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Air Canada cancels its 2026 fuel demand forecast due to the Iran War
Air Canada lowered its full-year profit forecast for the year on Thursday as the war in Iran increased jet fuel prices and clouded the outlook. Fuel prices have almost doubled since the start of the conflict, trapping airlines between rising expenses and tickets purchased months in advance with 'fixed fares. The surge in demand has forced airlines to adopt a mitigation strategy, resulting in capacity cuts, fare increases, and increased fees for services like checked baggage. Air Canada also reduced some flights to New York in the future to cut fuel costs. The carrier announced a core profit forecast for the second quarter and said it expected to report an adjusted EBITDA of between C$575m and C$725m. Air Canada CEO Michael Rousseau stated that, "Supported with solid demand, we expect to offset between 50-60% of the estimated additional fuel expenses through various commercial and costs actions." It reported a first-quarter net income of C$48m, or C$0.16 per share. This compares to a loss of C$102m, or C$0.40 a share, one year earlier. The?carrier's adjusted loss per share was C$0.05 The Canadian flag carrier estimated its 2026 adjusted earnings, before interest, taxes, depreciation and amortization, in the range C$3,35 billion ($2,47 billion), to C$3,75 billion. (1 Canadian dollar = 1.3584 dollars) (Reporting and editing by Sriraj K. Kalluvila in Bengaluru)
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Trump signss order authorizing pipeline project that partially revives Keystone XL Line
On Thursday, U.S. president Donald 'Trump signed an order granting a 'cross-border permit' to a project which would revive a re-built Keystone XL pipe to transport Canadian _crude oil from the U.S. Canada border to Wyoming. If the pipeline is built, it could increase Canada's crude oil exports to America by over 12%. The project was only allowed to proceed with a presidential permit. The new proposal would take a different route across the United States than the 'previous Keystone XL project,' which was canceled in '2021 by the former U.S. president Joe Biden after years of Indigenous and Environmental opposition. It will 'use some of 'the previously built pipe in Canada, where Keystone XL is fully permitted. South Bow, a company set up in 2024 by TC Energy to take over the oil pipeline business of former Keystone XL promoter TC Energy, will be taking over this oil pipeline business. Bridger Pipeline is South 'Bow's U.S. Partner. They recently submitted a proposal to Montana regulators. The proposal describes construction of a 1,038-km (?645-mile) pipeline capable of transporting 550,000 barrels per day. It will begin near the U.S. Canada border in Phillips County Montana and then transit to Guernsey Wyoming. Analysts say that Guernsey does not serve as a final market for crude oil. Therefore, additional links will be needed to transport the oil to refinery hubs in Cushing, Oklahoma, Patoka, Illinois, and along the Gulf Coast of America. The project will need to be approved by the state regulatory authorities. (Reporting and writing by Ryan Jones; Editing by David Ljunggren, Edmund Klamann and Christian Martinez)
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Woodside struggles to sell LNG at Louisiana LNG plant according to sources
Woodside Energy, a company based in Australia, is having difficulty selling liquefied gas volumes produced by its Louisiana LNG export facility. This is because the company is demanding liquefaction fees that are higher than current U.S. market prices. Woodside Energy, an Australian energy producer, has announced so far only one long-term sale and purchase agreement, with Germany's Uniper, covering up to two million metric tonnes per year. This is equivalent to around 25% of Woodside’s share of Louisiana LNG’s output. Producers charge liquefaction fees on top of base energy prices to convert natural gas into liquid for transportation. The price of U.S. LNG has been increasing due to labor shortages, rising construction costs, and strong demand. One of the sources stated that "the problem Woodside faces is the high price of its liquefaction fee, which is higher than what other companies in the U.S. charge." Woodside had initially requested liquefaction charges above $2.80 for every million British thermal units. This was in contrast to the broader U.S. rates of $2.40 to 2.50 per mmBtu. Source: Cheniere Energy - the biggest U.S. producer- charges a slightly higher fee around $2.60. Venture Global, on the other hand, is one of the lowest, at $2.30. A second?source who is familiar with the pricing discussions stated that Woodside's offer was attractive in certain aspects, such as contract duration. However, pricing has proved to be a sticking-point. Source: "Woodside offers 10-year contracts that are attractive because of their duration, but price is the issue," said the source. They wanted $2.80 for mmBtu, but now offer it at $2.60. WOODSIDE HAS REPORTED STRONG CUSTOMER INTERESTS Woodside declined to make any comments. Speaking on the company’s earnings call, CEO Liz Westcott stated that customer interest was strong, and the company is satisfied with the progress made at Louisiana LNG. Westcott stated that "many customers see the benefits of geographical diversification, and are comfortable with the way the Louisiana LNG process is progressing." "We continue to have a competitive price on the market." "We are among the lowest-cost LNG suppliers," added she. Woodside's North American expansion strategy includes the?Louisiana LNG project. Woodside is betting on an administration that supports fossil fuels in the U.S., and a growing demand for gas