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White House shows skepticism as United Airlines CEO downplays merger talk
Scott Kirby, CEO of United Airlines, played down speculation on Wednesday about a possible tie-up with American Airlines. He also declined to comment on reports that he floated the idea at the White House. We've seen lots of media coverage about consolidation rumors. Kirby stated on United's earnings conference call that the company has not made any comments on these reports. He said that his comments were a reflection of long-held opinions about the airline industry, but they had been interpreted differently after the merger reports. Kirby raised the possibility of merging with American Airlines during a late-February meeting with U.S. president Donald Trump, according to people familiar with the situation. The meeting was scheduled to discuss Washington's Dulles Airport. American has said it's not interested in pursuing any deal. Kirby explained that "all of my comments... have been made in the past" and that the comments are being viewed differently because of "the rumors that were spread last week." Sean Duffy, the U.S. Transportation secretary, called Tuesday's proposal "interesting", but added that United would have to make a better case for its consumers. Trump stated on Tuesday that he is opposed to a possible merger between two airlines. Focus on Global Competition Kirby's thinking was framed in terms of competition over the long term, and he argued that U.S. carriers face structural disadvantages compared to large carriers in Asia?and the Middle East. He did not specify what changes would be required, saying that any solution would bring "complications." He said that United's success has come from winning customers in different segments, rather than through consolidation. He cited?investments in onboard technology and products as the reason for the airline's strong performance despite the sharp increase?in fuel prices. Kirby also highlighted 'the role of partnerships', saying that United's global reach would be impossible without its Star Alliance partnership, which allows them to serve destinations they could not otherwise afford. He said: "It's highly unlikely that we will open a foreign hub anywhere." (Reporting and editing by Rod Nickel.)
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United Airlines warns that fuel prices may rise by up to 20% in order to offset the increase.
United Airlines CEO Scott Kirby stated on Wednesday that ticket prices could rise as much as 15 to 20% in order to offset the surge in jet fuel costs. This is a test for consumers to see if they are willing to pay higher prices as the oil industry struggles to deal with volatile prices. Kirby stated that United aims to recover all fuel cost increases "as soon as possible". It also expects to move towards a 100% pass through,?as the company targets double-digit margins before taxes next year. Kirby stated that "yields must increase by approximately 15% to 20%" and added that the company assumes fuel prices will remain high for a longer period of time. United Airlines' comments follow its forecast of second-quarter and annual profits that were below Wall Street expectations due to higher jet fuel costs, which squeezed margins and impacted the near-term outlook. Demand for premium travel remained robust. United's shares fell by about?6% during morning trading. The Chicago-based carrier said that its forecast was based upon the Gulf Coast Jet Fuel Forward Curve as of April 17. It warned that results could fall at either end depending on fuel prices. Fuel costs are expected to rise by about $4.30 per gallon in the current quarter. United has said that it already began raising its prices. It implemented five fare increases in the last quarter of the first year, along with increased baggage fees. These have "started" to offset increasing fuel costs. The airline expects to recover 40% to 50% of the fuel price increase through fares in the second quarter. This will improve to 70% to 80% by the third quarter, and up to 85% to 100 percent in the fourth quarter. Executives at the company said that ticket yields increased by 12% early in March, and then climbed to 18% during?the second part of the month. Kirby stated that the airline hasn't seen a decline in demand despite rising prices, but admitted that consumers would be tested eventually by higher fares. He said that as yields increased, the demand would be elastic. (Reporting and editing by Aurora Ellis; Reporting by Rajesh Kumar Singh)
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Sources say that Black Sea CPC blend oil exports will rise to 1.8 millions bpd by May.
Two industry sources said that the Caspian Pipeline Consortium plans to export 1.8 million barrels of CPC Blend crude per day in May, up from 1.65 million barrels expected in April. This is because Kazakhstan will divert oil from Russia's Druzhba Pipeline Oil previously scheduled for Germany. Calculations show that May loadings will rise daily by?9% compared to April and reach a record for a number of months. Alexander Novak, Russia's deputy prime minister, said that from May 1, the Druzhba Pipeline will be diverted onto other routes. According to two sources, volumes rerouted out of?Druzhba are expected to enter CPC. CPC Blend is now more expensive than Brent due to supply disruptions in the Middle East. One?trader stated that the Russian gas producer,?Novatek, will also contribute to increased CPC shipments by exporting condensate while undergoing maintenance at its Ust-Luga processing complex. The CPC consortium doesn't comment on operational loading data.
