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Aena, a Spanish airport operator, will invest $15 billion over the next five years in upgrading airports.
Aena, the Spanish airport operator, announced on Thursday that it will triple its investment to 12,88 billion euros (15.24 billion dollars) between 2027-2031. The aim is to upgrade terminals in order to accommodate an increase in passenger traffic. The company expects Spanish airports to handle 320 million passengers by 2025. This is a 3.4% rise from the previous year. Record 309 Million The Spanish economy has grown at a rapid pace, thanks to booming tourism. Aena shares dropped 4.7% after the announcement on Thursday. Airport operator anticipates that the volume of passengers will continue to grow in the future. The main airports of Spain Are set to become major hubs of intercontinental connectivity. In a speech delivered on Thursday, Chief Executive Maurici Lucena stated that "Madrid airports and Barcelona airports have reached capacity and require a new round of investment." "They are very busy," he said. In the first eight month of 2018, international arrivals to Spain grew by 5.9%, reaching 75.4 millions. Lucena said that Aena would face both technical and commercial challenges in the years to come, since the company would be undertaking multiple projects simultaneously at airports across Spain while ensuring uninterrupted operation. Aena, which is the largest airport operator worldwide in terms of passengers and has budgeted 3,54 billion euro of investment for the four-year period ending in 2026. According to the company, the Spanish cabinet will review the proposed investment plans on October 15.
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The key to the surprise Air Europa deal in Turkey was control
Turkish Airlines' surprising deal to buy a stake in Spanish airline Air Europa was largely due to the fact that it was willing to share control with Hidalgo's family, according to four sources. This deal is a rare non-European airline's stake in Europe. Airlines are trying to consolidate Europe's fragmented markets and buy smaller struggling operators such as Scandinavia's SAS or Italy's ITA Airways. Sources close to the deal have said that Air France-KLM, Lufthansa and others wanted more control over Air Europa. Turkish Airlines, with its deeper pockets and political support and a desire to expand globally, was willing to accept a smaller stake. Turkish Airlines Chairman Ahmet Bolat announced on Wednesday that the airline had agreed to invest $300 million in convertible debt. This is equivalent to 25-27% of Air Europa. The crux of the talks, previously unknown, is Turkish Airlines' willingness and ability to give up influence to get a foothold with Iberia. This opens up fast-growing and important routes to Latin America. Sources familiar with the deal said that both Air France-KLM and Lufthansa demanded a "path to control" in a few short years, something the Hidalgos refused to do. Source: The Turkish deal "fit better", added the source. Three other sources confirmed that the issue of controlling stake was the reason for both Air France-KLM & Lufthansa pulling out of the deal. Air Europa's estimated value of up to 1,2 billion euros was also deemed too high by one of the sources. Lufthansa has not responded to a comment request. A spokesperson for Air France-KLM said that the carrier pulled out of the deal because it could not reach an agreement with Air Europa's owners Globalia on certain key issues, without commenting if they wanted a majority share. Javier Hidalgo of Globalia, the son Juan Jose Hidalgo's chairman, refused to comment on this story when contacted by. Turkish Airlines' deal is unusual - non-European carriers rarely take stakes in European carriers. This is because European Union regulations prevent them from acquiring majority ownership of an EU airline. Analysts and executives have said that Air Europa has always been a difficult case to navigate from a competition perspective, given British Airways' 20% ownership. The benefits for Turkish Airlines, however, are less about financial gains and more about geopolitics, connectivity and other factors. Neil Glynn is an analyst with Alvarez and Marsal. He said that taking minority stakes can lead to a loss of control and a diminished ability to influence the strategy. Air France-KLM, Lufthansa and other airlines balked at having to balance out so many controlling parties. IAG had previously attempted to buy out Air Europa, but the plan was scrapped last year due to regulatory concerns. Business Strategy or State Plan? Turkish Airlines touts the deal as a chance to expand into its two least penetrated markets, Iberia and Latin America, and link them with their hub-and-spoke system. It also has political weight behind it. Turkish Transport Minister Abdulkadir Uraloglu, who appeared in Seville with the airline this week to promote the deal, said it would fit into a wider "strategy", to connect Turkey to the world. Ahmed Bolat, Turkish Airlines' Ahmed Bolat, told reporters the decision was made as a matter of business even though the Turkish government had the firm's attention. He said that "(Turkish listens and considers the strategies of the state, but its own strategies are developed privately." The Turkish carrier faces few financial obstacles that could threaten its relatively small share. The forecast net debt-to-EBITDAR ratio of the group for 2025 is 1,60. This ratio is similar to Lufthansa or Air France KLM, even though they have weaker balances and less support from their governments. Erdem Kayli is the research director for TEB Investment/BNP Paribas. $1 = 0.8448 euro (Reporting and editing by Adam Jourdan, Susan Fenton, Tim Hepher, Inti Landauro and Andres Gonzalez)
