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Gold prices rise as oil prices fall, easing inflation and rate hike fears
Gold prices rose by 1% on Tuesday, boosted by lower U.S. Treasury yields. Meanwhile, oil prices fell, easing fears of rising inflation and interest rates. By 1136 GMT, spot gold had risen 1% to $4,526.7 per ounce. U.S. gold for August delivery rose 1.2% to $4,58.60. After U.S. president Donald Trump announced that talks with Iran are ongoing, oil prices dropped. Lower fuel prices reduce inflation fears and may also help to reduce bets on higher interest rates. Gold is traditionally viewed as a hedge to inflation. However, in an environment of high interest rates it loses its appeal as a non yielding asset. Ole Hansen, analyst at Saxo Bank, said that gold continues to take cues from the oil market, given the crude's influence over inflation expectations, and by extension, interest rate, bond yields, and the dollar. The metal is still in a short term downtrend. A break above $4.630 would?signal more positive outlooks and possibly attract new momentum buying." The yield on 10-year U.S. Treasury notes fell by 1.1%. This reduced the opportunity cost for holding non-yielding gold. Lebanon announced a partial truce between Hezbollah, Israel and Lebanon on Monday. This would be a de-escalation in a conflict that has claimed thousands of lives and fueled the broader U.S./Israeli war against Iran. Investors are now awaiting the U.S. Nonfarm Payrolls Report for May due on Friday to assess the resilience of the labour market in light of'mounting concerns' about inflation caused by the Middle East conflict. This week, there will be a number of Federal Reserve Board members speaking, including Cleveland Fed President Beth Hammack and San Francisco Fed president Mary?Daly. "We remain optimistic over the long term as economic growth risk, worsening geopolitical relationships, currency 'volatility, and downside risks in equity?markets, will continue to support?gold's role as a?portfolio diversifier", ANZ stated in a report. Silver spot rose by 2.1%, to $76.39 an ounce. Platinum gained 1.4%, to $1950.95, and palladium rose by 1.3%, to $1379.77.
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Stocks rise on AI optimism, but jitters about Iran simmer
On Tuesday, global stocks rose, boosted by fresh AI optimism following Anthropic's move towards a U.S. Stock Market listing. Oil prices and bond yields also fell, on renewed hope of a U.S. Iran deal. Brent crude futures fell more than?1% under $94 per barrel on Tuesday, reversing the sharp gains of the previous session, after U.S. president Donald Trump stated that talks with Iran continue. The comments were made despite reports that Tehran had suspended indirect talks with Washington in order to end hostilities. This has kept investors on edge about the efforts to end the 3-month war, and highlighted the fragility of a continuing ceasefire. The STOXX 600 index in Europe was up 0.7% at midday on the back of a positive forecast by chipmaker STMicroelectronics. AI ENTHUSIASM Anthropic'said Monday that it had filed a confidentially for a U.S. Initial Public Offering, edging out rival OpenAI in a closely-watched race to'reach public markets. Alphabet, the parent company of Google, is also looking to raise $80 Billion in equity to finance its AI infrastructure expansion. This is a clear indication of the huge sums required to keep pace with the AI arms race. Russ Mould said that it represents a major shift from a period where there was a lot of free cash to relying on the markets for funding its expansion. The Institute for Supply Management reported on Monday that the U.S. manufacturing PMI increased to 54.0 from 52.7 in the previous month. This was a significant increase, and beat expectations of a four-year-high. It is likely due to firms placing orders ahead of time amid rising prices, and supply concerns related to the Iran War. Futures for the S&P 500, Nasdaq 100 and Dow Jones Industrial Average were all down between 0.1% and 0.2%. This indicates a weaker opening after both indexes had posted an eighth consecutive gain on Monday. This is the first time the S&P has had eight consecutive days of gains in a calendar year. If you consider the weekly moves, the S&P would have its 10th consecutive week of gains, something that hasn't happened since 1985, according to Deutsche Bank strategist Jim Reid. Nvidia's CEO Jensen Huang told reporters in Taipei that the company has enough supply to support a strong growth of central processing units (CPUs). South Korean equities are volatile. The benchmark KOSPI has swung sharply lower, after reaching a record high, as bellwethers such as Samsung Electronics or SK Hynix sawsawed. The dollar was slightly lower on the currency markets. The euro, which is still 1.5% lower than its value at the beginning of the war, rose by 0.1% to $1.1646. The euro zone core inflation rate was 2.5% in May, which is higher than the 2.4% expected and 2.1% for April. Money markets are pricing in a quarter point increase by the European Central Bank this month and at least another one before year's end. Bond yields fell by nearly 5 basis points, to 4.429%. Germany's Bund yield fell 6 bps, to 2.953%. Gold increased 1% to $4,527 per ounce. Gregor Stuart Hunter contributed additional reporting from Singapore. Stephen Coates and Mark Potter edited the article.
