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A coalition of transatlantic airlines have demanded that President Biden and Boris Johnson lift “overly cautious” travel restrictions between the US and UK given the strength of the two countries’ coronavirus vaccine programmes.

The companies, which include all the carriers offering passenger services between the nations and other industry players including Heathrow Airport, argued that fully reopening the key market was “essential to igniting economic recovery” on both sides of the ocean.

American Airlines, British Airways (BA), Delta Air Lines, JetBlue, United Airlines and Virgin Atlantic issued the plea at a time when the UK is tightening its green list of destinations and just days ahead of a meeting between the two leaders in Cornwall this week – the first face-to-face encounter since the president was elected.

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Tourists scramble to return from Portugal

They said in their statement: “With world-leading vaccination programmes in both the UK and US, there is a clear opportunity to safely open up travel between these two low-risk countries, enabling consumers on both sides of the Atlantic to reconnect with loved ones, re-establish business relationships and explore new destinations after more than a year of lockdowns and restrictions.”

They pointed to a £23m hit to the UK economy for each day the rules remained in place.

The US is on the UK’s amber list, which requires travellers to the country to quarantine for 10 days when they arrive home and pay for two PCR coronavirus tests.

Entry requirements for the United States demand that UK citizens provide a negative COVID test ahead of arriving in the US, proof of recovery or are fully vaccinated.

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The industry issued its plea at a time when it remains under severe financial pressure globally.

COVID-19 restrictions have taken a hard toll on transatlantic operators for 15 months – rules that have been blamed for the loss of tens of thousands of jobs in the two countries.

BA alone has cut almost 13,000 roles while Virgin, which secured a refinancing to survive the turbulence, was also forced to halve its own workforce last year as demand slumped.

The UK airlines highlighted a recent York Aviation report that a second “lost summer” for international travel would result in £55.7bn in lost trade and £3bn in tourism if reopening was delayed until September.

Shai Weiss, the CEO of Virgin Atlantic, said: “There is no reason for the US to be absent from the UK ‘Green’ list.

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‘Constant change is frustrating’- holidaymakers

“This overly cautious approach fails to reap the benefits of the successful vaccination programmes in both the UK and the US.”

He added: “We urge Prime Minister Johnson and President Biden to lead the way in opening the skies, making it a top priority at the G7 Summit.”

His counterpart at United, Scott Kirby, commented: “Throughout the pandemic, experts have encouraged governments, businesses and the public to follow the science.

“United and other airlines have done just that and implemented the necessary safety protocols to confidently re-open key international routes like the air corridor between our two countries.

“Programs like the trials of COVID-free flights between Newark and Heathrow and the US Department of Defense air filtration study conducted on board United aircraft not only contributed to the body of scientific knowledge, they have demonstrated the near non-existent rates of viral transmission aboard an aircraft.

“And now, through mobile app, travelers can upload verified test results and vaccine records before international travel.”

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Israel-Iran ceasefire hopes drive down oil and gas costs

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Israel-Iran ceasefire hopes drive down oil and gas costs

Global oil costs have fallen back sharply amid hopes that a ceasefire between Israel and Iran will end the threat of disruption to crucial energy flows for the world economy.

The cost of a barrel of Brent crude, the international benchmark, was as high as $81 late on Sunday night as financial markets opened in Asia.

It was the first reaction to news of the US bombing of Iran’s nuclear facilities over the weekend and built on gains seen widely since Israel first began its strikes 10 days previously.

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But prices came down on Monday evening after it became clear that Iran’s retaliation, through missile attacks on a US base in Qatar, were a mere face-saving exercise due to the Americans being pre-warned by Tehran.

Drops of more than 7% in US trading were followed by a further 3% fall on Tuesday, with Brent currently standing just below $68.

It remains, however, $5 a barrel higher on where it started the month and reflects the continuing, possible, threat to shipping in the key Strait of Hormuz which handles 20% of global oil and 30% of natural gas supplies.

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The main concerns in the energy market were over potential disruption to liquefied natural gas (LNG) deliveries as it remains in high demand.

Europe is yet to fully restock following the harsh end to last winter which drained storage levels.

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Trump not happy with Israel

As such prices had already been driven up by steep competition from Asia for Gulf supplies.

UK day-ahead natural gas prices were more than 25% up in the month, as of Monday, and have not fallen as sharply as oil costs.

Financial services specialists have pointed to upwards shifts in the risk premiums facing cargo, especially tankers, due to the conflict.

Analysts had warned last week that a sustained Middle East war with disruption to energy shipping risked a fresh cost of living crisis similar to that seen after Russia’s invasion of Ukraine in 2022.

