Alphabet Inc’s global bond sale this week underscored the high level of investor demand for the major AI hyperscalers, but raised concerns about the debt’s lack of protections for existing and future bondholders.
Google parent Alphabet raised $31.51 billion across U.S. dollar, sterling and Swiss franc bond markets in a global bond raise on Monday and Tuesday, as artificial intelligence-driven spending sparks a surge in borrowing at U.S. tech giants.
Alphabet’s bond sale stood out in several ways, including its use of a so-called 100-year “century” bond in the sterling market.
These and other hyperscalers’ recent bond sales have garnered strong reception with Alphabet’s $20 billion U.S. bond sale drawing over $100 billion in demand. But the growing hyperscaler debt pile has raised concerns about their lack of investor protections compared to other bonds.
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“What stands out is what’s missing,” said Julia Khandoshko, the CEO of Cyprus-based broker Mind Money. “Once a big name gets covenant-light terms through, others will try the same.”
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“Naturally, that creates a second-market problem, where the next buyer has fewer ‘rules’ to rely on, while prices will swing more on rates, mood, and liquidity,” she added. Investment-grade borrowers with strong credit profiles typically include fewer covenants in debt agreements than their junk-rated counterparts. Yet most include basic investor guardrails, especially a standard change-in-control covenant protecting investors in the event of M&A or another change in ownership. Alphabet’s bonds do not carry these protections, noted Anthony Canales, head of global research at New York-based Covenant Review.
The five major AI hyperscalers – Amazon, Alphabet, Meta, Microsoft, and Oracle – issued $121 billion in U.S. corporate bonds last year, according to a January report by BofA Securities. Alphabet and Amazon did not respond to requests for comment, while Oracle, Meta and Microsoft declined to comment.
Oracle’s $25 billion note offering on February 2, and Meta’s $30 billion bond offering in October, similarly lacked change-in-control and other basic covenants, Canales noted.
“In most IG covenant packages you would expect to see a change-in-control covenant,” Canales said. “But these are huge companies where the investors don’t believe there’s great risk they’ll need these protections.” Future tech issuers, especially smaller and lower-rated companies, could run into obstacles if they attempt to model their covenants after Alphabet, he added.
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New debt issuance in 2026 from the five major hyperscalers could reach more than $300 billion as their spending needs around AI buildout increase, BofA Securities analyst Tom Curcurro wrote in a January 12 report. “This massive AI infrastructure buildout requires so much capex from the hyperscalers that they want to reduce the technical impact on their bonds,” said Jordan Chalfin, senior analyst at the New York-based research firm CreditSights, noting the benefits to issuers from flexible covenant structures.
Rapala VMC Corporation (RPNMF) Q4 2025 Earnings Call March 12, 2026 5:00 AM EDT
Company Participants
Tuomo Leino – Executive VP, General Counsel, Head of Sustainability & Secretary of the Board Cyrille Viellard – President & CEO Miikka Tarna – Chief Financial Officer
Conference Call Participants
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Joonas Häyhä – OP Corporate Bank plc, Research Division
Presentation
Tuomo Leino Executive VP, General Counsel, Head of Sustainability & Secretary of the Board
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Welcome to this Investor Relations call of Rapala VMC Corporation covering the Full Year 2025. My name is Tuomo Leino, and I am here with President and CEO, Cyrille Viellard.
Cyrille Viellard President & CEO
Good morning, everyone.
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Tuomo Leino Executive VP, General Counsel, Head of Sustainability & Secretary of the Board
And CFO, Miikka Tarna.
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Miikka Tarna Chief Financial Officer
A very good morning to you all.
Tuomo Leino Executive VP, General Counsel, Head of Sustainability & Secretary of the Board
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We will first hear from Cyrille and after that, Mikika will go through the key figures. After the presentations, we are open to questions. So, without further ado, Cyrille, if you may.
Cyrille Viellard President & CEO
Thank you, Tuomo, and thank you very much to all of you again for attending our call today. It has now been for me 1 year since I have been entrusted with leading Rapala VMC with our global management team. We have delivered what we targeted in 2025 in a highly disrupted trading environment, with fluctuating tariffs and slow consumption in our European markets. We have grown sales. We have improved comparable EBIT and improved our financing situation. So, a big thanks to our global Rapala VMC team for their hard work, passion and dedication.
