FlightGlobal
• Alfred Chua
Cathay Pacific posted its strongest first-half performance since 2010, with passenger and cargo growth offsetting higher fuel costs, while Lufthansa’s operating profit fell to €383 million and Air Astana slipped into a small loss. Carriers remain cautious as Middle East-related fuel price pressures persist.
Geopolitical Developments & Conflict Impact
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A North Korean unit is deploying to western Russia and could operate as many as 120 ballistic missiles for strikes against Ukraine, Reuters reported. The reported deployment would further integrate North Korean missile capabilities into Russia’s war effort and broaden the conflict’s international military dimension.
Israel’s flag carrier El Al remained profitable at the half-year mark after a sharp second-quarter recovery. Reduced military operations in early April helped the airline offset a loss-making first quarter, with net profit doubling to $132 million for the three months ended June 30.
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Cathay Pacific posted its strongest first-half performance since 2010, with passenger and cargo growth offsetting higher fuel costs, while Lufthansa’s operating profit fell to €383 million and Air Astana slipped into a small loss. Carriers remain cautious as Middle East-related fuel price pressures persist.
The U.S. Navy has asked defense contractors to develop an uncrewed aircraft centered on long-range strike, offering a clear signal of how it is reshaping future carrier air wings. The effort reflects mounting concern over long-range counter-air weapons and the operational demands of the Indo-Pacific.
Lockheed Martin is negotiating potential supplies of scandium and germanium from North American producers, including NioCorp, Teck Resources and 5N Plus, as pressure builds to strengthen U.S. defense-material supply chains. NioCorp’s preliminary agreement could cover up to 15 metric tons of scandium oxide annually for 10 years.
Final observations from the Farnborough International Airshow examine how the Iran war is influencing arms sales and shaping aerospace and defense industry discussions. The review highlights the conflict’s relevance to procurement priorities and the broader defense-market outlook.
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Rocket Lab has secured its largest-ever contract, a $266 million multi-launch deal with the U.S. Space Force for suborbital missile-defense launches. Separately, Japan’s iQPS signed for three dedicated Electron missions, underscoring Rocket Lab’s push across defense and commercial launch markets.
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Lufthansa Group’s second-quarter adjusted EBIT fell by more than half as fuel costs rose by more than $750 million year over year and strike-related expenses weighed on results. The group widened its outlook range, while Lufthansa and Swiss pursue differing network strategies and the first 777-9 delivery remains planned for early 2027.
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