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White House shows skepticism as United Airlines CEO downplays merger talk
Scott Kirby, CEO of United Airlines, played down speculation on Wednesday about a possible tie-up with American Airlines. He also declined to comment on reports that he floated the idea at the White House. We've seen lots of media coverage about consolidation rumors. Kirby stated on United's earnings conference call that the company has not made any comments on these reports. He said that his comments were a reflection of long-held opinions about the airline industry, but they had been interpreted differently after the merger reports. Kirby raised the possibility of merging with American Airlines during a late-February meeting with U.S. president Donald Trump, according to people familiar with the situation. The meeting was scheduled to discuss Washington's Dulles Airport. American has said it's not interested in pursuing any deal. Kirby explained that "all of my comments... have been made in the past" and that the comments are being viewed differently because of "the rumors that were spread last week." Sean Duffy, the U.S. Transportation secretary, called Tuesday's proposal "interesting", but added that United would have to make a better case for its consumers. Trump stated on Tuesday that he is opposed to a possible merger between two airlines. Focus on Global Competition Kirby's thinking was framed in terms of competition over the long term, and he argued that U.S. carriers face structural disadvantages compared to large carriers in Asia?and the Middle East. He did not specify what changes would be required, saying that any solution would bring "complications." He said that United's success has come from winning customers in different segments, rather than through consolidation. He cited?investments in onboard technology and products as the reason for the airline's strong performance despite the sharp increase?in fuel prices. Kirby also highlighted 'the role of partnerships', saying that United's global reach would be impossible without its Star Alliance partnership, which allows them to serve destinations they could not otherwise afford. He said: "It's highly unlikely that we will open a foreign hub anywhere." (Reporting and editing by Rod Nickel.)
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United Airlines warns that fuel prices may rise by up to 20% in order to offset the increase.
United Airlines CEO Scott Kirby stated on Wednesday that ticket prices could rise as much as 15 to 20% in order to offset the surge in jet fuel costs. This is a test for consumers to see if they are willing to pay higher prices as the oil industry struggles to deal with volatile prices. Kirby stated that United aims to recover all fuel cost increases "as soon as possible". It also expects to move towards a 100% pass through,?as the company targets double-digit margins before taxes next year. Kirby stated that "yields must increase by approximately 15% to 20%" and added that the company assumes fuel prices will remain high for a longer period of time. United Airlines' comments follow its forecast of second-quarter and annual profits that were below Wall Street expectations due to higher jet fuel costs, which squeezed margins and impacted the near-term outlook. Demand for premium travel remained robust. United's shares fell by about?6% during morning trading. The Chicago-based carrier said that its forecast was based upon the Gulf Coast Jet Fuel Forward Curve as of April 17. It warned that results could fall at either end depending on fuel prices. Fuel costs are expected to rise by about $4.30 per gallon in the current quarter. United has said that it already began raising its prices. It implemented five fare increases in the last quarter of the first year, along with increased baggage fees. These have "started" to offset increasing fuel costs. The airline expects to recover 40% to 50% of the fuel price increase through fares in the second quarter. This will improve to 70% to 80% by the third quarter, and up to 85% to 100 percent in the fourth quarter. Executives at the company said that ticket yields increased by 12% early in March, and then climbed to 18% during?the second part of the month. Kirby stated that the airline hasn't seen a decline in demand despite rising prices, but admitted that consumers would be tested eventually by higher fares. He said that as yields increased, the demand would be elastic. (Reporting and editing by Aurora Ellis; Reporting by Rajesh Kumar Singh)
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Sources say that Black Sea CPC blend oil exports will rise to 1.8 millions bpd by May.
Two industry sources said that the Caspian Pipeline Consortium plans to export 1.8 million barrels of CPC Blend crude per day in May, up from 1.65 million barrels expected in April. This is because Kazakhstan will divert oil from Russia's Druzhba Pipeline Oil previously scheduled for Germany. Calculations show that May loadings will rise daily by?9% compared to April and reach a record for a number of months. Alexander Novak, Russia's deputy prime minister, said that from May 1, the Druzhba Pipeline will be diverted onto other routes. According to two sources, volumes rerouted out of?Druzhba are expected to enter CPC. CPC Blend is now more expensive than Brent due to supply disruptions in the Middle East. One?trader stated that the Russian gas producer,?Novatek, will also contribute to increased CPC shipments by exporting condensate while undergoing maintenance at its Ust-Luga processing complex. The CPC consortium doesn't comment on operational loading data.