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Britain targets 87% reduction in emissions by 2040
The UK announced a goal on Tuesday to reduce emissions by 87% from 1990 levels by 2040. It has not yet specified how it will achieve this target. The reduction of carbon emissions is in line with the international effort to reduce global warming. According to the Labour government, cleaner energy will help the country to be more protected from the volatility in fossil fuel prices that has been exacerbated due to the Iran War. Energy Minister Ed Miliband stated in a press release that "Britain faces the second fossil-fuel shock of the decade. The only way to protect the finances of families and businesses is to move towards clean, domestic power we can control." The surge in energy costs this year is due to an unprecedented disruption of supply in the Middle East. This follows a similar spike in fossil fuel prices in 2022, when Russia invaded Ukraine. After the regulator Ofgem raised its price cap in response to an increase in wholesale gas costs, millions of households will see their energy bills rise by 13%. A TECHNOLOGY CHANGE AND LESS MEATS The price hikes of fossil fuels have caused divisions both in Britain and abroad between those who want more drilling for oil and gas and others who are pushing for a greater use of renewable energies. Climate Change Committee, which recommended the target last year, said that meeting the government's emission goal would require significant investment in low-carbon technology such as renewable energy, heat pumps, and?electric cars, and lifestyle changes, such as a reduction in meat consumption. The aviation emissions must also be reduced, and this would mean less flying. The opposition Conservative Party retracted its support for the 2050 target of net zero, claiming it was impossible. Britain's greenhouse gases emissions have dropped by 54% since 1990, with a 2% drop per year in 2025. This was largely because of a reduction in emissions from the industrial sector after blast furnaces were closed in the iron and steel industries. The government has said that its support for clean energy will create jobs. The report cited by the Confederation of British Industries Economics and the Energy & Climate Intelligence unit, which was also published on Tuesday, showed that the net zero economy supported more than one million jobs across the country. The government announced that a plan to achieve the emission reductions would be published in the shortest time possible after the parliament approved the target.
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LA drivers continue to drive despite sticker shock and gridlock
Think again if you thought that the rising prices at the pump since the start of the Iran War would 'help clear the notoriously congested highways in?Los Angeles. According to government data, drivers in the gridlocked city of Los Angeles are used to sticker shock. Caltrans, the California Department of Transportation, in an exclusive report for The Los Angeles Times, found that vehicle miles travelled on major Los Angeles freeways has not decreased significantly since February 28, when Israel and the U.S. attacked Iran. This analysis covered eight weeks ending April 23. It examined traffic data from Interstates 405, 10 & 5. These are the busiest freeways in the country, and they're part of our cultural fabric thanks to Hollywood movies and viral news stories like O.J. Simpson's 1994 slow-speed chase with the police. While most major freeway segments showed a slight increase or decrease, others had increases or declines as high as 9%. Los Angeles resident Marco Falcon (?44) shrugged off the findings. The data confirms more than 20 years of research that shows U.S. demand for gasoline to be mostly inelastic, meaning drivers are unwilling or unable change their habits when prices rise. In fact, a 2006 paper by the National Bureau of Economic Research found that drivers had changed their driving habits less when gasoline prices rose in the 2000s compared to the oil crisis of the 1970s. According to AAA, the average price of a gallon in Los Angeles on Monday was $6.07. This is up 28% from last year and 36% above the national average. Los Angeles drivers, Falcon said, understand that while they don't like paying higher gas prices, it is part of the price of living in a car-obsessed state. "You've got to figure out your priorities," said Falcon. He continues to drive, because taking a?lower cost bus would take?three?to?four times as long. Time is money to me. According to the Los Angeles County Metropolitan Transportation Authority, the total weekday bus and rail ridership rose 1.6% between March and April compared to the previous year, while passenger miles increased 0.8%. A spokesperson for the agency said that while high gas prices may have contributed towards the growth, the network has also added new stations and expanded into new areas. Brian Taylor, research fellow at the Institute of Transportation Studies, University of California, Los Angeles, said that people don't really change their behavior. Taylor explained that if traffic in Los Angeles sometimes appears lighter, this is due to the fact that small reductions of vehicles on Los Angeles' near-capacity highways creates outsized changes in flow. Taylor stated that a 10% decrease in traffic could result in a 40 or 50 percent reduction in delays. (Reporting and editing by Andrea Ricci; reporting by Lisa Baertlein)
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Shock to the equity supply?