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If we look, as you see on the chart at the last 5 years, we are back in sales
The modern media landscape would be unrecognizable to brand managers, marketers, and advertising experts from as few as five years ago, let alone ten or more. A slickly-edited digital asset supported by clean copy is not only the baseline expectation for online marketing, but is competing with hundreds of thousands of similar efforts. The online ecosystem is drowning in brands, their marketing efforts, and their intrusive insistence that consumers pay attention. This phenomenon has only grown more pronounced in the age of generative AI, where brands are leaping at the chance to leverage new technology for further digital marketing applications.
The consequence of this is that consumers are, broadly, dismissive and uninterested in large swathes of digital marketing assets. There is simply too much competing information to draw consistent attention, the instant information provided by modern social media has contributed to the ongoing decline of consumer trust, and many brands are eagerly integrating new AI tools for cost reasons rather than their digital marketing efficacy. However, there are a handful of brands that are seeing success in their digital marketing campaigns, and they all share a common core direction: a focus on grounded authenticity and a credible reputation.
Brian Troiano, the CEO of digital marketing agency Rvv Corp in Tampa, Florida, believes that striking the balance of authenticity and new technology is going to be the defining challenge of the digital marketing industry moving forward. As consumers become more values-driven, and technology becomes more powerful and automation-focused, the next decade will be pivotal. The companies that use technology to amplify creativity, personalize experiences, and build real trust with their audiences will be the victors.
“Artificial intelligence will be deeply integrated into every campaign—allowing brands to understand and serve people with incredible precision,” Troiano predicts, “but at the same time, consumers are becoming more discerning. They don’t just want ads; they want authentic connections and brands that align with their values.”
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Connection Through Community
It’s important for brands to get this right; the global digital advertising market is expected to grow to over $786 billion this year, even though scarcely 61% of marketers believe their campaigns are effective. Through shifting trends, a lack of consistent and reliable data, and disruptive changes to established SEO practices, it’s becoming increasingly difficult to create and deliver consistent results in the digital marketing space. The brands that succeed are the ones building personal connections with their audiences, establishing the trust that drives engagement. To stand out and capture the limited attention of consumer audiences, brands need genuine connection.
If connection and authenticity are the game, then social media platforms are the arenas in which they are played, and have been for decades. Whether it be LinkedIn, YouTube, Instagram, TikTok, or Reddit (and beyond), social media continues to dominate considerations for digital marketing; there just aren’t many better places for businesses to connect with their target audiences. Social media analytics—from likes and comments to general clicks and impressions—are one of the most effective ways for brands to track their exposure and online reputation. It’s undeniably effective; as of 2023, social media ads have become the dominant driver of brand discovery for online consumers between the ages of 16 and 24, and that upper range is expected to grow over time, followed closely by word-of-mouth.
Social media allows for brands, be they large corporate entities or individual professionals, to interact with online audiences in a way that differs from the advertisements of yesteryear cable. From sharing customer or client anecdotes, to directly replying to them on social pages, to engaging in the ever-evolving pattern of social media memes, brands and digital marketers can use these spaces to build community and establish a brand reputation. Big name brands like Dove are known for human-forward, genuine campaigns that focus on empathetic messaging, often without any direct product advertising. On the other end of the spectrum, brands like Duolingo and Nutter Butter have developed cult followings on social media for their avant-garde posting strategies and reputation.
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“I’ve learned that people don’t just buy products or services—they buy relationships, integrity, and confidence in your word,” explains Brian Troiano. “Digital marketing and AI are evolving so fast that tools will come and go, but if you develop the fundamentals—understanding people, solving real problems, and communicating with authenticity—you’ll always stay ahead.”
Personal Branding and Leadership
However effective it is, social media is just one channel for digital marketing to pursue, and any single-channel approach is going to be staggeringly ineffective compared to broader approaches. Additionally, while the big brands might have the budget and the team to create new advertisements and run new campaigns on a regular basis, smaller companies and single professionals have to make do with what they’ve got. Personal branding and authentic thought leadership are powerful in today’s social economy, and can make a massive impact on the reputation and perception of any given brand.