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Trump administration nears deal to rescue Spirit Airlines, WSJ reports
Wall Street Journal reported on Wednesday that the Trump administration is close to a deal with Spirit Airlines. The Wall Street Journal quoted people who are familiar with the matter. According to a report, the U.S. Government will loan Spirit up to $500 million in exchange of warrants that would allow it to potentially take a stake in the airline. After U.S. and Israeli strikes on Iran, global carriers are now dealing with a?surge in jet fuel prices? after the disruption of?traffic along the Strait of Hormuz. Spirit Airlines has stated that it will'shrink their fleet to approximately one-third the size of its pre bankruptcy fleet, and retain roughly 76-80 aircraft by third quarter 2026. According to the March disclosures, the?carrier's turnaround?plan was based on fuel prices averaging $2.24 a gallon in 2026. And $2.14 if you include 2027. By mid-April jet fuel was around $4.24 per gallon. This is roughly twice the price assumed in the?projections. Spirit Airlines, known for its all-Airbus fleet in bright yellow, has built its brand on affordable fares. This is especially appealing to budget-conscious travelers who are willing to do without add-ons like?checked baggage? and seat assignments. Spirit refused to comment but stated that it operated 'normally. The White House didn't 'immediately reply to a request for comment. Donald Trump, the U.S. president, told CNBC that he'd like to see a company acquire Spirit and that it is possible that federal government might get involved. Reporting by Nathan Gomes, Bengaluru. Editing by Shreya Biwas and Devika Syamnath.
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Top shipping executives say they are waiting for "safe and sustainable" strait crossings
Two top executives in the shipping sector said that they wanted to see a safe and sustainable passage through the Strait of Hormuz before much oil or cargo leaves or enters?the Gulf. We thought that there was some hope when, two weeks ago, the temporary ceasefire came into view. In reality, the agreement did not translate into safety and passage for the vessels", Jotaro Tamura, chief executive officer of Japan's Mitsui O.S.K. Lines in an interview conducted on the sidelines the Singapore Maritime Week. MOL is the largest shipping company in the world and also the owner of the most oil and LNG tankers. Tamura said that even if the Strait is reopened, there would still be questions about safety. The Iranian Islamic Revolutionary Guard Corps warned that there are mines in the area. It's about the definition of "open". Is it open or half-open? "Is it really open or is there a risk?" Tamura stated. "At a certain point, (voyages will resume) and normalisation is in sight. It's difficult to predict how the reality will be." He said that MOL adheres to international law which allows for freedom of movement through the Strait. CMB.Tech in Belgium, another large and diversified maritime firm with more than 250 vessels, is waiting as well for clarity. "We cannot hedge." Alexander Saverys, CEO of Saverys Group, said that we should wait and see what happens in the Middle East. It creates a lot of uncertainty. He said, "We must be confident we can travel without any problems." Today, we are not reassured in any way. Reassurance will come only if we can see that the ships are able to pass through the Straits in a sustainable and safe manner. Saverys stated that "the 'Strait of Hormuz' is a free passage, where no toll normally should be paid." If that changes in the future we will investigate. He refused to comment on how many ships his company has stranded in the Gulf. "We are in constant communication with all the governments to ensure that our ships can navigate. As you may know, right now the situation is still not safe. Since the U.S. - Iran war broke out 'on February 28th, energy supplies from Gulf have been disrupted. About 130 ships a day pass through the strait to enter or exit the Gulf. This translates into about 20% of daily global oil and LNG supply. (Reporting from Siyi Liu in Singapore and Florence Tan; editing by Jason Neely).
