partners and our interagency partner to implement President's Directive and support the safe return of flights to Lebanon." U.S. State Department has issued a "Do Not Travel to Lebanon" advisory, citing the high tensions in Middle East. The?government in February ordered non-emergency U.S. employees and their families to leave Lebanon due to safety concerns. Trump ordered that the U.S. Transportation Department lifted a ban on passenger air service to Venezuela in January after the U.S. After the U.S. captured Venezuela's President,?Nicolas Maduro in a military action that month, passenger air service was resumed to Venezuela in early January. After seven years of service, American Airlines resumed its flight from Miami to Caracas in late April. (Reporting and editing by David Shepardson, Christian Martinez and Mark Porter.
(source: Reuters)