Personal branding, leadership, and transparency have become the core pillars of effective digital marketing for the vast majority of companies and individuals, and with good reason. A company is a faceless organization vying for consumers’ attention, care, and money; a compelling thought leader with a platform and clear values is a person with stories, experiences, and value beyond the sales funnel. By building a robust personal brand, professional reputation can become a digital marketing strategy on its own.
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Brian Troiano has seen this firsthand in the growing entrepreneurial scene in his home state of Florida. He’s built and sold multiple companies, and takes passion in instilling others with self-confidence and helping them reach their full potential; he knows firsthand how leadership and branding can affect someone, professional or otherwise.
“I believe a strong professional reputation is built one decision at a time—through consistency, integrity, and a commitment to serve others well,” he says. “As a faith-driven entrepreneur, I strive to let my actions speak louder than my words. That means showing up with excellence, keeping my promises, and treating people with respect whether they’re a client, team member, or competitor.”
A new Fallout game was in development at a Microsoft-owned studio but is now unlikely to be released, veteran journalist Jeff Gerstmann reported, delivering another twist in the long-running saga of the post-apocalyptic franchise under Xbox ownership.
Fallout game
Gerstmann, the former GameSpot editor and co-founder of Giant Bomb, made the claim Tuesday during the latest episode of his podcast, “The Jeff Gerstmann Show.” He said he was aware of an unannounced Fallout project at a studio other than Bethesda Game Studios that “I think is no longer going to see the light of day.”
No details emerged about the project’s scope, genre or which of Microsoft’s first-party studios was involved. Gerstmann did not specify whether it was a mainline entry, a spin-off or something smaller, such as a mobile or live-service title. Microsoft and Bethesda have not commented on the report.
The revelation arrives as the Fallout series enjoys unprecedented popularity fueled by Amazon Prime Video’s hit television adaptation. Season 2 of the show concluded without the game announcements many fans anticipated, including rumored remasters of “Fallout 3” or “Fallout: New Vegas.” Instead, the only recent gaming update was a content patch for the live-service title “Fallout 76.”
Gerstmann’s comments came in the context of broader discussion about how Bethesda handles its flagship franchises. He suggested that studio head Todd Howard and the team prefer to expand internally rather than hand major Fallout or Elder Scrolls projects to other Microsoft studios.
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“I think Todd Howard and the team probably have a pretty firm grasp of what they want to do with those specific franchises, and instead of assigning that stuff to another team, it would be more likely for them to staff up at Bethesda Game Studios,” Gerstmann said. He added that remakes, including one for “Fallout 3,” are likely being handled by external developers, similar to how Virtuos developed the recent “The Elder Scrolls IV: Oblivion” remaster.
The news fits a pattern of shifting priorities at Xbox following Microsoft’s 2021 acquisition of ZeniMax Media, Bethesda’s parent company, for $7.5 billion. Since then, the gaming giant has faced multiple rounds of layoffs and project cancellations, including the high-profile shutdown of The Initiative studio and its “Perfect Dark” reboot, as well as ZeniMax Online’s unannounced sci-fi MMO codenamed Blackbird.
Earlier reports in 2025 indicated Microsoft redirected resources from canceled projects toward the Fallout franchise. Fallout 5 was reportedly “fully greenlit,” with development expected to ramp up after “The Elder Scrolls VI” advances further. Bethesda has confirmed multiple Fallout projects are underway, though details remain scarce.
The original Fallout games launched in 1997 and 1998 from Interplay Entertainment, establishing the series’ signature blend of retro-futuristic satire, open-world exploration and dark humor. Bethesda acquired the rights in 2007 and released “Fallout 3” in 2008, a critical and commercial success that sold millions and introduced the series to consoles on a grand scale.
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“Fallout: New Vegas,” developed by Obsidian Entertainment (now also under Microsoft), followed in 2010 and remains a fan favorite for its writing and choice-driven storytelling. “Fallout 4” in 2015 and the controversial online spin-off “Fallout 76” in 2018 expanded the universe further, despite launch issues with the latter that Bethesda has since addressed through years of updates.
