Introduction to the Paris Air Show

The Boeing 787-9 civil jet airplane of Vietnam Airlines performs its flight display at the 51st Paris International Airshow in Le Bourget near Paris, France. Kelly Ortberg’s first Paris Air Show as Boeing CEO was set to be relatively upbeat. Under his leadership that began in August, the company has made strides in ramping up production of its bestselling 737 Max jets, increasing cash-generating deliveries of new planes, and indicating that it’s turning a corner from a series of manufacturing and safety crises and years of lost ground to rival Airbus.

Recent Developments and Challenges

Shares are up more than 13% this year, outpacing the S&P 500. But after an Air India flight crashed on Thursday, marking the first fatal air disaster of a Boeing Dreamliner, Ortberg canceled plans to go to the massive air show that begins on Sunday. The trade event is a big draw for the industry and is held every other year, alternating with the Farnborough Air Show in the U.K. Boeing, Airbus and other aerospace giants host champagne-flowing parties, hold flashy deal-signing ceremonies with executives flanked by model planes, and show off their new aircraft with extreme maneuvers for spectators below.

The Air India Crash and Its Aftermath

All but one of the 242 people aboard Air India Flight 171 were killed when the more than 11-year-old Boeing 787-8 Dreamliner that was headed for London on a sweltering day crashed into a medical student dining hall seconds after takeoff from Ahmedabad in western India. The sole survivor was an India-born British national in seat 11A. The cause of the crash is unknown and will take weeks or months to determine. Questions focus on how the plane so quickly and evenly lost altitude, appearing to glide into a fireball crash. Cockpit voice and data recorders, known as "black boxes," will provide key information.

Geopolitical Tensions and the Air Show

The crash isn’t the only outside factor changing the gathering in Paris. Shortly before the Paris Air Show was set to begin, Israel launched overnight missile strikes on Iran. Hours later, Iran launched drones toward Israeli territory. Airlines canceled flights, with jets in the air diverting or returning to their destinations, while hundreds of others skirted the airspace. The escalating tensions will make military budgets and spending an even bigger focus for the air show, but they also raise concerns about how conflicts and geopolitical tensions could impact demand for commercial air travel.

The Show Goes On

Despite the crash and other external concerns, Boeing, Airbus and Embraer are expected to lock in hundreds of airplane orders. Wait times for popular new aircraft models already stretch into the next decade with demand still strong. Boeing forecast on Saturday that the world will need 43,600 commercial airplanes over the next two decades, with emerging markets driving growth. It expects those markets will account for more than half of the world’s fleet in 2044, up from a 40% share last year.

Orders and Demand

Some of the order signings could come from previously undisclosed customers, though there are many new orders on the line, aviation analysts say. Ongoing issues, such as a lack of trained workers, have delayed deliveries of new planes, while on-again, off-again tariffs have raised concerns about more expensive aircraft and components. Pricing has also firmed up. A new Airbus A321neo was going for $65 million as of the end of April, up from $58 million at the start of 2023, while a new Boeing 737 Max 8 cost about $55.5 million in April, compared with $50.25 million in early 2023.

Return of the Big Jets

Airplane customers are going bigger as international travel continues to bring in money. "It used to be all about single-aisle orders," said Richard Aboulafia, managing director at aerospace consulting firm AeroDynamic Advisory. Now, "everyone is booking these monster twin-aisle orders for international traffic." He said major international airlines like Turkish Airlines, Gulf carriers and others have expanded in recent years, competing for more global travelers, "slicing the pizza into smaller pieces."

Conclusion

The Paris Air Show is a significant event for the aviation industry, with major manufacturers like Boeing, Airbus, and Embraer expected to announce new orders and showcase their latest aircraft. Despite the challenges posed by the Air India crash and geopolitical tensions, the demand for commercial air travel remains strong, driven by emerging markets and the need for more efficient and capable aircraft.