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Trump administration nears deal to rescue Spirit Airlines, WSJ reports
Wall Street Journal reported on Wednesday that the Trump administration is close to a deal with Spirit Airlines. The Wall Street Journal quoted people who are familiar with the matter. According to a report, the U.S. Government will loan Spirit up to $500 million in exchange of warrants that would allow it to potentially take a stake in the airline. After U.S. and Israeli strikes on Iran, global carriers are now dealing with a?surge in jet fuel prices? after the disruption of?traffic along the Strait of Hormuz. Spirit Airlines has stated that it will'shrink their fleet to approximately one-third the size of its pre bankruptcy fleet, and retain roughly 76-80 aircraft by third quarter 2026. According to the March disclosures, the?carrier's turnaround?plan was based on fuel prices averaging $2.24 a gallon in 2026. And $2.14 if you include 2027. By mid-April jet fuel was around $4.24 per gallon. This is roughly twice the price assumed in the?projections. Spirit Airlines, known for its all-Airbus fleet in bright yellow, has built its brand on affordable fares. This is especially appealing to budget-conscious travelers who are willing to do without add-ons like?checked baggage? and seat assignments. Spirit refused to comment but stated that it operated 'normally. The White House didn't 'immediately reply to a request for comment. Donald Trump, the U.S. president, told CNBC that he'd like to see a company acquire Spirit and that it is possible that federal government might get involved. Reporting by Nathan Gomes, Bengaluru. Editing by Shreya Biwas and Devika Syamnath.
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Druzhba Pipeline restarts Russian oil flow to Europe and unblocks EU loan for Kyiv
Officials said that Russian oil began flowing through the Ukrainian portion of the Druzhba Pipeline on Wednesday, after a halt which lasted months. This allowed Hungary to lift its veto over a 90 billion euro ($105.79billion) EU loan, which Kyiv urgently needs. Since a Russian drone attack damaged the Druzhba pipe in western Ukraine, and stopped Russian oil delivery to Hungary and Slovakia, the Druzhba has become one the most political pieces of infrastructure across Europe. The Hungarian oil company MOL announced on Wednesday that Ukraine informed them that Russian crude deliveries had resumed via the pipeline. MOL said that it expected the first crude oil shipments to arrive in Hungary or Slovakia 'at least tomorrow' following the restarting of the Ukrainian pipeline section. EU LOAN ADVANCEMENT SHORTLY FOLLOWING PUMPING RESUMED An industry source, who asked not to be identified because they weren't authorized to speak in public, said that pumping started at 0935 GMT. The loan was approved shortly after by EU ambassadors in Brussels. The 27 members of the European Union are expected to sign it off by Thursday afternoon. Volodymyr Zelenskiy, the Ukrainian president, said that the EU's announcement was "the right signal in the current circumstances". Zelenskiy wrote on X that Russia's war in Ukraine can only be ended if both the support for Ukraine as well as pressure from Russia is sufficient. Last year, the EU agreed to the loan in principle, to maintain Ukraine's liquidity through 2026-2027. But Viktor Orban, the Prime Minister of Hungary, and the Slovak Government blocked it. They accused Ukraine of delaying the repairs to the pipeline. Kyiv denied this. Orban's support for Russia is consistent. Both Hungary and Slovakia are heavily dependent on Russian crude oil. Change of Prime Minister in Hungary Ukraine's chances of receiving the loan improved after Orban's loss in Hungary's parliamentary elections on April 12. Peter Magyar the leader of the winning political party said that he will no longer obstruct?the EU funding for Kyiv. He is expected to come into power next month. Druzhba (which in Russian means "friendship") has a capacity of 1.2 to 1.4 millions barrels?of oil per day. This can be increased to as much as 2 million barrels?per day. The flow of oil has fallen to a fraction of what it was due to Western sanctions and repeated drone attacks. Separately Germany confirmed that no Kazakh crude will reach its PCK Schwedt refinery, one of the largest in the country, from May. Industry sources had said on Tuesday, Russia would stop Kazakhstan's exports through the Druzhba Pipeline.
