London Heathrow airport is seen to be chaotic with long queues at the departure counters and heaps of luggage piled up pending collection - Belinda Jiao

London Heathrow airport is seen to be chaotic with long queues at the departure counters and heaps of luggage piled up pending collection – Belinda Jiao

Britain has plunged deeper into travel chaos after Heathrow called for airlines to cancel 10pc of their flights today and easyJet announced swingeing cuts to its summer schedule.

The UK’s busiest airport has given airlines the option of consolidating flights to get passengers moving in order to avoid cancellations. It has been wracked by escalating problems with its baggage handling services.

A spokesperson said passengers flying today should check with airlines for the latest information.

Meanwhile, EasyJet is cutting thousands of flights this summer in a further blow to holidaymakers as travel chaos grips Britain.

The budget airline will cut more 4,000 flights in the three months to the end of June, early estimates suggest, and more than double that across July, August and September.

The airline was previously planning to run 90pc of 2019 capacity in the three months to June, rising to 97pc during the key months of July, August and September.

In a move that shows the depth of the aviation industry’s plight, Britain’s biggest carrier reduced these figures to 87pc and 90pc respectively – suggesting in excess of 10,000 flights will be cancelled over the six months to September.

The airline said it had taken the action following unprecedented restrictions by airports such as Gatwick and Amsterdam.

01:22 PM

M&S hires ex-Tesco exec to run key food business

Alex Freudmann - Dan Murphy’s/PA

Alex Freudmann – Dan Murphy’s/PA

Marks & Spencer has hired a former Tesco executive to bolster its food business, as it braces for an even sharper squeeze on shoppers’ budgets. 

My colleague Hannah Boland reports:

Alex Freudmann will be joining as head of M&S’s food division later this year, replacing Stuart Machin who was recently promoted to the role of chief executive at M&S.

Mr Freudmann is currently managing director of Australia’s top beer and wine business, Dan Murphy’s. He and Mr Machin worked together at both Tesco and Australian retailer Coles, overlapping for periods between 2003 and 2013. M&S chairman Archie Norman also acted as an advisor to Coles.

M&S said Mr Freudmann led “significant changes” at Dan Murphy’s, “including a substantial shift to digital and online”.

01:11 PM

Rouble hits seven-year high against dollar

The rouble has reached 55.47 per dollar, the highest since 2015, as Russia’s capital controls and huge trade surplus bolster the country’s currency to levels that are worrying officials.

After plunging at the onset of the conflict in response to Western sanctions, the currency has mounted an incredible comeback.

It’s so strong that officials have become concerned, winding back capital controls forcing exporters to sell their forex earnings into the domestic market, and prompting the Central Bank of Russia to cut interest rates rapidly.

Andrey Belousov, Russia’s first deputy prime minister, has said authorities are targeting an “optimal” exchange rate of 70 to 80 doubles per dollar.

12:59 PM

Former Tesla workers sue over Musk job cuts

Elon Musk - AP Photo/Susan Walsh

Elon Musk – AP Photo/Susan Walsh

More trouble for Tesla: it’s also being sued by former employees who have accused the electric car company for illegally laying off staff without notice during Elon Musk’s recent cuts.

My colleague James Titcomb reports:

Two Nevada-based workers have launched a class action lawsuit saying the company failed to heed US laws on mass layoffs that require a 60-day warning period.

Mr Musk said earlier this month that Tesla needed to cut around one in 10 salaried jobs, or around 10,000 people, because of a “super bad feeling” about the economy.

12:47 PM

Tesla is hitting hiring problems, says German union

Tesla is going to need to raise wages in Germany if it wants to hire thousands of workers for a factory near Berlin, the country’s top labour union for the automotive sector has said.

IG Metall said staff at the Gruenheide are getting paid about a fifth less than at rivals according to its analysis.

Birgit Dietze, one of its regional chief, said:

Many people would be interested in switching to Tesla, but ultimately decide against it, also because they sometimes earn considerably more in their current positions at other automotive companies.

The Texas-based electric car giant hopes to eventually have 12,00 people at the site, with 3,000 there already and thousands more set to be hired in the coming months.

12:30 PM

Top oil and gas producer calls for windfall tax rethink

The UK’s largest oil and gas producer has written a letter to Rishi Sunak, imploring the Chancellor to rethink a £5bn windfall tax on the industry.

Bloomberg has more:

Harbour Energy Chief Executive Officer Linda Cook told Sunak in the letter that the Energy Profits Levy announced last month disproportionately affects independent oil and gas companies, rather than global majors such as BP Plc and Shell Plc.