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Timeline of recent Israel-Iran conflict so far

Only a sustained ceasefire is likely to bring the additional costs seen in wholesale prices down.

Stock markets have also reacted positively to the ceasefire development, with the FTSE 100 in London up by 0.3%.

The gains in London have lagged those seen across much of Europe.

Commenting on the moves Russ Mould, AJ Bell’s investment director, said: “The markets will be watching closely to see if the cessation in hostilities is maintained and for Iran’s next move – amid noises from that side that no such ceasefire has been agreed.

“Defensive stocks, oil producers and precious metals miners were all under pressure in early trading.

“Gold slipped back as its safe-haven attributes were less in demand. This rather clipped the wings of the FTSE 100 given its relatively heavy weightings in these areas and saw the index underperform its European counterparts.

“On the flipside, travel stocks moved higher, both on the implications for fuel costs but also as the potential hit to foreign travel appetite that might have resulted from any further escalation of Middle East tensions seems to have been swerved.”

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Amazon to invest £40bn in UK – with more warehouses and thousands of new jobs

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Amazon to invest £40bn in UK - with more warehouses and thousands of new jobs

Amazon has said it will invest £40bn in the UK over the next three years as it creates thousands of jobs and opens four new warehouses.

The online shopping giant will build two huge fulfilment centres in the East Midlands, which it expects to open in 2027. The exact locations are still to be revealed.

Two others – in Hull and Northampton – were previously announced and are set to be finished this year and in 2026 respectively, with 2,000 jobs expected at each site.

Amazon is already one of the country’s biggest private employers – with around 75,000 staff.

Two new buildings will also go up at its corporate headquarters in east London, while other investment includes new delivery stations, upgrading its transport network and redeveloping Bray Film Studios in Berkshire – which it bought last year.

The £40bn figure also includes most of the £8bn announced in 2024 for building and maintaining UK data centres, as well as staff wages and benefits.

Prime Minister Sir Keir Starmer said the investment into Amazon’s third-biggest market after the US and Germany was a “massive vote of confidence in the UK as the best place to do business”.

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“It means thousands of new jobs – real opportunities for people in every corner of the country to build careers, learn new skills, and support their families,” said Sir Keir.

The chancellor, Rachel Reeves, said it was a “powerful endorsement of Britain’s economic strengths”.

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Amazon chief executive Andy Jassy stressed the investment would benefit communities across the UK.

“When Amazon invests, it’s not only in London and the South East,” he said.

“We’re bringing innovation and job creation to communities throughout England, Wales, Scotland and Northern Ireland, strengthening the UK’s economy and delivering better experiences for customers wherever they live.”

However, Amazon’s immense power and size continues to raise concerns among some regulators, unions and campaigners.

There have long been claims over potentially dangerous conditions at its warehouses – denied by the company, while last week Britain’s grocery regulator launched an investigation into whether it breached rules on supplier payments.

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Plans to cut energy costs for thousands of businesses announced

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Plans to cut energy costs for thousands of businesses announced

Plans to cut energy costs for thousands of businesses have been announced as part of the government’s long-awaited industrial strategy.

The announcement confirms Sky News reporting that the plan proposes making energy prices more competitive.

Firms have said high prices have hindered growth and made them less competitive.

Commercial energy prices are the highest in the G7 group of industrialised nations.

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Under the industrial strategy for 2025 to 2035, the government has said it plans to cut the bills of electricity-intensive manufacturers by up to £40 per megawatt hour – up to 25% – from 2027, which could benefit more than 7,000 businesses.

These savings will come by exempting them from certain levies on bills.

Roughly 500 of the most energy-intensive companies, such as the steel industry, chemicals and glassmaking industries, will also see their network charges cut.

Pic: iStock
Image:
Pic: iStock

The current 60% discount they get, via the British Industry Supercharger scheme, will increase to 90% from next year.

The government also said the energy measures would be funded through reforms to the energy system, without raising household bills or taxes.

The scope and eligibility for the scheme will be finalised after a consultation.

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The policy is the first industrial strategy of its kind in eight years and comes as part of the government’s key priority of growing the economy.

Pressure was on to develop such a policy after the US’s Inflation Reduction Act boosted investment in renewable energy, and the European Union’s Net-Zero Industry Act was designed to boost domestic production.

A “bespoke” 10-year plan has been created for eight sectors where the UK is said to be strong already and there is potential for growth.

The sectors named by the government are advanced manufacturing, clean energy, creative industries, defence, digital and technologies, life sciences, professional and business services, and financial services.

The state-owned British Business Bank will expand to spur investment into smaller companies, and provide an extra £1.2bn a year by 2028-29.

The government also repeated its ambition to cut regulatory burdens, spend more on research and development and speed up the planning process.

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