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German, French ministers differ over fighter jet decision timeline
On Wednesday, the German and French defence ministers gave 'differing' timelines for a decision to be made on the Franco-German FCAS Fighter Jet Project. One said that the leaders of the two countries would decide soon. The other stated that mediators wanted more time to discuss this matter. The plans to create a futuristic system of air combat with Spain hang by a thin thread due to a public disagreement over the control between France's Dassault and Airbus which represents Germany?and Spain on the 100 billion euro ($117billion) project. The mediators tried to resolve the 'dispute' by April 18 but these efforts failed. It appears that the final decision is now in the hands of the German Chancellor Friedrich Merz, and the French President Emmanuel Macron. Boris Pistorius, German defence minister, told reporters that the decision was made by the heads of state. I expect that a decision will be made this week about how to proceed. Merz and Macron will meet during this week's European summit in Cyprus. Catherine Vautrin, the French Minister of Defence, said at a hearing in parliament that the mediators from both countries had requested more time. They were supposed to deliver their conclusions on 18 April, to be exact. Vautrin stated that they requested an extra 10 days. The dispute centers on the?leadership? of the core fighter component of plans to create an 'interconnected fleet' of crewed aircraft and armed drones, under a digital umbrella. Insiders believe that Germany and France will abandon the?development?of the joint fighter plane but continue their cooperation?on drones, the so-called digital backbone or combat cloud. Macron is viewed as politically uncomfortable if he reverts the plan. Vautrin said there were three main?issues. These included intellectual property, workshare (the allocation of responsibilities) and certification concerns.
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Airline cancels flights due to Middle East conflict
The global air travel industry is still severely affected by the Iran War. Many people are unable to reach their destinations as planned after major Middle Eastern hubs such as Dubai, Doha, and Abu Dhabi were closed. The latest flight information is listed below alphabetically: AEGEAN AIRLINES Greece's biggest carrier will resume its flights to Tel Aviv on?April 28. Flights from Heraklion, Rhodes and Larnaca will be available on May 3, May 3, and May 21, respectively. Thessaloniki-Tel Aviv flights are cancelled up until June 26. The airline has canceled flights to Beirut, Riyadh, Amman and Dubai until June 28. AIRBALTIC AirBaltic, a Latvian airline, has announced that flights to Tel Aviv are cancelled until May 31, 2019. Dubai flights are cancelled until 24 October. AIR CANADA The Canadian carrier has canceled flights to Tel Aviv, Dubai and Abu Dhabi until September 7. AIR EUROPA Spanish Airlines has cancelled all flights to Tel Aviv till May 31. AIR FRANCE-KLM Air France has suspended Tel Aviv flights to Beirut, Dubai, and Riyadh until May 3. KLM suspends flights to Riyadh and Dubai until the 14th of June. CATHAY PACIFIC Hong Kong Airlines has suspended its flights to Dubai, Riyadh and cargo freighter service to Dubai and Riyadh up until May 31, and until June 30, respectively. In April, the airline will add extra flights to London and Paris to meet the surge in demand for travel to Europe. It intends to continue operating all scheduled flights after June. The U.S. carrier cancelled all flights between New York and Tel Aviv, and has delayed the start of its Atlanta to Tel Aviv route till September 5. The launch of the Boston-Tel Aviv route, originally scheduled for late October, was delayed. EL AL ISRAEL AIRLINES From April 27, the Israeli airline will be operating flights to around 40 active gateways. The cancellation of all flights to Dubai is in effect until May 31. EMIRATES The UAE airline announced that it will be operating a reduced schedule and flying to over 100 destinations. ETIHAD AERWAYS The UAE carrier has announced that it operates a commercial flight schedule from Abu Dhabi to around 80 destinations. FINNAIR Finnair has canceled its Doha flights up to July 2 and is continuing to avoid the airspace over Iraq, Iran Syria, and Israel. Dubai flights will only be resumed in October. British Airways, owned by IAG, will reduce flights to the Middle East once services resume. Jeddah is no longer a destination. From