“The four largest independent UK producers, including Harbour, are forecast to deliver over 440,000 barrels of oil equivalent a day this year,” Cook wrote in the letter seen by Bloomberg News. “We should all be concerned about the disproportionate impact the EPL – as currently proposed – has on these smaller companies.”

The Government announced last month that it would slap a 25pc tax on the profits of oil and gas companies operating in the North Sea to partially fund support for households.

Ms Cook said the tax will cost the biggest independent producers more than £2.5bn between 2022 and 2025.

12:15 PM

Wall Street set to open higher after torrid week

In the wake of the worst week for US stocks since the start of the pandemic, Wall Street is set to open higher today.

Equity futures trading indicates the benchmark S&P 500 will rise about 0.7pc at the open, with slightly stronger gains for the tech-heavy Nasdaq.

12:08 PM

Money round-up

Here are some of the day’s top stories from the Telegraph Money team:

11:47 AM

Bundesbank expects slight German growth this quarter

In its latest monthly report, German’s central bank has predicted Europe’s largest economy will grow slightly over the current quarter.

Bundesbank officials said:

Upward forces are likely to predominate slightly in the spring, and economic output could pick up slightly… The German economy is currently caught between opposing forces.

11:34 AM

FTSE 100 gain pace

The FTSE 100 is now up about 0.9pc, having gained a bit of pace despite muted moves from the continent’s other major indicies.

11:14 AM

ECB: Ukrainian refugees could grow eurozone workforce by 1.3m

Ukraine/Polish Border -  David Rose

Ukraine/Polish Border – David Rose

Refugees fleeing the war in Ukraine could end up bolstering the eurozone’s workforce by 1.3m, according to calculation by the European Central Bank.

In an economic bulletin published by the ECB today, researcher Vasco Botelho said his “back-of-envelope” calculation pointed to a rise in the active labour force of 0.2pc to 0.8pc – equivalent to between 0.3m and 1.3m workers.

He said:

The increase in labor supply that results from the influx of Ukrainian refugees could slightly ease the tightness observed in the euro area labor market.

If they can find jobs without a lengthy integration process, Ukrainian refugees could help the market to respond to the currently buoyant demand for labor and address worsening skill shortages.

11:02 AM

IATA: Airlines are making a profit again

Despite the backdrop of travel chaos in Europe, airlines should return to profitability soon, according to the top industry body.

The International Air Transport Association, led by director Willie Walsh, said airlines had emerged “leaner, tougher and nimble” from the pandemic.

Speaking an event in Doha, Mr Walsh said:

Industry-wide profit should be on the horizon in 2023. We are rebounding. By next year, most markets should see traffic reach or exceed pre-pandemic levels.”

10:42 AM

EU foreign policy chief accused Russia of ‘war crime’ over grain

Joseph Borrell - Christophe Archambault/Pool via REUTERS

Joseph Borrell – Christophe Archambault/Pool via REUTERS

The EU’s top foreign affairs official has accused the Kremlin of a “real war crime” over Russia’s efforts to disrupt Ukrainian grain exports.

Speaking to reporters ahead of an EU foreign ministers’ meeting in Luxembourg, he said:

One cannot imagine that millions of tons of wheat remain blocked in Ukraine while in the rest of the world people are suffering from hunger.

Leaders of the bloc of 27 countries are expected to decide later this week whether to approve Ukraine’s application to join.

10:24 AM

Diesel heads for £110 a tank as fuel prices hit new records

Petrol - Finnbarr Webster/Getty Images

Petrol – Finnbarr Webster/Getty Images

Road fuel prices hit new records over the weekend, with petrol reaching 188.7p per litre and diesel 196.06p, according to the RAC.

Spokesman Simon Williams says:

This is yet more bad news for drivers, particularly with this week’s rail strikes leaving many people with no choice but to use their cars. But looking at the wholesale cost of petrol, which has settled due the oil price falling, petrol pump prices really should not continue to rise, if anything they ought to begin reducing. Sadly though, diesel looks destined to head rapidly towards an average of £2 a litre which would make a full tank £110.

10:10 AM

Heathrow’s statement

Heathrow has given airlines the option of consolidating their flights, which would involving moving passengers onto other flights rather than making those 10pc cuts.

A Heathrow spokesperson said:

We apologise unreservedly for the disruption passengers have faced over the course of this weekend.

The technical issues affecting baggage systems have led to us making the decision to request airlines operating in Terminals 2 and 3 to consolidate their schedules on Monday 20th June.

This will enable us to minimise ongoing impact and we ask that all passengers check with their airlines for the latest information.