The Amazon series, which premiered in 2024 and returned for Season 2 in 2025, dramatically boosted interest. Viewership numbers propelled “Fallout 4” and “Fallout 76” back onto sales charts, with permanent increases in player bases reported across platforms. Howard has publicly stated that Bethesda is working on “even more Fallout” and that the next mainline game will incorporate elements inspired by the show.
Yet fans have grown impatient for concrete news. Social media buzzed after Season 2’s finale, with many expecting a “Fallout 3” remaster announcement that never materialized. Recent toy listings online appeared to reference the remaster project, reigniting speculation, while a tweet from Iron Galaxy Studios — a studio that previously worked on Fallout titles — turned out to promote only a “Fallout 76” update.
Industry observers note that Microsoft’s strategy appears focused on protecting Bethesda’s core vision. By staffing up internally for new entries and outsourcing remakes, the company avoids diluting the creative direction that has defined the series since “Fallout 3.” Obsidian’s success with “New Vegas” proved external teams can deliver quality Fallout content, but Gerstmann’s report suggests Microsoft is not repeating that model for unannounced projects.
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The canceled project’s fate remains unclear. It could have fallen victim to budget constraints, shifting corporate priorities or creative differences — common reasons for unannounced cancellations in the industry. Microsoft has not disclosed any recent studio closures tied to Fallout development.
Bethesda continues to support “Fallout 76” with seasonal events and new storylines, keeping the online world active. Rumors persist of a “Fallout: New Vegas” remaster or enhanced edition, potentially developed externally, which could arrive sooner than a full sequel.
Fallout 5, whenever it materializes, is years away. Howard has emphasized that the studio’s primary focus remains “The Elder Scrolls VI,” with Fallout 5 entering full production afterward. The delay has not dampened enthusiasm; the franchise’s cultural footprint — from memes about Nuka-Cola to debates over the best power armor — continues to grow.
Microsoft’s broader Xbox strategy includes a push into more first-party releases in 2026, with titles like the next “Gears of War,” “Halo” and “Fable” on the horizon. Fallout’s absence from that slate underscores the challenges of managing a portfolio after years of aggressive acquisitions and cost-cutting.
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Gerstmann’s track record lends weight to the claim. As a longtime industry voice with deep connections, his off-the-cuff podcast remarks often preview developments later confirmed through official channels. Still, without corroboration from Microsoft or Bethesda, the report remains unverified.
Fans took to forums and social media Wednesday expressing disappointment mixed with cautious optimism. Many pointed to the TV show’s success as proof the franchise has legs, hoping internal staffing at Bethesda will yield stronger results than a rushed external project might have.
As of March 12, 2026, no further details have emerged. Microsoft’s next major gaming showcase could provide clarity, but history suggests Fallout announcements arrive on Bethesda’s timeline, not Xbox’s quarterly calendar.
The series that began as a niche PC RPG has become one of gaming’s most resilient brands. Whether the reported cancellation represents a minor footnote or a missed opportunity, the wasteland endures — and players remain ready for whatever comes next.
Friends of Mudford Action Group launches crowdfunder to cover legal costs
Daniel Mumby and Local Democracy Reporter
05:00, 12 Mar 2026
A v iew of the Up Mudford urban extension site in Yeovil(Image: Somerset Council)
The fate of a major Yeovil housing development will be decided by a judge in Bristol as a judicial review against the plans move forward.
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The Abbey Manor Group secured outline planning permission from Somerset Council in October 2024 to deliver the Up Mudford urban extension north of Primrose Lane, comprising 765 homes, commercial space, a community hub and an extension to Primrose Lane Primary School.
The legal agreements to deliver the development were finally signed off by the council in mid-July, including a series of walking and cycling improvements to the A359 Mudford Hill and Lyde Road.
Mudford Parish Council was given the green light by the High Court in December 2025 to pursue a judicial review against the decision, leaving this new estate and a neighbouring development of 252 homes at Sock Hill hanging in the balance.
The Friends of Mudford Action Group (FOMAG) has now confirmed the case will be held at Bristol Crown Court on April 28 – with a crowd-funder being launched to cover £15,000 of associated legal costs.