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The price of oil shipping has risen due to increased exports from the Middle East and tighter vessel availability
According to industry sources, and LSEG's data, freight rates for Very Large Crude Carriers have risen to their highest level in over two years. This is due to a tightening of tanker supplies, resulting from an increase in Middle East exports, and more arbitrage supplies into Asia. The key VLCC rate on the Middle East-China route, also known as TD3C LSEG data shows that, jumped up to W108 in the Worldscale Industry Measure, its highest level since November 20,22. According to industry sources, this is at least $6.6 Million. Since the beginning of this year, the rate has risen by almost 150%. A shipbroker said on Thursday that "we are seeing constant cargoes coming from ex-MEG loading (Middle East) and ex Atlantic while the vessel's tonnage list has been balanced very tightly." Shipping industry sources told the Asia Pacific Petroleum Conference, held in Singapore last week, that robust VLCC freight rates will yield attractive earnings to shipowners this coming year. Data from Kpler, an analytics firm, showed that crude exports from the Middle East will exceed 18 million barrels a day in September, for the first since April 2023. This is after the Organization of the Petroleum Exporting Countries and its allies, a collective known as OPEC+ agreed to increase oil production. The robust Asian demand will also force tankers to travel further distances due to the arbitrage supply. Indian refiners, for example, increased their U.S. crude purchase in October and November while Chinese independent refiners buy oil from Brazil and West Africa. Sentosa Shipbrokers said that the main reason for the September surge was the arbitrage between U.S. Gulf and East Asia flows, as well as the tightness caused by the vessels' commitment to these long-haul journeys. Anoop Singh, global director of shipping research for Oil Brokerage, says Saudi Arabia exports more oil because the demand for burning crude for electricity generation in summer has ceased, while arbitrage opportunities are wide open due to high Dubai crude prices. He said that the short-term forecast is for the momentum in Dubai prices to continue through the end of this year and into the first quarter of next year. The strength could be amplified further if the medium-quality crude supplies, like those from Russia, are reduced due to geopolitical tensions. U.S. president Donald Trump stated on Saturday that he was willing to impose new energy sanctions against Russia if NATO nations stopped purchasing Russian oil.
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The price of oil shipping has risen due to increased exports from the Middle East and tighter vessel availability
According to industry sources, and LSEG's data, freight rates for Very Large Crude Carriers have risen to their highest level in over two years. This is due to a tightening of tanker supplies, resulting from an increase in Middle East exports, and an increase in arbitrage supplies into Asia. The Middle East to China VLCC Spot Rate, also known as TD3C. LSEG data shows that jumped up to W108, the highest since November 2022. According to industry sources, this is at least $6.6 Million. Since the beginning of this year, the rate has increased nearly 150%. A shipbroker said on Thursday that "we are seeing constant cargoes coming from ex-MEG loading (Middle East) and ex Atlantic while the vessel's tonnage list has been balanced very tightly." Shipping industry sources told the Asia Pacific Petroleum Conference, held in Singapore last week, that robust VLCC freight rates will yield attractive earnings to shipowners this coming year. Data from Kpler, an analytics firm, showed that crude exports from the Middle East will exceed 18 million barrels a day in September, for the first since April 2023. This is after the Organization of the Petroleum Exporting Countries and its allies, a collective known as OPEC+ agreed to increase oil production. The robust Asian demand will also force tankers to travel further distances due to the arbitrage supply. Indian refiners, for example, increased their U.S. crude purchase in October and November while Chinese independent refiners buy oil from Brazil and West Africa. Sentosa Shipbrokers said that the main reason for the September surge was the arbitrage between U.S. Gulf and East Asia flows, as well as the tightness caused by the vessels' commitment to these long-haul journeys. Anoop Singh, global director of shipping research for Oil Brokerage, says Saudi Arabia exports more oil because the demand for burning crude for electricity generation in summer has ceased, while arbitrage opportunities are wide open due to high Dubai crude prices. He said that the short-term forecast is for the momentum in Dubai prices to continue through the end of this year and into the first quarter of next year. The strength could be amplified further if the medium-quality crude supplies, like those from Russia, are reduced due to geopolitical tensions. U.S. president Donald Trump stated on Saturday that he was willing to impose new energy sanctions against Russia, provided all NATO countries stopped purchasing Russian oil.