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Top shipping executives say they are waiting for "safe and sustainable" strait crossings
Two top executives in the shipping sector said that they wanted to see a safe and sustainable passage through the Strait of Hormuz before much oil or cargo leaves or enters?the Gulf. We thought that there was some hope when, two weeks ago, the temporary ceasefire came into view. In reality, the agreement did not translate into safety and passage for the vessels", Jotaro Tamura, chief executive officer of Japan's Mitsui O.S.K. Lines in an interview conducted on the sidelines the Singapore Maritime Week. MOL is the largest shipping company in the world and also the owner of the most oil and LNG tankers. Tamura said that even if the Strait is reopened, there would still be questions about safety. The Iranian Islamic Revolutionary Guard Corps warned that there are mines in the area. It's about the definition of "open". Is it open or half-open? "Is it really open or is there a risk?" Tamura stated. "At a certain point, (voyages will resume) and normalisation is in sight. It's difficult to predict how the reality will be." He said that MOL adheres to international law which allows for freedom of movement through the Strait. CMB.Tech in Belgium, another large and diversified maritime firm with more than 250 vessels, is waiting as well for clarity. "We cannot hedge." Alexander Saverys, CEO of Saverys Group, said that we should wait and see what happens in the Middle East. It creates a lot of uncertainty. He said, "We must be confident we can travel without any problems." Today, we are not reassured in any way. Reassurance will come only if we can see that the ships are able to pass through the Straits in a sustainable and safe manner. Saverys stated that "the 'Strait of Hormuz' is a free passage, where no toll normally should be paid." If that changes in the future we will investigate. He refused to comment on how many ships his company has stranded in the Gulf. "We are in constant communication with all the governments to ensure that our ships can navigate. As you may know, right now the situation is still not safe. Since the U.S. - Iran war broke out 'on February 28th, energy supplies from Gulf have been disrupted. About 130 ships a day pass through the strait to enter or exit the Gulf. This translates into about 20% of daily global oil and LNG supply. (Reporting from Siyi Liu in Singapore and Florence Tan; editing by Jason Neely).
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German, French ministers differ over fighter jet decision timeline
On Wednesday, the German and French defence ministers gave 'differing' timelines for a decision to be made on the Franco-German FCAS Fighter Jet Project. One said that the leaders of the two countries would decide soon. The other stated that mediators wanted more time to discuss this matter. The plans to create a futuristic system of air combat with Spain hang by a thin thread due to a public disagreement over the control between France's Dassault and Airbus which represents Germany?and Spain on the 100 billion euro ($117billion) project. The mediators tried to resolve the 'dispute' by April 18 but these efforts failed. It appears that the final decision is now in the hands of the German Chancellor Friedrich Merz, and the French President Emmanuel Macron. Boris Pistorius, German defence minister, told reporters that the decision was made by the heads of state. I expect that a decision will be made this week about how to proceed. Merz and Macron will meet during this week's European summit in Cyprus. Catherine Vautrin, the French Minister of Defence, said at a hearing in parliament that the mediators from both countries had requested more time. They were supposed to deliver their conclusions on 18 April, to be exact. Vautrin stated that they requested an extra 10 days. The dispute centers on the?leadership? of the core fighter component of plans to create an 'interconnected fleet' of crewed aircraft and armed drones, under a digital umbrella. Insiders believe that Germany and France will abandon the?development?of the joint fighter plane but continue their cooperation?on drones, the so-called digital backbone or combat cloud. Macron is viewed as politically uncomfortable if he reverts the plan. Vautrin said there were three main?issues. These included intellectual property, workshare (the allocation of responsibilities) and certification concerns.