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The village of Mudford currently comprises 339 homes – meaning the Primrose Lane development, and its immediate neighbour, could quadruple the parish’s population within the space of a decade.
The parish council raised the following issues in its submission to the High Court:
Flooding risk: Mudford already experiences “severe flooding”, with the parish council alleging that the planned attenuation ponds at the Primrose Lane site will not be deep enough to slow surface run-off from the new homes
Traffic impacts: the council claims there will be “a substantial rise in vehicle movements on already pressured local roads”, with limited public transport options currently in place
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Lack of affordable housing: the parish council feels the development “does not significantly address the local need for genuinely affordable homes” – with the Primrose Lane site only delivering 15 per cent affordable homes (the equivalent of 115 properties)
Insufficient infrastructure: the parish council has concerns about “the capacity of local services”, along with the pressure on the existing road network and drainage systems
Historic anthrax contamination: part of the Primrose Lane site were used as “burial or disposal locations” for animals infected with anthrax during the 1950 and 1960s – with the parish council arguing that testing may not have been “sufficiently thorough” to ensure the public were no longer at risk
Severe landscape change and loss of rural identity: the parish council believes the developments would “transform open countryside into continuous housing, leading to the complete loss of Mudford’s rural character”.
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View of the Up Mudford urban extension site in Yeovil(Image: Somerset Council)
FOMAG chairman James Cary confirmed the hearing date on the campaign group’s official Facebook page on Friday (March 6). He said: “The judicial review will be heard on April 28 in Bristol.
“You will know that judicial reviews are expensive – and it just got real.
“Whatever happens on April 28, the work of FOMAG will need to continue.
“We have already pledged £5,000 to Mudford Parish Council to help with legal costs. And so our immediate goal is to raise that £5,000 to replenish FOMAG’s coffers and, ideally make another contribution.”
The group has raised £790 as of Wednesday morning (March 11), with the goal being to secure £15,000 by July 1.
Mr Cary added: “Why not be among the first to get this campaign off to a flying start?
“That way, FOMAG can continue to scrutinise and challenge these enormous planning decisions and make local voices heard.”
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Revised plans for the first phase of the Sock Hill development (comprising 109 homes) were put forward by Bloor Homes South West in early-December 2025.
Somerset Council is expected to determine this application by the summer – around the time the judicial review result is anticipated.
To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your community, visit the Public Notices Portal.
Kush Bristol will be located in the former home of The Mint Room on Clifton Road
Birmingham chef Aktar Islam is expanding into Bristol
A Michelin-starred chef is poised to launch a new Indian restaurant in Bristol. Aktar Islam, the holder of two Michelin Stars, is preparing to officially unveil his latest venture, Kush Bristol, in Clifton, though an exact opening date has yet to be announced.
The announcement follows a special supper club series that was promoted on OpenTable in January, and now the shopfront on Clifton Road appears primed for an imminent launch. The new eatery will occupy the former premises of The Mint Room, another Indian restaurant which shut its doors in 2024 after nearly a decade, reports Bristol Live.
The renowned chef, who has featured on programmes such as Saturday Morning Kitchen and Great British Menu, already operates a two Michelin star restaurant in Birmingham, named Opheem. Before the supper club series in January, Aktar and his team said: “Bristol is all about community, and these evenings are rooted in the way Indian meals are meant to be enjoyed: communally, with shared plates, shared stories, and the kind of warmth that turns fellow epicureans into friends.
“Growing up, food was never just food – it was ritual. It was laughter around the table, debates over spice levels, and the comfort of dishes that tasted like home. That’s the spirit we’re bringing to Kush and to these intimate evenings, before we officially launch.
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“Each night will showcase a generous feast inspired by recipes from across the Indian subcontinent. Some dishes will feel familiar, others will be rare gems – regional delicacies carrying the soul of a place, a people, a memory.”
The Kush by Aktar Islam Instagram account published its inaugural post back in September 2024, mere months following The Mint Room’s closure, with the simple message: “Something exciting coming soon…”
A post on the Curry Society UK Instagram page revealed The Mint Room receiving fresh signage displaying ‘Kush by Aktar Islam’ on the window. The Curry Society, who dubbed Aktar Islam the ‘enfant terrible’ of the Indian culinary world, added: “This is big news and all our friends in the restaurants game in and around Bristol are all so excited, without exception. Welcome to Bristol, Chef Islam!”.
