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Yahoo
3 days ago
- General
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Factbox-The world's worst air crashes in recent years
LONDON (Reuters) -At least 30 people were killed when an Air India plane bound for London with 242 people on board crashed minutes after taking off from India's western city of Ahmedabad on Thursday, with the toll expected to climb, authorities said. Below are some of the fatal crashes that have occurred in recent years. 2025 UNITED STATES More than 60 people were killed when an American Airlines regional passenger jet collided with a U.S. Army Black Hawk helicopter on January 29 and crashed into the frigid Potomac River near Ronald Reagan Washington National Airport. 2024 SOUTH KOREA Jeju Air international flight 7C2216 crashed at Muan International Airport on Dec. 29, 2024, killing all 175 passengers and four of the six crew in the deadliest air disaster on South Korean soil. KAZAKHSTAN Azerbaijan Airlines international flight J2-8243, an Embraer E190, crashed on December 25 after being diverted from Russia to Kazakhstan, killing 38 people. Azerbaijan's President Ilham Aliyev said in December the plane had been damaged by accidental shooting from the ground in Russia. Moscow has not confirmed this. JAPAN A Japan Airlines (JAL) plane collided with a smaller Coast Guard aircraft on the runway of Tokyo's Haneda airport on January 2. All 379 people aboard the JAL plane, an Airbus A350-941 flight, escaped the burning airliner. Five of six crew on the smaller aircraft were killed. 2022 CHINA A China Eastern Airlines Boeing 737-800 crashed into a mountainous region in the southwestern Guangxi region on March 21, 2022, killing all 132 people on board, in China's deadliest aviation disaster in 28 years. 2020 IRAN Iran's Revolutionary Guards shot down a Ukraine International Airlines (UIA) Boeing 737-800 on Jan. 8, 2020 shortly after it took off from Tehran Airport, killing all 176 people on board. Iran's civil aviation body blamed a misaligned radar and an error by an air defence operator. 2019 ETHIOPIA A Boeing 737-MAX 8 Ethiopian Airlines jet crashed on March 19, 2019 minutes after takeoff from Addis Ababa for Nairobi, killing all 157 people on board. Soon after, the Boeing 737 MAX global fleet was grounded over safety concerns. 2018 INDONESIA A Boeing 737 MAX Lion Air plane crashed into the Java Sea soon after taking off from Jakarta on October 29, 2018, killing all 189 people on board. 2014 MALAYSIA Malaysian Airlines Flight MH17 departed from Amsterdam for Kuala Lumpur on July 17, 2014, and was shot down over eastern Ukraine as fighting raged between pro-Russian separatists and Ukrainian forces. All 298 passengers on board were killed. Malaysia Airlines Flight MH370 went missing on its way from Kuala Lumpur to Beijing on March 8, 2014. The remains of the Boeing 777 and the 239 people have not been found. (Compiled by Joanna Plucinska; Editing by Andrew Heavens)
Yahoo
29-04-2025
- Business
- Yahoo
Lufthansa confirms 2025 outlook, braces for possible trade fallout
By Joanna Plucinska and Rachel More BERLIN (Reuters) -German airline Lufthansa on Tuesday confirmed its operating result forecast for 2025, but warned that it was closely monitoring the possible impact of trade tensions with the United States. European airlines are entering the first-quarter earnings season with increased investor anxiety over demand as global economic worries stemming from U.S. President Donald Trump's tariff threats drag on U.S. air travel. "Despite all the geopolitical uncertainties, we therefore remain on course for growth, are optimistic about the summer, and are sticking to our positive outlook for 2025," CEO Carsten Spohr said in a statement. Earlier this month, U.S. carrier Delta pulled its 2025 financial forecast, pointing to Trump's tariff threats as a drag on demand. Virgin Atlantic also said it had seen a slowdown in travel to Britain from the U.S. Air France-KLM, which reports first-quarter results on Wednesday, earlier this month said that it would consider cutting economy fares in an effort to support potentially lagging transatlantic travel. The transatlantic route is key for global airlines, maintaining some of the highest revenue and demand and helping airlines like IAG-owned British Airways maintain solid results. Lufthansa said demand in the U.S. sales region was continuing to rise. In March, the airlines group carried around 25% more passengers from the U.S. to Europe. Still, the company said it has set up "a task force to closely monitor current developments and, if necessary, respond quickly and flexibly to any weakening in demand, for example by adjusting capacity." Lufthansa is counting on the lucrative route as it faces pressure to revive its core airline, bogged down by wage talks and high pay, and find new sources of revenue as it struggles to compete with Chinese carriers in Asia. "Macroeconomic uncertainties, particularly the trade tensions between the U.S., the EU and other regions, are making it difficult to forecast the coming quarters accurately," the German flag carrier said in a statement. For the first three months of 2025, Lufthansa reported an adjusted loss before interest and taxes (EBIT) of 722 million euros ($822.14 million), roughly in line with a company-compiled forecast. ($1 = 0.8782 euros) Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
Economic worries could weigh on airline results as European bookings drop
