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Union: Spirit Airlines employees must be protected by the US bailout
The?union that represents workers at Spirit Airlines stated on Friday?that any U.S. bailout for the bankrupt low cost carrier must protect its?employees. Marshall Huebner said that the Trump administration had'made a financial offer' to?help Spirit Airlines exit bankruptcy, which was being evaluated by its major creditors. The International Association of Machinists and Aerospace Workers (IAMAW), which represents Spirit's employees in the ramp service, has said that any bailout should not include "furloughs or layoffs" and must not involve shifting the burden to the people who run the airline. Spirit's problems predate the Iran War, but the spike in fuel prices that began late February has?made it worse. Huebner stated that the liquidation of Spirit will eliminate over 17,000 jobs, and result in billions of claims. The union cited an airline rescue program from the pandemic era that included restrictions on stock buybacks, dividends and executive compensation. Lawyers for Spirit creditors testified in court Thursday that they had studied the terms of the government offer, which sources claim includes $500 million of financing. The government is also required to receive warrants equivalent to 90% of Spirit?s equity. Spirit's second bankruptcy restructuring after 2025 would be able to be avoided with the senior debtor in possession financing. Donald Trump announced on Thursday that his administration is 'looking to buy the embattled carrier at the "right" price. He told reporters in the White House that if the price of oil drops, he would consider selling the airline for a profit. Spirit, a budget airline based in Florida, is running out of time. Huebner said Spirit needed a new financing plan or access to $240 millions of funds by next week. A?deal' would keep Spirit Airlines afloat at a time of higher fuel prices that are eating into the profits of carriers. However, the prospect of an American government-funded bailout is causing a backlash from the airline industry as well as members of Trump’s Republican Party. (Reporting and editing by Rod Nickel.)
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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 fly when they planned, after major Middle Eastern hubs such as Dubai, Doha, and Abu Dhabi were closed. The following is the latest information on flights in alphabetical order. AEGEAN AIRLINES The largest airline in Greece will resume its flights to Tel Aviv on April 28 from Athens, from Heraklion on?April 30 and from Rhodes & Larnaca on?May 21. Thessaloniki-Tel Aviv flights are cancelled up until June 26. Riyadh will resume its flights on May 21. The flights to Beirut, Dubai and Erbil are all cancelled until the end of June. 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, Riyadh and Dubai until May 31. In April, the airline will increase passenger flights from Hong Kong to London, Paris, and Zurich to meet an increased demand for travel to Europe. It intends to continue operating all scheduled flights beyond June. The U.S. carrier cancelled 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 flight, originally scheduled for late October, was delayed until further notice. EL AL ISRAEL AIRLINES Israel's carrier announced that it will continue to expand its operations and, from April 27, operate flights to around 40 active gateways. All flights to Dubai have been cancelled until May 31, 2019. EMIRATES The UAE airline announced that it would be operating a reduced schedule and flying to more than 100 different destinations. ETIHAD AERWAYS The UAE carrier has announced that it operates a commercial flight schedule from Abu Dhabi to around 80 destinations. FINNAIR The Finnish airline has cancelled all flights to Doha until July 2 and continues to avoid the airspaces of Iraq, Iran Syria, and Israel. The airline will only resume its Dubai flights by October. British Airways, owned by IAG, will reduce flights to the Middle East once services resume. Jeddah is no longer a destination. From July, it plans to reduce the number of flights to Dubai, Doha and Tel Aviv from two daily flights to just one. Riyadh will be reduced from two daily flights in mid-May to just one. The changes will be in effect until the end of the summer season on October 24. One Dubai service will resume on October 16th. Iberia Express, the Spanish low-cost carrier of IAG, has cancelled all flights to Tel Aviv until May 31. KUWAIT AIRWAYS On April 26, the airline will resume flights to 17 destinations out of Kuwait International Airport after authorities reopened Kuwait's airspace. Jazeera Airways is another Kuwaiti carrier that has resumed service from Kuwait to nine destinations after temporarily moving operations to Saudi Arabia. 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 to May 30, and Riyadh to June 30. The airline will operate its winter route from Dubai to October. LUFTHANSA GROUP Lufthansa and other airlines, including Swiss, Austrian Airlines and Brussels Airlines, have suspended flights from Dubai and Tel Aviv to Dubai until May 31. Flights to Abu Dhabi and Amman, Beirut Dammam, Riyadh Erbil Muscat Tehran, Riyadh Erbil, Brussels Airlines, Swiss, Austrian Airlines, and Edelweiss have been suspended until May 31. Eurowings, a low-cost carrier, has suspended its flights to Tel Aviv and Erbil from May 11 to May 14, and to Dubai and Abu Dhabi until October 24. ITA Airways has extended the suspension of flights from Tel Aviv, Riyadh, and Dubai to May 31. MALAYSIA AIRLINES Malaysian Airlines has suspended all flights to Doha until June 14 NORWEGIAN AIR The low-cost carrier has delayed the launch of Tel Aviv and Beirut flights 