FAQs

Q: What is the Paris Air Show?
A: The Paris Air Show is a major international aviation event held every other year, where aircraft manufacturers, airlines, and other industry players gather to showcase their latest products and announce new orders.
Q: What happened to the Air India flight?
A: An Air India Boeing 787-8 Dreamliner crashed on takeoff from Ahmedabad in western India, killing all but one of the 242 people on board.
Q: How will the crash affect the Paris Air Show?
A: The crash has led to the cancellation of plans by Boeing’s CEO to attend the show, and may impact the tone and focus of the event.
Q: What are the geopolitical tensions affecting the air show?
A: The escalating conflict between Israel and Iran has raised concerns about the impact of geopolitical tensions on demand for commercial air travel.
Q: What is the outlook for the aviation industry?
A: Despite challenges, the demand for commercial air travel remains strong, driven by emerging markets and the need for more efficient and capable aircraft.

Introduction to Flight Disruptions

Airlines around the world canceled flights to Israel and were skirting a large swath of airspace in the Middle East on Friday after Israel’s overnight missile strikes on Iran. Iran later launched drones toward Israeli territory. The flight map over the Middle East as Iran launches retaliatory attacks on Israel at 19:19 UTC on June 13th, 2025, shows the extent of the disruptions.

Flight Cancellations and Suspensions

Delta Air Lines on Friday afternoon said it was suspending its service to Tel Aviv, Israel, until at least September, just weeks after resuming flights there. It had most recently resumed flights on May 20, and as of last week Delta had said it was planning to increase service to Israel later this year from New York to two daily nonstop flights, "responding to strong winter demand." United Airlines suspended its Tel Aviv flights through July 31, and said in a statement that "we will continue to evaluate an appropriate return date with the safety of our customers and crews as our top priority."

Impact on Air Travel

Both carriers’ Tel Aviv-bound flights turned around over the Atlantic Ocean to return to the New York area after Israel’s strikes overnight. United put 26 of its crew members who were on layover in Israel on Israeli airline El Al to get back to the U.S., a spokesman said. El Al has since suspended service. "Following recent security developments and in accordance with the instructions from the state’s security and aviation authorities to close Israeli airspace, all EL AL and Sundor flights are suspended for the time being," it said on its website.

Airline Reactions and Warnings

The carrier said it won’t take bookings until at least the end of June and warned customers against going to Tel Aviv’s Ben Gurion Airport. "For customers currently abroad, we recommend arranging accommodation until there is a change in security directives," El Al said. "Flights that were en route to Israel have been diverted to land at various EL AL destinations." Israel closed its airspace and suspended flight operations at Ben Gurion International Airport in Tel Aviv, Israel on June 13, 2025.

Global Airline Responses

Turkish Airlines and European budget carrier Wizz Air also suspended Israel flights. Germany’s Lufthansa said it was suspending Tel Aviv and Tehran service until July 31 and flights to Jordan and Lebanon until at least June 20. Emirates said it was canceling service from its base in Dubai to Iraq, Jordan, Lebanon, and Iran. Airlines offered travel vouchers and waived change fees to customers affected by the disruptions.

Conclusion

Escalating military conflicts in the Middle East and Ukraine have forced airlines to repeatedly take longer and more costly routes to avoid conflict zones. The situation highlights the challenges faced by the aviation industry in ensuring safe and uninterrupted travel amidst geopolitical tensions.

FAQs

Q: Why are airlines canceling flights to Israel?
A: Airlines are canceling flights to Israel due to the escalating military conflict between Israel and Iran, which has led to the closure of Israeli airspace and suspension of flight operations at Ben Gurion International Airport.
Q: Which airlines have suspended flights to Israel?
A: Delta Air Lines, United Airlines, El Al, Turkish Airlines, Wizz Air, Lufthansa, and Emirates have suspended flights to Israel.
Q: What alternatives are airlines offering to affected customers?
A: Airlines are offering travel vouchers and waiving change fees to customers affected by the disruptions.
Q: How long will the flight suspensions last?
A: The duration of the flight suspensions varies by airline, with some suspending flights until July 31 and others until at least September.
Q: Are there any other regions affected by flight disruptions?
A: Yes, airlines are also avoiding airspace in Ukraine and other parts of the Middle East due to military conflicts.