What is important in the U.S. and international markets today by Mike Dolan Editor-at-Large of Finance and Markets The 'global markets' appeared to be calm early on Tuesday. However, the latest AI twist and another set of confusing signals regarding the Iran conflict were hidden. Anthropic, an AI startup, stole the show Monday when it announced that it had confidentially 'filed' for an IPO. It seemed to beat rival OpenAI and catch the slipstream of SpaceX IPO which is expected in this upcoming month. Below, I'll get into this and more. Check out my most recent column about how the AI frenzy may be a greater inflation concern than the Iran energy scare. Listen to the Morning Bid podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. EQUITY SUPPLY SHOCKS? Alphabet raised $80 billion in equity funding, including $10 billion through a private placement with Berkshire Hathaway, while investors analyzed the Anthropic announcement. After hours, the Alphabet share price dropped by about 2%. These 'hyperscalers' have already raised tens and tens billions in new debt for their AI investments. But raising equity is another twist. The bigger question is whether investors will be able to stomach all of this new equity, especially at such'sky-high' valuations. The numbers are staggering. Anthropic's most recent funding round valued it at $965 billion, which is higher than OpenAI, and SpaceX's $75 billion planned offering valued it at $1.75 billion. It is important to know where this leaves the leaderboards of the top companies, the relative index weightings, and the concentrations of AI within equity benchmarks. Remember that in the past, huge IPOs have often been the culmination of speculative markets. Away from Wall Street the real AI demand continues to be strong. STMicroelectronics, Europe, rose 10% on Tuesday, its highest level since 2000, after it doubled their data-center revenue estimate for this year to $1 billion. Investors are increasingly concerned about how the AI scramble and chip buildout is impacting input and consumer costs, particularly as the U.S.-Iran talks on peace stall. Brent crude prices have retracted a bit from yesterday's 5% increase after President Donald Trump said that the talks with Iran will continue and could reach a conclusion this week. We've been in this situation before. On Monday, the fear was that Iran would maintain its red line and continue military exchanges. Oil prices may be down a little today, but year-end futures are still 30% higher than they were before the war began. This, along with the AI story, was summarized in the hot U.S. Manufacturing reading for the ISM survey. The headline factory activity index reached its highest level in four years. However, some questioned whether it was inflated by precautionary stockpiling. Input price component fell a little but is still high. Euro zone inflation increased to 3.2% as expected in May. A rate hike by the European Central Bank is expected to take place later this month. STMicro helped Europe's major stock indexes rise?early Tuesday, and Asian markets again benefited from the tech-driven excitement of Wall Street on Monday. Wall Street stock futures had fallen from Monday's record-breaking closing high. Long-dated U.S. Treasury rates were also a bit softer. Currency markets remained calm. Chart of the Day The S&P 500 Software Sector Index logged its largest monthly gain since November 2002 in May. It ended last week at its highest levels since late January, after strong results from Dell. The sector, which suffered a steep decline earlier this year due to concerns that AI agents might threaten traditional business models has nearly recovered all of its losses from 2026. Stocks like ServiceNow, IBM Adobe, Salesforce, Workday and others have continued this rally in the past week. The index also grew another 4% on Sunday. Watch today's events * U.S. JOLTS April job openings (10 am EDT) Beth Hammack, Cleveland Fed, speaks Want to receive Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed here are the author's. These opinions do not represent the views of News. News is committed to the Trust Principles and strives for integrity, independence and neutrality.