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. QANTAS Australia's flag-carrier is increasing flights to Rome and Paris in response to an increase in demand for European destinations. The number of flights to Paris will be increased from three to five per week, and the Perth to Singapore service will go up to 10 per week. A new schedule for flights will be implemented gradually from mid-April until late July. QATAR AIRWAYS From April 23, the carrier will resume daily flights from Damascus to Dubai, Sharjah and Abu Dhabi. ROYAL MAROC Moroccan airline said that flights to Doha and Dubai were cancelled up until June 30, while those to Doha were canceled through May 31. SINGAPORE Airlines In response to increased demand, the carrier has extended its Singapore-Dubai suspension until May 31 and added services on the Singapore-London Gatwick route from late March until 24 October. 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 Olesska, Bernadette HOG, Boleslaw LaSocki, Romolo Tosiani. Editing by Sumana Nady, Joe Bavier Mark Potter Milla Nissi -Prussak Susan Fenton Rod Nickel
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Norfolk Southern warns that fuel prices will put pressure on coming quarters
Norfolk Southern announced on Friday that fuel costs will continue to impact earnings in the upcoming quarters. Fuel prices have increased sharply since the U.S. and Israeli war against Iran. This has put pressure on margins in energy-intensive industries such as transportation and logistics. On a call after earnings, chief financial officer Jason Zampi said: "Fuel will obviously be a wild card for the rest of the year. We anticipate that it will be an?headwind" in the second quarter. The average U.S. gasoline price rose to $4 per gallon for the first month in over three years in March, marking the largest monthly increase since decades. Mark George, Chief Executive of the company, said that despite a successful quarter for the company, it was affected by a "dramatic increase" in fuel prices during March. He also cited severe winter weather conditions and a rapidly changing macroeconomic environment. U.S. rail operators are seeing their operating costs increase as labor and maintenance costs remain high. Safety spending is also increasing and severe weather has disrupted networks. Zampi reported fuel expenses that were more than 40 million dollars higher than expected and 31?million dollars higher than the previous year. The surge began in late March and continued into the second quarter. Fuel surcharge revenues were the main offset for 'higher fuel costs', according to company executives. Rail operating revenue in the first quarter was $3 billion, the same as a year ago. The Atlanta-based Norfolk reported an adjusted profit per share of $2.65 for the quarter, compared to $2.69 a year ago. Union Pacific, who signed an $85 billion agreement to purchase Norfolk last year, stated on Thursday that it expects the Middle East conflict to cause fuel prices to rise, putting pressure on the railroad operator's profit margins. In morning trading, shares of the company fell by nearly 1%.
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British Airways owner IAG will raise ticket prices due to fuel crisis
British Airways' owner IAG announced?on Friday that it would raise ticket prices to reflect higher jet fuel costs. However, the company did not see any interruptions in the supply of jet fuel. EasyJet, a British airline, and TUI, a German tour operator have recently issued profit warnings as a result of uncertainty caused by the U.S./Israeli war against?Iran. Air France-KLM announced shortly after the start of the war in March that they would?add a jet fuel surcharge to certain?of their tickets. European airlines were more protected from the rising costs of jet fuel than American carriers due to extensive hedging. However, the effect is expected to start diminishing in the coming months and make their earnings more susceptible to fuel-price fluctuations. IAG said in a press release that it was not "immune" from the wider fallout despite its fuel hedging. IAG's spokesperson stated that government flexibility, including on slot reductions, would allow airlines to continue operating as efficiently as they can and manage cost challenges while keeping people and trade moving. (Reporting by Joanna Plucinska; Editing by Susan Fenton, Kirsten Donovan)
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Canada approves Enbridge’s $4 billion natgas expansion pipeline
Canada approved a $4 billion natural-gas?expansion to Enbridge's Westcoast Pipeline System in British Columbia, the company said on Friday. This will increase the network's capacity by about 300 million cubic ft per day. Enbridge says that the Sunrise Expansion program is expected to bring more than $3 billion into Canada's economy. It will also involve hiring 2,500 workers, mostly from indigenous and local communities. The expansion will involve?constructing additional pipeline segments along with the existing system?,?additional natural gas compression capability and?upgrades to existing facilities. The?company's shares rose by 1.5% this morning. Enbridge's Westcoast Natural Gas Pipeline System stretches 2,900 km (1,802 mi) from Northeast British Columbia to Canada-U.S. Border, with a current total capacity of 3.6 Billion Cubic Feet of Natural Gas per Day. Construction of the expansion project will begin in July 2026. The?targeted date for in-service is late 2028. In May of last year, Enbridge announced that it would sell 12.5% of the Westcoast Pipeline to Stonlasec8?Indigenous Alliance. This was the first deal to include funding from a federal loan program designed to help Indigenous groups own parts in resource projects.