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Egypt's billboard explosion strains the eyes, but increases profits
Cairo's roads are not for the weak-hearted. They have potholes and obstacles like donkey carts. Now, drivers are faced with a new hazard - a proliferation of mismatched and flashy billboards that compete for their attention. According to AdMazad a media and advertising analytics company, the number of billboards that line Cairo's streets has increased by more than twofold in six years. This is more than 30 ads per square kilometre, and that's without counting the digital flashing ads which have increased more than ten-fold in the past decade to reach more than 300. Ahmed Adel, a resident of Cairo, said that there was no place on the streets without ads as he drove past one of the high-end commercial and residential districts. Advertising is booming in Egypt, largely due to the rapid expansion and modernization of Egypt's transportation network. Since Abdel Fattah al-Sisi took power in 2014, he has invested billions of dollars to build new roads and bridges that now criss-cross Cairo. These ads, which line the roads, promote a variety of products, including detergents, fast foods, and real estate developments. They are often accompanied by bright LED displays, which, according to Adel, strain drivers' eyes at night. Ahmed Afify is the head of MOT Investment and Development (a Transport Ministry investment firm), and he says that this industry has become an important source of revenue for the state. AdMazad's data indicates that revenues from "out of home" advertising (billboards, transit ads and other outdoor media) will grow by over 50% between now and 2024 to reach about 6.3 billion Egyptian Pounds ($130 million). Afify stated that the money is largely transferred to the state's treasury by the Transport Ministry and its affiliate entities. He said that ad prices are affected by the location, and can increase when competing brands compete for prime spots. Those stuck in traffic may find them amusing or a marketing tool. Others find the billboards a stress-inducing addition to their commute. Khaled Salaheldin, a psychotherapist in Egypt, has pointed out the mental toll that people can take when they are under financial stress. This is a reality Egypt is increasingly experiencing after years of inflation. He said: "When I'm constantly exposed to advertisements and idealized lifestyles it leads to comparisons that make me feel inadequate and insecure." Egypt's prime minister Mostafa Mahbouly convened a meeting on Wednesday to discuss standards for ads and billboards. He said there should be stricter regulations to ensure that ads "preserve urban fabric," "uphold societal norms" and "uphold aesthetic value." Reporting by Jaidaa TAHA and Heba FOUAD in Cairo. Editing by Alexander Dziadosz & Andrew Heavens
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French unions strike against austerity, pressuring Macron
Teachers, train driver, pharmacists, and hospital staff all went on strike in France, and teenagers blocked high schools as part of a protest day against budget cuts. The unions want the fiscal plans of the previous government scrapped. They also want more public spending, higher taxes for the wealthy and an end to the unpopular rule that made people work longer for a pension. Many metro lines in Paris were scheduled to be suspended throughout the day, except during morning and afternoon rush hours. Some students gathered at the entrance of some schools to block them. A student raised a placard in front of Lycee Maurice Ravel in Paris, France. The message read: "Block Your High School Against Austerity." Social unrest occurs as President Emmanuel Macron, and newly appointed Sebastien lecornu, face a political crisis in order to control finances and bring the second largest economy of the eurozone under control. Workers Angry Over Fiscal Plans According to a source in the Interior Ministry, 800 000 people are expected to participate in protests and strikes. The main unions in the country said that "the workers we represent are furious" in a statement where they rejected the fiscal plans of the previous government, which were "brutal" as well as "unfair". Lecornu, who relies on other parties for legislation to pass, will have to fight a political battle in order to get a budget approved by the parliament for 2026. Francois Bayrou was Lecornu’s predecessor. He was voted out of office by the parliament for his plan to squeeze the budget by 44 billion euros. Lecornu hasn't yet stated what he plans to do with Bayrou’s plans. However, he has said that he is open to compromises. Sophie Binet, the CGT union's chief after meeting Lecornu in early this week, said: "We will continue mobilising as long as there are no adequate responses." "The budget decision will be made on the streets." PROtests Hit Schools, Trains The FSU-SNUipp trade union reported that one in three primary school educators were on strike. Officials said that the strike had a major impact on regional trains, but the majority of high-speed TGV lines in the country will be operating. Protesters blocked traffic near Toulon, a city in the south-east of France. Data from EDF showed that nuclear production was down by 1.1 gigawatts on Thursday morning, after workers reduced power output at Flamanville 1. Confederation Paysanne, the farmers' union has also called for mobilization. Pharmacists have been angry about changes that affect their businesses. The USPO pharmacists union conducted a survey among pharmacies and found 98% of them could close the next day. Early on Thursday, Interior Minister Bruno Retailleau informed reporters that some blockades had been removed by police in the Paris area. He said that up to 8,000 people could "sow chaos" and fight with the police. He said that 80,000 police officers and gendarmes would be on duty throughout the day. There will also be riot units, drones, and armoured cars. Reporting by Zhifan LIu, Makini BRICE, Dominique Vidalon Mathias de Rozario Juliette Jabkhiro Gus Trompiz Writing and editing by Ingrid Melander
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Memo says Spirit will cut flight capacity and jobs by 25%.
