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The UK aviation regulator, the Civil Aviation Authority (CAA), has partially rejected Heathrow Airport's plans to significantly raise its landing fees to fund a multibillion-pound upgrade. The CAA argues that Heathrow can still invest in upgrades without steep rises in ticket prices. The CAA has proposed that the average charge for each passenger should rise from £28.40 to £28.80 between 2027 and 2031, a 1% increase. This is £5.40, or 16%, lower than the changes proposed by Heathrow, but £5.80 or 25% higher than the changes wanted by the airlines. Heathrow had proposed a 17% increase to £33.26, which resulted in criticism from airlines who said it would lead to higher ticket prices for passengers. The CAA's proposal aims to strike a balance between keeping passenger prices fair and enabling the airport to make necessary investments. Selina Chadha, group director of consumer markets at the CAA, said: “Our primary duty is to protect consumers and at the heart of today’s proposals is doing the right thing for passengers using Heathrow airport, while supporting sustainable growth, investment, and efficiency.” The CAA has proposed that Heathrow spend between £5.4bn and £6.1bn on projects, including upgrading the airport's electrical system. Heathrow had been seeking approval to spend up to £10bn to handle an extra 10 million passengers a year by 2031. Thomas Woldbye, the chief executive of Heathrow airport, said: “We will now review the CAA’s initial proposal in detail to fully understand the implications for delivering the innovation, progress and improvements customers expect. On the face of it, the CAA’s proposal may force choices that create trade-offs for service and delay delivery.” The CAA will publish its final proposals in November, with a final decision expected in April 2027.

Donald Trump has indicated a shift in his administration's stance on oil shipments to Cuba, stating that he has 'no problem' with countries sending oil to the island, whether it's Russia or not. This development comes as a Russian oil tanker, under US sanctions, was set to arrive in the Caribbean island. The Russian tanker, Anatoly Kolodkin, carrying 730,000 barrels of crude, could soon discharge at Cuba's Matanzas port. This shipment would provide significant relief to Cuba, which has not received any oil imports for three months, leading to strict rationing of gasoline and exacerbating an energy crisis that has resulted in multiple power outages across the island. Cuba lost its main regional ally and oil supplier in January when US forces captured Venezuela's president, Nicolás Maduro. Trump subsequently threatened to impose tariffs on any country sending oil to Cuba and has mused about 'taking' the island. The US oil blockade has forced Cuba to impose emergency measures to conserve fuel, including strict rationing of gasoline. Fuel prices have soared, public transport has dwindled, and some airlines have suspended flights to Cuba, hitting the country's fragile economy. Jorge Pinon, an expert on Cuba's energy sector at the University of Texas at Austin, noted that once the Russian tanker enters Cuban waters, it 'is almost impossible for the US government to stop it.' The Russian shipment could be converted into 250,000 barrels of diesel, enough to cover the country's demand for about 12.5 days, according to Pinon.

The US-Israel war on Iran has effectively closed the Strait of Hormuz, a critical shipping route for materials used in the production of various everyday products. As the conflict enters its fifth week, global oil shortages are forcing countries to take severe measures to conserve their reserves. While US gas prices have surged to their highest level in years, the impact of rising oil prices extends far beyond drivers. Oil is a crucial component in the supply chain, powering machines that manufacture goods and fueling trucks that transport them to stores. The price increases come at a time when many Americans are already strained by rising housing costs, grocery bills, and electricity statements. A recent Gallup poll found that a third of Americans have had to skip meals and forego other needs to afford their healthcare. Oil and Gas The average cost of gas in the US has jumped about 30% over the last month, with the national average hitting $3.97, the highest since 2023. Diesel, which fuels many trucks transporting goods, has increased by about 50%, or $1.69 more than it did a year ago. Higher diesel costs could soon affect transportation costs and grocery prices, as roughly 85% of agricultural goods are transported by trucks. The impact of oil and gas shortages on the supply chain can be categorized as first-order effects, such as higher prices at the gas pump, and second-order effects, including potential price increases for crops, semiconductor chips, and medical devices. Fertilizer Farmers are struggling as the spring growing season approaches, facing higher fertilizer costs and falling commodity prices. A third of global urea trade, a solid nitrogen fertilizer, passes through the Middle East region, with about 20% of imported fertilizer to the US coming from Qatar. Nitrogen fertilizer is critical to grow corn, which is cultivated by about 500,000 farmers in the US. The White House has promised to minimize disruptions to the US economy, with alternative sources of fertilizer being sought from around the world. Helium The conflict has disrupted the global helium supply after Iranian attacks in Qatar, the second-largest producer of helium after the United States. Helium is a key import used in aerospace, magnetic resonance imaging (MRI), and semiconductor chips that power AI. Jet Fuel Increases in oil prices could result in higher airfare and shipping costs. The price of jet fuel has doubled since the start of the war, according to the International Air Transport Association. United Airlines announced last Friday that it would have to cut flights due to the surging cost of fuel. < h2>Mortgage Rates Just as US mortgages were starting to fall in February, the average 30-year fixed mortgage rate ticked up to its highest level in months, reaching 6.22%. Mortgage rates are closely tied to the overall state of the economy, and the US Federal Reserve's decision to leave rates unchanged last week cited uncertainty in the economy, particularly with conflict in the Middle East.

EasyJet's chief executive, Kenton Jarvis, has announced that the ongoing conflict in the Middle East has started to impact flight bookings, with a notable drop in reservations for destinations such as Turkey, Cyprus, and Egypt. Bookings have slowed for summer, with passengers opting for 'usual suspects' like Spain, Greece, and Portugal instead.Jarvis attributed the decline to the Iran war and its effect on consumer confidence. He mentioned that while the airline has hedged much of its fuel into next year, soaring kerosene prices will likely lead to a rise in air fares by the end of the summer.Fuel prices have surged, with easyJet currently paying $700 (£520) a tonne for jet fuel, compared to current spot prices of $1,850. Jarvis noted that while most European airlines are well-hedged, fares will likely increase as the higher costs are passed on to consumers.The airline's hedging strategy means it can still secure a price of $1,000 in six months, but market expectations are that fuel prices will decrease. However, Jarvis warned that the reality is that prices will start feeding into consumer costs over the back end of summer.In related news, easyJet has reopened a base at Newcastle airport, which it closed in 2020 due to Covid-19. The base will bring 140 jobs and support over 1,000 new jobs in the wider north-east region, with plans to fly up to 800,000 holidaymakers out of Newcastle this summer.