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Kinder Morgan's profit exceeds expectations for the second quarter on higher natural-gas volumes
U.S. Pipeline Operator Kinder Morgan beat Wall Street expectations for a?second quarter profit on Wednesday, thanks to higher volumes of gas transported by its pipelines. U.S. Pipeline companies benefit from the booming oil and natural gas production in the Permian basin, and from rising demand for natural gas due to LNG exports. The company reported that it transported approximately 47,886 British thermal units per day of natural gas in the last quarter, compared to 44,818 Btu/day in the previous period. According to LSEG, the Houston-based company?posted a?profit adjusted of 37 cents for the three months ended June 30 compared to analysts' estimates of?? per?share. Varun Sahay, Bengaluru. Diti pujara, editing.
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Southwest Airlines' third-quarter profits are expected to be below expectations due to fuel prices rising
Southwest Airlines predicted third-quarter profits?below Wall Street's expectations on Wednesday. After renewed U.S. - Iran?fighting, fuel prices rose again. This overshadowed the benefits from strong?travel demands and gains made by?assigned seats and extra legroom offerings. The shares of the carrier dropped more than 2% during extended trading after it predicted adjusted earnings for full year of $3.25 - $4.25 per share. This was below its previous forecast at least $4. U.S. Airlines have increased fares, baggage fees and schedules in order to offset the soaring fuel costs that have added billions of dollar to industry expenses. U.S. airlines' fuel bills jumped by 85% to $6.7 billion in just May. After the start of the 'Iran War, jet fuel prices increased by more than twice as much and the Strait of Hormuz traffic was heavily disrupted. Prices fell sharply after a fragile U.S./Iran truce ended in June but then climbed as hostilities resumed?in July. This week, oil prices are approaching a six-week peak as threats and attacks on other regional shipping routes have renewed fears about supply disruptions. It is becoming increasingly difficult for airlines, due to the volatility of fuel prices, to predict their costs and profits. Southwest paid an average fuel cost of $3.92 a gallon during the second quarter. This was lower than its forecasted price range of $4.10 - $4.15 a gallon. According to the 'jet-fuel forward curve' as of July 17,?it anticipates fuel costs for the third quarter of $3.70 - $3.75 a gallon. Fuel costs are expected to rise, but Delta and United will be able to absorb the cost increase with higher fares. Southwest predicted third-quarter adjusted profits of 50 cents to $75 cents per share. This is below analysts' estimates of 82 cents. The company's adjusted second-quarter earnings were 94 cents a share, which was higher than the average analyst estimate of 51 cents a share. Operating revenue increased 16.4%, to $8.7 Billion. (Reporting by Nandan Mandayam in Bengaluru; Editing by Shilpi Majumdar)
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US NTSB does not rule out the possibility of age and service in Ryanair 737 engines incident
The U.S. National Transportation Safety Board announced on 'Wednesday that it had not ruled out the possibility of age or service problems in a?investigation into an occurrence in which a passenger was partially sucked out a broken window in a Boeing 737 NG after an engine failure. The letter contradicts Ryanair CEO Michael O'Leary, who on Monday said that an initial investigation found "foreign objects damage", and not the age of the aircraft or its servicing conditions. Jennifer Homendy, Chair of the NTSB, wrote to O'Leary in a letter that the NTSB had not reached this conclusion. Our investigators are still evaluating whether age or service issues were a factor. She asked him to refrain further from public comments about the investigation. Ryanair and Boeing didn't immediately respond to our requests for comments. According to Federal Aviation Administration and video, the NTSB is currently investigating the incident that occurred on July 10, in which a part of the aircraft's engine broke away and smashed a window shortly after taking off from Thessaloniki, Greece. The plane was headed for Germany when it lost pressure. It landed in an emergency. O'Leary said that