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A U.S. appeals court blocked on Monday the U.S. Transportation Department's new rule on upfront disclosure of airline fees pending a full review of the regulation, dealing a significant setback to the Biden administration. Final rules issued by the DOT in April required airlines and ticket agents to disclose service fees alongside the airfare, in a move to help consumers avoid unneeded or unexpected fees, as part of an effort to tackle such fees over the last three years. However, the rule "likely exceeds DOT's authority and will irreparably harm airlines", a three-judge panel of the Fifth U.S. Circuit Court of Appeals said, while granting the industry's request for a temporary block. The case will be scheduled for a hearing at the next available session for oral arguments, it added. American Airlines, Delta Air Lines, United Airlines, JetBlue, and Alaska Airlines were among the airlines, joined by trade group Airlines for America and the International Air Transport Association, which sued in May to block the rules. The rules set carriers an Oct. 30 deadline to disclose fee data to third-party ticket agents, and on their own websites by April 30, 2025. The industry said the rule would require airlines to "spend millions" to re-engineer their websites, diverting resources from other projects. The airline group declined to comment on Monday's ruling. A DOT spokesperson said it would continue to defend the rule, adding, "Nothing in the court’s decision prevents airlines from voluntarily complying with this common sense rule that simply requires them to keep their customers fully informed."<br/>

US Transportation Secretary Pete Buttigieg on Tuesday warned the 10 largest U.S. airlines they must comply with new passenger refund obligations passed by Congress in May, rejecting an industry request for more time. Buttigieg said in letters to airline CEOs that they must follow the new refund provisions taking a hard line with the industry. “The law did not provide for extensions or delays. Accordingly, we will be taking all appropriate steps to responsibly enforce these provisions using our investigative and enforcement powers,” Buttigieg said. Airlines for America, an industry trade group representing Delta Air Lines, United Airlines, American Airlines, Southwest Airlines and others, on July 3 had sought additional time on a number of provisions. The group said “the new technology solutions necessary to comply with these requirements will necessitate thorough development, testing and refinement before successful deployment.” The group did not immediately comment on Buttigieg’s letter. The DOT announcement came a day after the 5th Circuit U.S. Court of Appeals blocked new DOT airline fee disclosure rules from taking effect in October. A4A warned that giving automatic refunds if consumers do not respond to an offer of alternative transportation and the flight departs without that passenger could “negatively impact many consumers” and leave them without a new flight. “Airlines must clearly and proactively inform passengers of their right to a refund whenever their flight is canceled or significantly changed,” Buttigieg said. “Cash refunds - not vouchers or credits - must be automatic for passengers when they are owed.” The issue has gained new attention after a software update by global cybersecurity firm CrowdStrike triggered system problems for Microsoft customers including airlines on July 19. Delta suffered widespread woes for six days, resulting in more than 6,000 flight cancellations, impacting more than 500,000 passengers and prompting DOT to open an investigation.<br/>

Korea's major airlines are projected to suffer a drastic fall in earnings in the second quarter. They are hit hard by escalating pressure to cut fares and a string of other unfavorable macroeconomic factors, including the strengthening dollar, according to data and analysts, Tuesday. Most low-cost carriers (LCCs) are forecast to experience a double-digit decline in their operating profits during the same period due to intensified competition to woo more customers for short-distance routes. This drove them to cut airfares even at the cost of their profitability. LCCs and flag carriers, such as Korean Air, also face growing operating expenses due to rising labor and fuel costs. The won-dollar exchange rate also poses a lingering financial burden to airlines, as they have to pay fuel costs in dollars. The exchange rate on Tuesday hovered at 1,385.5 won per dollar. Data also indicate that most carriers will likely report a steep fall in earnings for the April to June period due to multiple risk factors. According to data from market tracker, FnGuide, Jeju Air is estimated to have chalked up an operating profit of 15.8b won ($11.4m) during the second quarter, down 36.2% from the previous year. The company is the nation's largest LCC by market capitalization. Other LCCs also face a similar fate. Jin Air is forecast to have generated 13.9b won in operating profit during the same period, down 22.3%.<br/>

A panel that blew off a Boeing 737 Max during an Alaska Airlines flight was displayed for the media Tuesday at the National Transportation Safety Board’s laboratory in Washington, D.C., and will be a key part of a two-day investigative hearing set for next week. Federal investigators have been examining the mid exit door plug since not long after it blew off during a Jan. 5 flight, when the plane was at 16,000 feet and climbing toward cruise altitude. It was discovered in the backyard of a home near Portland, Oregon. A preliminary report from the NTSB said that four bolts used to help secure the part to the jetliner were missing when the plane rolled out of a Boeing factory near Seattle, before it was delivered to Alaska Airlines. Door plugs are panels that seal holes left for extra doors when the number of seats is not enough to trigger a requirement for more emergency-evacuation exits. From inside the plane, they look like a regular window. They are only intended to be opened for maintenance and inspections. The one on the Alaska Airlines plane was installed at a Spirit AeroSystems plant in Wichita, Kansas, but was removed at the Boeing plant so workers could fix damaged rivets. The NTSB says it will use information from the hearing on Tuesday and Wednesday to complete its investigation of the blowout and make safety recommendations.<br/>

