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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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Paris wheat prices soar as Russia restricts night operations in Novorossiysk Port
The price of European wheat soared on Wednesday due to renewed drone attacks and the closure of Novorossiysk, the major Russian grain export hub, overnight. Benchmark 'September' milling wheat traded on Paris-based Euronext was up 4.5% at 1530 GMT, to 245.25 Euros per metric ton. Chicago wheat increased by 4% at the same time. Three grain industry sources reported on Wednesday that Russia has temporarily banned vessel movements into and out of Novorossiysk port between midnight and 5 a.m. due to drone attacks by Ukraine. The port is operating as normal outside of the nighttime restrictions, and grain shipments are not affected. A French trader stated that "the closure of Novo makes people nervous because they don't know when it will end, even though it is temporary and only overnight." Prices of wheat have increased in recent weeks following attacks by Ukraine and Russia on grain ships, port infrastructure and other facilities in the Black Sea Sea of Azov. The Ukrainians have focused their attacks on Novorossiysk on the oil terminals and not on the large grain terminals. A German trader stated that "any major disruption in?wheat shipments at Novorossiysk will have a severe impact on the global market." Russia announced on Wednesday that it had 'hit the Ukrainian cities of Odesa & Chornomorsk and port infrastructure, as well as vessels which?it claimed were supporting the Ukrainian army. The harvest in Europe was moving quickly. Traders estimated that about half of the crop had been harvested, but heatwave damage would likely reduce output. According to a German trader, the decline in annual production is between 600,000 and 1 million tonnes. Euronext data on Wednesday showed that non-commercial participants increased their net long positions in Euronext milling wheat futures, options and contracts to 111 938?contracts from 23 588 the previous week. (Reporting from Sybille De La Hamaide and Michael Hogan, Hamburg; editing by Tasim Zaid)
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Industry sources claim that Russia has banned night vessel movements at the port of Novorossiysk.
Russia has temporarily banned vessel movements into and out of the port of Novorossiysk between midnight and 5 am. Three grain industry sources told Reuters on Wednesday that the ban was imposed because of Ukrainian drone strikes. Sources said that the order was verbal, and no official document has been sent to shippers. The port continued to operate as usual outside of the nighttime restrictions, and grain shipments were not affected. The Transport Ministry or the Port's Administration did not reply to a comment request. Novorossiysk, Russia's largest port in terms of volume, handles up to a third of Russia’s grain exports. The ban comes after traffic restrictions were introduced earlier in the month on the Kerch Strait and the Sea of Azov. Novorossiysk?ships also oil, metals, and goods in containers. A government order issued on July 21 prohibited vessels from anchoring at areas without air defences in the ports of Kavkaz and Azov, both in the Sea of Azov. Novorossiysk has been identified as a possible destination for grain destined to?export and which is being?diverted? from the Sea?of Azov. Euronext's September wheat futures rose 4.5% after the news of the closure. (Reporting and Editing by David Goodman).
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Uber and Lyft won court ruling on NYC law that requires notice before terminating drivers
Federal judge rules that New York City can't prohibit?Uber Technologies or Lyft from deactivating their drivers without prior notice. The novel law, he says, is unconstitutional. U.S. District Judge Gregory Woods, in Manhattan, said in a written ruling on Tuesday that New York City's new law benefits only a small number of drivers and interferes with ride-hailing firms' rights to monitor the safety of their platforms. Woods wrote that "Uber and Lyft will likely succeed in proving that the law only protects a small class of drivers, and does not advance broader economic or social interests which the Constitution requires for allowing 'the severe impairment of contracts. The judge issued an injunction to prevent the city from enforcing the law. It was scheduled to go into effect on July 28. In a statement released by a Lyft spokesperson, the company said that it was "pleased" the court acknowledged the "serious safety issues at the core of this challenge." Uber's spokesman Josh Gold added: "The opinion highlights that driver fairness can and must go together with rider safety." New York City Law Department has not responded to comments immediately. The law was one of the first in the 'U.S. after the New York City Council overruled a veto from former mayor Eric Adams. Adams had said that the new law would create a costly and unwieldy bureaucracy in order to 'handle claims of wrongful deactivation. Ride-hailing companies must give drivers a 14-day notice before they are deactivated from their apps. However, there is an exception made for "egregious misconduct." They may also rehire deactivated drivers since 2019 because they did not receive this notice. In lawsuits filed a few days apart, Uber and Lyft claimed that the law violated their constitutional rights to due process and free speech. They said that the law would undermine their goodwill and reputation while allowing unsafe drivers to continue on the roads, including those who have been accused of sexual misconduct.
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Saudi Flynas orders 25 more Airbus jets
Saudi Arabian budget airline Flynas confirmed a?order on Wednesday for 25 more Airbus aircraft, joining a wave by other airlines in the kingdom who are expanding their fleets to support Saudi Arabia’s tourism and economic diversification objectives. Flynas has now committed to a total of 235 Airbus aircraft. This order highlights Saudi Arabia as one the fastest growing markets in the aviation industry. The airline 'confirmed' orders for a further?five Airbus A330 900 widebody jets, and 20 A321neos. Flynas has increased its A321neo A330neo order to 56 jets and their A330neo A330neo commitment from 20 to the latest deal. The agreement comes after a series major Saudi aircraft purchase, including Riyadh Air’s order for '34 widebody 'aircraft from Airbus or Boeing. Flynas operates a fleet consisting of 67 Airbus aircraft. This includes two A330-300s and 61 A320neos. (Reporting and writing by Shivansh Tiwary. Editing by David Goodman, Matt Scuffham and Maria Rugamer)
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.
(source: Reuters)