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Stocks steady, oil continues to fall as traders await Warsh
The news that Iranian fuel could soon be available on global markets prompted a drop in?bond yields on Wednesday. Stocks and currencies also remained quiet ahead of Kevin Warsh’s first Federal Reserve meeting. Brent crude futures are now trading below $80, and have fallen more than a third from their peak after news that the U.S. would lift sanctions against Iranian oil as part of the agreement to end the conflict. Even though the conflict has depleted strategic oil reserves, the prospect of additional supply helped to push yields down on U.S. Treasuries and a rally of global bonds. Luka Belobrajdic is an economist with Westpac. He cautioned that sanctions are unlikely to be lifted immediately and depended on the sustainability of peace. The yields on ten-year Japanese bonds fell by four basis points, to 2.61%. In Australia, the yields on ten-year Australian bonds dropped by almost six bps, to 4.78%. The U.S. and Iran agreement due to be signed this Friday has been confirmed in public only a few times. A three-month blockade of the 'Strait of Hormuz' has pushed U.S. crude oil reserves down to their lowest level since 1983. Wall Street futures in Asia traded slightly higher, while FTSE and European futures declined 0.2%. The chipmaker-heavy'markets' in Tokyo and South Korea brushed off a negative lead overnight from U.S. semiconductor share sales, but a 1.7% drop for Taiwan's TSMC dragged Taiwan benchmark 1% down. MSCI's broadest Asia-Pacific share index outside Japan was largely flat, and in China AI gains were able to offset the sagging consumer stock prices in response to weak retail sales figures. FED ON HOLD WARSH IN FOCUS The dollar has been held in a state of stagnation by traders as they wait to see how Warsh balances his dovish presidency with the markets that?expect an increase this year. The euro is barely moving this week. It's hovering around $1.16. The expected rate increase in Japan on Tuesday failed to lift the yen. However, the downside was protected due to the possibility of an official intervention. It remained at 160.3 per dollar. The Fed Funds rate is unlikely to change, so focus on the press conference and Warsh's voting, as well as the committee members' projections in March, when most of them expected rates to be cut. "We expect Warsh to downplay the forward guidance and instead advocate patience on policy rate and inflation - leaning dovish in relation to market pricing," said Xiao Cui senior economist at Pictet Wealth Management. If Warsh accepts the possibility that rates will rise and doesn't push back against market pricing, it could be interpreted as "hawkish." The Riksbank of Sweden is expected to "stay on hold" but still forecast an increase, whereas the British "inflation rate is projected to accelerate to 3% annually due to higher oil prices. Gold, which is down by more than 20% since January's peaks, bounced from support at $4,000 per ounce to $4,300 on Wednesday. Bitcoin, meanwhile, found support just above $64,000, trading just below $65,900. (Reporting and editing by Jacqueline Wong; Tom Westbrook)
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Gold prices steady as investors wait for details of US-Iran agreement, Fed verdict
The gold price was steady?on a?Wednesday?, near a week-high, as investors awaited more details about the U.S. Iran agreement and the Federal Reserve policy decision following Kevin Warsh’s first meeting as Chairman. As of 0420 GMT, spot gold was unchanged at $4,331.29 an ounce. U.S. Gold Futures for August Delivery was down 0.1% to $4,351.40. Bullion reached a new high of $4.370.82, a more than?one-week old record. A U.S. official said that the deal would allow Iran to begin selling oil after it is signed. President Donald Trump has also stated it will prevent Tehran from acquiring a nuclear bomb. On the back of expectations for Iranian supply, oil prices remained near their lowest level in three months. This eased inflation concerns. Ilya spivak, global macro head at Tastylive, said that the rally (in gold) has lost some of its vigor as attention is now focused on the Fed's monetary policy announcement. Spivak stated that "this marks the first FOMC to be chaired Kevin Warsh, and traders seem uncertain about how he'll reconcile his hawkish record with rising inflation and the pressure from White House to make a pivot towards dovishness." The majority of Fed policymakers believe they must keep the U.S. Projections due later today are expected to show that short-term borrowing rates will remain unchanged for the entire year. A small number of projections pencil in a rate increase to prevent inflation from becoming entrenched. According to CME FedWatch, traders see a 59% probability of a U.S. interest rate increase in December. This is down from 70% the week prior to the announcement of the U.S. Iran peace deal. When rates are high, gold tends to lose its appeal as it doesn't yield any interest. Westpac analysts stated in a research report that "over the longer term structural support for gold is expected to continue, driven by ongoing Asian demand as well as continued central bank purchases, which are used to hedge against geopolitical risks and policy uncertainties." Silver spot fell by 0.2%, to $70.05 an ounce. Platinum lost 0.7%, to $1,792.05, while palladium dropped 0.8%, to $1,341.23. (Reporting and editing by Rashmi aich, Sherry j. Phillips, Eileen Soreng).
