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J.B. Hunt reports a 12% increase in its quarterly profit due to cost savings
J.B. Hunt Transport Services, a U.S. trucking company, reported on Wednesday a 12% increase in its third-quarter profits. This was due to ongoing cost-cutting initiatives taken in response a downturn in freight in the industry. After-market trading saw a 11% increase in the shares of the company. Since 2022, the trucking industry is in decline, due to excess capacity, declining freight rates and a modest increase in shipment volume. Experts predict that the recession will continue, and that tariffs imposed on U.S. President Donald Trump by Trump's administration will add pressure to the situation. This could delay recovery. The Arkansas-based firm reported net earnings for the third quarter of $170.9 million, or 1.76 cents per share. This is up from $1.49 cents per share a year earlier. According to LSEG, it reported revenues of $3.05billion, which is slightly less than the $3.07billion in the previous quarter but higher than analysts' estimates of $3.03billion. The company reported that the revenue performance was driven by the 1% and the 4% decreases in gross revenue per truckload in the intermodal segment and the truckload segment, respectively. J.B. Hunt reported a 8% drop in load volume in its Integrated Capacity Solutions and Dedicated Contract Services segments, as well as a 1% decrease in its Final Mile Services. Reporting by Abhinav Paramar and Aatreyee dasgupta from Bengaluru, editing by Shailesh Kumar
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Brazil Postal Service Correios wants a $3.7 billion Treasury-backed Loan from banks
The Brazilian state-run Correios postal service is in discussions with a group of banks to obtain a loan worth about 20 billion reals ($3.67 billion), according to its chief executive. This comes as the company looks to improve short-term liquidity. CEO Emmanoel Rondon who assumed the role at the end of September said that the loan was part of a restructuring program which also included a voluntary dismissal plan, the renegotiation with suppliers, and actions to diversify the company's revenue. Why it's important Rondon said at a press briefing that the talks were about a guarantee loan from the Brazilian Treasury. KEY QUOTES "The logistics industry, where Correios is the leading player in Brazil and operates, has undergone a large transformation," Rondon said. He cited a more competitive environment because of the growth of the ecommerce segment, particularly since the COVID-19 epidemic. He added, "Our company didn't adapt quickly to the new reality. This lack of adaptation led to us struggling in terms of results and cash generation, as well as our operation." CONTEXT In the second quarter of 2018, the company reported a net loss amounting to 2.64 billion reais (US$483.4 million), nearly five times higher than its loss in the previous year. This was due to lower revenue, as well as increased administrative and financial costs. ($1 = $5.4612 reais). (Reporting and editing by Matthew Lewis. Additional reporting by Marcela ayres, Brasilia.
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United Airlines expects strong profits in Q4 driven by premium travel demand
United Airlines forecast on Wednesday a profit higher than expected in the fourth quarter, thanks to a robust demand for premium travel as well as improved pricing power. Chicago-based airline American Airlines expects a profit adjusted in the range between $3.00 and $3.50 a share for the quarter ending December. According to LSEG, the midpoint of forecast is $3.25 a share. This compares with an average analyst estimate of $2.86. United's adjusted third-quarter profit was $2.78 per share, exceeding analysts' expectations of just $2.63. The earnings report is released just a week following the rival Delta Air Lines' forecast of record earnings for the December quarter. Since the pandemic, United and Delta consistently outperformed other airlines by focusing on revenue streams with high margins that take advantage of the financial strength and loyalty of corporate and international travelers, as well as premium and corporate passengers. The earnings of U.S. carriers are now more divided. While Delta and United generate most of the profits for the industry, other budget carriers and domestic carriers are struggling with lower demand and increased pricing pressure. United's revenue for the third quarter was $15.2 billion, a 2.6% increase from a year earlier. Premium revenue grew by 6% and loyalty revenue by 9%. (Reporting and editing by Chris Reese; Rajesh Kumar Singh)
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US airline group calls for an end to the government shutdown citing aviation safety risks
