Latest News
-
Ethiopian Airlines revenue increases as it adds more routes and passengers.
Ethiopian Airlines revenue rose by 8% during the financial year 2024/25, thanks to an increase in passengers and new routes, although there were challenges on certain routes due conflicts, said Chief Executive Mesfin Tassew Bekele on Tuesday. Mesfin, a spokesperson for the state-owned carrier and Africa's largest airline, said that passenger numbers increased by 11%, to 19 millions, in the year ended July 7. Revenue increased 8% compared to a year ago, reaching $7.6 billion. However, growth has slowed down from the 15% in 2023/24. Mesfin cited conflicts in Sudan and the Middle East, as well as the Democratic Republic of Congo, to say that "it was a great performance, despite global challenges." He said that certain changes to the law in the United States have affected the airline's operation there. Ethiopian operates a fleet of over 150 aircraft. It took delivery of the fourth Airbus A350-1000 on Saturday. Bekele stated that the airline would be looking at the possibility of purchasing 20 small regional jets or narrow-body aircraft as part of its plans to replace older aircraft and expand the domestic fleet. This airline is one of many that has had to ground aircraft because of bottlenecks at engine maintenance facilities. Mesfin stated that the airline has added six new routes by 2024/25. It signed an agreement last year for the design of a mega four-runway Airport near the town Bishoftu. This airport will be Africa's largest airport once construction is complete in 2029. The airport can handle up to 100 million passengers per year, and will provide parking for over 270 aircraft. (Reporting and writing by Dawit Endeshaw, George Obulutsa, Editing by Susan Fenton).
-
Adani Ports in India reports a quarterly profit increase on cargo growth
Adani Ports and Special Economic Zone in India reported on Tuesday a rise in quarterly profits, thanks to a growing cargo volume. India's largest private port operator can be used as a proxy to predict long-term prospects for infrastructure in the fastest growing major economy on earth. The April-June period saw a 6.5% increase in the consolidated net income to 33.15 billion Rupees (377.6 millions dollars). The company announced that Gautam Adani, its Executive Chairman, will become a non-executive chairperson. The company said that the Indian billionaire will no longer be a key manager of the firm. The port operator's cargo volumes grew by 11% year-on-year during the third quarter. This was faster than the 8% growth in the previous quarter and the 7.5% increase a year ago. This boosted its revenues by 31 percent to 91.26 trillion rupees. Adani Ports has maintained its forecast for cargo volumes in fiscal year 2026 at between 505 and 515 millions metric tons.
-
The majority of Gulf bourses follow the global rally as Fed's easement bets increase
Investors increased their bets on the U.S. Federal Reserve to support the world's biggest economy. CME Fedwatch says that the soft U.S. payroll data on Friday has increased the odds of a Fed rate cut in September. This is a significant increase from the 63% chance it had at the beginning of the week. The Fed's interest rate movements have a major impact on the Gulf Region's monetary policies because the majority of their currencies are pegged with the U.S. Dollar. Dubai's benchmark index of stocks rose 0.6% on the back of gains in shares related to real estate, utilities, and industry sectors. Emaar Properties increased by 1.5%, and Emirates Central Cooling Systems Corporation grew by 1.7%. EMPOWER, a provider of district cooling services, reported a 15.3% rise in net profit for the quarter attributable directly to shareholders. Dubai's non oil sector also showed solid growth, with the PMI increasing to 53.5 from 51.8 in May, mainly due to a marked improvement in sales volume. After two consecutive sessions in which it had fallen, the benchmark Abu Dhabi index gained 0.3%. This was boosted by an increase of 2.4% in Abu Dhabi Commercial Bank, and a gain of 1.3% in Burjeel Holding. The benchmark Qatari index rose 0.2% thanks to a 1.3% increase in the telecom services provider Ooredoo, and a 0.8% rise in Qatar Islamic Bank. Saudi Arabia's benchmark index rose 0.2% at the opening of trading. The majority of sectors, including IT, real estate, and healthcare stocks, were in positive territory. ADES Holding grew 2.3%, while Elm Company, a digital security company, gained 3%. ADES, a Norwegian oil drilling company, has agreed to purchase Shelf Drilling from Oslo's listed rival for 3.9 billion Norwegian Crowns ($379.33 millions) in cash. Saudi Aramco was, however, down by 0.3%. Aramco, the oil giant, reported a 22% decline in its second-quarter profits, due primarily to lower revenues, and increased debt. Reporting by Md. Manzer Hussain, Editing by Helen Popper
-
Officials say that two children were injured in the Russian attack on Kharkiv.