The chair of the U.S. Senate Commerce Committee wants the Federal Aviation Administration to conduct a thorough review into its oversight of Boeing and other manufacturers, raising serious questions about the government's scrutiny of the planemaker. "While the FAA has rightly focused on Boeing’s production quality shortcomings, I am concerned about whether FAA action - or inaction - contributed to Boeing’s problems," Senator Maria Cantwell said in a letter first reported by Reuters to FAA Administrator Mike Whitaker. She said the FAA in April disclosed that it had conducted a combined total of 298 audits of Boeing and Spirit AeroSystems (SPR.N), opens new tab over the prior two years that "did not result in any enforcement actions." Boeing declined comment. FAA said it would respond to Cantwell but declined further comment. Spirit said it "continues to focus on ensuring first-time quality and compliance." Cantwell said in her letter dated Saturday "a root cause analysis would ensure both Boeing and FAA have discovered the core causes of problems, rather than just symptoms." She wants the analysis "to identify any deficiencies in its own oversight of Boeing and other manufacturers" and to "develop corrective actions and a plan for implementing them."<br/>

Airbus reported a sharp drop in second-quarter profits as previously announced charges in its space business and persistent supply chain challenges weighed on the performance of the European aerospace and defence group. The world’s largest plane maker said adjusted operating profit fell more than half to E814m in the quarter, while revenues rose marginally to E15.9b.  Airbus said it had recorded a charge of E989m against its space business, higher than the E900m estimate it had announced last month alongside a profit warning. The company spooked investors in June when it cut its annual profit forecast and lowered its full-year commercial aircraft delivery target, citing a degraded operating environment and problems in its space business. The warning triggered a sharp sell-off in Airbus shares, wiping more than $10bn off its market value the day after the announcement. Its shares are now trading more than 5% down year to date, closing at E133.58 a on Tuesday. Guillaume Faury, Airbus CE, on Tuesday said the company’s financial performance in the first six months of the year “mainly reflects significant charges in our space business”, adding the company was “addressing the root causes of these issues”. The company has initiated a review of long-term programmes in its space systems unit, and has reassessed timelines and risks for each. It is also evaluating all strategic options including “restructuring, portfolio review, co-operation and M&A” for the division. Airbus has held exploratory talks with Thales about merging some of their space activities. In its key commercial aircraft division, Airbus has launched a cost-savings programme called Project Lead to ensure the company is as “cost efficient” as it can be as it seeks to deliver its ambitious plans to meet resurgent demand from airline customers.<br/>

Airbus is facing a criminal investigation in Britain into potential violations of export control rules involving several of its British entities, the aerospace group said on Tuesday. The investigation emerged in footnotes to the company's half-yearly earnings, which said Airbus was fully cooperating with the probe by Britain's Revenue and Customs agency (HMRC). "Airbus is working with all relevant authorities to ensure full remediation of all identified deficiencies," a spokesperson said in response to a Reuters query about the filing, adding that it was not expected to have a material financial impact. A spokesperson for HMRC declined comment, citing a policy of never discussing ongoing or specific investigations. Airbus said the decision to launch the probe followed an audit carried out by British export control authorities in 2022. The British probe comes around nine months after the U.S. State Department formally lifted the threat of charges over alleged violations of export rules in the United States. In January 2020, Airbus reached a trio of deferred prosecution agreements and agreed to pay record fines totalling E3.6b following broad investigations in Britain, France and the United States into allegations of corruption. As part of the settlements, Airbus agreed to pay E9m and set up a three-year monitoring plan to resolve findings by the State Department that Airbus had violated U.S. International Traffic in Arms Regulations (ITAR).<br/>

Massive airplane orders, hundreds deep in recent years, were absent from this year’s biggest air show. The focus instead was on struggles at Boeing and Airbus to ramp up airplane production while battling a hangover from the pandemic that was marked by seesawing output. Many of the issues, particularly training new workers, will take years to fix, analysts say, meaning lingering headaches for airlines, suppliers and the manufacturers themselves — and a shortage of new, more fuel-efficient planes. “It’s a fair sentiment on the part of the supply base and the airlines to say that we failed our commitments to them in terms of being timely, in terms of predictability,” said Ihssane Mounir, Boeing’s senior vice president of global supply chain and fabrication, during a panel at the Farnborough Airshow outside of London last week. “So obviously, people start doing their own planning and their own second-guessing.” A roadmap of the next few months of production is emerging this week. Airbus on Tuesday said its adjusted profit in the last quarter fell 56% from a year earlier, mainly because of charges in its space business. The European jetmaker had previously cut its aircraft delivery targets for the year as it isn’t building planes as fast as it planned to. Boeing reports results before the market opens on Wednesday. Wall Street analysts expect the company to post another loss for the second quarter and possibly the next. At the show, which concluded Friday, Boeing racked up 96 orders and commitments, including previously made sales that were firmed up, while Airbus had 266, far shy of the 826 orders during the Paris Air Show a year ago, according to a tally from consulting firm Ishka. Paris and Farnborough alternate hosting the expo each year. One standout was Korean Air’s order for up to 50 Boeing wide-body planes, including the 777X, which Boeing is working toward getting certified by regulators. The carrier also has Airbus A350-1000 jets on order. As both manufacturers grapple with production strains, Korean Air CEO Walter Cho quipped during the Boeing order signing: “Whichever comes first will become our flagship, whoever’s on time.”<br/>