July 1, it plans to reduce the number of flights to Dubai, Doha, and Tel Aviv from two daily flights to just one. Riyadh's two daily flights will be reduced to just one starting in mid-May. The changes will apply until the end of the summer season on October 24. One Dubai service will restart on October 16. Iberia Express, the Spanish low-cost carrier of IAG, has cancelled all flights to Tel Aviv until May 31. JAPAN AIRLINES Japan Airlines suspends scheduled Doha-Tokyo and Tokyo-Doha flight schedules until June 1. Japan Airlines will operate additional flights between Tokyo, London and Doha on April 25. The Polish airline has suspended flights to Tel Aviv till May 31. The airline also cancelled flights from March 31 until May 30 to Beirut and Riyadh. The airline will operate its winter route from Dubai to October. LUFTHANSA GROUP Lufthansa Cargo and Lufthansa, Austrian Airlines, Brussels Airlines, Edelweiss and Swiss have suspended flights from Dubai and Tel Aviv to May 31 and from Abu Dhabi to Amman, Beirut Dammam, Riyadh Erbil Muscat and Tehran to October 24. ITA Airways has extended its suspension of flights from and to Tel Aviv and Riyadh till May 10. Flights from and to Dubai have been suspended until May 31. Eurowings, a low-cost airline, plans to suspend its flights to Tel Aviv and Erbil from May 11 to May 14, and Dubai Abu Dhabi and Amman till October 24. MALAYSIA AIRLINES Malaysian Airlines has suspended flights to Doha up until June 14. NORWEGIAN AIR The low-cost airline has delayed the launch of its Tel Aviv, Beirut and Beirut services until June 15. PEGASUS Pegasus Airlines, Turkey's national airline, has cancelled all flights to Iran, Iraq, Amman Beirut, Kuwait Bahrain Doha Dammam Riyadh Dubai Abu Dhabi Sharjah and Abu Dhabi until June 1. ROYAL MAROC Moroccan airline cancels flights to Doha until June 30, and to Dubai until May 31, QANTAS Australia's flag airline is adding more flights to Rome and Paris in response to a surge in demand for European destinations. Flights from Perth to Singapore will be increased from daily to ten flights per week. A new schedule for flights will be implemented gradually from mid-April until late July. QATAR AIRWAYS The airline said that it would be expanding its international flight network with more than 150 destinations starting on?June 16th. SINGAPORE Airlines In response to increased demand, the carrier has extended the suspension of Singapore-Dubai flights until May 31. It will also add services on Singapore-London Gatwick (late March) and Singapore-Melbourne (late March-October 24). TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights from Dubai to April 30. WIZZ AIR Low-cost carrier suspends flights from Europe to Amman, Dubai and Abu Dhabi until mid-September. All flights to Medina are suspended indefinitely. (Compiled by Josephine Mason and Jamie Freed. Elviira Loma, Tiago Branao, Agnieszka Olenka, Bernadette HOG, Boleslaw LaSocki, Romolo Tosiani. Sumana Nady, Joe Bavier Mark Potter Milla Nissi -Prussak, Susan Fenton and Susan Fenton edited the book.
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Boeing posts smaller-than-expected quarterly loss as recovery gains traction
Boeing reported on Wednesday a smaller first-quarter profit than analysts expected. This is a sign that the U.S. aircraft manufacturer continues to recover from the pandemic, and the 'years' of crises which have damaged its reputation and left a mountainous debt. The company reported a net loss of $7 million for the third quarter. This was lower than the $31 million loss in the same period last year. According to LSEG, the core loss per share was 20 cents. This is much lower than analysts' average losses of 83 cents. Boeing shares rose by 3% on premarket trading. Boeing CEO Kelly Ortberg wrote in an employee memo that the results had been released, "We are off to a great start and will continue to build on this momentum as we achieve stronger performance throughout our business." "We're working together to strengthen our culture, restore trust with customers and grow our record backlog of nearly $700 billion," said he. Boeing spent $1.5 billion in cash during the third quarter. This was largely due to the significant expenditures to expand 787 production capabilities in South Carolina, and military jet production facilities in?St. Louis area as well as the opening of a 737-MAX production line at Everett in Washington. The company expects to increase production of its best-selling single aisle jets from 42 per month to 47 per month by the year's end. The