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India's record milk output is put to the test by extreme heat
* Extreme heat reduces milk production and fertility The cost of adaptation for small dairy farmers is rising Scientists warn that climate stress could threaten future output Bhasker Tripathi The baby was so tiny, it had almost no hair. Bharadwaj gave it milk and it slowly recovered. Scientists believe that such preterm births are a part of a larger pattern of intensifying summers, linked to climate changes. Bharadwaj’s?small farm? of six cows near Delhi, India is typical for millions of people in the country, which is responsible for a quarter or more of global milk production. Most of that comes from farms of between two and five cows. Dairy accounts for 5% of India’s GDP, and provides jobs to more than 80,000,000 farmers. The government predicts that demand for milk will increase as incomes rise and the population increases. Experts say that extreme heat causes cows to consume less food, produce less milk, have difficulty conceiving and produce fewer offspring. Farmers spend more money trying to keep their animals cool and fertile. Bharadwaj explained that "Milk Production Falls by Nearly 30% During Extreme Heat", describing the way in which falling output and increasing cooling costs are steadily eating away at his earnings. Record Production India's agricultural success story for decades was the rise in milk production, a result of crossbreeding programs designed to increase productivity while meeting growing urban demand. According to data from the government, India's production of milk reached a record high 239 million tonnes during fiscal year 2023-24, an increase of nearly 64% over a decade. Researchers, dairy experts and farmers claim that rising temperatures are exposing this model's vulnerabilities. According to scientists at the National Dairy Research Institute, heat stress can reduce feed intake as well as divert energy from reproduction and milk production. High-yield cows are especially vulnerable, as their metabolisms generate high levels of heat. Researchers found that heat stress causes more miscarriages, and reduces milk fat content. This is bad for farmers, who are paid based on the amount of solids and fat in their milk. Farmers spend more money on specialised feed and on water or electricity to cool down their animals. Bharadwaj invested 200,000 rupees (2,100 dollars) to modify his cattle sheds. He added tarpaulins and ventilation systems to reduce heat stress. Yearly maintenance cost another 50,000 rupees for repairs caused by?frequent storms. Pankaj Navani is a dairy entrepreneur who advises on climate adaptation for livestock. He said that larger dairy operators, such as those in Punjab, had adapted faster because they treat dairy more like a business and invest in cooling systems and ventilation, as well as feed management. Most dairy farmers have limited resources and a small number of cows, making such an investment difficult. Navani says that small backyard dairy operations of two to four cows will likely decline. Reduce Heat Stress Abhinav Garav, lead advisor of sustainable dairy practices at Environmental Defense Fund India (a Delhi-based nonprofit), said that farmers are more likely to invest into climate-resilient methods if they see clear economic benefits, but for households who already struggle with shrinking margins, it is difficult. NDRI has developed multiple strategies to reduce heat stress. These include breeding heat-tolerant cattle and improving shed design. Scientists in the country recently registered a heat resistant cattle breed that is designed to maintain milk production under hotter conditions. However, they claim it would take a long time to spread such interventions over millions of small farms. Scientists say buffaloes are sensitive to heat, as they depend heavily on water to regulate their body temperature. NDRI's research has shown that buffaloes who previously required wallowing only for a few months in the summer now require cooling?support between March and November. Government livestock data shows that crossbred and exotic cows account for a significant share of India's dairy output due to their productivity. Indigenous breeds, however, contribute a much smaller percentage, but are increasingly considered by some farmers to be better adapted to the rising temperatures. Bharadwaj stated that he selected indigenous breeds, such as Tharparkar, because they are more resistant to extreme heat and need fewer medical treatments than exotic breeds. Researchers warn, however, indigenous breeds may not be enough to solve India's dairy challenges in the long term. The dairy system in India was designed to increase productivity and meet the rising demand. Lower-yielding cattle could struggle to meet future demand without improvements in breeding and management, including feed management, cooling systems, and animal health. Companies are now offering heat stress products for livestock in India, as a result of repeated?heatwaves. IBISA is a Luxembourg-based company that offers parametric livestock insurance, which triggers payouts when temperatures exceed pre-defined thresholds. It has insured over 360,000 cattle in India across four heat seasons, and paid out more than $350,00 to farmers who suffered productivity losses due to extreme warmth. Officials from the company say that insurance only protects farmers to a certain extent against rising temperatures. "What farmers don't need is just insurance." Maria Mateo, CEO of IBISA, said that farmers need to become more resilient and adaptable to the heat. Bharadwaj, who farms near Delhi, is facing another challenging summer. The feed will need to be adjusted, and there will be more money spent on cooling and supplements.
