Latest News
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GKN Aerospace's Melrose owner sees a jump in quarterly revenue; warns of freight-cost inflation
Melrose Industries, the owner of GKN Aerospace, reported a 11% increase in revenue for its first quarter on Wednesday. This was largely due to?the strong performance by wide-body aircraft, engines and?its repair and military businesses. The company, which provides?engine?and?airframe components to civil & defence customers, has said that it is experiencing some inflationary pressure due to higher freight costs. It does not have any operations in the Middle East, and it only has a minimal exposure directly through its supply chain. Since the?U.S. Airstrikes by Israel and the United States on Iran started late in February. Iran also closed down or nearly closed off the Strait of Hormuz - a major chokepoint for energy supplies. Melrose, a supplier of parts to Boeing and Airbus aircraft, warned about the 'potential impact on civil flying hours due to reduced jet fuel supply and higher prices. Analysts expect the conflict in the Middle East to be the main driver of the aerospace supplier's stock price. Since the Iran conflict began, its stock price has dropped 16%. The efforts to end the Iran conflict reached a'stalemate' on Tuesday as U.S. president Donald Trump was unhappy with Tehran’s latest proposal. The company confirmed its outlook for 2026. It expects revenue between $3.75 billion and $3.95 billion, with an adjusted operating profit between 700 million to 750 million pounds. Brokerage - RBC Europe stated that it continues to see "an attractive structural growth story despite near term worries about the Middle East."
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Germany seeks alternative sources of oil as it reassures about its supply
Brandenburg said that up to 80% of crude supplies for 'Germany's PCK Schwedt refining plant are guaranteed in May. Germany is seeking alternatives to replace lost supplies following Russia's announcement to stop deliveries via the Druzhba pipeline on May 1. Dietmar W. Woidke, the state premier, said on Wednesday that "PCK's capability utilisation is stable. Crude oil supplies are secured up to 80% by May.?And jobs are protected." Woidke said that the situation allowed him to be optimistic about the future. He added that German officials worked with partners to find a solution for the refinery which supplies parts of Poland and northeastern Germany. Frank Wetzel (state secretary of Germany's Economy and Energy Ministry) said after the meeting that "the German government is working closely with PCK in order to replace lost crude oils supplies through alternative sources." He said that he would discuss how to quickly secure additional supplies via Gdansk, the Polish port city located on the Baltic Sea. The 'Polish energy ministry' said Tuesday that it has the technical capability to handle these deliveries. Any potential increase in volume depends on operational, logistical, and market factors. Last year, Kazakhstan exported a total of?2.146 metric tons of oil to Germany through the Russian pipeline, which is a 44% increase from 2024. This figure will rise to 730,000 tons by the first quarter 2026. (Reporting and editing by Thomas Seythal, Madeline Chambers)
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Amadeus will buy French biometrics company Idemia for €1.2 billion
Amadeus, a Spanish travel technology company, announced on Wednesday that it would acquire the French biometrics firm Idemia Public Security. The company is owned by private equity Advent International and will be acquired for 1.2 billion euro ($1.40 billion), in an all cash deal. Amadeus operates the largest travel booking system in the world. The company described the acquisition of the firm as an immediate earnings-adding move, expecting it to increase its growth at airports and border checkpoints, while also enhancing Amadeus' global presence. It said that the combination of Amadeus and the two businesses would increase Amadeus total revenue opportunity to 50 billion Euros from '41 billion. The deal will be closed in mid-2027, and it could include a bonus of up to EUR 150 million. Amadeus anticipated that the acquisition would result in a high-single-digit revenue increase with expanding operating margins and provide annual cost synergies up to 50 million euros over the medium term. IPS has around 3,300 employees worldwide, and it serves?more? than 600 customers in the public and private sectors. IPS also works in other regulated environments, such as government-grade biometric identifiers and data solutions.
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Jet2 UK warns that summer bookings will be slower due to the Middle East conflict.