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All eyes on the way Warsh walks his line in MORNING BID EUROPE
Tom Westbrook gives us a look at what the future holds for European and global markets. Kevin Warsh wraps up his Federal Open Market Committee (FOMC) meeting, with tumbling oil and a tentative offer of peace as a backdrop that will allow interest rates to be held at the current level. The market will be watching his vote, how he conducts himself at the news conference and his ability to explain the outlook. Warsh does not like "forward guidance" and could choose to avoid a projection of interest rates in the U.S. Central Bank's quarterly economic outlook. He was chosen by Donald Trump, the U.S. president, to lower rates. With inflation over target and employment solid, markets are expecting a rate hike. He will be questioned about it, and the dollar has been dithering in anticipation of his response. Investors might interpret his failure to push back against market pricing as a hawkish message. If he doesn't, investors may worry about inflation. He will also be facing a boardroom in which his predecessor Jerome Powell still has a voice. Shinichi Uchida, the Deputy Governor of the Bank of Japan, may have provided a model of how to maintain a steady hand. He was able to maintain policy flexibility without scaring the markets. Uchida received some extra support from the Japanese?finance minister, who is lurking behind the scenes, threatening to intervene on the currency market if the yen falls again. Asian markets were mostly flat?on Wednesday. Warsh was the star of the show, and oil sellers took a breather to await the confirmed details of the U.S.Iran agreement. Brent futures are now trading below $80 per barrel, following reports that the U.S. is planning to lift sanctions against Iranian oil. Sweden's Riksbank will likely be on hold, but hint at a possible hike later in the year. The British inflation rate is expected to rise to 3% due to the higher oil price, while final European figures are unlikely to differ from preliminary readings. The following are key developments that may influence the markets on Wednesday. - Rate Decisions in the U.S.A. and Sweden British inflation U.S. Retail Sales Data (Editing by Muralikumar Aantharaman).
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Oil prices drop as investors consider a deal to end the Iran War, but uncertainty remains about Hormuz
The oil prices fell on Wednesday as investors evaluated the?U.S. - Iran peace deal. However, uncertainty about?the full resumption?of shipping through the?Strait?of Hormuz's?limited further drops. Brent crude futures fell 16 cents or 0.2% to $78.80 per barrel at 0340 GMT. U.S. West Texas Intermediate dropped 25 cents or 0.3% to $75.80 per barrel. On Tuesday, both benchmarks fell 5% in a second session straight to reach their lowest levels in three months on the hope that an agreement between the U.S. and Iran would allow oil to flow through Strait. "Markets have stripped out the embedded geopolitical risks premium in oil price," said Priyanka Sackdeva, Senior Market Analyst at Phillip Nova. The road to normalisation is far from straightforward. Although political agreements are progressing, the physical tanker traffic in the Strait is still not fully recovered. The United States would lift their blockade on Iran's ports and Iran would allow oil tanker travel through the Strait of Hormuz, which has been effectively blocked by U.S.