ongoing efforts to certify 737-7, -10 and 777X, the smallest MAX variants and largest MAX versions, respectively, also contributed to cash burn. Air Current, a trade publication, reported that the company has begun testing a new anti icing system for 737 MAX engines, a major obstacle to certification. Boeing expects U.S. regulators will certify the MAX 7 & 10 this year. First deliveries are expected in 2027. Strong Jet Deliveries,?DEFENSE Earnings Revenue at Boeing’s commercial jet division grew 13% to reach $9.2 billion. This was boosted by the highest first quarter deliveries since 2019. It still lost $563m in the quarter. The earnings of its defense and space division rose by 50% in the first quarter to $233million. During this time, the Space Launch System rocket that was a joint venture between Northrop Grumman and Space Launch System successfully launched NASA's Artemis II around the moon. Analysts and the leadership of the company expect that the company will continue to benefit from increased defense expenditures around the globe amid wars in the Middle East, Ukraine and heightened geopolitical tensions. The Pentagon awarded the F-47 contract to the company last year. It is also a finalist in the U.S. Navy’s F/A-XX sixth-generation fighter. Boeing Global Services was the most consistent performer for the company, registering a 3% rise in operating income to $971 million. The company's?operating profit margin fell to 18.1% due to the sale of Jeppesen (a company that is a major earner) for $10.6 billion last year. Boeing reported a loss of 10 cents per diluted shares, or 20 cents for the core operations in the first quarter. This compares to a 16 cent loss per diluted shares in the first three-months of 2025. (Reporting and editing by Jamie Freed and Rod Nickel; reporting by Dan Catchpole, Seattle)
Druzhba Pipeline restarts Russian oil flow to Europe and unblocks EU loan for Kyiv
Officials said that Russian oil began flowing through the Ukrainian portion of the Druzhba Pipeline on Wednesday, after a halt which lasted months. This allowed Hungary to lift its veto over a 90 billion euro ($105.79billion) EU loan, which Kyiv urgently needs. Since a Russian drone attack damaged the Druzhba pipe in western Ukraine, and stopped Russian oil delivery to Hungary and Slovakia, the Druzhba has become one the most political pieces of infrastructure across Europe.
The Hungarian oil company MOL announced on Wednesday that Ukraine informed them that Russian crude deliveries had resumed via the pipeline.
MOL said that it expected the first crude oil shipments to arrive in Hungary or Slovakia 'at least tomorrow' following the restarting of the Ukrainian pipeline section.
EU LOAN ADVANCEMENT SHORTLY FOLLOWING PUMPING RESUMED
An industry source, who asked not to be identified because they weren't authorized to speak in public, said that pumping started at 0935 GMT. The loan was approved shortly after by EU ambassadors in Brussels. The 27 members of the European Union are expected to sign it off by Thursday afternoon.
Volodymyr Zelenskiy, the Ukrainian president, said that the EU's announcement was "the right signal in the current circumstances". Zelenskiy wrote on X that Russia's war in Ukraine can only be ended if both the support for Ukraine as well as pressure from Russia is sufficient. Last year, the EU agreed to the loan in principle, to maintain Ukraine's liquidity through 2026-2027. But Viktor Orban, the Prime Minister of Hungary, and the Slovak Government blocked it. They accused Ukraine of delaying the repairs to the pipeline. Kyiv denied this.
Orban's support for Russia is consistent. Both Hungary and Slovakia are heavily dependent on Russian crude oil.
Change of Prime Minister in Hungary
Ukraine's chances of receiving the loan improved after Orban's loss in Hungary's parliamentary elections on April 12. Peter Magyar the leader of the winning political party said that he will no longer obstruct?the EU funding for Kyiv. He is expected to come into power next month.
Druzhba (which in Russian means "friendship") has a capacity of 1.2 to 1.4 millions barrels?of oil per day. This can be increased to as much as 2 million barrels?per day. The flow of oil has fallen to a fraction of what it was due to Western sanctions and repeated drone attacks. Separately Germany confirmed that no Kazakh crude will reach its PCK Schwedt refinery, one of the largest in the country, from May. Industry sources had said on Tuesday, Russia would stop Kazakhstan's exports through the Druzhba Pipeline.
(source: Reuters)