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Southwest Airlines on Wednesday flagged softer August leisure bookings and joined two other US airlines in warning of higher fuel costs in the third quarter due to a jump in crude prices.

The largest US domestic carrier said August bookings were at the lower end of its expectations, in part due to seasonal trends, but maintained that overall leisure demand and yields remain healthy.

Shares of Southwest fell 4% premarket, before paring some losses to close down 2.6% at $29.97.

The forecast comes as early signs emerge of domestic travel demand weakening, with inflationary pressures hurting consumers even as carriers hand out costly contracts to retain workers.

United Airlines and Alaska Air Group also warned of higher fuel costs in the current quarter as crude oil prices rose for a third straight month in August, amid signs of tightening supply.

In a regulatory filing, United said jet fuel prices have climbed over 20% since mid-July.

The carrier also said it had no imminent plans to move its headquarters to Denver from Chicago after buying 113 acres of land there. Finance Chief Gerald Laderman at the TD Cowen Transportation Conference said the first order of business is the expansion of the flight training center in Denver.

Southwest said it continues to forecast a “solid (third-quarter) profit,” but trimmed its expectations for revenue per available seat mile – a proxy for pricing power – to a 5% to 7% fall, compared with a 3% to 7% fall forecast earlier.

Alaska Air expects a quarterly adjusted pre-tax margin of 10% to 12%, lower than its prior expectation of 14% to 16%.

US airlines do not generally hedge against fuel costs, making them vulnerable to price swings.

“The relatively quick up move in fuel has given the industry little time to respond through fares,” Citi Research analyst Stephen Trent said in a note.

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Entertainment

Dame Joanna Lumley warns of ‘crisis hidden in plain sight’ – with 1.5 million older people set to spend Christmas alone

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Dame Joanna Lumley has warned of a “crisis hidden in plain sight”, with 1.5 million older people set to spend Christmas alone.

Age UK spoke to more than 2,600 people and found 11% will eat dinner alone on 25 December, while 5% will not see or speak to anyone the whole day.

Applied to the overall population, the findings suggest 1.5 million people will eat alone at Christmas, according to the charity.

Dame Joanna said the “silence can be deafening” for those left isolated and called it “a crisis hidden in plain sight”.

The actor and campaigner is now joining other luminaries including Dame Judi Dench, Brian Cox and Miriam Margolyes to back Age UK’s campaign against loneliness.

The charity says its volunteers made more than 70,000 minutes’ worth of calls to people during Christmas week last year and is urging people to donate.

‘A tragedy we don’t talk about enough’

Age UK said it also supports coffee mornings and festive lunches to give lonely people the chance to enjoy in-person interaction.

Dame Judi said: “For so many older people, Christmas can be a time of silence – days without conversation or company.”

Succession star Brian Cox called the issue “a tragedy we don’t talk about enough”.

He said: “Far too many older people are left spending the season in silence, when it should be a time of warmth, connection and joy.”

Brian Cox is another of the campaign's high-profile backers. Pic: PA
Image:
Brian Cox is another of the campaign’s high-profile backers. Pic: PA

Margolyes, of Harry Potter fame, added: “Growing older shouldn’t mean disappearing into the background, we need to be seen, heard and celebrated.

“That’s what Age UK is striving for – they’re changing how we perceive age.”

Read more:
What counts as a white Christmas?
CCTV shows festive thief

The charity’s chief executive, Paul Farmer, said: “Your donation could bring comfort, friendship, and care to an older person facing loneliness this winter.

“From friendly, weekly calls to local lunch clubs, we’re here to make sure no one spends winter alone. But we can’t do it without you.”

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Politics

Japan government backs 20% tax on crypto profits, on par with stocks 

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Japan government backs 20% tax on crypto profits, on par with stocks 

The Japanese government is reportedly backing plans to introduce a significant reduction in the nation’s maximum tax rate on crypto profits, with a flat rate of 20% across the board.  

Japan’s financial regulator, the Financial Services Agency (FSA), first floated the proposed tax changes in mid-November, outlining plans to introduce a bill in early 2026, and now the government and ruling coalition — the political parties in control of Japan’s parliament, the National Diet — are on board.   

According to a report from Japanese news outlet Nikkei Asia on Sunday, the new rules aim to align crypto taxation rules with those of other financial products, such as equities and investment funds. 

Under the current laws, taxation on crypto trading is included as part of income taxes for individuals and businesses, falling under the category of “miscellaneous income.” The rate ranges from 5% on the lower end of the spectrum to 45% on the high end, with high-income earners potentially on the hook for an additional 10% inhabitant tax.

Meanwhile, assets such as equities and investment trusts are taxed separately, with a flat 20% tax on profits, regardless of the amount. 

The tax changes could be a boon for the domestic cryptocurrency market, as the higher tax rates may have deterred potential investors.

Source: Sota Watanabe

According to the Nikkei report, the potential changes to crypto taxation in Japan will be introduced as part of a “solid investor-protection framework” proposed in the FSA’s bill, which aims to amend the Financial Instruments and Exchange Act.