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JetBlue CEO says that bankruptcy is unlikely this year, despite rising fuel prices amid Iran war
JetBlue Airways CEO Joanna Geraghty said that the carrier would not be considering bankruptcy this year. This was according to a memo viewed by on Monday. The cost of jet fuel has risen dramatically after U.S. and Israeli strikes on Iran, which disrupted the Strait of Hormuz - a vital waterway for oil flow around the world. This is the biggest shock to the aviation industry since the COVID-19 epidemic. New York's carrier secured a $500-million debt financing commitment backed by 22 aircraft with the option to raise $250-million more using additional planes as collateral. Geraghty stated in an internal memo that the airline had access to additional capital and ample liquidity. Last week, a video clip featuring JetBlue founder David Neeleman (who ran the airline from 2007 to 2013) warning that it might face bankruptcy this year became viral on social networks. On Monday, a person who is familiar with the situation confirmed that the video was authentic. Since the Iran War began, jet fuel prices have almost doubled, leaving airlines with a dilemma between increasing expenses and tickets that are already sold. Fuel costs are on the rise, and this puts more pressure on smaller airlines like JetBlue. They have less financial flexibility and are more exposed to uncertainty. The Middle East conflict, say industry executives, could change the dynamics of the airline industry. In the memo, Geraghty stated that there has been speculation about possible consolidation in the airline industry and questions regarding Spirit Airlines' future. The outcome of any further consolidation is uncertain. JetBlue aimed to "regain stability" and begin reaping the rewards of a turnaround that was launched in 2024. The airline focused on cost control, route optimization, and deferring aircraft delivery. High fuel prices threaten to 'derail' that plan. In the memo, Geraghty stated that "we're operating in a more challenging environment than we expected at the start of the year in particular as it relates fuel prices." Reporting by Shivansh Tiwary in Bengaluru and Megavarshini G. Somasundaram; editing by Maju Samuel, Pooja Deai
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Philadelphia will provide free transportation for World Cup fans following World Cup matches
Thanks to a partnership between travel rental platform Airbnb and 'Philadelphia Soccer 2026,' soccer fans who are heading to Philadelphia to watch the World Cup can take advantage of a free shuttle service after each match. This announcement is in stark contrast with some host cities who are increasing transportation prices during the tournament. New Jersey announced on Friday that round-trip tickets for public transportation to games would cost $150. This is a 10x increase. Fans in Boston will have to pay $95 to return to Gillette Stadium by bus. SEPTA will offer free rides to and from the games in Philadelphia's Lincoln Financial Field Stadium. The service will begin at halftime, and continue for two hours following the end of the matches. Governor Josh Shapiro stated that "My Administration has spent millions to ensure SEPTA train service remains in good condition as we enter an "epic" year of sports in Philadelphia." "I'm happy that?Airbnb has stepped up to offer?free rides for the fans, so they can return home safely and affordably." Philadelphia will host five games in the group stage, starting with Ivory Coast vs Ecuador on June 14. There will also be a tie for the round of 16. Trevor Stynes (Reporting) Christian Radnedge (Editing)
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Zelenskiy, a Ukrainian official, says that the Druzhba pipeline will be flowing again by April's end.
In a 'Monday interview, Ukrainian President Volodymyr Zelenskiy stated that the Druzhba oil pipeline that carries 'Russian oil into a number of Eastern European countries will be restored to full operation by April. Zelenskiy said to a Ukrainian television interviewer that the system would be operational by April's end. It was not immediately clear when the interview had been recorded. Zelenskiy, earlier this month, cited the date of the end April as the?date for the pipeline operations to be resumed. Ukraine's state energy company Naftogaz declined to comment on the date when pipeline operations will resume. Peter Magyar, the winner of the Hungarian elections on Sunday, called on Zelenskiy to reopen "the damaged pipeline" as soon as possible and that Russia resume oil deliveries through it. Viktor Orban, the incoming?Hungarian Prime Minister and the Slovak Government had accused Kyiv of delaying repairs. Ukraine denies ?this. Hungary and Slovakia are no longer receiving Russian oil via Druzhba since late January, after a Russian drone struck the pipeline in western Ukraine. (Reporting and editing by Ethan Smith; reporting by Ron Popeski)
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FBI Director Kash patel files a lawsuit against the Atlantic for false reporting on drinking and absences
After an article was published on Friday claiming that the FBI director Kash Patel had a drinking issue which could be a danger to national security, Kash filed a lawsuit for defamation against The Atlantic and its reporter Sarah Fitzpatrick. The article, originally titled "Kash Patel’s Erratic Behaviour Could Cost Him His Job," quoted more than two dozen anonymous witnesses who expressed concern about?Patel’s "conspicuous drunkenness and unexplained absenteeism" which "alarmed officials from the FBI and Department of Justice." The Atlantic's online version of the article, titled "The FBI director is MIA", reported that, during Patel’s tenure, early meetings had to be rescheduled "as a consequence of his alcohol-fueled night" and that Patel was "often away or unreachable" which delayed time-sensitive investigations. The Atlantic reported that the White House, Department of Justice, and Patel all denied the allegations. In the article, Patel was quoted as saying, "I'll be there in court, bring your checkbook." The FBI was credited with making this statement. Patel told. They were told the truth and chose to publish falsehoods despite being informed. The Atlantic released a statement saying, "We will defend the Atlantic and our journalists vigorously against this meritless suit." Could not independently verify the accuracy of the articles or why the publication changed its title. Patel's lawsuit says that, while the Atlantic has the right to criticize FBI leadership, they "crossed the legal line" when they published an article "full of false and clearly fabricated allegations intended to destroy Director