The travel and tourism industry is looking forward to the exceptional summer

Today’s best stories

For the latest news updates, visit our live blogging

DT is taking a long weekend and will be back in your inboxes on Wednesday 10th May

---

Good evening.

The outlook for the airline sector looks much rosier this week after Europe’s big three carrier groups – IAG, Lufthansa and Air France-KLM – showed growing optimism as the post-pandemic travel boom gathers pace.

IAG, which owns British Airways, Iberia, Aer Lingus and Vueling, raised its earnings forecast this morning recovery in passenger demand and a drop in fuel costs. Customers also seem undeterred by the hike in ticket prices.

Air France-KLM has seen an increase in the number of wealthier passengers fly business class to Pariswhich is gaining momentum in the race to become The main financial hub of Europe. However, it has lowered its forecast for the return to pre-pandemic capacity from 100% this year to 95%. He said he has now repaid all state aid received during the Covid-19 crisis.

Lufthansa also said it was expecting a summer boom as well as a new traffic revenue record for the full year.

Optimism in the travel industry is also growing in Asia. Authorities this week said that domestic tourism spending in China had exceeded pre-pandemic levels for the first time. Outbound air travel overseas is recovering more slowly, but at least Chinese airlines are allowed to do so expand their flights to the United States.

Meanwhile, travel groups Expedia and Booking yesterday reported strong demand for accommodations, recording record sales figures with international travel taking off, buoyed by post-pandemic reopening in Asia.

The only region where optimism for the holiday season is a bit more temperate is the United States, where carriers are hoping not to repeat two expensive summers of chaos with waves of cancellations and delays, leaving passengers infuriated.

Summer is always a trying time for US airlines as higher volumes of flights and passengers collide with the possibility of thunderstorms, fires, hurricanes and extreme heat, meaning carriers need to ease the system, for example putting extra crew on standby, drive up costs and lead to higher fares or a dent in profits.

Good to know: UK and European economy

Loan costs in the UK they are driven by a wave of bond sales without the Bank of England stepping in to suck up the supply. Bond yields in most major economies soared over the last 18 months before falling back, but in the UK stay at high levels. The Bank of England will make its interest rate decision next Thursday.

UK retailers and pubs are hoping for a boost this weekend since coronation of King Charles after three years of subdued consumer demand, with thirsty Brits expecting a drop of 17m more pints.

Germany he is planning subsidies of 80%. to cover the electricity costs of energy-hungry industries. The move is likely to trigger a backlash from other EU states.

Retail sales in the Eurozone fell from a larger than expected 1.2 percent in March, when inflation and rising borrowing costs took their toll on consumers. The largest drop was recorded in Germany, where they fell by 2.4%. Separate data this morning on display collapse of German factory orders has raised fresh fears of an economic slowdown.

THE European Central Bank yesterday it raised interest rates by a quarter of a percentage point but its president, Christine Lagarde, warned the fight against inflation was not yet won. Economists believe, however, that the rate hike cycle may be nearing its end.

Recep Tayyip ErdoğanTurkey’s leader for the past two decades faces his toughest fight yet presidential elections on May 14thwith opposition leader Kemal Kılıçdaroğlu hot on his heels.

To know: global economy

THE United States Federal Reserve on Wednesday it raised interest rates by a quarter of a percentage point, warning that the recent banking turmoil could affect economic activity. Fed Chairman Jay Powell has raised expectations that a pause in the speed reduction cycle was on the horizon.

A new bout of banking jitters is good news for gold while investors seek safe havens and drive the price towards an all-time high. The yellow metal has undergone a resurgence over the past 18 months, buoyed by record amounts of central bank purchases.

In the last few years, sanctions they have become the preferred foreign policy tool of Western countries for dealing with hostile international actors. But, according to the academic Francisco Rodríguez, they also have a dramatic effect on standard of living of the poorest.

Need to know: Business

US regional banks stay under pressure. Western alliance in Arizona said yesterday it was exploring a potential sale while in California PacWest it also sought a financial lifeline as its stock plunged 50%. Activist investor Nelson Petz called on Washington to stem the crisis.

AP Moller-Maerskthe second largest container shipping company in the world, has warned of a “radically changed business environment” as profits plummeted. The industry enjoyed a tremendous boom after the first wave of the pandemic, with the industry making more money in three years than in the previous six decades.

Shell reported better-than-expected profits of $9.6 billion for the first quarter and announced a $4 billion share repurchase. The FT has revealed the details of the unknown Indian company Gatik ship management, that was ship millions of barrels of Russian oil.

Most of us have implicitly traded access to our data for fringe digital conveniences, but what do you do when you discover you’re being spied on? Cristina Criddle of the FT writes for the FT magazine on be watched by Tick ​​tock.

Scientific review

THE Welcome trustBritain’s largest biomedical charity is tripling the size of its Genome campus near Cambridge in one of the increased investment in UK research infrastructure.

As we noted in Wednesday’s Upset times, AI regulation is moving up the agenda. The UK launched yesterday a market reviewwhile the White House has called on tech leaders for a “frank discussionof the risks of AI. FT Sifted’s sister publication reports on how researchers have delivered AI superhuman memory.

I couldn’t wait to figure out what all the fuss was about quantum computing is the hype about? Check out our new visual guide.

Couples of satellites, nicknamed Tom and Jerry, observed major developments triggered by climate change during their 21 years in orbit. We explain How do they do it.

The co-founder of the vaccine manufacturer Modern he called on US politicians and judges to do so stop questioning established science and sowing public confusion that harms people’s health.

Commentator Anjana Ahuja discusses the attempt to exploit the environmental gold dust that is whale poop and the implication that the profit motive might be the most effective way to protect the world’s natural resources.

Could this be the Smell Shazam? A California start-up has developed a device for smell substances such as drugs, explosives and viruses. Watch Patrick McGee of the FT as he takes a trip to the lab.

Some good news

Eli Lilly is applying for US regulatory approval of Donanemab, an Alzheimer’s drug after trials showed it could slow the progress of the disease in its early stages. The study results mark the second significant breakthrough in a year for a drug that aims to treat a disease afflicting an estimated 50 million people worldwide.

Something for the weekend

Challenge yourself with the range of FT Weekend and Daily Cryptic crossword puzzle Here.