Spirit Airlines will cut jobs in November as it plans to reduce its capacity by 25% compared to the previous year, according to an internal memo. This is a further blow to the low-cost carrier. In a memo to employees, CEO Dave Davis explained that the cutbacks are intended to "optimize [our] network in order to focus on our most important markets". The memo stated that "These evaluations are bound to affect the size our teams, as we become an efficient airline." Uncertain is the number of roles which could be affected. According to the memo, the low-cost airline continues to evaluate its fleet size and plans to meet the leaders of the airlines' unions in the next few weeks. CNBC reported earlier on the restructuring plan. Spirit filed for bankruptcy last month, the second time within a year. A previous reorganization had failed to give it a more stable financial foundation. Spirit's financial troubles, along with a rush by U.S. carriers in pursuit of premium travelers, has raised fears that the cheap flight era might be coming to an end for budget-conscious travelers. United Airlines had earlier on Tuesday ruled out the possibility of bidding for Spirit's assets if and when they became available. This is expected to happen as part of Spirit's restructuring. Reporting by Gursimran K. Kaur in Bengaluru and Angela Christy; Editing by Alan Barona, Rashmi Aich
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France prepares for protests and strikes against budget cuts
Teachers, pharmacists, and train drivers are among the workers who will be striking in France on Friday as part of a protest against budget cuts. The unions want more public spending, higher taxes on the rich and the scrapping an unpopular pension change. Social unrest occurs as President Emmanuel Macron, and newly appointed Sebastien lecornu, face a political crisis in order to control finances and bring the second largest economy of the eurozone under control. According to a source in the Interior Ministry, 800 000 people are expected to participate in protests and strikes. Workers Angry Over Fiscal Plans The main unions in the country said that "the workers we represent are furious" in a statement where they rejected the fiscal plans of the previous government, which were "brutal" as well as "unfair". Lecornu, who relies on other parties for legislation to pass, will have to fight a political battle in order to get a budget approved by the parliament for 2026. Lecornu became prime minister after Francois Bayrou was ousted by the parliament last week over his plan to squeeze the budget by 44 billion euros. Lecornu hasn't yet stated what he plans to do with Bayrou’s plans but has said that he is open to compromise. Sophie Binet, the CGT union's chief after meeting Lecornu in early this week, said: "We will continue mobilising as long as there are no adequate responses." "The budget decision will be made on the streets." PROTESTS TO HIT SCHOOL, TRAIN The FSU-SNUipp said that one in three primary teachers will be on strike. The power company EDF announced that some of its employees would be on strike. Officials said that the Metro network in Paris will experience widespread disruptions, and regional trains as well. However, the majority of high-speed TGV lines will continue to operate. Confederation Paysanne, the farmers' union has also called for mobilization. Pharmacists have been angry about changes that affect their businesses. The USPO pharmacists union conducted a survey among pharmacies and found 98% of them could close the next day. BFM TV reported that Interior Minister Bruno Retailleau said 80,000 police officers and gendarmes would be deployed. Retailleau stated that riot units, drones and armored vehicles would be present to combat what he described as possible sabotage or attempts to block different sites in the early morning. He also said that he expected violent troublemakers to attempt to clash with the police. (Reporting by Dominique Vidalon, Mathias de Rozario, Juliette Jabkhiro Writing by Ingrid Melander Editing by Frances Kerry)
Europe's wind farms on track to eclipse coal output in 2025: Maguire
Europe's wind farms might produce more electrical power than the region's. coalfired power plants for the first time in 2025 if the recent. rate of output growth in wind production and output cuts in coal. generation extends through the year.