The head of an airline trade group in the United States called for an end to the government shutdown after expressing concern about increasing pressure on air traffic controllers who are working without pay. In an interview, Chris Sununu said, "It has to stop now. Every day, the pressures, and risks, get higher." Sununu is the CEO of Airlines for America. The group represents American Airlines, Delta Air Lines, and United Airlines. "You are getting closer to the day when air traffic controllers will only feel financial pressure." The aviation industry is growing increasingly concerned about the impact of a prolonged government shutdown. Since the shutdown began, thousands of delays have been caused by the mounting number of sick calls made by controllers. The Air Line Pilots Association National Air Traffic Controllers Both associations have called for an end to the shutdown as soon as possible. In recent days, more than 13,000 air-traffic controllers and 50,000 Transportation Security Administration (TSA) officers received partial paychecks. They will not be paid the rest of this month if there is no resolution to the standoff. Sununu said that things could get worse. Sununu stated, "I believe it will really hit ahead in about a week-and-a-half, when the first zero paycheck arrives." "Most people are able to survive for a few weeks but after three, it puts a real strain on the system." Sununu is in favor of a continuing resolution that would reopen government, but he acknowledged the Democrats' desire for a healthcare discussion. "I'm not interested in politics." Sununu stated that he was only concerned with the easiest method to ensure the system's resilience. "If for some reason the system grinds to a halt, it's felt worldwide." "Hopefully, they'll see it before we reach that point." During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed paychecks. This led to longer waits at checkpoints. The Federal Aviation Administration had to slow down air traffic in New York to put pressure on legislators to end the standoff. Reporting by David Shepardson, Editing by Mark Porter & David Gregorio
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California Governor vetoes Bill that would have Limited Air Quality Regulation
California Governor Gavin Newsom vetoed this week a bill that would have restricted the regulatory powers for air quality agencies in the ports of Los Angeles and Long Beach - the two busiest ports complexes in the country - which are the main sources of local air pollution. California Senate Bill No. 34 prohibited the South Coast Air Quality Management District, located in the logistic hub counties of Los Angeles Orange Riverside and San Bernardino, from taking any actions that would, for example, impose a limit on the cargo throughput at ports or the number of cruise ship passengers. Newsom, in a Monday veto declaration, said: "With the federal administration directly undermining state and local air pollution reduction strategies and encouraging cooperative action at all level to avoid the worst climate and health impacts."
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Canada's transport safety agency raises alarm over a record number of runway incidents
MONTREAL - October 15, The Transportation Safety Board of Canada raised new concerns on Wednesday about near-misses after the number of cases of runway incursions reached a record in Canada last year. This was despite there being no actual collisions. In its annual watchlist, the transport safety agency calls for better use of technology and infrastructure. Data from the air traffic service provider NAV Canada shows that runway incursions increased to 639 in 2018 from 566 by 2023. This is the highest number recorded in the 15-year period for which data is available. When an aircraft or vehicle lands or takes off on a runway that is not intended for it, this is called a runway incursion. In the past few years, several near-misses have raised concerns about aviation safety, especially in the United States, where the understaffed air traffic controls are a concern. Southwest Airlines was only 200 feet behind the business jet in February when the pilot of the commercial airline aborted his landing to avoid a collision. Recent high-profile runway accidents are increasing pressure on aviation authorities, who want to mandate cockpit alert systems that prevent incursions.
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Ardian and Finint Infrastrutture agree to jointly buy Venice's airport operator
Ardian, an investment firm, and Finint Infrastrutture, a company that manages assets in Italy, have agreed to acquire Milione Spa together, which is the holding company of Save, which operates several airports, including Venice Marco Polo. According to a source familiar with the transaction, the equity value for the company is approximately 1.2 billion euro ($1.4 billion). The value of the company increases to 2.1 billion euro when debt is included. Milione is controlled by DWS Infrastructure & Infravia Capital Partners. The two companies announced their partnership on Wednesday. It was "designed to support the growth of Save and (Italian North-East Airport System) as well as establish a strategic operator who would pursue new acquisitions in order to achieve an external growth strategy." Save operates a network including Venice, Verona and Treviso in northern Italy. It also holds a stake at Charleroi Airport in Belgium. Banca Finint, Goldman Sachs and Mediobanca acted as advisors for Ardian. Rothschild, Morgan Stanley and Infravia assisted DWS and Infravia.