the initial indications would indicate a foreign object damaged to the engine during takeoff in Thessaloniki. However, analysts were unable to confirm this. O'Leary stated that the aircraft was 18 years old, and the engine had been overhauled and fully serviced in the last two year. He said that in approximately?28-days, a 'draft report' on the incident will be released. This will be followed by a detailed report. FAA Administrator Bryan Bedford said last week that the incident, which had echoes to two Southwest Airlines Boeing 737 NG flights in 2016, and '2018, prompted a reevaluation of?the response?to these incidents. He added: "I do not think early indications show (the recent Ryanair issue) is a replica of what the Southwest Airlines incident was." (Reporting and editing by Aurora Ellis; David Shepardson)
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Farnborough Airshow: Boeing and Airbus battle it out as orders surpass 300
As the Farnborough International Airshow nears its conclusion in the United Kingdom, airlines have revealed over 300 plane orders. Boeing has a slight advantage over European rival Airbus in the race for sealing deals, according to a tally. Here are some of the biggest deals, with 327 firm orders. This is slightly more than?the previous Farnborough airshow in 2024. The?tally falls short of the 800 orders that were expected, due to supply-chain issues and production bottlenecks. SMBC AVIATION CAPITAL Boeing and SMBC Aviation Capital have announced that they have ordered 100 737-MAX aircraft, 60 737-10 jets and 40 737-8. SMBC announced that it had placed a firm 100 Airbus A320neo family aircraft order, including 65 A321neos and 35 A320neos, for delivery to begin in the first half of the decade. RIYADH AIR Saudi carrier exercised options on 28 Boeing 787 Dreamliners placed in 2023. 20 of these aircraft were converted to the larger 787-10 version. The firm has also confirmed the purchase of six Airbus A350 1000 aircraft, bringing its total A350 1000 order book up to 31 aircraft. PHILIPPINE AERIALLINES Boeing has announced that it received a "new order" from Philippine Airlines for up to twenty 787-10 Dreamliner twin-engine widebody jets. The order is composed of 15 firm orders, and five options. The airline has also placed orders for nine Airbus A350s and secured purchase rights for another five. It expects to receive its first Airbus A350 in early 2030. AERCAP The leasing giant AeroCap has placed an order to deliver 15 Boeing 787 Dreamliners between 2033 and 2033. FLYNAS Saudi Arabia's budget airline Flynas has confirmed an order for 25 more Airbus aircraft. Flynas has now committed to Airbus 235 aircraft. OTHER ORDERS: Uganda Airlines has announced that it has placed orders for four Boeing 737 MAX narrowbody planes and four Boeing 787 jets. Boeing and MSC Air Cargo have announced that MSC Air Cargo has ordered five 777-8 Freighters. IBA, an aviation intelligence and advisory firm, said that Luxair had ordered two Boeing 737-10s worth $124m, based upon estimated prices after discounts. Shohin Airlines, a Tajikistani carrier, has ordered four Airbus A320neo family aircraft. BermudAir, a startup airline, has ordered 10 Airbus A220 aircraft to expand its routes. BermudAir plans to order up to 20 A220 aircrafts by 2030. EMBRAER JETS Brazilian aircraft manufacturer Embraer announced that Japan's Fuji Dream Airlines had placed a firm two-jet order for the?E175 regional jet. Embraer has already included the?order in its backlog. Abra, a South American airline group, also ordered Embraer 20 E2 aircraft. This was the first order Embraer received from this airline group. Embraer announced that Spanish regional carrier Binter has ordered five E2 aircraft from the Brazilian planemaker, increasing its fleet of Embraer's latest generation regional jets. ENGINE ORDERS British 'Airways has announced that it will be using Pratt & Whitney GTF engine for up to 63 incoming Airbus A320neo aircraft. Singapore-based BOC Aviation has placed its largest ever engine order of up to 300 CFM International engines to support the expansion of its Airbus and Boeing narrowbody fleet. IndiGo, India's largest carrier, signed a "memorandum-of-understanding" with CFM International for more than 1,000 LEAP-1A engine purchases. This would be a record for CFM International, who has been criticized by the industry over maintenance delays.