Officials said that in the largest air strike on Lozova, Ukraine, since the beginning of the war, Russia killed one person and wounded 10 others, including two children. In a press release, Ukrzaliznytsia, the state railway operator, said that the "massive strikes" had damaged the station and other infrastructure of the town. Kharkiv is a major transport hub bordering Russia. Emergency services shared photos that appeared to show a damaged rail car and rubble on a train station. Serhiy Zelenskiy, the head of the town council in Lozova, wrote on Telegram that "critical infrastructure and apartment buildings have been damaged... Lozova is the most heavily attacked city since the start of the war." He added that two children were injured in the attack, which left some parts of the area without water and power. Ukrzaliznytsia reported that one of their employees was killed and four others were injured. Ten people were reported injured by emergency services. Volodymyr Zelenskiy, Ukrainian president, said that Russia had damaged civilian infrastructure at Lozova by using more than 25 drones. A depot and a train station were also damaged. According to a statement posted on Telegram, the Ukrainian air force shot down 29 of 46 Russian drones that were launched across Ukraine overnight. It said that a ballistic missile as well as 17 drones were launched at various locations. It was not possible to independently verify the reported casualties and damages. Russia has not yet responded. Both sides deny that civilians were targeted in the war launched by Russia in February 2022, when it invaded Ukraine on a large scale. Reporting by Lidia Kelley in Melbourne and Anastasiia Mlenko in Kyiv, Editing by Saad Said and Andrew Heavens
-
Rates of sea freight between Asia and the US are set to continue declining amid tariff chaos
Experts predict that the rates of sea freight between Asia and the United States will continue to fall in 2025, as shipping capacity exceeds demand, and trade routes change due to geopolitical tensions and tariffs. However, rerouting vessels is expected to mitigate some losses. Shipping analytics firm Xeneta says that the average spot rates of containers shipped from Asia to U.S. east and west coasts has fallen by 46% and 58%, respectively, since 1 June. Unresolved negotiations between the U.S.A. and China have added to the uncertainty. Last week, officials from the two largest economies in the world agreed to extend their 90-day truce on tariffs. Container ship operators continue to make the most money on the China-U.S. trade route. Sea freight rates rose briefly in late May and June, as shippers took full advantage of a 90 day pause on tariffs imposed by U.S. president Donald Trump. However, they quickly dropped as demand outweighed supply, according to Xeneta's data. Erik Devetak is Xeneta’s Chief Technology and Data Officer. He said, "There's a significant overcapacity worldwide and that will continue to shape market." Devetek stated that "China-to U.S. Trade is dampened, and the EU Economy is not exactly hot. Blanked sailings and cancelations will become a common theme as carriers try desperately to keep freight prices up." When a voyage or port call is cancelled, it's called a blanketed sailing. DHL, a logistics major, noted that spot rates have reversed since the summer rush of traffic from Asia into North America. Niki Frank is the CEO of DHL Global Forwarding Asia Pacific. She said, "Carriers have rushed to increase capacity in the transpacific region to chase initial gains. But as momentum fades, the oversupply becomes apparent." Jarl Milford is a maritime analyst with Veson Nautical. He expects that rates will continue to fall in the second half of the year as more vessels enter the market. Milford stated that "ongoing uncertainty, such as tariff policy and a slowing of global demand, adds to the pressure." Ocean Network Express, a joint venture between Japan's Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines and Nippon Yusen said last week that recent trade uncertainty further complicates visibility for the second half of the fiscal. The Rerouting Provides Floor Rerouting vessels away from their traditional routes is a key factor in helping to absorb some of the excess. Some carriers are avoiding U.S. port to avoid tariffs and others are diverting away from the Red Sea after attacks by Yemeni Houthis. Analysts said that these longer voyages absorb more ships, and help to provide a price floor. Analysts at Jefferies wrote: "These diversions continue absorbing in excess of 10 percent of containership supply. This leads to capacity utilization reaching a healthy range of 86-87%." While China's exports have declined to the U.S., other countries have seen a rise in shipments. According to Jefferies analyst, spot bookings in the U.S. over the past few weeks indicate that July volumes will likely be lower, pushing transpacific rates down to their lowest levels this year. However, rates for markets like Europe and Latin America are still high.