Travelers wait in line at a Transportation Security Administration (TSA) checkpoint at William P. Hobby Airport in Houston, Texas, US, on Monday, March 9, 2026.
Mark Felix | Bloomberg | Getty Images
The surge in fuel prices since the U.S. and Israel attacked Iran nearly two weeks ago is already driving up airfare. Consumers’ appetite for travel this year will dictate just how much.
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Cathay Pacific on Thursday said it would roughly double fuel surcharges on tickets starting March 18.
Earlier this week, Australia’s Qantas said it israising fares to help cover its costs, Scandinavian Airlines said the “unusually rapid and substantial increase” in fuel prompted it to raise prices, and Air New Zealand pulled its financial outlook “until fuel markets and operating conditions stabilise,” adding that it has made “initial fare adjustments.”
“If the conflict leads to continued elevated jet fuel costs, the airline may need to take further pricing action and adjust its network and schedule as required,” Air New Zealand said.
U.S. airline CEOs and other executives will update investors on Tuesday at the J.P. Morgan Industrials Conference in Washington, D.C.
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Analysts expect an earnings hit at least in the first quarter if not the first half of the year, though the impact will depend on how long higher fuel prices last.
“We think a hit to 1Q EPS appears almost certain at this point,” UBS airline analysts Atul Maheswari and Thomas Wadewitz wrote in a note last week.
United Airlines CEO Scott Kirby said last week on the sidelines of an event at Harvard University that higher fares were likely on the way because of the surge in fuel prices.
Kirby said travel demand is still strong, however. Two other senior airline executives at U.S. carriers, speaking on the condition of anonymity because they weren’t authorized to speak to media, also said travel demand has held up. If those trends persist, it could give airlines more pricing power, but that will depend on the war’s duration.
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“Airlines never met a higher fare they didn’t want,” said Scott Keyes, the founder of flight-deal company Going, previously known as Scott’s Cheap Flights.
So what should consumers do?
Keyes said travelers can’t lose by booking early, as long as they’re not buying restrictive basic economy tickets. That way, customers can try to exchange or cancel their tickets and buy cheaper ones if airfare ends up falling.
“If you book a $500 summer flight today, and two weeks from now the price drops to $350, you can call up the airline and get the $150 difference back as a credit. Heads you win; tails the airlines lose,” he said.
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Read more about the Middle East conflict’s travel impact
Fuel costs
Jet fuel is airlines’ biggest cost after labor, accounting for about a fifth or more of expenses, depending on the airline.
United alone spent $11.4 billion last year on fuel, at an average price of $2.44 a gallon, according to its annual report securities filing. U.S. jet fuel on Wednesday was going for $3.78 a gallon, according to Platts.
Jefferies airline analyst Sheila Kahyaoglu said in a note Thursday that she expects “the most acute financial impact to airlines from surging oil prices to be in the next 30-90 days as airlines have been booking yields for close-in flights assuming a much lower fuel price and carriers cannot retroactively raise fares.”
She said Delta Air Lines and United, which produce most U.S. airline profits, are better positioned than other carriers because of their high-end demand. Risks to demand, particularly for more price-sensitive customers, include the recent jump in gasoline prices.
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Jet-fuel have more than doubled in some regions since the first U.S.–Israel attacks on Iran on Feb. 28.
Line Service Technician Austin Beadles refuels a plane using a Federal Aviation Administration approved unleaded aviation fuel at Sheltair at Rocky Mountain Metropolitan Airport in Broomfield on Tuesday, Feb. 17, 2026. Sheltair, a fixed-base operator, will offer the Swift UL94 unleaded aviation alternative gas to pilots. (Photo by Matthew Jonas/MediaNews Group/Boulder Daily Camera via Getty Images)
Matthew Jonas | Boulder Daily Camera | MediaNews Group | Getty Images
Oil prices surged to roughly four-year highs after the initial attacks. Energy prices have since swung wildly since then as traders assess just how long the war — and all the logistics headaches — could last.
