TRANSPORT & INFRA : Jet fuel: a welcome surprise in Europe, DHL, Ryanair, Airports, IAG, ACS/ Abertis

Research evidence excerpt

TRANSPORT & INFRA : Jet fuel: a welcome surprise in Europe, DHL, Ryanair, Airports, IAG, ACS/ Abertis

KEY HIGHLIGHTS

2) Middle East: more air freight activity as fuel surcharges ease, says DHL

The air freight market in the Middle East is stabilising, according to DHL Global Forwarding. “All airspaces across the

region are open, albeit some with varying levels of restrictions, such as fixed corridors or pre-approvals being required.”

“Overall, we have noticed a further increase in air freight capacity being available and a first softening of rate levels, but

they are still at significantly elevated levels versus pre-crisis,” commented Tobias Maier, DGF’s CEO for the Middle East

and Africa.

Source: The Loadstar

BNP Paribas view

- With the conflict in its third month, supply chains have had time to adjust to the situation. With Gulf

carriers increasingly bringing capacity up back towards pre-crisis levels, more belly capacity is available

and so a softening of the rate is to be expected.

- With jet fuel still elevated, however, and uncertainties and complexities persisting, air cargo rates are

likely to remain elevated versus where they were pre-conflict.

3) Ryanair to shut Thessaloniki base in Greece due to high fees, says senior executive

Ryanair will close its operating base at Greece's Thessaloniki airport this winter after airport operator Fraport increased

annual fees, a senior executive said on Friday. "Fraport Greece continued to increase charges, which are now 66% above

pre-Covid level", McGuinness said, adding capacity at Athens airport will be reduced for the upcoming winter.

Source: Reuters

- Thessaloniki is not a significant base for Ryanair (c.1.2% of Ryanair’s 2025 capacity touched the Greek