-Israeli strikes since February 28. Hiroyuki Kikukawa is the chief strategist at Nissan Securities Investment. He said that oil markets have?retreated due to expectations the Strait of Hormuz will reopen after the peace agreement. However, traders are holding off on further sales pending more details. He added that WTI will likely remain volatile within a range between $10 above and below $80 per barrel. Prior to the closure of the Strait, about a quarter of the world's crude oil and natural gas liquefied supplies passed through it. Tuesday details of the interim agreement began to emerge. President Donald Trump said it would prevent Tehran from acquiring a nuclear weapon and a U.S. government official stated that it would allow Iran?to sell oil upon signing. The not-yet-public memorandum extends a flimsy ceasefire that was agreed to in April by 60 days, allowing time for further talks towards a permanent truce. Industry officials say it will take weeks, even months, to return to the pre-war levels of production and refinement. Israel has disassociated itself from both the April ceasefire agreement and the latest U.S.Iran pact. This creates uncertainty as to whether the pact will be honoured. Lebanon's National News Agency reported that Israeli drone strikes on three vehicles in southern Lebanon Tuesday killed at least four people and injured others. This prompted a rare public criticism from President Trump. Data showed that China's crude throughput in May fell by 9.1% on the previous year, to its lowest level in nearly four years. It also indicated that refiners are starting to draw on their stockpiles in the face of the Iran War. Sources said that the American Petroleum Institute's report showed that U.S. crude stock fell by 8.3 million barrels during the week ending June 12. The Energy Information Administration is expected to release official figures at 10:30 am. ET (1430 GMT), on Wednesday. Reporting by Yuka Obaashi in Tokyo, Jeslyn Lerh in Singapore and Clarence Fernandez; editing by Sonali Paul & Clarence Fernandez
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Gold gains as bets on rate hikes decline ahead of Fed decision
Gold rose for a 'fifth consecutive day' on Wednesday, as a sigh of relief over a U.S. - Iran peace deal eased expectations that the U.S. would raise interest rates. Investors awaited more details about the agreement and the Federal Reserve policy meeting. As of 0230 GMT spot gold was trading at $4,341.12 an ounce. This is near the one-week high reached on Monday. U.S. Gold Futures for August Delivery?rose by 0.2% to $4361.10. Details are beginning to emerge about a U.S. - Iran interim deal that will end the Middle East conflict. Donald Trump said it would prevent Tehran from acquiring a nuclear weapon and a U.S. government official stated that the deal would allow Iran oil sales once signed. The oil price hovered at a low of three months after news broke that Iranian fuel could?soon' hit the global market, which eased inflationary fears. The pullback in oil has cooled expectations of rate hikes and eased some upward pressure on rates. The rally in gold is losing steam, as attention turns to the Fed's monetary policy announcement, said Ilya SPivak, Tastylive's head of global macro. Investors are focusing on the U.S. Fed's policy announcement and remarks due later today, with rates expected to stay unchanged. Spivak stated that "this marks the first FOMC meeting chaired Kevin Warsh, and traders are still unsure of how he'll reconcile his hawkish record with rising inflation and pressure from a White House requesting a pivot to a more dovish stance." According to the 'CME FedWatch' tool, traders now expect a?59% probability of a?U.S. rate increase in December. This is down from 70% the week prior to the announcement of the U.S./Iran peace agreement. When rates are high, gold loses its appeal because it does not earn interest. Westpac analysts wrote in a research report that "Over the long term, structural support for gold is expected to continue, driven by continued Asian demand and continuing central bank purchases as hedges?against?geopolitical and political risks." Silver spot rose 0.3% to $70.38 an ounce. Platinum was up 0.5% at $1,812.80 and palladium gained 0.3%.