Jet2, a British 'travel company,' warned Wednesday that the 'uncertainty about the war is limiting their outlook for seat occupancy during the peak summer travel season. Bookings have slowed down from February levels. Summer bookings are up 7.7% compared to a year ago, according to the company. This is less than the 8% increase in bookings reported in February. Due to the Middle East conflict, the?aviation industry and leisure travel has been under pressure. Jet fuel shortages have resulted from the Strait of Hormuz blockade and cancellations of customers are on the rise. Jet2, UK's third largest?airline said that customers have been booking their vacations earlier since the beginning of the conflict. The company stated that the Q1 combined average load factor (April, may, and June) is on par with last year. However, the current geopolitical uncertainties are limiting the visibility of the summer peak season. The company said that it hedged 87% of the summer jet fuel requirement due to the 'jet fuel crisis' and expects an annual operating profit in line with the market expectations by March 31, 2026. JPMorgan analyst Harry Gowers noted that Jet2's prices could be weaker than prior trends in the summer as the company stated it is committed to "attractive pricing". Shares of the holiday package provider fell by as much as 8,41%, to 980 pence before recovering and rising 0.5%. (Reporting and editing by Rashmi aich in Bengaluru, Simone Lobo is Bengaluru)
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Russia hits hospital in Ukraine's South after attacking port infrastructure
Officials from Ukraine said that Russia used drones to attack port infrastructures in the southern region of 'Odesa' in Ukraine. The strikes also damaged residential structures and a hospital, and two people were injured. Oleh Kiper of the Regional Governor Oleh Kiper wrote on Telegram that the attack in southern Odesa destroyed the Admissions Department of a Hospital there and severely damaged other parts of the facility. He said that at the time of attack, the medical staff and patients were housed in a shelter. They were then'moved' to another facility. The regional prosecutor said that port infrastructure was attacked, but did not give any details. Two people were injured in fires that broke out in a residential neighborhood, according to emergency services. They posted photos of fire-ravaged buildings and firefighters fighting the flames. Kiper also said that there was a fire at the Danube Biosphere Reserve in the region. Odesa, which is home to major Ukrainian seaports on the Danube and river ports, has been repeatedly targeted by Russian airstrikes during the?more than four-year war. Ukraine's Air Force said that Russia launched 171 drones against the country since Monday evening. Air defence units neutralised or downed 154 drones. Local officials reported that a drone and missile attack in northeastern Sumy caused a large fire in a residential neighborhood.
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New York Times Business News - April 29, 2019
These are the most popular stories from 'the New York Times' business pages. These'stories' have not been verified and we cannot vouch for their accuracy. The?U.S. Federal Communications Commission ordered an early license?review of the network's television stations after a joke made by late-night host Jimmy Kimmel led to calls from the White House that ABC fire the comedian. Federal Communications Commission ordered a license review of the network's TV stations. Pernod Ricard & Brown-Forman announced that they had ended their merger talks because the French spirits firm and 'the Kentucky-based owner Jack Daniels'?whiskey couldn't?agree on terms. The U.S. Supreme Court faced a case that has broad implications for the human rights litigation in American courtrooms, a longstanding lawsuit brought by members of Falun Gong's spiritual movement. They accused Cisco Systems of facilitating persecution of religious beliefs in?China. The Port Authority of New York & New Jersey has announced that it will install trackers in its rescue vehicles at three of its major airports. This comes after investigators criticized the agency for failing to 'install recommended devices' on a firetruck during a fatal collision with a plane at LaGuardia Airport. (Compiled by Bengaluru Newsroom)
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Aena, a Spanish airport operator, reports a 9% increase in quarterly profits on the back of increased airport traffic
Spanish airports operator, Aena, announced on Wednesday that its 'first-quarter net profits rose 9.3% compared to a year ago, as 'passenger traffic from and to Spain, which is one of the most visited countries in the world, continued growing. The company that operates all Spanish airports as?well as those in Latin America and Britain?said they booked a profit of $385.37 million, beating the average analyst's forecast of 325 millions euros compiled by LSEG. Spain's tourism sector?continues?to benefit from strong demand. Airlines operating in Spain have added capacity for the summer. However, the industry has warned of potential risks posed by a fuel supply crunch related to the Iran War, which could curtail travel. The first quarter of 2019 saw a 3.2% increase in passenger traffic at Spanish airports, which is higher than Aena's estimates for the full year, which were a 1.3% rise. This was a slower rate than 2025. Aena’s revenue increased 11.6% in the first quarter to reach 1.47 billion euros, which was slightly higher than analysts' expectations of 1.42 billion euro.