Patel’s reputation and force him out of office." The lawsuit filed in the U.S. District Court for the District of Columbia seeks damages of $250 million. The lawsuit claims that the Atlantic did not respond to the FBI denials or to the Friday letter sent by Patel's attorney,?Jesse Binnall? to senior editors of the Atlantic and its legal department? asking for more time to refute 19 allegations made by the reporter to the FBI press office. According to the complaint, the letter was sent just before 4 pm on Friday, and the Atlantic published it at 6:20 pm. The complaint could not determine how the Atlantic reacted to Binnall’s request. The lawsuit claims that the publication acted "with actual malice." This is a legal standard which requires public figures like Patel to prove the publisher intentionally printed false information or recklessly overlooked doubts about the accuracy of the information. The lawsuit states that "Defendants' deliberate decision to ignore detailed, specific and substantive refutations contained in the Pre-Publication Letter and their refusal of giving a reasonable amount of time for Director Patel and the FBI to respond is one of the strongest evidences of actual malice." The Supreme Court set a high standard for defamation cases, requiring public figures such as Patel to prove the Atlantic or its reporter knew that their?reporting' was false but published it anyway. Deanne Schullman is a media attorney with Shullman Fugate PLLC in Florida. She believes that the suit has a low chance of success. "Simply failing to get a response from the other party is not enough to prove actual malice." Binnall, a Republican lawyer of note, has represented U.S. president Donald Trump in a number of civil cases. One such case was brought by U.S. Capitol Police Officers over Trump's role in the riots on January 6, 2017. He also represented Donald Trump Jr. and former national security adviser Mike Flynn. Binnall was the attorney who led Trump's challenge against Nevada's election results for 2020. This is not the first time a Trump administration official has sued a media outlet. The judge dismissed Trump’s lawsuit against CNN because it called election denialism "the big lie." The judges also dismissed Trump's lawsuits filed against the Wall Street Journal and the New York Times. Trump has re-filed his lawsuit against The New York Times and may re-file against the Wall Street Journal. He has also negotiated some settlements. ABC News settled a lawsuit for $15 million, plus $1 million of legal fees. Paramount Global has agreed to pay $16m to settle a dispute involving what the Trump Administration called "deceptive edits" in a CBS News interview of Kamala Harris, his opponent for the election in 2024. (Reporting from Washington by Jana Winter; Additional reporting in New York by Jonathan Stempel; Editing by Michael Learmonth Lisa Shumaker Alistair Bell
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Poste Italiane fined more than 12.5 Million Euros by Italy's privacy watchdog
The privacy watchdog in Italy announced on Monday that it fined Poste Italiane and Postepay, its payments card division, a total amount of over 12.5 million euro ($14.7million) for the illicit processing of millions of user's personal data. Poste, a company that offers financial and payment services in addition to its traditional postal services, has issued a statement rejecting all allegations. It also reaffirmed the "correctness and transparency" of its actions. Italian data watchdog said some features in Poste's mobile applications, which were designed to identify malicious software, are excessively intrusive, and not strictly required for fraud prevention purposes. The watchdog stated that it had identified several breaches in data protection laws, including inadequate user information and an absence of a "proper" impact assessment of data protection. Poste responded by saying that it had "lawfully" accessed the technical data of a customer's device, in compliance with payment services legislation. This was done for the sole purpose of activating its anti-fraud and anti-malware safeguards.
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Spanish consumer group challenges Volotea’s fuel-related surcharges
Facua, a Spanish consumer group, demanded an investigation on Monday into the low-cost carrier Volotea’s new pricing policy that links ticket prices with fuel costs. This could result in a possible post-purchase charge of up to 16 euros. Volotea in Spain's northern Asturias region introduced the temporary policy a few days ago after oil & jet fuel prices soared because of the U.S. - Israel war on Iran. The company said that 97% customers have since decided to continue with their travel plans. Facua reports that it's the first Spanish airline to implement surcharges. Facua asked Spain's Consumer Affairs Ministry (Ministry of Consumer Affairs) to review this policy. They argued that it could violate consumer protection laws which prohibit "altering ticket prices" after purchase. The ministry's spokesperson confirmed that it received Facua’s complaint and will study it. The?European Consumer Organisation(BEUC) supports Facua, citing EU transparency rules that require airlines to disclose upfront all charges included in the final ticket cost. BEUC stated that passengers with valid tickets are entitled to board the aircraft without any additional charges. Volotea announced on Monday that the measure only applied to bookings made after March 16th, and that passengers who purchased tickets before then were not affected. The airline said that the mechanism was transparent, did not aim to generate profit and was based on a predefined table and Brent crude price rather than airline discretion. Volotea stated that the mechanism was transparent and did not seek to make a profit. It was based upon the Brent crude price, a predefined chart, and not airline discretion. Volotea's "Fair Travel Promise", a policy that aims to offer "more flexibility and transparency to passengers in the face of volatile energy prices", has stated earlier. It allows passengers to cancel or change their bookings up to 4 hours before departure. According to the policy, seven days prior to departure, the airline will review publicly available fuel prices and adjust fares. If prices rise above a certain level of reference, the airline may add a?surcharge upto 14 euros per person per flight, or refund the difference in case prices drop. Although Volotea refused to give oil reference prices,?Facua stated that the maximum surcharge corresponds to oil prices above $105 per barrel. Oil prices between $65 and $75 are exempt from surcharges, but passengers may receive refunds of $30 if the price drops below this level.