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As traders await Warsh, oil prices drop on Iran's supply prospects
Crude prices falling on news that Iranian oil may soon reach global markets sparked a fall in bond yields on Wednesday. Stocks and currencies were quieter before Kevin Warsh's first meeting as Federal Reserve Chair. Brent crude 'futures' plunged below $80, the cheapest since March when the 'U.S. - Iran conflict began. According to a senior U.S. Official, the U.S. has agreed to waive sanctions against Iranian oil as part of the agreement that ends the war. This could lead millions of barrels more of Iranian oil being supplied. U.S. bonds yields dropped and rates in Asia followed, with 10-year Japanese rates down 1.5 basis points to 2.63 percent and 10-year Australian rates down almost 5 basis points to 4.78 percent. Kim Fustier is a senior oil and Gas analyst at HSBC. The bank believes it will be until the 'end of September before the markets price in a complete normalisation of the?flow of the Hormuz. The U.S. and Iran agreement is due to be signed this Friday. However, few details have been confirmed. A three-month blockade of the 'Strait of Hormuz' has drained the oil reserves of the United States, which are now at their lowest level since 1983. Overnight, Wall Street investors reduced crowded bets made on semiconductor and tech stocks, bringing the Nasdaq index down by 1.15%. Meanwhile, the Dow reached a new record, thanks to a rise in financial and industrial stocks. Futures in Asia were slightly positive, but chip-heavy markets like Taiwan and South Korea slid lower. MSCI's broadest Asia-Pacific share index outside Japan also fell by about 0.3%. Japan's Nikkei rose 0.4%. Hong Kong and Shanghai stock markets were largely steady. FED?ON HOLD WARSH IN FOCUS The dollar has been held in a state of anticipation as traders wait to see if Warsh can balance his dovish presidency with the expectations of the markets for a rise this year. The euro was only slightly firmer?this past week to hover around $1.16. The expected rate increase in Japan on Tuesday failed to lift the Japanese yen. However, the downside was protected due to the possibility of an official intervention. The Fed funds rate is unlikely to change, so focus on the committee's projections and the press conference. In March, most members predicted that rates would be cut this year. "We expect Warsh will downplay 'forward guidance' and instead advocate patience on policy rate?and inflation – leaning dovish in relation to market pricing," said Xiao Cui senior economist at Pictet Wealth Management. If Warsh does not oppose market pricing and embraces the possibility for rate increases, it could be perceived as hawkish. (Reporting and editing by Jacqueline Wong; Tom Westbrook)
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Investors weigh the impact of Iran's war ending and Hormuz reopening on oil prices as they stabilize.
Investors questioned whether the Iran War will end and the Strait of Hormuz will reopen. Brent crude futures rose 47 cents (0.6%), to $79.43 per barrel. U.S. West Texas Intermediate was up 48 cents (0.6%), to $76.53 per barrel as of 0038 GMT. The benchmarks for both fell 5% on Tuesday, a second consecutive session. They reached three-month lows in hopes that a U.S. Iran deal would allow oil to flow through the Strait. Oil markets fell on the expectation that the Strait of Hormuz will reopen after the?peace accord, but traders held back further sales pending more details, said Hiroyuki Kikukawa. Kikukawa is the chief strategist of Nissan Securities Investment. He added that WTI will likely remain volatile between $10 above and below $80 per barrel. Tuesday, details of the interim peace agreement began to emerge. U.S. president Donald Trump said it would 'rule out' a nuclear weapon for Tehran. A U.S. official stated that it would allow Iran oil sales upon signing. The not-yet-public memorandum extends the tenuous ceasefire that was announced in April for another 60 days, allowing talks to lead to a permanent truce. The deal would see the United States lift its blockade on Iran's ports while Tehran would allow oil tanker traffic to flow through the Strait which has been effectively blocked since U.S.-Israeli strikes?on February 28, 2009. Officials in the industry say it will take weeks, even months, to return to levels of production and refinement that existed before World War II. Israel has disassociated itself from the April ceasefire as well as the latest U.S. Iran agreement, increasing uncertainty about whether the new truce is going to hold. Lebanon's National News Agency reported that Israeli drone strikes on three vehicles in the southern Lebanon killed at least four people, and injured others. Trump has issued a rare public rebuke to Israel's military tactics. Data showed that China's crude throughput in may?fell by 9.1% over the past year, to its lowest level in nearly four years. This also indicated that refiners are starting to draw down on stockpiles in the face of the Iran War. According to sources, the American Petroleum Institute's report revealed that U.S. crude stockpiles fell by 8.3 million barrels during the week ending June 12. The Energy Information Administration is expected to release official figures at 10:30 am. This exceeded the expectations of a 4.6-million barrel draw. ET (1430 GMT), on Wednesday. Reporting by Yuka Obabayashi, Editing by Sonali Paul
