08/05/2026

FRIDAY | MAY 8, 2026

17

BIZ & FINANCE

EU weighs options as summer jet fuel threat looms

Philippines says Mideast war sends economic growth to five-year low MANILA: The Middle East war and a major corruption scandal drove Philippine economic growth to a five-year low, officials said yesterday, adding future targets would be lowered. Gross domestic product expanded 2.8% for the three months to March, sharply down from the 5.4% in the same period last year, the Philippine Statistics Authority said. It was also a dip from the 3% growth registered in the final quarter of 2025, the agency said. “Our growth performance trails Vietnam, Indonesia and China, among others in the region,” economic planning secretary Arsenio Balisacan told a news conference. “We definitely will move our growth targets lower ... given the situation, especially the global uncertainty remaining highly elevated,“ he said. Balisacan blamed the weak growth on the Middle East conflict, a scandal involving billions of dollars in fraudulent state-funded flood control projects, and the delayed approval of the national budget, which hampered infrastructure projects. The bogus flood control projects, believed to have cost taxpayers billions of dollars, sparked protests and arrests across the storm-battered archipelago this year. Consumer prices also spiked to a three-year high of 7.2% for the quarter, which Balisacan called a “major factor” leading to the lowered GDP growth. “Addressing corruption firmly and transparently is essential to rebuilding confidence among businesses, investors, and consumers alike,“ he said. Excluding the pandemic years, economic growth in the first quarter was the lowest since the first three months of 2021, National Statistician Dennis Mapa said yesterday. Manila’s economic managers will meet next week to review their targets, Balisacan said. The government in December revised downward its 2026 GDP target to 5%-6% from 6%-7%. – AFP

to managing war-related price and supply disruptions and volatility. Gorman told reporters she was very happy with Shell’s balance sheet. Its cash flow from operating activities at US$6.1 billion was hit by large swings in inventory values, pushing working capital – a liquidity measure of current assets minus liabilities – to minus US$11.2 billion. The company expects working capital movements to reverse over time provided oil and gas prices ease. – Reuters countries, such as Ireland, are more at risk due to a lack of refining capacity, while others, including Finland, appear better prepared. The same source also voiced concern some airlines may be using the crisis as an opportunity to drop unprofitable routes. Major new measures are not expected from Brussels at this stage. But the commission will look to clarify for governments and airlines which existing tools can be deployed to ensure jet fuel is used as efficiently as possible and at the lowest possible cost. It is likely to ease rules restricting “tankering”, the practice of aircraft carrying more fuel than necessary to avoid buying more expensive fuel at other airports. There are also plans for temporary flexibility on airport slots to prevent airlines that exceptionally give up slots because of high fuel costs from being penalised in future slot allocations. If the crisis drags on, the EU is considering coordinated action by member states to release emergency stocks and voluntarily share jet fuel themselves. Brussels is also expecting EASA guidance today on whether it would be appropriate to turn to alternative jet fuel produced in the United States. US-produced Jet A fuel, which differs from the Jet A-1 type of fuel used elsewhere in the world, is not currently allowed in Europe. Jet A has a higher freezing point – which makes it less resistant to very low temperatures during long-haul flights. Allowing its use would require regulatory and logistical adjustments that would likely take time. An assessment is under way before any decision, EU transport commissioner Apostolos Tzitzikostas said recently. Nevertheless, the EU wants to explore the option, and some airlines are pushing for temporary exemptions as early as this summer. In the longer term, Brussels is also stressing the need to develop non-fossil sustainable aviation fuels (SAF). “The crisis should push states to invest in alternative SAF fuels in civil and military aviation, not only for climate reasons but also for energy sovereignty,” Mirolo said. – AFP

carriers, have announced flight cancellations. If the crisis drags on, Brussels is preparing for possible “security of supply issues,” EU energy commissioner Dan Jorgensen said earlier this week. “We are not there yet, but it can happen.” The commission said last week it would establish a “fuel observatory” to track EU production, imports, exports and stock levels of transport fuels. It is expected to be up and running in coming days. Until now, the EU has lacked a detailed overview of strategic fuel stocks across member states. European legislation requires countries to hold oil stocks equivalent to 90 days of net imports and 61 days of domestic consumption, but does not distinguish between different products such as petrol, diesel or jet fuel. A commission source said some

o Bloc is considering coordinated action by member states to release emergency stocks

BRUSSELS: How big is the jet fuel threat to Europe’s summer holidays? The EU says it is not facing shortages yet, but it is readying for the worst – and weighing options including using US kerosene as a back-up. The US-Israeli war with Iran and the closure of the Strait of Hormuz have sent aviation fuel prices soaring and raised the spectre of shortages during Europe’s peak travel season. On Friday, the EU Aviation Safety Agency (EASA) is due to publish recommendations on allowing the use of Jet A, a US-produced aviation fuel that is not currently used in Europe for technical reasons. At the same time, the European Commission will outline measures available to member states to

optimise jet fuel use, including aircraft loading and the allocation of airport slots. Brussels has repeatedly insisted the 27-nation EU is not yet facing jet fuel shortages. “At this stage, this is more a problem of economics and fuel costs than availability,” Matteo Mirolo, an aviation transport specialist, told AFP. But “we do have to think about supply, especially as this will not be the last crisis we face”. Before the Middle East war, around 20% of the kerosene consumed in Europe transited through the Strait of Hormuz that has been effectively closed by the conflict. As prices have surged, several airlines, particularly low-cost

(From left) French government spokesperson Maud Bregeon, Transport Minister Philippe Tabarot, Economy and Finance Minister Roland Lescure, and Trade Minister Serge Papin attend a meeting with representatives from the aviation industry to prepare for the summer season in Paris. – AFPPIC

Shell’s Q1 profit of US$6.9 billion beats expectations LONDON: Shell’s first-quarter profit beat estimates and hit its highest in two years at US$6.9 billion yesterday, boosted by gains linked to the Middle East war, leading the company to raise the dividend by 5%. At the same time, it slowed its quarterly share buyback programme to US$3 billion from US$3.5 billion to help divert cash to its balance sheet as a short-term liquidity squeeze after war-related energy supply disruption increased its debt. of the company,“ Shell’s chief financial officer Sinead Gorman said on a call with reporters of the dividend hike. She added she still felt Shell shares were undervalued. Turning to the buybacks, she said she had reduced them to allocate cash to the balance sheet. Shell’s definition of net profit, rose to US$6.92 billion, beating an analyst consensus of US$6.36 billion in a company-provided poll and up from US$5.58 billion a year earlier. Profits at its chemicals and products unit, which includes refining and its oil trading desk, were US$1.93 billion, beating expectations of US$1.24 billion and up from US$0.45 billion last year. Shell’s oil and gas output fell 4% compared with the previous quarter, mainly due to outages in Qatar where part of its Pearl gas-to-liquids plant was damaged in the Middle Eastern conflict that began at the end of February. Full repairs might take about a year, Shell has said. contrast with their more cautious US rivals.

Shell’s shares were down 2.2% in early trading, broadly in line with other oil majors’ shares as benchmark global oil prices have retreated from peaks well above US$100 a barrel. First-quarter adjusted earnings,

Shell’s gearing, or debt to equity ratio including leases, rose to 23.2% from 20.7% at end-2025. Shell had flagged higher debt due

This echoes big oil trading profits at its European peers BP and TotalEnergies that also take speculative bets on moving prices in

“It really reflects that confidence we have in the long term cash flows