worldwide. The first phase of the project will cost approximately $17.5 billion. Woodside sold 40% of its facility to Stonepeak, a U.S. investment company. Williams, a U.S. energy infrastructure firm, took the remaining 10%. The first phase involves the construction of a three-train facility, or processing unit with a total capacity of 16.5 mtpa. Woodside, which has sold off?50% of the plant's capacity, has contracted to supply a little over?8 million tonnes of LNG per annum. Woodside and Uniper have agreed to a?supply agreement' that will allow the German company to purchase 1 million tonnes per annum of LNG from Louisiana over a period of 13 years, as well as an additional up-to 1 million tonnes per year from its global portfolio. Louisiana LNG will be operational in 2030. Deliveries should begin then. Curtis Williams, reporting from Houston; edited by Nathan Crooks & Nick Zieminski
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UPS CEO: Drug delivery strategy is a good countermeasure to economic uncertainty
Carol Tome, CEO of United Parcel Service, said that the company's efforts to grow its share of lucrative prescription drug delivery market are likely to pay off in the second half this year, despite the Iran War clouding the global economic outlook. That premium business, which can involve safe and speedy handling of temperature-sensitive medicines or radioactive treatments, is more recession-resistant than sectors like retail, housing or manufacturing, she said. This is important because the U.S./Israeli conflict against Iran could spark a recession that would reduce demand for delivery services. Tome said this week that despite the challenges of recent years, healthcare is still growing. "I'd argue that healthcare is recession-proof." UPS has been battling rival FedEx for years and reconfiguring its network in order to handle fewer but more profitable deliveries. DHL Group dominates the outsourced healthcare logistic market, which is worth more than $80 billion. Some analysts predict that this market will double over the next decade. Analysts?said that UPS was gaining on DHL in some healthcare segments and surpassing FedEx. High Margins Tome stated that UPS and other companies are targeting complex logistics in healthcare because of the high prices and profits associated with such specialized handling. Tome stated that margins for shipments of expensive drugs are typically in the high teens, while margins in e-commerce are very low, in the single digits. This is already a benefit to the company as the traditional delivery of lightweight packages by?retailers such as Amazon.com and Walmart becomes a drag on profits. Tome stated, "We just reported our first $3 Billion Healthcare Revenue Quarter in our Company's History and we have taken share in this area since 2021." UPS reported 2025 healthcare revenues of $11.2 billion. This is almost 13%. UPS's first quarter 2026 revenue from healthcare accounted for over 14% of its total revenue. As the volume of low-profit packages drops this year, business with higher margins will become a larger part of the pie. Tome says that lower operating costs should boost earnings growth. Tome, when asked about the impact of Iran's war on UPS's business, said that the company is still doing well despite the soaring prices of fuel due to the closure of the Strait of Hormuz. Analysts are also watching the part of UPS's healthcare business that could be vulnerable to a recession: home deliveries of GLP-1 diet drugs that consumers pay for, and not insurance companies. OUTSIDER UPS has lured Tome out of retirement, the former Home Depot Chief Financial Officer, in June 2020. She will be the first non-company CEO to lead the company for more than 100 years. In the latest quarter, Amazon's share of UPS's business dropped from more than 13% down to just 8.8%. The company also funded acquisitions which expanded its healthcare footprint. To compensate for the culling of millions of Amazon packages, the Atlanta-based firm has been closing its facilities and reducing their workforce. This includes union delivery drivers, who easily earn more than $100,000 a year. Postal Service handed over its Ground Saver deliveries at value prices to the U.S. Postal Service, as U.S. Tariff Policy choked millions of low value "de minimis" deliveries from?China linked companies like Temu or Shein. UPS also upgraded hubs with automation, package tracking and other tools to make delivery more cost-efficient. UPS is close to completing a large part of the work, which will save billions on operating costs. This will also create a turning point in profitability for the company. Bruce Chan, a Stifel analyst, summarized the progress of the transformation in a note to clients entitled: "Home stretch: Heaviest lift complete... now for the benefits to materialize." Reporting by Lisa Baertlein in Los Angeles, Editing by Richard Valdmanis & Bill Berkrot
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Bangladesh signs Boeing jet contract, shifting from Airbus