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Portugal is confident that its airports won't face a shortage of jet fuel
Portugal is confident that there will not be any jet fuel shortages at the country's airports during the holiday travel season, despite fears among European airlines. Miguel Pinto Luz, the Portuguese Minister of Infrastructure, told reporters that his government is in touch with oil companies. He said they "know what stock levels are available at national airports", but refused to reveal them. European airlines warned that a 'war in Iran' could lead to a shortage of jet fuel, since Europe relies on Middle East imports for 75%. "It's a problem on a 'European scale. We are closely monitoring the situation. Our goal is to make sure that there is no failure in the next few months. Pinto Luz said, "We believe that supply will continue to remain guaranteed." Galp Energia is the main supplier of jet fuel to Portugal's airports. It sources crude mainly from Brazil and processes it at its Sines refinery. It said: "At this stage, there are no anticipated disruptions?in the upcoming months. During that period, consumption will be covered by Galp's production, available stocks and imports." Galp has also taken measures to ensure the supply of jet fuel. (Reporting and editing by Andrei Khalip, Alexander Smith, and Sergio Goncalves)
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Hyundai faces challenge replacing lost Middle East sales, CEO says
Hyundai's CEO said that it will be difficult for the automaker, due to manufacturing constraints, to quickly reallocate sales to other regions, and thus make up lost sales. The CEO of Hyundai, Jose Munoz, revealed the?new?Ioniq3 EV at the Milan Design Week, in Italy. He said that the Middle East is the market with the highest margins for the South Korean carmaker, even though it does not bring "massive" profits. Hyundai's Spanish CEO stated that the conflict in the Middle East was having an impact on the company because cars produced for this region cannot be easily redirected to other regions. "You can't just derive cars?that are meant to be sold in one region and then sell them in another," he added, citing also different specifications and regulations?across the regions. Hyundai is trying its best to compensate for the lost Middle East volume by reallocating vehicles to other markets. However, capacity constraints limit what it can do short-term. He said, "I can tell you that many people are trying to get these cars." North America is one of the regions which can accommodate. There are also other regions. Before the crisis, the world's third largest automaker was steadily expanding in the region with plans to increase sales in Gulf Countries as well as certain parts of North Africa. Munoz says that disruptions to logistics have compounded demand's impact, and recovery is dependent on the length of the conflict. It takes a while to accomplish that. He said that it's not so immediate to reroute ships from one place to another. Hyundai has been rolling new hybrid and electric models around the world. It is also investing heavily in manufacturing and supply chain infrastructures in Europe and America. Hyundai's Middle East strategy includes the construction of a manufacturing plant in Saudi Arabia. This was originally planned to open during the fourth quarter this year. "Hopefully we will be able still to open," Munoz added, adding that the timeline now depends on developments in this region. Reporting by Giulio Piolovaccari. (Editing by Jane Merriman.)
Baltic Exchange, a freight assessment agency, proposes changes to the methodology for Middle East benchmarks
Baltic Exchange, who tracks and evaluates freight rates, proposed Monday amending their'methodology for all Middle East benchmarks. They cited the escalating geopolitical disturbance in the Strait of Hormuz and the wider Middle East area.
The exchange wants immediate feedback about a proposal that would allow flexibility in the method?and include an area or port outside of the Middle East Gulf region. The original option of loading at a port within the region will continue.
The Baltic Exchange's indexes and assessments can be used to settle freight derivatives trades, benchmark physical contracts, or as an overall indicator of the performance of the freight market.
Baltic Exchange stated that while the consultation will not eliminate the risk of benchmark suspension it can help to mitigate this risk.
In March, the Baltic Exchange held meetings and provided guidance on how shipbrokers could assess indices without direct or physical fixtures. The Exchange stated that shipbrokers could 'consider ongoing negotiations or fixtures on closely related, economically comparable routes, or time charter equivalent earnings in their assessments.
S&P Global Platts - one of the largest providers of information about the oil & fuel markets - did not respond immediately to a question regarding how changes in the Baltic Exchange's methodology might affect its assessments. Reporting by Arathy S. Somasekhar, Houston; editing by Chizu N. Nomiyama
(source: Reuters)