Money

Will airfares still be expensive in 2024?

Published

2 years ago

September 9, 2023

ticker NEWS

Flights connecting Australia and Europe are set to remain prohibitively expensive until the end of 2024, with a drop in prices expected thereafter, according to the CEO of Flight Centre, Graham Turner.

While travelers eager to reunite with family or soak in the European summer sun might find this timeline less than ideal, Turner emphasized the need for patience. “It’s a long time to wait, and airfares will stay relatively high,” he conceded.

These remarks come on the heels of Transport Minister Catherine King’s promise of imminent reductions in ticket prices. King faced criticism for rejecting Qatar Airways’ application to double their weekly flights to major Australian cities. Turner acknowledged that the proposed increase in Qatar flights wouldn’t have dramatically lowered international airfare costs but viewed it as a step in the right direction.

European vacation

Turner noted that airfares to Asian destinations are poised to become more affordable soon.

However, flights to Europe and the United Kingdom will remain costly due to lower capacity on flights to the Middle East, a vital stopover on routes to Europe. He explained that the demand for these flights is outstripping their limited capacity, thus keeping prices elevated.

Rico Merkert, a Professor in Transport at the University of Sydney Business School, concurred that while prices to Asia are decreasing, the constrained capacity to Europe is preventing a similar trend. He suggested that prices would only fall once full capacity is restored, but financial pressures on Australians and rising jet fuel costs could also influence carriers to reduce prices.

Minister King’s recent aviation green paper highlighted the importance of maintaining aviation capacity ahead of demand. She stated that airline capacity had reached approximately 91% of pre-COVID levels, with more flights planned to help drive down prices.

Despite increased capacity, travelers may face high Christmas travel costs, with Turner stating that a return flight to the UK could cost over $3,000 this holiday season.

Money

Gen Z and millennials surpass boomers in voting power

Gen Z and Millennials outnumber Baby Boomers in Australian elections, signaling potential reforms in taxation and inheritance laws.

Published

4 hours ago

May 13, 2025

ticker NEWS

Gen Z and Millennials outnumber Baby Boomers in Australian elections, signaling potential reforms in taxation and inheritance laws.

For the first time in history, Gen Z and Millennials now outnumber Baby Boomers at the ballot box in Australia, marking a seismic change in the country’s political landscape.

Experts say this electoral milestone could spark major reform debates on taxation, superannuation, and inheritance laws as younger voters prioritise different values.

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Money

Stocks decline as tariffs and trade tensions escalate

Stocks drop as tariffs worry investors; gold hits record high; Canada resists U.S. annexation talk.

Published

6 days ago

May 7, 2025

Ahron Young

Stocks drop as tariffs worry investors; gold hits record high; Canada resists U.S. annexation talk.

In Short:
Stock indexes declined on Tuesday after a nine-day winning streak, while gold prices soared amid economic concerns. Major companies like Ford and Mattel adjusted forecasts due to tariff impacts, and the trade deficit hit a record high of $140.5 billion.

Stock indexes fell on Tuesday, following declines in the Dow and S&P 500 after a nine-day winning streak.

Gold prices reached a new record as markets reacted to ongoing economic concerns.

The downturn persisted following a meeting between Canadian Prime Minister Mark Carney and President Trump, where Carney rejected any notion of Canada being for sale.

Investors showed continued apprehension about the impact of U.S. tariffs and the absence of new trade agreements, particularly as major companies like Ford and Mattel suspended annual guidance due to tariff uncertainties.

Ford impact

Ford, while less affected than competitors, estimated potential tariff impacts could reduce profits by $1.5 billion, prompting a 2.8% increase in its stock.

In contrast, Mattel’s stock rose by 2.6% after it signalled a potential increase in U.S. toy prices, anticipating a $270 million hit from tariffs, while also planning to move manufacturing from China.

Both WK Kellogg and Marriott International adjusted their financial forecasts downward due to tariff-related challenges and broader economic uncertainties.

Clorox shares fell sharply after the company updated its guidance to reflect tariff impacts.

Additionally, President Trump indicated he would announce the details regarding pharmaceutical tariffs within two weeks.

On a related note, new data revealed the trade deficit reached a record $140.5 billion in March, exceeding economists’ expectations and reflecting a surge in imports amid trade policy changes.

Money

Trump’s tariffs impact S&P 500 and Nasdaq markets

S&P 500 and Nasdaq decline amid Donald Trump’s new tariffs announcement, raising investor concerns ahead of Fed policy meeting.

Published

1 week ago

May 6, 2025

Ahron Young

S&P 500 and Nasdaq decline amid Donald Trump’s new tariffs announcement, raising investor concerns ahead of Fed policy meeting.

In Short:
The S&P 500 and Nasdaq fell slightly after President Trump’s 100% tariff on foreign films, with investors worried about market effects ahead of the Federal Reserve’s policy decision. Despite some stocks performing well, overall market volatility and concerns over corporate profitability continue.

The S&P 500 and Nasdaq experienced slight declines on Monday following President Donald Trump’s announcement of a 100% tariff on foreign-produced movies.

Investors are assessing how this new tariff will impact the market ahead of the Federal Reserve’s monetary policy decision later this week.

The major indices have shown volatility since Trump initiated tariffs on April 2, briefly dropping 15% before recovering in the following sessions.

Treasury Secretary Scott Bessent expressed confidence that Trump’s tariff and tax agenda would stimulate long-term investments in the U.S., despite expected short-term market fluctuations.

Markets drop

The Dow Jones Industrial Average increased by 104.18 points, while the S&P 500 decreased by 9.60 points and Nasdaq fell by 39.60 points.

Despite Trump’s announcement, some media stocks showed resilience, while energy stocks suffered losses amid OPEC+ output hikes.

Investors await the Federal Reserve’s upcoming policy announcement, where rates are anticipated to remain unchanged, though future cuts are being priced in for 2025.

Corporate profitability concerns persist due to the new tariffs, evidenced by Tyson Foods’ significant revenue miss, while Skechers reported gains following its plan to go private.