Latest News
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United Airlines CEO rejects consolidation after American rejection
United Airlines CEO Scott Kirby stated on Wednesday that the carrier will not pursue airline consolidation in the near future. This comes after American Airlines rejected his proposal for a possible merger. Kirby, speaking at a Bernstein Investor Conference, said that he has long believed that the "big deal"?United was pursuing was the only one which made economic sense. But he added that such a deal would require a partner who was willing to do it, which "we clearly don't" have. "I don't believe that United at least will participate in any sort of consolidation in the near future," said?Kirby. Kirby stated that he approached American in April about a possible merger. American refused to engage. He had previously been reported to have raised the possibility of a merger with American in a late-February meeting with U.S. president Donald Trump. Robert Isom, American's CEO, has rejected a proposed merger with United Airlines as being anti-competitive. He said that American was focused on rebuilding the Chicago hub, increasing revenue, and developing partnerships. This could include a deeper relationship with Alaska Airlines. When asked about speculation from investors that?United might pursue a smaller transaction after failing to secure larger transactions,?Kirby referred to the idea as "idiotic" stating that this was "definitely the plan." Kirby also refuted speculation regarding JetBlue, saying that he didn't see how United could increase JetBlue’s margin enough to make the deal work. Kirby said that he was increasingly confident United could achieve double-digit margins before tax next year as the easing of 'oil prices' and a resilient demand helped it recover more from higher fuel costs. He said United had been on track to achieve double-digit profit margins before the Iran War drove fuel prices up.
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GE Aerospace sees no airline pullback in engine maintenance despite fuel spike
GE Aerospace CEO Larry 'Culp stated on Wednesday that despite higher fuel prices and softer flight departures, airlines have not slowed down on orders for engine parts or maintenance, indicating continued strength in GE Aerospace's high-margin aircraft engine aftermarket business. Culp, speaking at the Bernstein Investor Conference, said that departures have dwindled over the last eight weeks and growth is now "relatively stagnant." He said GE Aerospace did not see any operational impact, or any change in the commercial behavior of airline customers. Culp stated that "we feel very good about second quarter." He cited a?continued strong performance in spare-parts, engine removals, and shop visit activity. The comments indicate that GE Aerospace’s engine?services are holding up despite the Iran War-driven 'fuel spike, which is slowing flight growth and putting pressure on airline margins. Last month, the engine manufacturer said it was on track to meet the highest end of its profit forecast for 2026, but warned that higher oil prices, fuel shortages and slower growth in the global economy had made the backdrop more uncertain. The company forecasts a profit adjusted of $7.10- $7.40 per share in 2026. The company said in April that its outlook was based on the assumption that Brent crude prices will remain elevated through the third quarter, before declining by year's end, as well as near-term fuel shortages. As more people fly, the need for maintenance and engine wear increases. GE Aerospace said that the impact on services revenue and profits this year should be limited because much of their 2026 maintenance work is already set in stone and demand for spares continues to exceed supply. (Reporting and editing by Nick Zieminski, Rajesh Kumar Singh)
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Boeing increases 737 production following consultation with FAA
Boeing will increase 737 production from 42 to '47' jets per month, following consultation with the Federal Aviation Administration. Boeing CEO Kelly Ortberg announced this on Wednesday. At the Bernstein Annual Strategic Decisions Conference,?Ortberg stated that "we're off and running?at the rate of 47 and we should be there within the next two months." Boeing's fourth 737 production facility in Everett (Washington) will allow the company to produce 52?jets per month by early next year. Ortberg stated, "I believe the entire world is watching to ensure we make (rate) 47 or 52." The FAA capped 737 production at '38 per month after a midair panel failure on a 737 MAX that was almost new in 'January 2024. This revealed significant quality issues at the U.S. aircraft manufacturer and drew intense scrutiny from 'customers. The FAA?removed? the cap?in October. Reporting by Dan Catchpole from Seattle and Shivansh Twary from Bengaluru. Chizu Nomiyama edited the article.