Officials said that Bangladesh signed a deal to purchase 14 Boeing aircraft on Thursday, marking a departure from Europe's Airbus due to trade pressures from Washington. Officials have not disclosed the value of the transaction, but at list prices the deal would be worth about $3.7 billion. Boeing will provide a mixture of narrow-body and large-body aircraft to Biman Bangladesh Airlines. This includes 10 787 Dreamliners and four 737 MAX Jets. The national carrier is looking to modernise its fleet and increase capacity in order to meet the rising demand. Unable to provide further details, an official of the Biman and a representative from the Aviation Ministry said that aircraft would be delivered in stages. Boeing did not immediately respond to an?request? for comment. This agreement brings to an end a long-running contest between Boeing, and Airbus over Biman's next big order. Both manufacturers were vying to gain a bigger presence in the growing South Asian aviation market. Bangladesh approved the purchase of 10 Airbus aircraft under Prime Minister Sheikh Hasina's previous government, even though no final agreement was signed. After the fall of her government, the interim administration changed its mind and opted for Boeing. Officials stated that the decision was based on more than just fleet needs, but also on larger trade considerations. Bangladesh wants to reduce 'pressure due to a $6 billion trade deficit with the United States, and avoid tariff increases which could hurt its export-driven industry. The expansion of the fleet coincides with other broader 'upgrades' to Bangladeshi aviation infrastructure. These include a new terminal built at Dhaka Airport, which is designed to handle the increasing passenger traffic, driven by a growing middle-class and a large overseas workforce. The 54-year old Biman has a fleet of over 20 aircraft. Most of them are Boeings and more than half are widebodies. The company also owns a number Dash-8 turboprops.
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After seven years, US passenger flights to Venezuela resume after US commercial passenger service.
According to American Airlines, the first flight to Caracas from Miami was launched on Thursday after seven years. American resumes daily service to Venezuela by offering flights via an Embraer 175, through Envoy, a wholly-owned regional subsidiary. The company plans to start a second daily flight on May 21. The first flight will land Thursday afternoon. It is expected to include government officials and journalists. Sean Duffy, the U.S. Transportation secretary, lifted a ban on?U.S. airlines flying to Venezuela in January 2019. After President Donald Trump ordered him to do so, American Airlines was granted permission to fly into Venezuela in March. In March, the Transportation Security Administration (TSA) was in Caracas to review airport security protocols. This step is necessary to resume flights. American announced that it would?resume its service?, weeks after the U.S. Military seized Nicolas Maduro as the leader of the country. American began operating in Venezuela in 1987 and was the largest U.S. carrier?in?the?country until it suspended service in 2019. This followed the U.S. travel ban. The airline said the daily flights would provide "opportunities" for humanitarian, business and leisure travel. The State Department removed Venezuela from the "Do Not Travel" list in March. It issued a "Reconsider Travel", a less serious advisory, due to crime, kidnappings, terrorism and poor infrastructure. Reporting by David Shepardson, Editing by Chizu Nimiyama and Rod Nickel
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US blockade of Iranian oil exports forces crude to be stored on floating storage
Shipping data and analysts say that a U.S. navy blockade against Iranian ports has slowed down Tehran's oil exports. A growing stockpile is now stranded on tankers, as Iranian storage sites are running out of room. It is difficult to determine how much crude oil Iran delivers to its customers, especially China, as some vessels have turned off their tracking systems. Oil analytics firm Vortexa reported that only a few carriers with Iranian crude left the Gulf of Oman from April 13-25. LSEG data show that this is a drop of over 80% compared to a similar period in March when Iran exported 23.44 million barrels. The U.S. has intercepted some of Tehran's vessels after they left Iranian ports. They also caught Iranian tankers and container ships that were sanctioned. EXACERBATING WIDER MARK TIGHTNESS At this point, we estimate that approximately 4 million barrels of Iranian oil have successfully left the Gulf of Oman. In an email, it stated that they were unable to confirm whether or not any of the vessels had been interdicted. The U.S. is trying to avoid a situation where the market becomes tighter due to the loss of Iranian oil supply. The U.S. unexpectedly granted Iran a temporary waiver of sanctions on energy exports last month to allow the prices to cool. Benchmark Brent crude futures are up about $50 per barrel since the Iran War began on February 28. This has led to higher prices for gasoline, jet fuel and diesel. The International Energy Agency called it the largest disruption in oil production ever. NO TANKERS LEAVED THE GULF SINCE BLOCADE - KPLER Since the beginning of the blockade, Kpler analysts have not seen any Iranian crude oil tankers leaving the Gulf of Oman. The U.S. government said that their blockade on Iran was denying it much-needed revenues from crude oil exports. U.S. Central Command said that the Iranian regime is unable to sell 41 tankers containing 69 million barrels. The rial, Iran's currency fell to a new record low against the U.S. Dollar on Wednesday, underscoring the economic difficulties facing the oil-dependent economy. According to TankerTrackers, a maritime intelligence firm, Iran continues to load crude oil at its main export hub, Kharg Island. Satellite images show at least 10 tanks parked near Iran's Chah Bhar port in the Gulf of Oman. In February, Iran produced approximately 3.24 million barrels per day of crude oil. Around half was used for domestic refinement. The country could be forced to cut production within a week or so, according to Kpler analyst Johannes Rauball. Storage is limited. Onshore storage capacity is 86,000,000 barrels and stocks are above 50,000,000 barrels. According to a report by FGE NextantECA on April 15, Iran could be forced to reduce production in June due capacity constraints.