By Joanna Plucinska LONDON (Reuters) -European airlines are set to report first-quarter results in the coming weeks, offering outlooks for the lucrative travel season amidst growing worries that economic uncertainty could slow demand and threaten earnings. That comes after the European Travel Commission noted in a study published Wednesday that Europeans are making fewer travel plans for this summer on the continent, particularly among the Gen Z demographic. "For European airlines, the key risk is to demand and unit revenues, whilst an area of upside is from lower fuel prices," Ruairi Cullinane, an analyst at RBC, said in a note. That marks the first sign of a potential slowdown in what was seen as unrelenting travel demand after the COVID pandemic subsided, leading to a strong return to profit for much of the airline business. Global economic instability triggered by U.S. President Donald Trump's tariff threats are leading to worsening European recession fears, with many worrying that consumer and travel spending could suffer as a result. Analysts say while the risk of a shift in demand was present, sizeable drop-offs in demand had yet to be noted. "Demand indicators are not all flashing red," Cullinane told Reuters. Lufthansa reports on Tuesday and Air France-KLM reports on Wednesday, with analysts expecting some backlash to an outlook based on a later Easter date pushing a key earnings period back in the financial year. While airlines aren't seeing clear negative outcomes yet, about 10% fewer Gen Z travellers are planning trips between April and September of 2025 compared to last year given their sensitivity to higher costs, the survey showed. "Over the past few years, Gen Z has generally been more cautious with their travel intentions, planning fewer trips than their older counterparts," said Eduardo Santander, Chief Executive of the European Travel Commission, adding that more Europeans were travelling for specific events. "We've also noticed a slight decline in pleasure trips." Overall planned trips for the time period down 3% for all Europeans, with leisure travel in particular set to see an 8% drop compared to 2024. Ryanair had warned that they may see modest ticket price growth this summer but could fail to recover losses from last year, while Air France-KLM said it would consider cutting economy fares to boost transatlantic travel. In particular, Europeans are already booking fewer trips to the United States since U.S. President Donald Trump entered office in January this year over fears tied to political risk and possible immigration challenges. A senior European airline industry source said there had been some wavering in international demand immediately following the imposition of sweeping tariffs by Trump in early April, with some potential passengers holding back until the political uncertainty settled down. But analysts told Reuters they weren't overly concerned on airline results just yet. Carriers are keeping capacity growth moderated with demand "robust enough" to maintain reasonable yields for airlines, Stephen Furlong an equity research analyst at Davy said. Still, investors were "keenly focused" on possible spillover from North American ticket softness into the intra-European market, Dudley Shanley, research analyst at Goodbody, said. COOLER CLIMES Extreme weather and rising temperatures are also driving a shift in demand, with an 8% drop in interest to summer travel to the south Mediterranean compared to last year. Still, Italy and Spain remain as among the most popular destinations in the region among Europeans. Some 28% of Europe's tourists are more keen to travel to milder climates in an effort to avoid spiralling temperatures, with interest in travel to Northern, central and eastern Europe rising year-on-year, the study showed. "With climate change impacting travel decisions and patterns, tourism businesses in warmer areas should promote indoor activities during warmer hours and focus their marketing and sales plans on milder shoulder seasons," the survey said. (Additional reporting by Tim Hepher; editing by David Evans) Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
Aerospace firms scour contracts over tariffs after supplier challenge
By Tim Hepher, Joanna Plucinska and Allison Lampert (Reuters) - Planemakers, airlines and suppliers are combing through billions of dollars worth of contracts to check their exposure to tariffs after a major U.S. supplier sparked debate over who should pay for an emerging trade war, industry sources said on Monday. Reuters reported on Friday that U.S. supplier Howmet Aerospace had declared a "force majeure event," effectively claiming the right to halt shipments if they were affected by U.S. President Donald Trump's tariffs. Howmet makes engine parts, fuselage fasteners and other components. Analysts said Howmet's rare and unexpected declaration that it can legally avoid contract obligations due to unavoidable circumstances will amplify debate about who should bear the cost for chronic disruption to parts supplies, including new tariffs. So far, the answer has been passengers, as higher costs ripple along an $800-billion-plus supply chain from parts to aircraft and airlines, and ultimately to higher fares. Trump's 20% tariffs on European Union products including Airbus planes, and likely EU retaliation against U.S.