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Source: Apex Service Partners is close to selling minority stakes at $10 billion valuation
According to a source with knowledge of the situation, Apex Service Partners, a home services company, is close to selling a minority stake that could be valued at $10 billion including debt. Source and two other people said that the?company was backed by the private equity firm Alpine Investors. They worked with Goldman Sachs to complete the deal. It was not possible to determine the identity of the new investor or the size of the minority stake. Goldman declined comment. Alpine and Apex didn't immediately respond to our requests for comments. In recent years, private equity firms have targeted the residential service sector more and more. They are attracted by the steady cash flow, as well as the high potential of valuations on fragmented, local markets. Apex, headquartered in?Tampa provides HVAC, plumbing, and electrical services. According to its website, it operates in almost every state of the United States and has more than 7,800 skilled tradespeople. Alpine launched?Apex? in 2019 and converted it to a single asset continuation vehicle with a $3.4billion transaction in?2023, a structured that allows private equity firms to retain ownership, while giving existing investors the opportunity of cashing out. Blackstone Strategic Partners was one of the participants in this deal. Alpine is based in San Francisco in California. It manages assets worth nearly $19 billion. Abigail Summerville reports from New York. (Editing by Mark Potter and Echo Wang)
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COSCO products tanker leaves Strait of Hormuz; oil traffic still restricted
Shipping data revealed that an oil products tanker owned by the Chinese shipping group COSCO was on its way to cross the Strait of Hormuz, following the passage of two crude oil tankers the previous day. However, oil traffic was still 'limited', according to the shipping data. Prior to the start of the war against Iran on February 28, the shipping traffic through this Strait was 125-140 daily passages. 20,000 seafarers are still stranded on hundreds of ships in the Gulf due to the conflict. According to data analysts SynMax, the Chinese-flagged Hua Lin?Wan was crossing the?Strait Wednesday with a cargo of petroleum products. COSCO was not available for comment after normal business hours in China. According to data from ship tracking, at least two more COSCO crude oil tanks have passed through the strait since 13 May. According to an analysis by ship broker Clarksons, the average daily?transits has been around?11 ships. This number has been constant since February 28. Separate Kpler and LSEG data revealed that two crude tankers operated by Greek and Singaporean companies sailed Tuesday through the strait. The number of tankers that transit the Strait has increased, but the flow of oil and other products remains at a low level, as Iran and the U.S. are both fighting for control, according to a report by a tanker broker. There are a number of conditions that must be met before pre-war traffic can resume. These include security guarantees, the removal of mines, and an updated insurance framework. In the last day, the volume of shipping traffic through the Strait, which normally carries around a fifth of the world's oil and energy, was at the same level as it had been in recent days. According to SynMax and Kpler's analysis, nine more ships entered and left the Gulf via the Strait. Data showed that the vessels were mostly smaller cargo and container ships, and one chemical tanker. The data showed that the vessels were mainly smaller container and cargo ships, with one chemical tanker.
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Uganda closes its border with Congo in an attempt to contain Ebola
Uganda's government announced on Wednesday that it has closed Uganda's?border? with the Democratic?Republic of?Congo?with immediate affect to try and limit the spread Ebola. Senior health official Diana Atwine said at a press briefing that the border would be closed for a period of four weeks - except for Ebola response team, humanitarian and security operations and food and cargo transportation. Uganda reported seven Ebola patients and one death. The outbreak's epicenter is located in?Congo’s Ituri Province. World Health Organization reports that the Congo has more than 900 suspected Ebola cases, and 220 deaths. The WHO has declared this outbreak of the rare Bundibugyo Ebola strain a public-health emergency of international concern. Last week, Uganda's government announced a?first set of?measures to try and limit the?cross-border spread?of the virus. This included suspending?public transport services with Congo. Atwine announced on Wednesday that anyone?authorized to enter Uganda via the?Congo?would be required to undergo mandatory self isolation for 21 days.