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Copper reaches a two-week high amid US Tariff Uncertainty
The market was supported by tighter supply and tariff uncertainty outside the United States, as well as by a rise in copper. Aluminium also reached a four-year high. Benchmark three-month copper on the London Metal Exchange was up 1% to $13,966 per metric tonne at 0915 GMT, after touching $13,994 earlier. Investors will be waiting for a possible tariff recommendation by the U.S. Department of Commerce at the end of this month. Last year, the prospect of a similar duty helped to boost prices. However, it never materialised. Tom Price, an analyst at Panmure Liberum, said that investors with whom he spoke in the U.S. during last week's conference were interested in buying U.S. Copper equities are expected to be a hot commodity in the coming weeks. He said, "If it worked last time, it might work again this year." Price said that the elevated price does not reflect copper fundamentals. The White House on Monday changed tariffs for some imports of copper, iron, and aluminium, but it did not address the larger question about refined Copper that has caused regional market dislocation. The COMEX copper premium grew over the LME, resulting in increased shipments into U.S. storage facilities. Aluminum, on the other hand, rose 1.2% to $3,759.50 per tonne, after reaching $3,787.50 - its highest since March 2022 - as LME inventories The total has dropped to 335,450 tonnes, the lowest level in nearly four years. The cash LME Aluminium contract traded at a premium of $116.50 a ton over the forward three-month contract The tightening of the market is evident by the fact that. Price pointed to the slowing of Chinese exports and the loss of six million tons of supply per year from the war-torn Middle East. He said, "But copper and Tin just look like speculation playthings right now." Tin has risen by 2.4%, to $57.925. It is now within striking distance of its previous peak of $59 040, which was set in January of this year. Zinc rose 1.5% to $3.629.50. Nickel climbed 0.6% to $19360. Lead jumped 1% to $2,000.05. (Reporting and editing by Thomas Derpinghaus; Additional reporting by Dylan Duan, Lewis Jackson)
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Barry Callebaut identifies El Nino as having an impact on fuel prices and cocoa bean price, on the business.
El Nino could cause cocoa prices to rise by several thousand pounds per metric tonne, according to the chief executive of Barry Callebaut, one of 'the world's leading cocoa processors. El Nino, an 'climatic pattern that can increase temperatures and increase risk of extreme weather conditions, could reduce the yields of crops, including cocoa. This would limit supply and push up prices. Hein Schumacher, CEO of Hein Schumacher, said in a press conference that the prices shouldn't jump as much as they did over the past couple of years. London cocoa futures are trading at PS2,944 per ton ($3,964), down from over PS9,000 in April 2020. Schumacher said that "usually by the end of June and July you can sort of predict what El Nino will lead to." Barry, who was "very carefully" watching the phenomenon, noted the much higher rainfall in Ecuador, and the?much warmer temperatures in West Africa. World Meteorological Organization said that there is a 80% chance of an El Nino developing between June and August and a 90% probability it will last at least until November. El Nino occurs naturally every 2 to 7 years when weakening winds in the east Pacific cause surface water warming. This can cause higher temperatures around the world and disruptions to rainfall patterns, resulting in droughts and heavy rains in different regions. IRAN WAR-RELATED FUELS COSTS Schumacher said that he expected fuel to be the most affected by the war in the Middle East. Barry is concerned about the overall cost of next year. He said, "(Fuel has) a direct and indirect impact on our operations and on demand. We need to see how we can and want to mitigate that."
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 one quarter of its operating costs.
Here is an alphabetical list of the ways airlines are responding to this issue:
AEGEAN AIRLINES
The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "significant impact" on their first-quarter earnings.
AIRASIA X
Malaysian Airlines'?executives stated 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. The four flights from JFK International Airport to be cut between June 1, 2026 and October 25, 2026.
AIR FRANCE-KLM
The airline group announced that it would increase the price of?long-haul tickets to offset rising fuel costs. Cabin fares will rise by 59 euros (50 euros) per round trip.
KLM, the Dutch arm of the group, announced on April 16 that it would cancel 160 flights across Europe due to rising fuel prices.
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.
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 first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets.
AIR TRANSAT
The Canadian airline announced that it would reduce its planned capacity by 6 percent from May to October of this year. Cuts are expected to be made on routes to Europe, the Caribbean, and Cuba.
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 airline retracted its profit forecast for the full year and warned that margins would be severely impacted by the sharp increase in fuel prices. It has also reduced capacity in certain markets.
AMERICAN AIRLINES
U.S. airline announced that it will increase the fees for checked baggage by $10 for each of the first two bags and $150 for the third bag for domestic and short-haul flights. The airline also reduced certain benefits for passengers in economy class.
ASIANA AIRLINES
Newsis reported that the South Korean airline would cut 22 flights from April to July because of fuel price increases.