-based Boeing, may put that to the test. "Howmet has made a chess move, declaring force majeure and threatening to halt shipments. We all know it takes just one nut or bolt to stop the ... supply chain,' Jefferies analyst Sheila Kahyaoglu wrote. "This ultimately is an effort to pass on rising input costs in areas not already protected … In our view, the potential to stop shipments creates leverage for Howmet, but also is pitted against its customers' willingness to cave." Howmet declined comment. Aside from an 18-month transatlantic tariff war over Airbus and Boeing subsidies in 2020 and 2021, the industry has broadly operated under a 1979 treaty on zero-duty trading in aerospace that includes the U.S. and Canada, but not Mexico. "By definition, aviation is a global market for both buyers and sellers. When you introduce friction like this for such large sums of money, you have instant chaos, not only for airplanes but also for engines and multiple spares from avionics to seats," said aviation adviser Bertrand Grabowski. A European lawyer said some aerospace clients had already made enquiries about how to avoid the tariff fallout. "I don't think any of my clients have got to the stage yet of specifically wanting to (trigger) contractual provisions. But it may not take very long," he said, asking not to be identified because of potential client conflicts. DEVELOPMENT CARROT For now, shortages have given many suppliers the upper hand. But planemakers have one key point of leverage. In an industry with long cycles, suppliers are already sharpening technologies for the next generation of jets. How they approach tariff negotiations will not go unnoticed as decisions on those developments are made in coming years, several industry sources said. Airbus and Boeing did not respond to requests for comment. A parallel tug of war pits jetmakers against airlines. In the 2020-2021 trade dispute, Michael O'Leary, head of European budget airline Ryanair, asked Boeing to 'eat' EU counter-tariffs. Other airlines without such clout may have to try to defer deliveries, executives said. Aircraft contracts typically call on the buyer and seller to pay their respective taxes. But Howmet's stand is being watched for signs the Trump tariffs can be construed as a special case. Aircraft manufacturers are expected to argue they cannot. "Everyone will look at this with a fine-tooth comb, contract by contract," Grabowski said, referring to airplane contracts. Inflation-adjustment clauses will not generally help much with tariffs as they are usually limited and slow to react, sources said. Much of the industry also revolves around maintenance, given the compulsory replacement cycle for safety-critical parts. It is not uncommon for engines to cross borders several times when being traded and repaired. Lessors, who rent to airlines and make up half the world's fleet, are also scrambling to analyse the implications. 'Everyone is calling each other, looking for clarity,' Grabowski said of the aviation industry as a whole. (Additional reporting by Rajesh Kumar Singh; Editing by Rod Nickel) Sign in to access your portfolio
Yahoo
27-03-2025
- Business
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Ryanair CEO says Boeing offers backup if MAX 10 not approved soon
By Joanna Plucinska and Tim Hepher BRUSSELS (Reuters) - The head of European budget giant Ryanair praised relations with Boeing under its new leadership and said the planemaker had agreed to supply alternative jets in time for summer 2027 if it fails to certify its new 737 MAX 10 this year. "I think we'll get our first 15 MAX 10s in 2027 but Boeing have now agreed, if they don't get certification this year and they can't deliver us MAX 10s, they will deliver us additional MAX 8s in time for summer 2027," Ryanair CEO Michael O'Leary told Reuters, referring to the MAX 8200 model used by Ryanair. The 737 MAX 10 is the largest member of Boeing's narrowbody jet family and Boeing is waiting for approval from regulators following delays in the wake of a wider safety crisis. It has drafted one of its top troubleshooters, Mike Sinnett, to oversee this and other delayed development programmes. "I think we are getting more confident that there's a good team of people now between (new Boeing CEO) Kelly Ortberg, (Commercial CEO) Stephanie Pope and the rest now running Boeing, and as long as nothing unforeseen happens, I think we will get there through 2025, 2026, 2027," O'Leary said in an interview. He said he was confident after meeting Pope earlier this week that commercial jets would not be sucked into trade tensions between the United States and trade powers including Europe, and spelled out detailed plans to recover lost output. For this year, Boeing has agreed to bring forward some aircraft deliveries but this still leaves the Irish carrier short of 30 aircraft this summer, O'Leary said. Ryanair does not typically agree to take planes after the height of summer, preferring to delay until the following peak period, but it has agreed to take 25 of those aircraft between August and October this year, he said. Boeing's production of the 737 MAX has been capped at 38 a month by federal regulators following the mid-air blowout of a door plug last year. It has said it hopes to reach that level and then push on to 42 some time this year, subject to approval. O'Leary, who is briefed regularly on the progress of jets on order by one of Boeing's top customers, said Boeing had produced 32 narrowbody planes in March and would reach 38 by end-April. It aims to reach 42 a month by September or October and 48 within 12-18 months, he said. There has been a marked increase in quality of deliveries in the past year following earlier problems that included rags left in a fuel tank, he added. Boeing had no immediate comment. Sign in to access your portfolio