-
DHL Q2 profits beat expectations thanks to cost control
The German logistics giant DHL announced a higher-than-expected second quarter operating profit on February 2, as strict cost control helped overcome currency headwinds, and a slower pace of trade. The company reported quarterly earnings before tax, interest and other expenses (EBIT) in the amount of 1,43 billion euros. This was above the consensus estimate of analysts of 1,33 billion euros. DHL's revenue for the quarter fell by 3.9% compared to a year ago, falling below analysts' expectations of 21,01 billion euros. The German logistics giant confirmed that it expects annual free cash flows excluding M&A to be around 3 billion Euros. It added that the forecast did not take into account potential impacts of changes in tariffs or trade policies. Melanie Kreis, DHL's Chief Finance Officer, said that she expected continued volatility to be seen in the global economy during the second half of this year. This was due to the fact that trade conflicts and geopolitical tensions increased in the second quarter. Kreis added that DHL had adjusted its capacity to match the demand and made structural cost savings. The German logistics giant announced in March that it would cut 8,000 jobs on its domestic market by 2025. This is the largest reduction of staff in over two decades. It cited declining letter volumes and heavy regulations. The global logistics industry has faced increasing challenges in the past year as rising trade barriers and geopolitical tensions have slowed down global trade. The trade tariffs imposed by U.S. president Donald Trump have contributed to the uncertainty in the industry, and put pressure on earnings and demand. United Parcel Service followed suit, reporting a lower quarterly profit in July and again refraining from releasing full-year projections. ($1 = 0.8654 euros)
-
DHL Q2 profits beat expectations due to cost discipline
DHL, the German logistics giant, reported a higher-than-expected second quarter operating profit on February 2, as strict cost control helped overcome currency headwinds. The company reported a quarterly profit before interest and taxes (EBIT) in excess of the consensus estimate of 1,33 billion euros. DHL's revenue for the quarter fell by 3.9% compared to a year ago, falling below analysts' expectations of 21,01 billion euros. The German logistics giant confirmed that it expects annual free cash flows excluding M&A to be around 3 billion Euros. It added that the forecast did not take into account potential impacts of changes in tariffs or trade policies. ($1 = 0.8654 euros)
-
Jamco, a Japanese airline cabin manufacturer owned by Bain, targets acquisitions of premium seats
Executives at the company said that under Bain Capital's new ownership, Japanese aircraft interiors maker Jamco Corporation wants to take advantage of a global shortage in new plane seats. The U.S. private-equity firm that bought Jamco for $700m this year also plans to make acquisitions worldwide, including premium cabin products for Airbus and Boeing widebody aircraft, which it supplies. As commercial aviation recovered from the pandemic, suppliers such as Jamco, who make galleys and lavatories primarily for twin-aisle aircraft, faced shortages of parts, labour and costs. Nick Gattas is a managing Director in Bain’s Asia Pacific Private Equity team. Gattas said that Bain sees potential to integrate Japanese suppliers into Jamco further down the supply chains. Jamco delisted from Tokyo Stock Exchange on July. Bain's acquisition of the company is expected to close fully in September. ANA Holdings, Itochu and ANA Holdings were Jamco's largest shareholders. The company also announced on Tuesday a new management team, headed by Kate Schaefer. She is currently a senior advisor at Bain Capital, and was previously a senior vice president of Boeing Global Services. Jamco is interested in premium seats at a time when planemakers struggle to produce airliners quickly enough to meet the demand. The delays in installing new seats is a major bottleneck that has many airlines impatiently waiting for new jets. Bain wants Jamco to resume selling business class seats in 2023, after the company stopped accepting new orders due to high demand. Schaefer stated that the interest shown by airlines was overwhelming. Bain sees an opportunity with the growing need for airlines to upgrade their ageing aircraft that they are unable to retire because of a global jet shortage. We see billions being spent retrofitting planes 10 years or older with first class, premium economy and business class. Gattas stated that this is a great opportunity for companies like Jamco. The global trade war has affected the aerospace industry, causing decades of duty-free civil aircraft trading to be thrown into disarray. Last month, the United States and Japan agreed to a trade agreement that imposed a 15% tariff for exports of Japan into the United States. Gattas stated that Jamco products going to Boeing will be subject to a tariff. As Boeing exports many aircraft, they are eligible for duty drawbacks. This is a mechanism that allows duties paid on imported products to be refunded when those goods are exported. Gattas stated that the issue of who should be responsible for the tariffs' impact on the U.S. airline industry is "currently a hot topic" of discussion among Boeing suppliers. Bain is involved in a number aviation investments. Virgin Australia, for example, was rescued from administration by the private equity company in 2020. (Reporting and editing by Lisa Barrington, Miyoung Kim, and Jamie Freed).
Fraport's net profit for the first half of the year is down on non-recurring items
Fraport, the operator of Frankfurt Airport, reported a 38.7% drop in its net profit for the first half. This was largely due to non-recurring expenses booked last year.
Fraport reported a net profit of 98.6 millions euros ($113.93) compared to 160.8 million euro a year ago.
Fraport, the operator of 29 airports, including Delhi and New York said that non-recurring effects for 2024 include a compensation payment to Fraport Greece for coronavirus and a compensation payment to Porto Alegre Airport for flood damages.
Fraport Group revenue increased 7.3% on an annual basis, after adjusting for construction and expansion revenue at its international subsidiaries. This amounted to 1.9 billion euro in the first six months of 2025.
The growth was largely due to a 3.8% increase in the number of passengers at all airports worldwide, and in particular airports in Greece & Lima.
The group has confirmed its full-year forecast.
(source: Reuters)