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Minister: Ukraine talks about US LNG imports following Russian attacks on gas sector
Oleksii Sbolev, Ukraine's Economy Minister, said that the United States and Ukraine are in talks to import liquefied gas following Russian attacks on Ukraine's gas infrastructure. Sobolev, after a meeting in Washington, said that "we are looking at financing mechanisms to purchase American LNG and compressors" due to Russian attacks. He gave no more details. In recent weeks, Russia has increased its attacks on Ukraine's energy system. It is targeting both gas and power plants. Svitlana Svitlana Hrynchuk, Ukrainian Energy Minister, said last week Ukraine wants to increase its gas purchases by 30% after airstrikes against its gas infrastructure. In a statement made earlier this month, Naftogaz, Ukraine's national oil and gas company, said that his firm had purchased around 0.5 billion cubic metres of U.S. Liquefied Natural Gas, of which the majority had been delivered.
Energy chief: EU would welcome US support to stop using Russian oil
Energy Commissioner Dan Jorgensen said on Friday that the European Union would be happy to have President Donald Trump support its plans to stop purchasing Russian oil. These purchases are used to fund Moscow's war against Ukraine.
The European Union has begun negotiating with Russia to end its decades-old energy relationship.
A White House official confirmed that U.S. president Donald Trump called European leaders on Thursday and told them to stop buying Russian oil. Diplomatic efforts to end the conflict are still ongoing.
Jorgensen is in charge of the EU's Energy Policy. He said that he was not under any pressure from the U.S. Administration to stop Russian oil purchases before the 2028 deadline. However, he would appreciate U.S. support for the EU Plan.
"Putin has not only weaponised energy and blackmailed members states against us but we also indirectly finance Putin's War, which needs to stop. "If President Trump supports that, that's a very welcome support because that is our main goal," he stated in an interview.
The White House official who quoted Trump's remarks has asked the Kremlin for comment.
India accused the West for being hypocritical after the United States imposed punitive duties on India because of its continued purchase of Russian oil.
HUNGARY AND SLOVAKIA OPPOSE PHASE OUT
According to EU figures, the amount of gas Europe purchases from Russia is expected to drop to 13% this year. This compares to 45% in 2022 before Russia invaded Ukraine.
Hungary and Slovakia continue importing Russian crude oil via the Druzhba pipe and oppose the EU's phase out plan, claiming it will increase energy prices.
Jorgensen stated that he is in discussions with both governments to address their concerns, but if necessary, EU countries can approve phase-out plans even without them. He refused to confirm whether Brussels would provide funding or legal assurances to try to win support from the two countries.
Jorgensen stated that if there are domestic reasons that prevent some countries from supporting it, this does not require unanimity.
The EU proposals were designed to be approved by a consolidated majority of members countries. EU diplomats said they expect the energy ministers of member countries to approve these proposals at a meeting in a month.
Next week, Jorgensen and U.S. Energy Secretary Chris Wright will meet in Brussels to discuss the EU's commitment to purchase $250 billion worth of U.S. supplies of energy per year as part of a U.S.-EU free trade agreement.
Analysts say the EU's energy pledge is unrealistically large - partly because it has limited control over what energy its companies import.
Jorgensen stated that they will discuss ways in which the EU and U.S. Administrations can ensure that the deal is implemented. The Commission, for example, has stated that it could pool the demand of European companies in order to purchase more U.S. Gas.
It's obvious that our role is facilitation. "The EU is not a trader of gas," Jorgensen stated. (Reporting and editing by Jan Strupczewski, Barbara Lewis and Kate Abnett)
(source: Reuters)