10:00 AM

More travel chaos at Brussels airport and Heathrow

When it rains, it pours for airports: in the last few minutes, there have been two new major pieces of news:

  • Heathrow has asked airlines flying from Terminals 2 and 3 to cut their schedules by 10pc today, according to the Independent – affecting 15,000 passengers across 90 flights…

  • …and no flights are going to be taking off from Brussels airport all day, due to a strike by G4S security staff.

Heathrow hold-ups

Here’s the Indy on the situation at Heathrow:

The grounded departures range from a Loganair ATR72 commuter aircraft serving the Isle of Man to an Emirates Airbus A380 seating almost 500 passengers to Dubai.

Virgin Atlantic has cancelled at least three transatlantic flights, including departures to New York and Los Angeles.

British Airways, which operates some flights from Terminal 3 as well as its main hub at Terminal 5, said it had made “a small number of cancellations”

Brussels breakdown

And here’s what the Belgian capital’s airport is saying:

Brussels airport has closed to all departures due to security strike. No departing flights on Monday 20 June.

Due to the national manifestation and strike of a large part of the security staff of G4S on Monday 20 June, no passenger flights will depart from Brussels airport.

Passengers are urged not to come to the airport and to rebook their flight.

09:42 AM

Euromoney jumps amid takeover talks

Financial news and events company Euromoney’s shares have popped nearly a quarter higher after it received a takeover approach from a private equity group.

The FTSE 250 group is in talks with Luxembourg-based Astorg Asset Management Sarl and British firm Epiris over a £14.61 per share cash bid, which follows four earlier offers.

Shares are trading at £13.50 now, suggesting investors may not be fully convinced the deal will go ahead.

Euromoney was previously owned by the Daily Mail group before being spun out in 2019.

Epiris previously bought magazine group Time Inc. in 2018, renaming it TI Media and selling it to Future a year later.

09:29 AM

Chinese imports of Russian oil surge 55pc in year to May

Vladimir Putin and Xi Jinping - Alexei Druzhinin, Sputnik, Kremlin Pool Photo via AP

Vladimir Putin and Xi Jinping – Alexei Druzhinin, Sputnik, Kremlin Pool Photo via AP

China’s imports of Russian oil surged 55pc in the year to May, displacing Saudi Arabia as the Asian superpower’s top supplier.

Refiners lapped up discounted Russian crude, which has been trading at a discount of about $30 a barrel to benchmark Brent.

Imports totalled nearly 8.42m tonnes across the month according to the Chinese General Administration of Customs, about 1.98m barrels per day.

It shows Moscow has been able to find buyers despite Western sanctions.

09:12 AM

Sterling steady, FTSE mildly up

The pound is trading pretty flat today, with the biggest scheduled event this week likely to be Wednesday’s inflation figures.

Meanwhile, the FTSE 100 is still trading moderately higher:

08:56 AM

Primark prepares click-and-collect service as sales bounce back

Primark - Yui Mok/PA Wire

Primark – Yui Mok/PA Wire

Primark’s owner has said the budget fashion retailer will test out a click-and-collect service, a far moved towards online sales.

The trial, for buying children’s clothes, will run across 25 Primark locations in the north-west of England, Associated British Foods said.

It said Primark sales are still 9pc lower than pre-Covid levels, now three years ago.

Primark recently launched a website that allows customers to check the availability of items in-store, but has stubbornly resisted online sales despite an e-commerce boom.

It warned in April that some of its prices would go up amid soaring inflation.

08:45 AM

Bitcoin struggles to regain $20,000 amid crypto crash

Bitcoin – the preeminent cryptocurrency, which has become a benchmark for the entire crypto space – is caught in a tug-of-war today as it struggles to regain a price of $20,000.

The coin sank as much as 15pc on Saturday amid what is being called a ‘crypto winter’, but then surged back on Sunday.

$20,000 is seen as a crucial tipping point for Bitcoin, as it is believed many firms have used that valuation as a benchmark for their trading strategies.

That is to say: once it falls below $20,000, a lot of companies may be getting calls from their lenders asking for proof they can make good on bitcoin-backed loans if the plunge continues.

08:33 AM

Bank of England ditches post-crisis mortgage affordability plans

The Bank of England has pressed ahead with scrapping rules introduced in the wake of the financial crisis that test whether borrowers could afford their mortgages in the event of rapid interest rate rises.

Threadneedle Street’s Financial Policy Committee said it would ditch the affordability test from the start of August, confirmed plans outlined earlier this year.

The Bank will maintain a cap on the number number of borrowers who are allowed to hold loans more than four and a half times their annual income (also known as the loan-to-income flow limit), it said.