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The Iran war has left seafarers in the Gulf stranded
Ankit Yadav is an Indian seafarer who has been stuck on a boat in an Iranian port inland for two-and-a half weeks. He and his three fellow mariners have survived on a limited ration of potatoes and tomatoes. The war in Iran has left thousands of Indian and other'seafarers' stranded around the Strait of Hormuz. Ankit, a man in his 30s, was aboard a small vessel that carried steel between Iran, Kuwait, and Oman. He claimed he would have been able to leave the conflict zone if the vessel had received permission to sail from Iran to Oman, and then be repatriated back to India. But that was not possible because of the U.S. Navy's blockade. "The shipping company that I work for is not willing to sign off on our request because they don't want to pay the higher prices of air tickets, and we can't afford to purchase them ourselves." He told me by phone that the only way to get out of this situation is with government help. Salman Siddiqui is another Indian seafarer who has also arrived in an Iranian port aboard a cargo vessel flying the Comoros flag that was heading for Oman. Siddiqui, who spoke from the vessel currently anchored at Khorramshahr, said: "The only thing that we do is pray to God not to be hit by an attack and plan how we will spend the night." He told me by phone that it was a relief to hear the ceasefire and not be bombarded with explosions as we were used to. "SCARY WHEN you see projectiles flying" India is one of the top three seafarer suppliers in the world, with more than 300,000. Seafarers are reluctant to return to the sea after recent attacks on ships. "We've heard more than 100 explosives." Siddiqui said, "It is frightening to see projectiles exploding and flying near your vessel." Surindra Chaurasia is one of the lucky ones to have been repatriated back to India. When the conflict erupted, he was on a ship near Sharjah with?20 crew members who were waiting for permission to load urea. We were stuck in the Persian Gulf about four days. Our shipping company was able negotiate with Iran to ensure safe passage. We saw drones attacking ships, and received warnings from the Islamic Revolutionary Guard Corps via VHF radio. He said that his captain had received a route for sailing from the IRGC. They sailed near Iranian and Omani water because there were mines on the opposite side. India's Shipping Ministry has helped to repatriate 2,680 Indian Seafarers since conflict began. The ongoing conflict has resulted in the deaths of three Indian sailors. On April 18, two Indian flagged vessels were attacked by the IRGC as they attempted to pass through the Strait of Hormuz. (Saurabh Singh; Editing by Sharon Singleton).
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Sources say that US-Iran peace talks may resume in Pakistan, and the Iranian foreign minister is due to arrive.
Three Pakistani sources said that peace talks between Iran, the United States, and Pakistan could resume on Saturday night when?Iranian foreign minister Abbas Araqchi arrives in Pakistan. Two sources from the Pakistani government said that a U.S. security and logistics team was already on the ground for possible talks. Washington and Tehran did not immediately respond to the report. The last round of peace talks was expected to take place on Tuesday, but they never took place. Iran said that it wasn't ready to attend and a U.S. delegation led by Vice-President JD Vance didn't leave Washington. Reporting by? (Reporting by?
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Norfolk Southern's first-quarter profits slip as fuel costs and costs rise
Norfolk Southern's first-quarter profits fell?on Friday as rising fuel and operating costs combined with higher operating expenses weighed down on the railroad operator's earnings. Fuel prices have increased'sharply' in the wake of U.S. and Israeli war against Iran, putting pressure on margins for energy-intensive industries such as transportation and logistics. The average U.S. gasoline price rose to $4 per gallon for the first time in over three years in March, the largest monthly increase in decades. Mark George, the Chief Executive of the company, said that the company had navigated the quarter. However, he noted the impact from the "dramatic increase" in fuel prices during March and the severe winter weather. U.S. railroad operators have seen their operating costs increase as labor and maintenance expenditures remain high, safety expenses rise and severe weather disrupts networks. Operating revenue from the railways for the first three months of this year was $3 billion, which is flat compared to a year ago. Rail volumes fell 1% on an annual basis. Norfolk, an Atlanta-based company in Georgia, reported a profit adjusted of $2.65 for the quarter. This compares to $2.69 a share compared to?the same period last year. The company's operating rate, which is a key measure for efficiency, has deteriorated 80 basis points from a year ago to 68.7%. Union Pacific, who signed a $85 billion deal last year to buy Norfolk, said on Thursday that it "expects" a spike in fuel prices triggered by conflict in the Middle East to put pressure on the railroad operator's profit margins.
Russia claims new EU sanctions will harm developing countries
On 'Friday, Russia warned that the new European Union sanctions on its oil and gas would hurt developing countries as well as the EU. It also promised to take retaliatory action.
On Thursday, the EU adopted its 20th set of sanctions against Russia for Moscow's "war" in Ukraine. These include further restrictions on?transporting Russian oil and gas and sanctions against refineries and oil producers.
At her weekly press conference, Russian Foreign Ministry spokesperson Maria Zakharova informed reporters that "all this is happening amid a global?energy?crisis? and resource shortages?that are acutely felt throughout the world."
Brussels' attempts to further destabilize the energy markets hurt both it and developing countries who are no longer able to afford energy prices that have been artificially inflated.
She added that the sanctions also threatened food security as they included restrictions regarding fertilisers.
"We will take retaliatory measures." Zakharova said that the measures would be "tough" and designed to?serve our interests. Reporting by FilippLebedev, Writing by MarkTrevelyan and Anastasia Teterevleva
(source: Reuters)