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U.S. jet fuel prices were up more than 60% from before the attacks to a peak last week, according to pricing data assessed by Platts. Jet fuel can rise by a greater degree than crude because it includes the price of processing and ever-more difficult and costly transportation from oil fields to refineries to airplane fuel tanks.
On Feb. 27, the day before the before the attacks, the cost to fill the fuel tanks of a Boeing 737-800 would have would have been about $17,000 based on average prices in New York, Houston, Chicago and Los Angeles, compiled by Argus. Less than a week later, on March 5, it would have cost more than $27,000, based on Argus prices. On Tuesday, after oil prices fell following President Donald Trump‘s comment that the Iran war could end “very soon,” it would have cost around $23,000.
After prior fuel price surges, airlines started making customers pay for bags — or charging them more. Even seemingly minor changes in weight can save airlines hundreds of thousands, if not millions of dollars, a year in fuel. United in 2018 changed to a lighter paper stock for its in-flight magazine. In 2014, American Airlines said it would switch to digital manuals for flight attendants, following changes for pilots. It said at the time that it would save $650,000 in fuel a year.
All about capacity
High fuel prices don’t automatically mean higher fares. The ongoing strong demand for travel is a key factor and so is capacity, or the amount that carriers fly.
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If airlines raise fares and passengers balk, then capacity will likely go down in the form of fewer frequencies on a route or broader cuts, in more severe cases.
“Airlines love to say fuel is expensive so you have to pay more. What they’re doing is they’re setting the expectation,” said Courtney Miller, founder of Visual Approach Analytics, an airline-industry advisory firm. “They price to prevent empty seats.”
If fuel prices come down, “they’re not suddenly saying ‘We’re making too much money,’” Miller added. “But they are likely to add another flight.”
Capacity, especially to and from the Middle East, is constrained because of airspace closures and other stop-and-start flights. More than 46,000 flights have been canceled to and from the region since the Feb. 28 attacks began, aviation-data firm Cirium said.
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Those constraints are driving up fares as well as demand, as United’s Kirby said, from regions where customers are looking for alterative routes.
Airspace closures are also requiring airlines to take longer, more fuel-guzzling routes, but many have strong demand, too.
Qantas, for example, told CNBC that its flight from Perth, Australia, to London is temporarily stopping in Singapore to refuel, allowing it to pick up another 60 customers, and that its Perth-London and Perth-Paris routes are more than 90% full this month, 15 percentage points higher than normal for this time of year.
Finnair said the increased demand for travel to Asia from Helsinki, Finland, has pushed up its prices by 15% on average.
“The impact of higher fuel prices will be reflected in market fares with a delay, as airlines typically hedge at least part of their fuel purchases,” it said.
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Airlines have been grappling with airspace closures for years, including from on-and-off conflict in the Middle East and since Russia’s 2022 invasion of Ukraine, that have left a large swath of airspace out of use for many carriers.
‘You can’t dry up an airport’
Most U.S. airlines no longer hedge fuel costs, or lock in prices using futures and other securities. Southwest Airlines was one of the last holdouts, and it quit last year. A spokesman for the Dallas-based airline told CNBC that Southwest currently has “no plans” to resume hedging.
That leaves U.S. carriers more susceptible to price swings.
Travelers at William P. Hobby Airport in Houston, Texas, US, on Monday, March 9, 2026.
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Mark Felix | Bloomberg | Getty Images
Kirby said there would likely be an impact to United’s first-quarter results and to the second quarter if the war — and blockage of the Strait of Hormuz, a key shipping channel — persists. However, he said demand was increasing sharply from regions that have been affected by the thousands of flight cancellations and airspace closures in the Middle East.
Because of airlines’ upbeat outlooks on demand to start the year, “the environment is conducive for passing along fare increases. Further, should jet fuel stay higher for longer, it should help push off-peak capacity lower,” supporting unit revenues, UBS analysts said.
Rick Joswick, who heads of near-term oil research and analytics at S&P Global Energy, told CNBC that “demand for jet fuel is inelastic. You cannot shortchange an airport. If the cost of jet fuel goes up, it’s not like the plane will choose not to fly that day.