CATHAY PACIFIC
According to a termsheet seen on Wednesday, the airline raised HK$2,08 billion ($265,58 million) by issuing three-year fixed rate notes with a yield of 3.78%.
CEBU AIR
The Philippines-based carrier said that the sharp rise 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
The airline announced that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800 km will be charged a 60-yuan fee ($9), while flights above 800 km will be charged a 120-yuan charge.
DELTA AIR LINES
Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and raise 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 forecast profits below Wall Street expectations.
EASYJET
EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds (729 and 756 million dollars), which includes 25 million pounds of extra fuel costs for March.
FRONTIER AÉRIENS
Fuel prices have risen significantly since the airline's last forecast, prompting it to review its full-year outlook.
GREATER BAY Airlines
The Hong Kong-based firm said that it will increase fuel surcharges for most routes starting April 1, but keep them the same on routes to mainland China and Japan.
HONG KONG Airlines
Fuel surcharges will be increased by up to 35 percent on flights from Hong Kong to the Maldives, Bangladesh, and Nepal.
British Airways' owner IAG stated in March that it did not intend to increase ticket price immediately as it had hedged a large amount of fuel for the short to medium term.
INDIGO
India's largest airline announced that it will introduce fuel charges for domestic and international flights starting March 14. The charge for flights into the Middle East is 900 rupees and for flights into Europe, 2,300 rupees.
JETBLUE AERWAYS
Joanna Geraghty is the CEO of the low-cost airline based in the United States. She told her employees, via a memo, that she would not be considering bankruptcy this year despite the fact that rising jet fuel prices threaten the financial recovery. According to a SEC filing, the company has entered into a debt financing agreement worth $500 million.
KOREAN AIR
Sources with knowledge on the subject say that South Korean carriers will be forced to enter emergency mode in April due to rising fuel prices.
LUFTHANSA
The airline group announced that 20,000 short-haul flight would be removed from the schedule until October. This is equivalent to 40,000 metric tonnes of jet fuel. The German company had previously announced that it would be grounding 27 aircraft servicing its CityLine short-haul subsidiary earlier than expected.
PAKISTAN INTERNATIONAL FLIGHTS
Fuel surcharges are cited as the reason for raising domestic fares up to $20 and international flights by up $100.
QANTAS AIRWAYS
Qantas, an Australian airline, said that it has delayed a planned A$150-million ($107-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5-billion to A$3.1-3.33 billion.
After cancelling "couple hundred flights" in March, the Scandinavian airline announced that it would cancel 1000 flights in April due to high fuel and oil prices.
SPIRIT AIRLINES
Air Current cited people familiar with the situation to report that the U.S. low cost carrier requested hundreds of millions in emergency funding from the Trump administration to offset the rising fuel prices and prevent a potential liquidation.
SPRING AIRLINES
Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES
Fuel prices have impacted the margins of this American airline, which has forecast a second-quarter loss below expectations. The airline had previously announced that it would increase the cost of checked bags by $10 each for the first and the second bag. This will bring the total to $55 and $45 respectively.
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.
The European airline, tour operator and travel agency cut their full-year underlying profit outlook and suspended revenue forecasts, claiming that they had incurred extra costs of about 40 million euros due to the March war, including repatriation and operational disruptions.
TURKISH AIRLINES LUFTHANSA
SunExpress is a joint venture of Turkish Airlines and Lufthansa. It announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and the Middle East, 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 opting to "retain earnings in order to preserve cash".
T'WAY AIR
As part of the 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. airline, said that ticket prices could rise as much as 15% to 20% in order to offset an increase in jet fuel costs. The company has already implemented five fare hikes late in the first-quarter, along with increased baggage fees that it says have begun to offset rising fuel prices.
The carrier forecast that it would also make profits in the second and third quarters below Wall Street expectations. It said they expected to recover just 40-50% of fuel price increases through fares in the second, but 70-80% by the third.
VIETJET
Vietnamese budget airline has announced that it has adjusted flight frequencies on certain routes due to possible fuel shortages.
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 environmental 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.
VOLOTEA
The Spanish low cost airline has introduced a new pricing strategy that links ticket prices with fuel costs. This could add an additional surcharge after purchase of up to fourteen euros per passenger per flight.
The Globe and Mail reported that WESTJET, a Canadian airline, has reduced seat capacity in June. The Canadian Press reported previously that the airline would add C$60 ($44.50) to certain bookings, and combine flights due to rising costs.
(source: Reuters)