Total electrical power created by Europe's wind farms was just. 4% less than by the continent's coal plants in 2024, at 616. terawatt hours (TWh) versus 641 TWh, according to information from. energy think tank Ash.
Compared to the year before, coal generation was 7% lower in. 2024 while wind generation was 3% higher, and if those output. changes are repeated in 2025 then Europe's wind electricity. production will exceed coal production by around 6% in 2025.
Greater full-year generation by wind farms over coal plants. would mark the very first time a single source of renewable energy. exceeded coal-fired electricity output in any significant region, and. would be a key energy transition turning point.
NARROWING THE SPACE
The 25 TWh deficiency in wind generation compared to. coal-fired generation in 2024 is around half of the quantity of. electricity produced by Europe's wind farms every month,. according to Ember.
As a result, that output gap could quickly be made up over. the course of 2025 by a boost in local wind generation. capacity or by higher typical wind speeds at turbine level, or. by some mix of both.
According to market group Wind Europe, regional power. companies included 15 gigawatts (GW) of wind generation capability in. 2024, bringing the region's total wind capability to around 287. GW.
That rise in generation footprint must allow the region's. wind farms to lift regional electrical power production to a record. in 2025, possibly to around 652 TWh if the 6% growth in. capability yields an equal-sized increase in electricity output.
ESSENTIAL DANGERS
That potential 652 TWh of wind electrical power output ought to be. enough to exceed regional coal generation in 2025, even if. coal-fired output holds flat this year from 2024's levels.
But if coal-fired output in 2025 declines by the exact same degree. as it performed in 2024 - by 7% - then wind generation could exceed. coal-fired generation by close to 10%, and mark a major turning. point in local energy shift efforts.
However, there are a number of dangers dealing with Europe's power. sector this year that might still lead to local coal power. remaining above local wind output.
The main prospective disruptive element is the supply of. gas, which looks set to contract once again in 2025 after. pipeline streams from Russia to certain European markets dropped. from last year's levels.
Natural gas is the area's main power source, so decreased. gas supplies this year might require Europe's energies to boost. coal usage in order to balance out lower system generation from gas.
Simply a 1% drop in natural gas-fired electrical energy generation. would need power firms to produce around 10 TWh more. electricity from other sources.
And if coal-fired plants are the main ways of balancing out. that lower gas-fired output, then local coal-fired production. could jump back above 650 TWh for the year, and possibly. stay above wind output in 2025.
Another essential risk is a prolonged run of below-normal wind. speeds throughout Europe's wind farms.
In 2024, Europe's month-to-month wind electrical power amounts to dropped. below the year-before total on five occasions, even with the. increase in overall generation capability last year.
These year-over-year generation drops came not just during. the summertime - when wind speeds tend to strike their yearly lows -. but likewise during October and November when autumnal winds. normally pick up and improve wind electricity output.
The low wind speed problem was especially severe in Germany. - the area's top wind producer - and stays a concern for power. companies so far in 2025.
The most recent German wind generation forecasts by LSEG call for. wind output to stay listed below the long-lasting average for the next. week or so, but then climb back above typical towards completion of. the month.
Additional spells of low wind speeds throughout the year could. curtail general wind generation in 2025.
An extra risk is the region's level of commercial. activity, which has been controlled since 2022 due to above-normal. energy costs and weak customer demand.
Continued weak point among smokestack plants and factories. ought to keep total coal usage in power generation under pressure,. and possibly trigger more cuts to coal usage in Europe.
However, a synchronized upturn in Europe's commercial. activity would set off an increase in overall energy intake,. which would result in higher output from all source of power as. power suppliers attempt to stay up to date with need.
Obviously, greater total wind output could assist supply much. of the additional electrical power required, and assist to accelerate the. local power sector pivot away from polluting fuels.
However coal will likely remain a crucial back-up fuel and could. delight in a resurgence in usage if wind production ends up being stymied. through much of 2025.
The opinions revealed here are those of the author, a market. analyst .
(source: Reuters)