Introduction to JBS

The JBS Greeley meatpacking facility in Greeley, Colorado, US, on Friday, Feb. 28, 2025.
Shares of Brazilian meat giant JBS rose during their U.S. public market debut on Friday.

Initial Public Offering

The opening trade of $13.65 per share values the company at roughly $30 billion, outstripping rival Tyson Foods’ market cap of about $19.82 billion. Shares closed at $13.87, a slight gain for the day.
JBS is now trading on the New York Stock Exchange under the ticker "JBS," a day later than initially expected. The company said it couldn’t conclude certain operational procedures in time to debut on Thursday. Its stock was delisted from the Sao Paolo Exchange in Brazil a week ago as part of the dual-listing plan.

Company Overview

Since its founding more than seven decades ago, JBS has grown to become the world’s largest meatpacking company. Last year, the company reported net revenue of $77.2 billion and net income of $2 billion, according to regulatory filings.
JBS operates a sprawling business worldwide, with significant divisions in Brazil, the U.S. and Australia. The company also owns more than 80% of Pilgrim’s Pride, the U.S. poultry giant.

History of the US Listing

JBS’s U.S. listing is more than 15 years in the making. The company’s U.S. subsidiary first announced plans to go public in 2009, but the move never came to fruition after two postponements. Then, in late 2016, the company said it would have a U.S. initial public offering as part of a broader reorganization strategy. But months later, the Brazilian government began investigating corruption in the meatpacking company — including among JBS and its top executives.

Corruption and Bribery Allegations

J&F Investimentos, the holding company that owns a controlling stake in JBS, paid a $3.2 billion fine in 2017 to settle bribery charges. Former chair Joesley Batista and his older brother CEO Wesley Batista, the company’s top shareholders and the sons of its founder, managed to avoid prison sentences by cooperating with prosecutors. The Batistas and J&F settled with the U.S. Securities and Exchange Commission in 2020 for roughly $27 million.
The Batistas exited J&F in the wake of the scandal. However, they returned to the company’s board last year after being acquitted of insider trading charges.

Recent Developments

More recently, in October, the Brazilian government fined JBS for buying cattle that were allegedly illegally raised in protected land in the Amazon.
The company’s history of corruption and bribery allegations led to opposition to its U.S. listing from lawmakers on the both sides of the aisle, making it look unlikely that regulators would grant their approval.
After President Donald Trump’s reelection, JBS’s subsidiary Pilgrim’s Pride donated $5 million to his inauguration committee, making it the single largest donor. In a statement, the company said it had a "long bipartisan history participating in the civic process" and looked forward to working with the new administration.
The SEC approved JBS’s request to list on the New York Stock Exchange in April. JBS shareholders approved the move by a narrow margin the following month.

Conclusion

In conclusion, JBS has finally made its US public market debut, with shares rising during the first day of trading. The company’s history of corruption and bribery allegations has been a major obstacle to its US listing, but it has now overcome this hurdle. With its significant divisions in Brazil, the US, and Australia, JBS is well-positioned for future growth.

FAQs

Q: What is JBS?
A: JBS is the world’s largest meatpacking company, with significant divisions in Brazil, the US, and Australia.
Q: What was the initial public offering price of JBS shares?
A: The opening trade of $13.65 per share values the company at roughly $30 billion.
Q: Why was JBS’s US listing delayed?
A: JBS’s US listing was delayed due to the company’s history of corruption and bribery allegations, as well as opposition from lawmakers.
Q: Who are the major shareholders of JBS?
A: The Batista family, including Joesley and Wesley Batista, are the top shareholders of JBS.
Q: What is the current market capitalization of JBS?
A: The current market capitalization of JBS is roughly $30 billion.