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Alaska Air reports its business has improved despite a fuel-hit quarter
Alaska?Air Group's profitability returned in June, with a pretax margin of double digits despite fuel costs being nearly 70% higher compared to a year ago. CEO Ben Minicucci announced this on Wednesday during the airline's quarterly earnings conference call. The fuel price spike would have made the airline's second-quarter "solidly profitable", he said. Alaska?Air forecast adjusted third-quarter earnings ranging between?breakeven and $1 per share. According to LSEG, the midpoint was 50 cents which is well below the average analyst estimate of $1.38. In midday trading, shares were down by about 4%. The demand remained strong despite the higher fares. This helped revenue performance to accelerate throughout the quarter. Alaska said that unit revenue growth increased from 5.5% in March to 8.8% and 11% in May, while total revenue in June rose 13.2% compared to a year earlier. Bookings for corporate forward travel were up by 37% on an annual basis, which is seven percentage points higher than the growth in the second quarter. Bookings for summer peak and early autumn were also doing well. Unit-revenue growth was in the mid teens year-over-year. Alaska Air anticipates a unit revenue increase of a low double-digit percentage in the third quarter. Capacity will grow by 2%-3% from intercontinental flights, while the carrier reduces growth elsewhere due to high fuel costs. To'make earnings more resilient,' the airline has expanded premium cabins, loyalty programs, cargo, and international travel. Premium revenue grew 15% in the second half and now accounts for 35% of the total revenue. More than 50% of every revenue dollar comes from outside of the main cabin. Hawaii continues to be a drag on revenue unit in the third quarter as rainstorms negatively affected bookings, and industry capacity remains high. Fall demand is recovering according to executives, and September yields are increasing. Alaska Air will provide an update on its full year earnings outlook on September 29, after it has gained more clarity about fuel prices and fare trend. (Reporting from Rajesh Kumar Singh, Chicago; Nandan Mandayam, Bengaluru. Editing by Chris Reese.)
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DP World will build two new terminals along the UAE's east coast to reduce reliance on Hormuz
DP World announced on Wednesday that it would build two new container terminals at Fujairah, a city on the eastern coast of the United Arab Emirates. The Gulf state is working to reduce its?dependence? on the Strait?of Hormuz due to the Iran War. The Dubai-based company said that the 'development' will expand DP World UAE capacity and gateway networks, giving customers more choice, flexibility and connectivity on regional and global trade routes. The development, once operational, will increase DP World’s total container handling capability in the UAE from 19.4 million Twenty-foot Equivalent Units (TEUs), to nearly 22 million TEUs. It will also significantly expand general cargo and RoRo (Roll on-Roll off) capabilities. The U.S. - Iran conflict began on February 28. Since then, thousands have died. Iran's restrictions against energy shipments to Gulf?states has contributed to global inflation. Shipping data revealed that vessel crossings through the Strait of Hormuz fell further on Tuesday as Tehran's "near-total" blockade of this key waterway continued, and security concerns persisted amid the ongoing attacks from?the United States? and?Iran. FUJAIRAH EXPANSION DP World has reached an agreement with Fujairah Ports Authority on a 50-year-concession to build two new terminals. This will create "a new deepwater trade gateway along the UAE’s east coast" whose ports are now the UAE’s main trade route since the closure of the strait. Al Rugaylat Container and Multi-purpose Terminal is designed to handle 2.5 million TEUs annually, as well as general cargo of 1.7 million tons and 190,000. The Dibba General Cargo Terminal will have a capacity for 3.6 million tonnes per annum. DP World is one of the largest port and logistic operators in the world. They did not disclose the financial details of the investment but said that the project would be developed in phases and construction should take 24 to 30 months. The gateway will be able handle "the newest generation" of ultra-large container vessels. It will be connected to DP World's flagship Jebel Ali port located inside the Strait of Hormuz through its inland logistics network. Jebel Ali handled 15,6 million TEUs out of a total 56.1 million TEUs for the group.
