Money

Airlines are spooked about the sudden rise in fuel costs

Published

2 years ago

September 7, 2023

ticker NEWS

Southwest Airlines revealed concerns about softer August leisure bookings and joined two other major US airlines in issuing warnings regarding higher fuel costs anticipated in the third quarter due to a surge in crude oil prices.

The largest domestic carrier in the United States reported that August bookings fell within the lower end of its expectations, citing seasonal trends as one of the contributing factors. Nevertheless, the airline emphasized that overall leisure demand and yields remain robust.

In premarket trading, shares of Southwest declined by 4% before partially recovering to close down 2.6% at $29.97.

This announcement comes at a time when early indications suggest a weakening in domestic travel demand, with rising inflationary pressures impacting consumers. Meanwhile, airlines are facing challenges in retaining workers due to costly labor contracts.

United Airlines and Alaska Air Group have also voiced concerns about elevated fuel expenses in the current quarter, as crude oil prices recorded a third consecutive monthly increase in August, signaling a tightening supply.

In a regulatory filing, United Airlines noted that jet fuel prices have surged by over 20% since mid-July.

Regarding recent speculation, Southwest Airlines confirmed that it has no immediate plans to relocate its headquarters from Chicago to Denver, despite the purchase of 113 acres of land in Denver. The airline’s Finance Chief, Gerald Laderman, conveyed during the TD Cowen Transportation Conference that the primary focus is on expanding the flight training center in Denver.

Lower expectations

While Southwest maintains its outlook for a “solid (third-quarter) profit,” the airline has revised its expectations for revenue per available seat mile, a key indicator of pricing power, to a projected decline of 5% to 7%. This revision is compared to the previous forecast of a decline ranging from 3% to 7%.

Alaska Air anticipates a quarterly adjusted pre-tax margin of 10% to 12%, which is lower than the previously anticipated range of 14% to 16%.

It is important to note that most US airlines do not typically hedge against fuel costs, making them susceptible to the fluctuations in fuel prices.

Citi Research analyst Stephen Trent remarked, “The relatively quick up move in fuel has given the industry little time to respond through fares.”

[Keywords: Southwest Airlines, United Airlines, jet fuel costs, crude oil prices, domestic travel, labor contracts, revenue, headquarters relocation]

Money

Gold plunges as investors react to Middle East ceasefire

Gold prices fall over 2% to below $4,000, as investors shift from safe-haven assets after Gaza ceasefire news.

Published

2 days ago

October 10, 2025

ticker NEWS

Gold prices fall over 2% to below $4,000, as investors shift from safe-haven assets after Gaza ceasefire news.

Gold prices have fallen sharply, dropping over two per cent to below $4,000 per ounce, as investors took profits following the announcement of a Gaza ceasefire agreement. The deal between Israel and Hamas triggered a shift away from safe-haven assets, with silver and platinum also sliding.

The U.S. dollar strengthened as markets responded to the news, making precious metals more expensive for foreign buyers. Analysts say the pullback is likely temporary, with long-term demand for gold and silver expected to remain strong amid global instability and rising debt levels.

Market experts warn that volatility will continue as geopolitical tensions persist, even as short-term optimism grows around the Middle East peace process.

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Money

Gold and silver prices drop after Gaza ceasefire

Gold dips below $4,000/oz amid profit-taking and Gaza ceasefire; silver also softens from record highs

Published

2 days ago

October 10, 2025

Ahron Young

Gold dips below $4,000/oz amid profit-taking and Gaza ceasefire; silver also softens from record highs

In Short:
– Gold prices fell over 2% to below $4,000 per ounce due to a stronger dollar and profit-taking.
– Silver eased to $48.93 per ounce, influenced by market activity and ongoing high demand despite supply issues.

Gold prices fell over 2% on Thursday, dropping below $4,000 per ounce. The decline followed a strong rise earlier in the year and was influenced by a stronger dollar and profit-taking after a ceasefire deal between Israel and Hamas.Spot gold decreased to $3,959.48 per ounce, while U.S. gold futures for December delivery settled at $3,972.6.

Silver also experienced a slight decline, easing from its record high to $48.93 per ounce. The dollar index increased, making gold more expensive for overseas buyers.

Traders noted increased activity in the market as profit-taking coincided with reduced tensions in a historically volatile region.

An independent metals trader stated that while gold and silver may need to consolidate further, the underlying demand drivers remain intact.

Market Overview

Gold surpassed $4,000 per ounce on Wednesday, reaching $4,059.05, boosted by geopolitical tensions and strong demand from central banks. The asset has gained about 52% this year, reflecting a significant increase due to various economic factors. The U.S. central bank’s decision to cut rates in September also contributed to the rally, with expectations for future cuts in the coming months.

Silver’s price increase of 69% this year is tied closely to similar economic trends impacting gold. Notably, liquidity issues in the silver market are being exacerbated by strong demand and tight supply conditions. Other precious metals, such as platinum and palladium, also saw declines during this period.

Money

North Korean hackers steal $2 billion in crypto

North Korean hackers steal over $2 billion in cryptocurrency, marking the largest annual total in history

Published

3 days ago

October 9, 2025

Ahron Young

North Korean hackers steal over $2 billion in cryptocurrency, marking the largest annual total in history

In Short:
– North Korean hackers stole over $2 billion in cryptocurrency in 2025, nearly tripling last year’s total.
– A shift to social engineering tactics has led to increased targeting of high-net-worth individuals for cyber attacks.

North Korean hackers have reportedly stolen over $2 billion in cryptocurrency assets in 2025, setting a record with three months still left in the year.

Data from blockchain analytics firm Elliptic indicates that this amount nearly triples the total stolen last year, accounting for approximately 13% of North Korea’s estimated GDP and raising the regime’s total crypto theft to over $6 billion since 2017.

A significant portion of the 2025 theft is attributed to the February hack of cryptocurrency exchange Bybit, which amounted to $1.46 billion.

The FBI has linked this breach to state-sponsored North Korean hackers, who exploited weaknesses in Bybit’s wallet management system. More than 30 additional cyber attacks have also been associated with North Korea this year, including notable breaches at LND.fi and WOO X.

Shift In Tactics

A shift in methodology among North Korean hackers has been observed, as they now focus on social engineering rather than technical exploits. According to Elliptic, the primary vulnerability lies with individuals rather than technology.

High-net-worth individuals and corporate executives are increasingly targeted due to their relatively weaker security measures.

The hackers utilise deceptive tactics, including phishing schemes and fake job offers, to access private cryptocurrency wallets. Intelligence reports suggest that the stolen funds are used to finance North Korea’s nuclear programmes.

The regime has also improved its money laundering techniques by employing various cryptocurrencies and mixing methods to obscure fund origins. Blockchain analysts are actively tracking these stolen assets, with notable progress achieved in identifying recoverable funds.