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Airline cancels flights due to Middle East conflict
The global air travel industry is still severely affected by the Iran War. Many people are unable to reach their destinations as planned after major Middle Eastern hubs such as Dubai, Doha, and Abu Dhabi were closed. The latest flight information is listed below alphabetically: AEGEAN AIRLINES Greece's biggest carrier will resume its flights to Tel Aviv on?April 28. Flights from Heraklion, Rhodes and Larnaca will be available on May 3, May 3, and May 21, respectively. Thessaloniki-Tel Aviv flights are cancelled up until June 26. The airline has canceled flights to Beirut, Riyadh, Amman and Dubai until June 28. AIRBALTIC AirBaltic, a Latvian airline, has announced that flights to Tel Aviv are cancelled until May 31, 2019. Dubai flights are cancelled until 24 October. AIR CANADA The Canadian carrier has canceled flights to Tel Aviv, Dubai and Abu Dhabi until September 7. AIR EUROPA Spanish Airlines has cancelled all flights to Tel Aviv till May 31. AIR FRANCE-KLM Air France has suspended Tel Aviv flights to Beirut, Dubai, and Riyadh until May 3. KLM suspends flights to Riyadh and Dubai until the 14th of June. CATHAY PACIFIC Hong Kong Airlines has suspended its flights to Dubai, Riyadh and cargo freighter service to Dubai and Riyadh up until May 31, and until June 30, respectively. In April, the airline will add extra flights to London and Paris to meet the surge in demand for travel to Europe. It intends to continue operating all scheduled flights after June. The U.S. carrier cancelled all flights between New York and Tel Aviv, and has delayed the start of its Atlanta to Tel Aviv route till September 5. The launch of the Boston-Tel Aviv route, originally scheduled for late October, was delayed. EL AL ISRAEL AIRLINES From April 27, the Israeli airline will be operating flights to around 40 active gateways. The cancellation of all flights to Dubai is in effect until May 31. EMIRATES The UAE airline announced that it will be operating a reduced schedule and flying to over 100 destinations. ETIHAD AERWAYS The UAE carrier has announced that it operates a commercial flight schedule from Abu Dhabi to around 80 destinations. FINNAIR Finnair has canceled its Doha flights up to July 2 and is continuing to avoid the airspace over Iraq, Iran Syria, and Israel. Dubai flights will only be resumed in October. British Airways, owned by IAG, will reduce flights to the Middle East once services resume. Jeddah is no longer a destination. From July 1, it plans to reduce the number of flights to Dubai, Doha, and Tel Aviv from two daily flights to just one. Riyadh's two daily flights will be reduced to just one starting in mid-May. The changes will apply until the end of the summer season on October 24. One Dubai service will restart on October 16. Iberia Express, the Spanish low-cost carrier of IAG, has cancelled all flights to Tel Aviv until May 31. JAPAN AIRLINES Japan Airlines suspends scheduled Doha-Tokyo and Tokyo-Doha flight schedules until June 1. Japan Airlines will operate additional flights between Tokyo, London and Doha on April 25. The Polish airline has suspended flights to Tel Aviv till May 31. The airline also cancelled flights from March 31 until May 30 to Beirut and Riyadh. The airline will operate its winter route from Dubai to October. LUFTHANSA GROUP Lufthansa Cargo and Lufthansa, Austrian Airlines, Brussels Airlines, Edelweiss and Swiss have suspended flights from Dubai and Tel Aviv to May 31 and from Abu Dhabi to Amman, Beirut Dammam, Riyadh Erbil Muscat and Tehran to October 24. ITA Airways has extended its suspension of flights from and to Tel Aviv and Riyadh till May 10. Flights from and to Dubai have been suspended until May 31. Eurowings, a low-cost airline, plans to suspend its flights to Tel Aviv and Erbil from May 11 to May 14, and Dubai Abu Dhabi and Amman till October 24. MALAYSIA AIRLINES Malaysian Airlines has suspended flights to Doha up until June 14. NORWEGIAN AIR The low-cost airline has delayed the launch of its Tel Aviv, Beirut and Beirut services until June 15. PEGASUS Pegasus Airlines, Turkey's national airline, has cancelled all flights to Iran, Iraq, Amman Beirut, Kuwait Bahrain Doha Dammam Riyadh Dubai Abu Dhabi Sharjah and Abu Dhabi until June 1. ROYAL MAROC Moroccan airline cancels flights to Doha until June 30, and to Dubai until May 31, QANTAS Australia's flag airline is adding more flights to Rome and Paris in response to a surge in demand for European destinations. Flights from Perth to Singapore will be increased from daily to ten flights per week. A new schedule for flights will be implemented gradually from mid-April until late July. QATAR AIRWAYS The airline said that it would be expanding its international flight network with more than 150 destinations starting on?June 16th. SINGAPORE Airlines In response to increased demand, the carrier has extended the suspension of Singapore-Dubai flights until May 31. It will also add 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 from Dubai to April 30. WIZZ AIR Low-cost carrier suspends flights from Europe to Amman, Dubai and Abu Dhabi until mid-September. All flights to Medina are suspended indefinitely. (Compiled by Josephine Mason and Jamie Freed. Elviira Loma, Tiago Branao, Agnieszka Olenka, Bernadette HOG, Boleslaw LaSocki, Romolo Tosiani. Sumana Nady, Joe Bavier Mark Potter Milla Nissi -Prussak, Susan Fenton and Susan Fenton edited the book.
United and American vie for dominance at Chicago's O'Hare Airport
Chicago O'Hare International Airport has been a major hub for air travel in the United States and is now at the forefront of a heated competition between United Airlines, American Airlines, and other airlines.