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US politicians promote aviation and space business at Farnborough Airshow
U.S. politicians fought with European counterparts for investment from aerospace, defense, and space companies as the industries boomed. The number of U.S. government and private companies exhibiting at the show has increased by 21% since the previous event in 2024. Now, the U.S. accounts for around a third. Nine U.S. Senators, several Governors and other local officials and state officials attended. Gareth Rogers is the chief executive officer of the Farnborough International Airshow. As global tensions increase, governments are increasing their?defence expenditures. Meanwhile, the aerospace supply chain is spending more to keep up with thousands of plane orders for Boeing, Airbus, and Embraer, which will take years to complete. The space industry is also benefiting from more satellite and space launches. Some states, such as Kansas and Alabama, held parties in London for potential investors. Meanwhile, dozens of booths were set up at the airshow, promoting their attributes to prospective companies, including low taxes and regulations, competitive energy costs, and a skilled workforce. Aerospace Industries Association (AiA), a U.S. industry trade group, stated that the U.S. aerospace and defense industry will generate $1 trillion in business activity by 2025. This represents 1.6% of U.S. GDP, which supports more than 2.1 millions American jobs. U.S. officials cite the greater pay in North America, which is about 40% higher than the average national salary. The push comes as trade tensions are at an all-time high. Trump's administration has threatened to impose new tariffs on the aerospace sector, but delayed their implementation pending new negotiations. UK AND EU INCREASE SUPPORT FOR THE INDUSTRY The U.S. The?U.S. will also be facing stiff competition. The European Union will increase defence spending by 8.6% in 2026 to a new record of EUR454million ($518.10million). European countries also create new programs that aim to increase aerospace investments and jobs. The British government announced a PS600 ($802.50) package of support for the UK Aerospace Industry on Wednesday. This includes PS500 million?for aerospace research?and?technology projects?and a new PS100?million aerospace supply chain fund?working with industry partners such as Airbus, Rolls-Royce?, GKN Aerospace? and Safran?. The UK wants the market value of this sector to double by 2035. Virginia Governor Abigail Spanberger stated that her state has made efforts to develop a highly skilled workforce. She also said the state had invested hundreds of million dollars in order to provide sites for aerospace companies who wish to expand or construct. "We don't want to get complacent when we look to the future, because technologies are constantly changing," Spanberger said. He noted that Virginia is home to significant aerospace and defence companies and the Pentagon. Cleveland Mayor Justin Bibb cited the aerospace industry, NASA research center and manufacturing workforce in northeast Ohio as potential benefits. "The cost of doing business in Cleveland is a great deal more affordable than in Silicon Valley, the coast or the South," Bibb stated.
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Nigeria launches $532 Million Bond to boost Power Sector
Nigeria launched ?a 729 billion naira ($531.93 million) government-guaranteed ?bond on Tuesday aimed at reducing legacy ?debts in the ?power sector ?and ?improving liquidity across the country's electricity value chain. The Nigerian power sector has been struggling for years due to chronic liquidity shortages and tariff shortfalls. Inadequate investment, mounting debts across the electricity supply chain and inadequate investments have all contributed to a reduction in generation and distribution capacity. Taiwo Oyedele, Finance Minister and Coordinating Ministry of the Economy, said that the power sector bonds are part of the Presidential Power Sector Debt Reduction Program, which aims to "address verified liabilities" owed to generation companies and gas suppliers, as well as other industry participants. Oyedele, speaking at an investor forum held in Abuja said that the bond issuance demonstrated the government's commitment towards market-based reforms aimed at putting the Nigerian Electricity Supply Industry on a more stable financial footing. The minister stated that the 501 billion naira Series 1 bond was fully subscribed, and it has already recorded its first scheduled repayment. Oyedele stated that the second tranche will help settle outstanding obligations with?additional?power generation companies,?gas?suppliers, and?service?providers. This will improve plant availability, operational stability, and market liquidity.
Football-Argentina's football Association denies reports that Tapia was summoned to US courts
The Argentina Football Association (AFA) said on Wednesday that it is "completely false" to claim that Claudio Tapia, the treasurer of AFA and Pablo Toviggino were ordered by U.S. court judges to provide 'evidence'.
The AFA did acknowledge, however, a third-party was summoned before a U.S. Grand Jury and could potentially provide evidence regarding several people, including representatives from the organization.
Local media reported that FBI agents had detained Tapia, Toviggino and the Argentina team at New York’s JFK Airport before they boarded the charter flight after the World Cup Final. They also requested Tapia’s devices.
Infobae, a media outlet in Argentina, reported that U.S. authorities were investigating?more $300 million in AFA commercial contracts?. This comes amid a wider scrutiny of Argentine finances after raids conducted in December in a'money laundering probe.
A witness said that federal agents questioned Tapia and Toviggino in a bus parked at the airport for 30 minutes as the Argentinean team 'prepared to board their flight.
The Port Authority of New York & New Jersey, which is a transportation agency, referred the matter to the FBI. The FBI declined comment.
The association did NOT name the third person summoned by U.S. courts, but they stressed that U.S. officials had not targeted Tapia nor Toviggino.
It is a lie to say that Claudio Tapia, or Pablo Toviggino has been called to testify before the United States Justice System. The association also said that it was false to say their cell phones, or other electronic devices had been seized.
The statement stated that the document "in question" did not impose any personal measures on the AFA President or Treasurer. It also does not impose any procedure obligations on them, nor does it record any seizure or confiscation property belonging to either of them. Reporting by Lucila Tsvetkova and Maria Tsvetkova, writing by Natalia Siniawski and editing by Daina Beth Sola and Toby Davis.
(source: Reuters)