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SEFE, a German company, and Ksi Lisims Liquefied Natural Gas (Canada) Ltd. have agreed to a long-term supply of LNG
The German state-owned gas company SEFE announced on Wednesday that it had agreed to buy 1 million tonnes of liquefied?natural?gas from Canada's Ksi Lisims?LNG to diversify its supply amid unstable global energy markets. According to the memorandum signed on Wednesday deliveries will begin in early 2030s and last up to 20 years. Katherina Reiche, German Economy Minister, said that the deal was a sign of a "strategic energy partnership" with Canada. She added, "By working together more closely, we diversify our supply chain and make our economies more resilient to global risks." The Ksi Lisims Project is backed by a consortium of Canadian natural gas producers, namely the Rockies LNG Consortium. They also own the land. The facility will be Canada's second largest LNG export facility, with a capacity of 12,000,000 tonnes per year. SEFE, which was formerly owned by Gazprom, has been nationalised by Germany after the Russian invasion of Ukraine in 2022. The company, like Uniper is also tasked with diversifying the energy supply following the cessation of Russian 'pipeline' deliveries and the recent war in Iran that further disrupted the energy markets. SEFE has already signed several LNG contracts, including with Venture Global in the U.S., Southern Energy S.A. of Argentina, and Turkey's BOTAS state energy company. Last month, it was reported that European buyers, such as Uniper, were 'interested in LNG from Canada’s Pacific Coast, which would be shipped via the Panama Canal to diversify energy supply. (Reporting and Editing by Madeline Chambers).
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American Airlines' resilient demand cushions fuel price hit
American Airlines has maintained its full-year profit forecast despite a sharp rise in fuel costs, according to CEO Robert Isom at the Bernstein Investor Conference on Wednesday. He said that higher revenue, corporate travel and premium demand helped cushion the blow of rising oil prices. Isom stated that there is "no doubt" the demand for travel?is K-shaped, with high-income customers outpacing lower- and middle-income customers. He said that travel is growing for all income levels, with American Airlines about 80% booked in the second quarter. Corporate travel has increased 13% over the past year, and leisure travel is "incredibly" high. American Airlines shares rose 2% in the morning. Last month, the carrier cut its profit forecast for 2026 due to rising jet fuel prices. It said it expected its fuel bill this year to increase by over $4 billion. It predicted a range of '2026 results from a loss between 40 cents and $1.10, down from the previous forecast of a profit between $1.70 and $2.70. Isom stated that the airline expects second-quarter revenues to increase 15% from a year ago, on a capacity growth of?about 5%. This would imply?roughly a 10% growth in unit revenue. Reporting by Rajesh Kumar Singh from Chicago and Shivansh Twary from Bengaluru, with editing by Gus Trompiz.
FAA expects Boeing MAX 7 certification this summer and sees production increases
The 'head of the Federal Aviation Administration' said Wednesday that he expected the Boeing 737 MAX 7?to be certified this summer, and the MAX 10 - the larger version - to be approved by the end of?the?year.
Bryan Bedford, FAA Administrator, said at an aviation conference in Washington that he expects Boeing to increase production of the 737 MAX again in the next ninety days. He said that the FAA backed Boeing's decision of increasing production from 42 planes per month to 47 planes.
Bedford stated that it was important to the country for Boeing to be successful. "We're absolutely fine with 42-47 and I expect that in another 30,-60,90 days we will see continued rate increases."
The FAA approved Boeing's request to increase 737 MAX production from 38?planes a month to 42?planes a month in October. This will end the current cap of 38?planes imposed since January 2024.
The company plans to increase production to 52?jets per month by the end of next year after opening a fourth 737 line in Everett Washington.
The MAX 7 is the shortened version of two existing types, the MAX 8 & 9, which have already accumulated thousands of flight-hours.
Boeing's MAX 7 and MAX 10 models have been delayed in their certification due to a?engine-deicing problem. Boeing has also experienced delays in the certification of its widebody 777X aircraft.
Boeing CEO Kelly Ortberg stated on Wednesday that he was "pretty sure" there would be no hiccups during the final phase of flight testing for certifying the new 737 MAX anti-ice engine system.
The production cap was implemented after the mid-air cabin explosion incident in 2024 involving a brand new Alaska Airlines 737 MAX aircraft.
Bedford added that Boeing has a "lot more transparency" and is doing a better job of integrating quality into the frames.
Bedford explained, "Instead of waiting until things are problematic before engaging us, this allows us to work together to identify potential problems as well as solutions that can be integrated into the quality system." (Reporting and Editing by Bill Berkrot.)
(source: Reuters)