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Russian-held Crimea restricts motorcycle use, claiming they sound like drones
Moscow-installed officials in Crimea have banned motorised vehicles such as quad bikes, motorcycles and scooters from being used at night. They claim that they sound like drone attacks. The peninsula's Russian-installed Governor, Sergei Aksyonov said that the ban would be enforced between 8 p.m. to 6 a.m. on Wednesday. He called it a temporary measure for the protection of military and important facilities. The moped's noise interferes with the operation of defense systems. "Their engines sound like drones,"?Oleg?Kryuchkov, Aksyonov’s advisor, said on Telegram separately on Tuesday. "The enemy is enlisting your children for nighttime rides." The Crimea ban does not apply to larger vehicles or cars. Ukraine recently intensified drone attacks against?Crimea - home to Russia's Black Sea Fleet - targeting the peninsula’s supply routes, causing a fuel shortage as the holiday season begins. Mikhail Razvozhayev said that the limit of 20 litres of fuel (5.3 gallons of gasoline) per car would remain at local petrol stations, in a Telegram message posted late Tuesday. Sources say that a Ukrainian drone attack on Tuesday halted the operations of the oil refinery in Moscow, adding to the damage done by the strike and spreading the fuel crisis further into the country. On Wednesday morning, Sergei Sobyanin, the Mayor of Moscow, said that Russian defence systems had shot down 10 drones headed for Moscow overnight. Donald Trump, the U.S. president, said that Russia should make peace in Ukraine after a "very successful" meeting with President Volodymyr Zelenskiy on Tuesday. His comments sparked cautious optimism from G7 leaders about the possibility of a peace agreement. (Reporting and editing by Lincoln Feast in Tokyo. Reporting by Jekaterina Glubkova.
Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and revise financial forecasts.
In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for up to 25% of its operating costs.
Here is an alphabetical list of the ways that?airlines have responded:
AEGEAN AIRLINES
The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "a significant impact" on their first-quarter earnings.
AIRASIA X
Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%.
AIR CANADA
The Canadian largest airline plans to reduce four of its daily flights to New York to 38 due to rising fuel prices. From June 1, 2026, the four flights to JFK International Airport are being cut.
AIR FRANCE-KLM
The airline group said that it would increase the price of long-haul tickets to offset rising fuel costs. Cabin fares will rise by 58 euros (50 euros) per round-trip.
KLM, the Dutch subsidiary of the group, announced on April 16 that it would cancel 160 flights across Europe in a month due to rising fuel costs.
AIR INDIA
The Indian airline said that it will change its fuel surcharge system from a flat surcharge for domestic flights to one based on distance. The Indian carrier said that surcharges for international routes do not compensate the steep rise in fuel costs.
AIRLINE OPERATORS IN NIGERIA
In a letter to the Nigerian fuel industry association, it was claimed that they were artificially increasing prices.
AIR NEW ZEALAND
On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the earliest to announce a large increase in ticket prices after the conflict erupted. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets.
AKASA AIR
Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights.
ALASKA AIR
The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, as well for Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars.
AMERICAN AIRLINES
The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag, on both domestic and short-haul flights. The airline also reduced certain benefits for passengers in economy class.
The company had previously said that it anticipated a $400-million increase in expenses for the first quarter due to rising fuel prices.
ASIANA AIRLINES
Newsis reported that the South Korean airline would cut 22 flights from April to July because of fuel price increases.
CATHAY PACIFIC
Hong Kong Airlines announced that it would cancel about 2% scheduled passenger flights between mid-May and the end of June. Meanwhile, HK Express, its budget airline, was cutting approximately 6% flights.
The carrier had previously stated that it would increase its fuel surcharge across all routes by 34% from April 1, and will review the charges every two weeks.
CEBU AIR
The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact.
CHINA EASTERN EXPRESS AIRLINES
Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge 120 yuan.
DELTA AIR LINES
Delta announced that it would reduce capacity by approximately 3.5 percentage points compared to its original plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The increase will be $10 for first and second bags, and $50 on third bags.