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AFC partners with regional and international lenders, including Citi, for Lobito Corridor
A senior official revealed that the Africa Finance Corporation, the lead developer of the U.S.-backed Lobito mineral transport corridor, is in discussions with at least 10 African and foreign financiers including Citigroup to raise $3-5 billion for this project. The AFC has begun preparing for the construction of a key transport project, which will combine existing and new railway lines to link copper and cobalt mining areas with?Angola’s Atlantic port of Lobito. The project is a part of Washington’s effort to curb Chinese influence and secure access to strategic metals, minerals, and coal in Africa. AFC is currently in discussions with commercial lenders, including South Africa's Standard Bank and Absa as well as pan-African lender Ecobank and Wall Street bank Citi. This was confirmed by Osaruyi Orobosa, the deputy director of the Lagos-based lender and head of project development and investments. The Export-Import Bank of the United States, the U.S. International Development Finance Corporation, and the Export-Import Bank of the United States are all bilateral institutions. He said that "the banks want to come... everyone wants to be here." Discussions are aimed at familiarising potential financiers in advance of a fundraising push later this year. He said that commercial banks will likely participate in the financing as arrangers and funders. Some of them could play a coordination role for export credit agencies involved. He said that development lenders might take on both equity and debt positions. AFC had previously disclosed that it was in discussions with governments and development banks about the Lobito Corridor. However, commercial lenders who were involved in these talks have never been publicly identified. (Reporting and editing by Karin Strohecker, with Duncan Miriri)
Panama's president: US-China dispute has caught a port in Panama
Panama President Jose Raul Mulino stated that his country has a 'positive relationship' with China despite the fact that it is caught in a dispute between China and the U.S. He also defended Panama's 'takeover' of Hong Kong-based CK Hutchison's port contracts.
He spoke at a regular news conference after receiving a message he described as "high level" from the Chinese government, which acknowledged that the dispute over port contracts would be heard by an international arbitration court and was not a matter between the Panamanian or Chinese governments.
The message received by China's ambassador to Panama marked a "friendlier approach", even though he noted a surge in detentions and checks of Panama-flagged vessels?in China.
Mulino, a reporter, said: "In a sense, we are being swept along by the result of a?problem between the United States and China."
CRITICAL CANAL
Control of the Panama Canal's entrance ports is a source of geopolitical tensions between Washington and Beijing.
CK Hutchison lost its port concessions, which it held for almost three decades, after a Panama Supreme Court ruling in January. The decision was widely viewed as a result of U.S. efforts to limit Chinese influence on the strategic waterway.
Panama handed temporary operations over to Maersk APM Terminals, and MSC TIL Panama. Panama Ports?Company announced that it would challenge the move through international arbitration. It also accused Panama's Government of a wrongful takingover.
Mulino stated, "We didn't expropriate ports. We?took them over because they had no contract." "I have no interest in escalating the problem with China." He expressed concern over the unusually large number of Panama-flagged vessels being detained by China. This issue prompted the U.S. to express support for Panama's sovereignty this week in a statement.
China accused the U.S. and China of politizing the ports.
Mulino said he had not made a decision?on the next steps.
He said: "I don't want this to escalate because of a geopolitical dispute, or for our Panamanian flagged vessels to be used in an attempt to exert pressure." "I do not think that's fair." Reporting by Elida Moreno; writing by Daina Beth Sool; editing by Rod Nickel
(source: Reuters)