What started as a 'post-pandemic rebuilding' of flight schedules – with United restoring its capacity faster and American ramping it up more recently – has now evolved into a competition over gates, routes and premium offerings, and even a battle for?marketshare at one of the most connected airports in the world.
Analysts believe that the results could have long-term effects, since better gate access, and more convenient schedules, can help airlines attract corporate travelers who are known to pay higher rates.
American has rebuilt at O'Hare following its post-pandemic flight levels that remained below 2019. It points to Chicago roots dating back to the first scheduled flight it made in 1926. O'Hare is the airline's third-largest hub. United Airlines, with its headquarters in Chicago, is focusing on defending and expanding its lead at the hub that's closest to home.
American announced its largest spring schedule ever at O'Hare in late December. It added about 100 peak-day flight and served more than 75 destinations. The increase would bring spring flights above 500 daily departures -- about 30% more than the previous year -- and expand seasonal transatlantic service from Paris to Dublin.
United is pushing its advantage. It plans to fly nearly 650 flights daily from O'Hare this summer, a reflection of its expanded gate footprint and greater range of connections. The carrier has said it has hired thousands of local workers and plans to hire thousands more by the year 2027.
These investments seem to be paying off. United reported canceling about 1% scheduled flights at O'Hare in the past year, which is the lowest rate ever recorded at this airport. The airline said that it has a nearly 20-point advantage in local passenger share compared to American. It attributed this gap to its sustained investments, faster growth, and more reliable operations.
United's CEO Scott Kirby has used this statement to question the sustainability of American's return. American CEO Robert Isom says that Chicago can support at least two major hubs.
This rivalry is unlike anything else in U.S. aviation, said Joseph Schwieterman. A professor at DePaul University whose analysis revealed that O'Hare grew more than any other U.S. hub in terms of passenger numbers, flight departures, and gate usage last year.
The PECKING ORDER
This battle highlights an important shift in the airline industry: control of gates and schedules is increasingly determining winners, particularly among business travelers.
In most major U.S. hubs the hierarchy is established -- Delta Air Lines dominates Atlanta; United Houston and American Dallas. Chicago is the only airport where two legacy carriers compete on a scale.
This head-to-head now takes place in real-time. United Airlines responded to American's announcement of new routes in late 2017 within a single day. In some cases, they increased frequencies.
Michael McMurray of the Chicago Department of Aviation called the rivalry as a sign of Chicago’s strength. He said that congestion can be managed with eight runways, an $8.5 billion expansion of the terminal, and more gates in the next decade.
Why Chicago Matters
O'Hare was a hub that shared services for decades. In recent years, a shift in focus was accelerated by pandemic. American concentrated on Sun Belt hubs like Dallas/Fort Worth, Charlotte, North Carolina, and Phoenix while United expanded and rebuilt Chicago faster. Analysts claim that divergence is becoming more costly as the competition for gates has increased.
Chicago's central position allows airlines to efficiently connect East Coast and West Coast cities?while also serving as a portal to Europe and Asia. The corporate base in the region fuels demand for premium lounges, cabins and reliable operation. Both airlines invest in high-end products. United has increased premium seating, lounges and is deploying high-speed Starlink WiFi. American, which relies on premium offerings to boost margins, now offers premium seats on every O’Hare departure after fleet upgrades. The Boeing 787-9 is also a core aircraft for its Chicago-London route - a key market for business travelers.
American Airlines said that loyalty enrollments in Chicago rose by 20% during the third quarter 2025. This is more than twice its network-wide rate.
Schwieterman stated that there is a lot of money to make in Chicago. Both airlines need O’Hare.
Cirium data show that United operates about half of the scheduled flights at O'Hare compared to roughly a third by American. In late 2025, the gap increased after United gained five gate and American lost four as a result of a city-led reorganization that American failed to challenge in court.
Steve Johnson, American's Chief Strategy Officer, said that the airline would benefit from its expanding schedule in future allocations. American Airlines has taken steps to compensate for the loss of capacity. Last month, it purchased two gates from Spirit Airlines, which cost $30 million. The airline claims that this deal recovers about half the capacity lost.
Robert Mann, an ex-airline executive and consultant, warned that the rivalry is fraught with danger. American's rapid growth could put a strain on operations if it does not have the same gate access as United.
In the short-term, customers may be able to expect more flights and lower fares. The fares may rise if the contest ends.
Mann stated that "Travelers tend benefit from hubs that are contested; hubs that are dominated extract premiums." (Reporting and editing by Joe Brock, Matthew Lewis and Rajesh Kumar Singh from Chicago)
(source: Reuters)