Travel News

(Bloomberg) --

The price for Britain’s motorists to fill up their cars with diesel reached a fresh high, in another blow to consumers grappling with the nation’s cost-of-living crisis.

The average UK diesel price rose to a record 180.29 pence ($2.24) per liter on Sunday, up from a previous high of 179.9 pence on March 23, according to the RAC, the country’s main motoring organization.

Despite the government announcing a cut of five pence per liter to fuel duty until next March, UK diesel prices at the pump have risen following a decision to ban all shipments of Russian oil. One-third of Britain’s diesel imports come from Russia, meaning that shunning Moscow’s crude has put further upward pressure on energy prices at a time when Britons are already grappling with soaring inflation.

“Efforts to move away from importing Russian diesel have led to a tightening of supply and pushed up the price retailers pay for diesel,” RAC fuel spokesperson Simon Williams said Monday in a statement. “While the wholesale price has eased in the last few days this is likely to be temporary, especially if the European Union agrees to ban imports of Russian oil.”

EU foreign ministers are meeting in Brussels on Monday to discuss the next round of sanctions on Russia in response to its invasion of Ukraine. The bloc’s diplomats have floated a delay in the phased-in oil ban after Hungary objected, saying the step would be too damaging to its economy. 

The price of gasoline, known as petrol in the UK, has also risen since the start of May, averaging 166.65 pence at the start of this month. That’s just below a record high of 167.3 pence reached on March 22, according to RAC data.

(Bloomberg) -- Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing markets.

Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the Canadian Real Estate Association. The number of sales, meanwhile, plunged 12.6%.

The shift is coming as the Bank of Canada embarks on an aggressive campaign of rate increases to fight inflation running at a three-decade high. Markets are betting that the policy interest rate, which began the year at 0.25%, will have to rise to 3% over the next year.

The sharp jump in Canadian home prices since the pandemic -- they’re up 24% over the past 12 months -- was partly driven by emergency-low rates that helped the economy through the Covid-19 crisis. But now rate increases have left the nation’s housing market looking increasingly vulnerable.

“Following a record-breaking couple of years, housing markets in many parts of Canada have cooled off pretty sharply over the last two months, in line with a jump in interest rates and buyer fatigue,” Jill Oudil, chair of the real estate association, said in a news release accompanying the data.

An inflationary surge is being seen around the world as supply chain problems combine with higher commodity prices caused by Russia’s invasion in Ukraine. Assets from stocks to bonds to cryptocurrencies have plunged in recent weeks as policymakers everywhere scramble to drain stimulus from the economy and get consumer prices under control. A separate release Monday showed Canadian consumer confidence posting its sharpest weekly drop since April 2020.

In the housing market, last month’s price declines were heaviest in the smaller communities around Toronto that saw some of the steepest gains through the pandemic as remote work allowed buyers to look further afield. The suburbs of Oakville and Milton saw benchmark prices decline 5.6% in April from the month before, while prices in the city of London, Ontario, about a two hour drive from Toronto, declined 4%, the data show.

The slowdown in sales activity, meanwhile, was broad-based, with 80% of local markets nationwide posting a monthly decline in transactions, the data show.

Ian Soucy, a realtor in Ottawa, said he’s been surprised by how much the market has cooled this spring. “Buyers are hesitant, just with the unknown of the interest rates rising,” Soucy said, pointing to the likelihood of another 50-basis-point hike in June. Entry-level townhomes that were “flying off the shelves” as recently as a couple months ago are now sitting on the market for a few weeks, he said.

Nevertheless, even in the midst of the current slowdown Canada’s housing market remains historically tight.

The country has just 2.2 months of inventory available right now, compared to a longer term average of five months, the data show. But this metric has been moving up, and the ratio of sales to new listings -- another measure of market tightness -- fell to 66.5% in April. In its release, the real estate board said that ratio was approaching a level traditionally signaling the market is shifting to buyers from sellers.

“After 12 years of ‘higher interest rates are just around the corner,’ here they are,” Shaun Cathcart, the real estate board’s senior economist, said in the press release. “But it’s less about what the Bank of Canada has done so far. It’s about a pretty steep pace of continued tightening that markets expect to play out over the balance of the year.”

(Updates with more detail from 7th paragraph.)

(Bloomberg) -- More people are flying in premium cabins for leisure trips despite airfares rising on surging oil prices and demand, and that’s helped offset a slower recovery in business travel, according to the International Air Transport Association. 