In a statement, the FPC said it

…judged that the loan-to- income flow limit is likely to play a stronger role than the affordability test in guarding against an increase in aggregate household indebtedness and the number of highly indebted households in a scenario of rapidly rising house prices,” according to the statement.

08:21 AM

Deliveroo shares slide as CFO departs

Deliveroo - Chris Ratcliffe/Bloomberg

Deliveroo – Chris Ratcliffe/Bloomberg

Shares in Deliveroo have fallen sharply this morning after its chief financial officer stepped down.

The food delivery group said Adam Miller will leave his role on September 17th, and be replaced by Scilla Grimble, currently CFO at MoneySuperMarket.

Mr Miller said it was “the right time for change, both for me and Deliveroo”.

Goodbody analyst David Brohan said:

While disappointing to see Adam Miller leave the group, the group appears to have appointed a strong replacement in Scilla Grimble, and the succession plan announced today should ensure a smooth transition.

08:08 AM

EasyJet shares down 2.7pc at open

A few minutes after the open of trading in London, FTSE 250-listed easyJet is trading down about 2.7pc.

08:07 AM

What’s gone wrong?

EasyJet’s unscheduled trading update this morning provides a concise summary of the nasty mix of issues airlines are facing in what they had hoped would be a booming summer of post-pandemic demand:

Given the unprecedented ramp up, the aviation industry across Europe is experiencing operational issues with root causes similar to the post covid supply chain issues being seen in many other parts of the economy.

The challenges include air traffic control delays and staff shortages in ground handling and at airports, resulting in increased aircraft turnaround times and delayed departures which have a knock-on effect resulting in flight cancellations.

A very tight labour market for the whole ecosystem including crew, compounded by increased ID check times, has reduced planned resilience further. This is reflected in the flight caps announced recently at two of our biggest airports, London Gatwick and Amsterdam.

08:04 AM

Comeback plans snagged as demand boom hits capacity crunch

Here’s more on easyJet’s problems, via my colleague Oliver Gill:

The airline was previously planning to run 90pc of 2019 capacity in the three months to June, rising to 97pc during the key months of July, August and September.

In a move that shows the depth of the aviation industry’s plight, Britain’s biggest carrier reduced these figures to 87pc and 90pc respectively – suggesting in excess of 10,000 flights will be cancelled over the six months to September.

The airline said it had taken the action following unprecedented restrictions by airports such as Gatwick and Amsterdam.

The carrier also blamed delays to a Government-overseen ID checking scheme that created a huge backlog in clearing new staff to begin work.

07:59 AM

Agenda: EasyJet cuts capacity amid strikes chaos

Good morning. EasyJet is cutting thousands of flights this summer as it grapples with severe staffing shortages that have caused misery for holidaymakers since Covid restrictions were lifted.

Initial estimates suggest that easyJet will have cut more than 4,000 flights in the three months to June and plans to cut more than double the number during July, August and September.

EasyJet chief executive Johan Lundgren said: “Coupled with airport caps, we are taking pre-emptive actions to increase resilience over the balance of summer, including a range of further flight consolidations in the affected airports, giving advance notice to customers and we expect the vast majority to be rebooked on alternative flights within 24 hours.”

Elsewhere, the FTSE 100 is set to open slightly higher after a poor performance last week.

5 things to start your day

1) Shoppers with poor credit histories could be frozen out of ‘buy now, pay later’ schemes Lenders would be forced to carry out affordability checks and face tougher advertising rules under new Government proposals.

2) EU plot to punish the City of London backfires Brussel’s campaign to shift lucrative business from the City to the Continent has so far produced few results.

3) Britain’s manufacturing heartland in crisis amid supply crunch West Midlands is struggling more than any other part of the country to get back to its pre-pandemic size.

4) Johnson urged to cut energy tax as Germany turns to coal The German government will pass emergency laws to reactivate the coal plants as Europe takes steps to deal with reduced energy supplies from Russia.

5) Airlines use post-Brexit loophole to bring in foreign workers The airlines are borrowing EU-registered aircraft under so-called wet leasing agreements as they grapple with some of the worst staff shortages on record.

What happened overnight

Asian markets fell again on Monday and oil prices extended losses on growing fears that the central bank’ moves to rein in soaring inflation will induce a recession. Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, Jakarta and Wellington were all in the red.

Coming up today

Full-year results: BMO Global Smaller Companies;  Trading statement: Associated British Foods, SThree; Economics: Interest rate decision (China), Rightmove house price index (UK), Chicago Fed National Activity Index (US), producer price index (Ger)



This story originally Appeared on Yahoo