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High fuel prices and flight cancellations help Chinese stay close to home during May holidays
As fuel costs rise, the demand for overseas travel is expected to decrease. Travel agents and industry experts expect that most holidaymakers will stay in China. This trend has been seen during recent major holidays, as consumers choose cheaper local destinations due to an economic slowdown. The rising cost of jet fuel following the war with Iran has made travel abroad even more expensive. Price increases have led to a wave cancellations of flights between China and Southeast Asia. Media reports indicate that multiple carriers, including Air China, China Eastern Airlines, Spring Airlines, and Malaysia's AirAsia, have reduced or suspended flights between China and popular destinations like Bangkok, Phuket, and Kuala Lumpur. China Air Transport Association data showed that international flight cancellations increased to 7.4% during May Day, with 785 flights cancelled - more than twice the level of last year. The Iran War is affecting the price and availability of jet fuel. This has led to major cancellations, particularly by low-cost airlines, of flights between China, Southeast Asia and Australia. She also added that the average cost of flights between China, Southeast Asia and Japan that are still in operation is 18% higher than it was at the same point last year. May Pan, 39, a Beijing resident, expressed her gratitude that the trip she had planned with her husband, to Malaysia's Langkawi Island, was not affected. She said, "I bought my tickets six months ago. We planned this trip long ago." "I've heard that many flights to Southeast Asia were cancelled but, fortunately, ours has not been." The domestic demand is on the rise. While it's clear that more people are staying at home, there's still no certainty about whether spending per capita will ever return to levels before COVID. Train travel is cheaper than flying, and it also reduces the risk of flight delays. China Railway Group expects to make 158 million train trips between April 29 and may 6, up from the 151 million it made a year earlier. People can travel by train within the country. Parulis Cook said that they can travel to Hong Kong or Macau via train. Iran's war has a far-reaching impact that goes beyond the cancellation of flights. According to Dragon Trail’s latest Chinese Traveller Sentiment Report 43% of respondents stated that their travel plans were already affected by the conflict. Two-thirds also said the instability has significantly reduced their willingness to travel in the Middle East and North Africa. Bookings for self-driving domestic group tours increased by more than half a year ago, according to Chinese travel agency Tuniu. Demand for independent travel packages also grew by nearly 20 percent. China's May Day Holiday runs for five full days starting May 1. The May Day holiday in China is five days long, starting on May 1. Zhou Weihong, deputy general manager at Shanghai-headquartered Spring Tour, the travel arm of Spring Group, also said domestic trips were likely to outperform during the holiday. He said that the number of domestic trips booked through our platform had increased by 20% in comparison to last year. China's tourism industry has become a key barometer for consumer confidence as policymakers try to boost household spending and domestic demand. Retail sales growth was 2.4% in the first quarter compared to a GDP growth rate of 5%. This highlights Beijing's struggle for a consumer-driven recovery. Local governments are encouraging holiday spending by offering cultural and tourism offers centered on spring outings (flower viewing), educational travel and educational tours. They have also distributed over 284 billion yuan in vouchers for consumption and other subsidies.
Investors weigh the Iran stalemate and UAE OPEC withdrawal as they consider major Gulf markets.
Investors reacted positively to the United Arab Emirates decision to leave OPEC and the stalemate of the 'Iran conflict. The United Arab Emirates announced on Tuesday that it would leave OPEC, dealing a major blow to the alliance.
The UAE is one of OPEC’s biggest producers. Its departure will weaken the group’s grip on the global oil?supply, and further its rift with Saudi Arabia.
In Abu Dhabi, the share index rose 0.8%. This was boosted by a rally of companies linked to the oil giant?Abu Dhabi National Oil Company.
ADNOC Drilling grew by 8.3%. ADNOC Gas grew by 3.1%. ADNOC Logistics & Services jumped by 6.8%. ADNOC Logistics & Services jumped 6.8%.
Speculations that the UAE might leave OPEC have been circulating for many years. It can be profitable during prolonged periods of low oil prices because it has vast reserves and one of the lowest production costs in the world.
Americana Restaurants International, on the other hand, rose 12.9% a day after it reported a sharp rise in its first-quarter profits.
Dubai's main stock index rose 0.2% with the top lender Emirates NBD increasing by 1.1% and toll operator Salik rising 1.2%.
Saudi Arabia's benchmark Index rose by 0.1%. This was largely due to a 2.4% increase in Saudi Telecom Company after the company reported an increase in quarterly profits.
Saudi Aramco, the world's largest oil company, fell 0.2%.
The Qatari Index edged up 0.1% in a volatile trade. A U.S. official said that President Donald Trump was not happy with Tehran's proposal to end this conflict. He insisted on addressing nuclear issues from the start. Separately, The Wall Street Journal reported Tuesday, citing U.S. official, that Trump had instructed aides in preparation for a long-term blockade against Iran. (Reporting from Ateeq Sharif in Bengaluru, editing by Toby Chopra.)
(source: Reuters)