“There’s a strong pent-up demand for travel,” IATA Director General Willie Walsh told reporters in Singapore on Monday. “Consumers had disposable income during the two years of the pandemic. People have, consumers have, saved and therefore they are prepared to spend that money.”

Travel Giant TUI Predicts Profit as Dash for Beach Picks Up 

A quick recovery is crucial for global aviation, one of the industries hardest hit by the pandemic as governments shut borders and the skies emptied. While travel has started picking up in most markets, some countries, particularly in the Asia-Pacific region, have yet to fully open up. 

China, for example, is tightening Covid-related restrictions again and discouraging citizens from flying, putting a significant dent in global tourism. 

“It’s clearly disappointing that China is pursuing this Zero Covid approach,” Walsh said. The country was a very “strategically important market where a lot of airlines were looking at growth opportunities. I think airlines will be reassessing that, given the continued closure of the borders in China.”   

China Faces Bleak Holidays as Covid Zero Disrupts Travel 

The war in Ukraine has added another challenge for airlines, as sanctions against Russia have pushed up oil prices by limiting supply, meaning the single-biggest cost item on their balance sheets has become even more of a burden. That has forced airlines globally to raise ticket prices. 

“Given the financial performance of airlines, there’s just no way an airline can absorb that additional cost,” Walsh said. “It’s inevitable that those higher oil prices will find their way through to consumers in the form of higher ticket prices.”

By Lawani Mikairu

Domestic airline operators, under the aegis of  Airline Operators of Nigeria, AON, yesterday said they may resort to flight cancellation and delays as aviation fuel scarcity persists.

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The operators said this in a statement signed by AON spokesman, Dr Obiora Okonkwo. 

AON: Disaligned and far behind the front lines
The statement, titled ”Public notice: Disruptions in flight operations”, yesterday read : “The Airline Operators of Nigeria wish to alert the public of impending disruptions to scheduled flight operations of members of the association.

 
” This development is being forced on members by the growing scarcity of aviation fuel popularly known as Jet-Al. The scarcity is impacting negatively on the seamless conduct of air transport operations and would lead to flight rescheduling, and, or, cancellations.

“However, the association and its members are working very hard, and in alliance with product marketers, government and relevant stakeholders, to ensure availability and proper pricing of aviation fuel in the country.

 
“While pleading the understanding of the flying public in the face of this reality, we also promise to do all that is necessary, and within our powers, to restore normal flight schedules as soon as possible,” the airlines Spokesman promised.

Recall, AON  members had threatened to shut down flight operations two weeks ago due to the high cost of aviation fuel , popularly called Jet A1. But the intervention of the federal government and stakeholders made the members call off the planned action at the last minute.

Among other things, consular services and visa processing at the U.S. embassy in Havana are to be stepped up again.

The United States is easing travel restrictions on Cuba, the Biden administration said Monday evening.

Among other things, consular services and visa processing at the U.S. embassy in Havana are to be stepped up again to allow more Cubans to enter the U.S. to see relatives.

The previously applicable upper limit for transfers of money from the U.S. to relatives in Cuba will be lifted.

This should lead to a slight increase in travel between the two countries.

In addition, the Cuban private sector is to have better access to American internet services and e-commerce platforms.

In a statement, the Cuban Foreign Ministry called the decision a “limited step in the right direction.”

However, this did not change anything about the U.S. embargo against Cuba or the central “economic siege measures” of former U.S. President Donald Trump, the ministry in Havana asserted.

At the end of April, the U.S. and Cuba held direct talks on migration at a high diplomatic level for the first time in four years.

Among other things, the implementation of existing immigration agreements was discussed.

The Cuban Ministry of Foreign Affairs had criticised, among other things, that the United States was not adhering to a bilateral agreement that guaranteed 20,000 visas for Cubans annually.

A senior U.S. government official has now said that this number should be reached as soon as possible.

Former U.S. President Donald Trump’s administration rolled back a U.S.-Cuba detente introduced under his predecessor, Barack Obama.

Mr Trump stepped up sanctions on Cuba, including a ban on former president Raul Castro from entering the U.S., and limiting remittances to the island.

NAN

BY  Opeoluwani Akintayo  and Funmi Fabunmi

…FG links shortage to global scarcity, AON warns of flight disruptions

Oil marketers have said the bulk of the aviation fuel in their stock is on reserve for foreign airlines, saying there is a need to abide by the contractual supply agreement signed with the international carriers.