The U.S. carrier pulled all planned growth in capacity for the current quarter, and predicted profit that was below Wall Street expectations. Delta's CEO said that the company would not update its full-year forecast due to the uncertainty surrounding the fuel price hike.
EASYJET
EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds ($731 and $758) in March, including an extra 25 million pounds of fuel costs.
Kenton Jarvis, CEO of British Airways, said that European consumers can expect to pay higher prices at the end summer when fuel hedges expire.
FRONTIER AÉRIENS
Fuel prices have risen'significantly' since the airline issued its outlook.
GREATER BAY Airlines
The Hong Kong-based firm said that it will increase fuel surcharges for most routes on April 1, but keep them the same on routes to mainland China and Japan.
The carrier has announced that the surcharge on flights between Hong Kong, Philippines and other destinations will be more than doubled.
HONG KONG Airlines
The airline announced that it would increase fuel surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49).
British Airways' owner IAG stated in March that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel for the short to medium term.
INDIGO
India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for a reduction in fuel taxes by the Indian government.
JETBLUE AERWAYS
Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "rising operating expenses". The airline said that baggage prices would rise either by $4 or $9.
Sources with knowledge on the subject have confirmed that KOREAN will be in emergency mode as of April due to rising oil costs. The airline will implement phased responses based on the oil price levels and increase company-wide efficiency to offset surging fuel prices.
LUFTHANSA The group announced that it would ground 27 aircraft servicing its CityLine short-haul subsidiary earlier than expected, citing the high cost of jet fuel and industrial action. Lufthansa also plans to withdraw four Airbus A340 600 long-haul planes at the end the summer, and will reduce its short- and medium-haul fleet by five aircraft during winter 2026/2027.
PAKISTAN INTERNATIONAL FLIGHTS
Fuel surcharges are cited as the reason for raising domestic flight prices by $20, and international fares up to $100.
QANTAS AIRWAYS
Qantas, Australia's largest airline, said that it has delayed a planned A$150m ($106m) buyback. It also increased its projected fuel bill in the second half 2026 from A$2.5bn to A$3.1bn-A$3.3bn.
Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couple hundred" of flights.
SAS, which has already raised flight prices, stated that the surge in fuel costs would be a major blow to the aviation industry, even if they tried to absorb them.
SPRING AIRLINES
Budget Chinese airline announced that it will increase fuel surcharges for domestic flights from April 5. Details to be announced later.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES
The American carrier announced that it would increase the fees for checked bags by $10 each for the first two bags. This will bring the cost to $45 and $55 respectively for the first bag.
The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues.
THAI AIRWAYS
The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices.
TURKISH AIRLINES LUFTHANSA
SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would be imposing a temporary fuel surcharge between Turkey and Europe of 10 euros for each passenger starting May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1.
Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash.
T'WAY AIR
As part of measures taken to combat the effects of war, the South Korean low-cost airline said that it would furlough cabin crew in May and/or June without pay.
UNITED AIRLINES
Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027.
Andrew Nocella, United's Chief Commercial Officer, said that the company was able to increase fares in response to a rapid rise in oil and jet fuel costs.
In an email to customers, the airline announced that it would also be increasing first and second checked baggage fees by $10. This applies to all travelers in North America, Mexico, Canada, and Latin America.
VIETJET
Due to possible fuel shortages, the Vietnamese budget airline has 'adjusted' flight frequencies on certain routes.
VIETNAM Airline
Vietnam's Aviation Authority announced that the carrier will cancel 23 flights a week on domestic routes starting in April after it requested assistance from the government to remove an environment tax on jet fuel.
VIRGIN ATLANTIC
Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability.
VIRGIN AUSTRALIA
Virgin Australia has said that it expects an increase of jet fuel costs of between A$30 and A$40 million in the second half of the fiscal year. It also anticipates a 1% decrease in capacity for the fourth quarter.
The airline had previously stated that it would adjust fares in order to reflect the rising costs.
WESTJET
Canadian Press reported that the airline would add a C$60 fuel surcharge ($43) to certain bookings, and also combine flights due to rising costs.
(source: Reuters)