They spoke against the backdrop of the aviation fuel scarcity currently affecting domestic airline operators which have told their customers to prepare for imminent flight disruptions.

According to the Airline Operators of Nigeria, the umbrella body for local airlines, the lingering aviation fuel scarcity is negatively impacting local airline operators.

In a statement, they said, “The AON wishes to alert the public of impending disruptions to scheduled flight operations of members of the association. This development is being forced on members by the growing scarcity of aviation fuel popular as Jet-Al.

“The scarcity is impacting negatively on the seamless conduct of air transport operations and would lead to flight rescheduling, and, or cancellations.

“However, the association and its members are working very hard, and in alliance with product marketers, government, and relevant stakeholders, to ensure availability and proper pricing of aviation fuel in the country.”

According to the Executive Secretary, Major Oil Marketers of Nigeria, Clement Isong, oil marketers may not be able to help local operators as they already have contracts with international airlines.

He added that local airline operators only patronise their members when it is convenient.

He said, “We have contract customers who are international airlines. These people sign business agreements with us over some years.

“So, if I have a contract that allows me to recover my costs, I will do all it takes to keep products in my tank for such an airline. But local airlines don’t sign contracts with us. They come to us only whenever it is convenient for them. So, in times of scarcity like this, even if he offers me N1000 per litre, and I have a contract for maybe N500 per liter.

“I will still not sell to local airlines because I have to satisfy my regular customers who keep me in business all year round. So, those who have products are reserving them for their loyal customers and not ad hoc customers.”

According to Isong, foreign airlines pay for their product in dollars and do not owe money. He stated that the current scarcity of aviation is global, and other African countries are struggling as well.

He said, “Most of the ATK in the world is being refined in Russia, and you know the country is currently at war and can’t refine. So that is why the price is currently high.”

He added that foreign airlines base their calculations on PLATTS plus Premium and margins which is good for the oil marketers.

The National Operations Controller, the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, said the reason for the present hike in the price of aviation fuel includes supply shortage, an increase in crude oil prices, and a high dollar exchange rate to naira at the black market.

He said, “One thing is that aviation fuel is not regulated so, the landing costs, crude price, and black market exchange rate is being decided by the international market. The government does not subsidise aviation fuel.

“Supply is the problem. No supply and you know that if the aviation sector shuts down then, the whole country will be down.”

According to Osatuyi, the price of aviation fuel is different depending on the transportation cost of taking the product to a different state.

According to findings, the product was sold in Lagos on Monday at N598 per litre, N642 in Kano, N640 in Kaduna, N627 in Abuja, N635 in Enugu and Anambra and N628 in Port Harcourt.

The Minister of Aviation, Hadi Sirika, who spoke at the ongoing seventh Africa-Indian Ocean Aviation Week in Abuja, attributed the high cost and scarcity of Jet A1 in Nigeria to the high demand for crude oil, and the ongoing Russian-Ukraine war.

Sirika said, “There is huge demand, and the population of the world is increasing. There is a huge demand for these products.

“It is not peculiar to Nigeria. It is worse in other countries in terms of pricing and availability. So, it is something we have to live with, and I am sure they understand that.”

In the past few weeks, domestic airlines have complained about the spike in the price of aviation fuel and had threatened to withdraw their services.

Ryanair (RYA.IR) has warned that its prices for summer bookings are set to rise due to high demand for European beach holidays.

After reporting a 27% drop in the cost of average fares, Michael O’Leary, boss of the budget airline, said on Monday that he now expects prices for flights to increase by “a high single-digit percent”.

It came as Europe’s largest carrier posted a €355m (£302m, $370m) annual loss as Russia’s invasion of Ukraine, the Omicron variant, and a cost of living crisis took its toll. However, this was down from a previous loss of €1bn.

Although the loss was smaller than expected, the current geopolitical tension has driven up the price of oil over recent months, affecting the cost of jet fuel, as well as causing supply disruptions.

“This recovery remains fragile. We see a very strong recovery of traffic into the summer this year. But we have been scarred by the Omicron variant which crashed Christmas and the invasion of Ukraine, which crashed travel plans for Easter as well,” O’Leary said.

"If there are any adverse news flows on COVID or Ukraine this recovery could be threatened again."

He added that ongoing delays at airports such as Heathrow and Manchester were going to be likely, thanks to staff shortages.

“There’s no doubt getting through airports this summer is going to be challenging and we’re encouraging all of our customers to show up earlier to allow more time to get through airport security, particularly in Manchester.”

Ryanair’s revenues tripled to €4.8bn in the year to 31 March, compared with the first year of coronavirus lockdowns.

Passenger traffic recovered strongly during the year as it carried just over 97 million guests, up from 27.5 million the year before thanks to the lifting of pandemic restrictions.

It hopes to boost this further to 165 million passengers, ahead of the 149 million record level seen pre-pandemic, and return to “reasonable profitability” in the current financial year.

Shares in the Dublin-based group were down 3% on the back of the news. The stock has declined more than 10% this year as it battles to recover.

By Ejike Ejike

The federal government has directed the resumption of the Abuja-Kaduna Train Services (AKTS) on May 23, 2022.

The train service is to resume with two trips from 9am to 4pm daily.

Recall that terrorists attacked and bombed a Kaduna bound train about 51 days ago, killing about nine persons and abducting unspecified number of people.

Spokesperson of the Nigeria Railway Corporation (NRC), Yakub Mahmood, said in a statement on Monday that, "as part of the measures to check insecurity, passengers are hereby enjoined to cooperate with the NRC in order to enjoin improved service delivery, safety and comfort by patiently complying with additional measures that will surely be introduced for the safety of our passengers, such as requesting for passengers National Identification Numbers (NIN) as part of our internal security check in addition, presentation of the following must be strictly complied with before boarding the train.

"Valid Photo Identification Card (ID) reachable telephone number of Next of Kin (NOK) or close relative.Online and offline purchase of tickets must contain the passengers individual profile or identification data."

Speaking on the kidnapped victims from the train, the federal government said: "concerted joint effort to secure the safe release of the abducted passengers being held hostage by the terrorists continues out of the public domain for strategic security reasons.

"However, the government wishes to assure the relatives of the abducted citizens still in captivity that the safe rescue of these passengers is a top priority and not to misconstrue the resumption of train services, as abandonment or nonchalant attitude of the government towards their plight.

"The federal government will never abdicate its responsibility in rescuing these valuable citizens, however, the government assures of its resolve not to succumb to threats by any faceless group."

The NRC also said additional security measures were being put in place at both the train stations and the track to ensure the safety of the passengers onboard.

By Alexander Onukwue

West Africa correspondent

Two major domestic airlines in Nigeria have increased the price of local flights from a baseline of 50,000 naira ($120) for economy seats to as much as N58,000 ($139) this week, signaling the industry’s effort to manage an aviation fuel scarcity spanning months.

The airlines threatened to suspend operations last week Monday (May 9) citing increasing cost of operations, but appeared to reach a temporary agreement with sellers of the fuel to buy at a fixed rate, with the intervention of federal lawmakers. For a few days after, N50,000 remained the base fare for prices.

But that has started changing this week with more than 10% increases in some cases, checks for the popular Lagos to Abuja route showed. Among the airlines to raise prices are Air Peace, and Ibom Air, the market leaders.

Nigeiran airlines have raised prices twice in six months

Flight ticket prices have been shooting up in Nigeria since February when airlines doubled prices from what used to be a N23,000 ($55) baseline. Now as then, the pretext was the rising cost of jet fuel, even if airlines also took advantage of increased patronage driven by increased insecurity along Nigerian highways and railway routes.

This week’s hike has not been as uniformly implemented as was the case three months ago. Of the five major local airlines (by number of flights operated in 2021), only Air Peace and Ibom Air have raised prices. Arik Air, Max Air, and Dana Air either still maintain the N50,000 mark or offer trips at lower prices.

Still, it might be only a matter of time before customers of these other companies start seeing price increases as well, owing to the global and persisting nature of the jet fuel issue.

While threatening to down tools last week, Nigerian airlines complained that the actual cost of producing one seat of a flight was N120,000. Raising prices to that may prove too prohibitive for the traveling public, yet that would mean doubling current rates – something airlines have already done once and largely gotten away with.

By Folashade Ogunrinde

The Sabon Gari area in Kano state has been hit by an explosion leaving several people injured with some feared killed.

The explosion was said to have occurred near a primary school on Tuesday.

While details of the cause are still sketchy, visuals from the scene show that it affected some buildings and left several injured including school children.

More to follow…