Business

LONDON — Ryanair cut losses in the final quarter of 2021, but the emergence of the Omicron variant adversely affected the normally busy winter holiday travel season, the no-frills airline said on Monday.

Chief Executive Michael O'Leary said the reporting period started well, with strong bookings as there was "less confusion" about the British government's "absurd 'traffic light system'" to rank COVID risks from countries.

Britain is a key market for the airline based in neighbouring Ireland and which flies throughout Europe.

Bookings continued to improve in November but "the sudden emergence of the Omicron variant" and "the media hysteria it generated" forced European governments to reimpose travel restrictions towards the end of the quarter, O'Leary said.

The measures in the run-up to Christmas "significantly weakened peak" Christmas and New Year bookings and fares, he said.

Net losses stood at 96 million euros ($107 million) in the company's third quarter, a third of the figure for the same period in 2020.

Ryanair said its full-year traffic forecast was unchanged at "just under 100 million passengers".

Its net loss guidance stayed at between 250 million and 450 million euros.

"This outturn is hugely sensitive to any further positive or negative COVID news flow and so we would caution all shareholders to expect further COVID disruptions," O'Leary warned.

The UK government in December reimposed stricter travel rules — including mandatory pre-arrival tests and self-isolation until travellers had tested negative — after a surge in cases due to Omicron.

However, the travel measures are being eased, as Prime Minister Boris Johnson argued they were having a "limited impact" while imposing "significant costs" on the industry.

The government will scrap compulsory COVID tests from February 11 for fully jabbed arrivals and quarantine for unvaccinated travellers.

Currently, fully vaccinated arrivals are required to take a lateral flow test within two days, while those not jabbed must self-isolate for 10 days and take several tests before and after travel.

"In the short term, Ryanair is making no secret of the risk of further COVID disruption to come, with investors at least able to have some confidence it can steer a flight path through any turbulence," AJ Bell investment director Russ Mould said following the earnings update.

With "one of the strongest balance sheets in the industry... it is very well placed for a full recovery in the aviation sector, with the means to invest in new routes and potentially even to swoop on ailing rivals". 

One rival appearing to do well is British carrier EasyJet, which last week said it had slashed losses by half in the final three months of 2021.

AMMAN — Arab Bank Group ended 2021 reporting a total net income after tax of $314.5 million compared to $195.3 million in 2020, recording 61 per cent growth, according to a statement of the Arab Bank Group.

Its equity grew to reach $10.3 billion, said the statement.

The Board of Directors recommended the distribution of 20 per cent in cash dividends to shareholders for the financial year 2021, according to the statement.

Arab Bank consolidated the financial statements of Oman Arab Bank under its Group accounts increasing total assets by $8.4 billion to reach $63.8 billion compared to $54.4 billion for the same period last year.

Customer deposits grew by 22 per cent to $47.1 billion, while loans grew by 30 per cent to $34.6 billion. 

The consolidation of Oman Arab Bank has materially increased customer deposits and loans by $7.3 billion and $7.5 billion, respectively.

In the statement, Sabih Masri, chairman of the Board of Directors said the underlying performance reflects "its strategic directive in dealing with the challenging and changing operating environment and its prudent operating policies of maintaining strong liquidity and healthy capital positions".

SAN FRANCISCO — Apple reported record $124 billion quarterly revenue on Thursday, despite a global chip pinch and shifting impacts of the pandemic that have weighed down other big tech players.

The expectations-beating results offered signals that the coronavirus-era tech boom may not be quite over yet, even as diminishing growth shadows firms like lockdown lifestyle champ Netflix. 

"We set all time records for both developed and emerging markets and saw revenue growth across all of our product categories except for iPad, which we said would be supply-constrained," CEO Tim Cook told analysts.

Smartphone sales topped $71 billion, buoyed by strong demand for the iPhone 13 line, especially in China. 

Overall, the tech company posted a net profit of $34.6 billion in its first quarter, compared with $28.7 billion in the same quarter the prior year, according to the earnings report.

The supply chain mess that has disrupted the making and delivery of products to consumers is not disappearing, but Apple said it expected less impact in the coming months.

"There's some encouraging signs there," Cook added.

The semiconductor drought — caused by a mix of factors including a surge in demand after the COVID-19 pandemic and virus-linked disruptions in chipmaking nations — has affected industries across the globe from tech giants to car makers.

"It's worth noting that Apple is known for its supply-chain prowess and many wonder about the actions Apple has taken and will take to better position itself for this calendar year and to what extent these could hurt margins," said Scott Kessler from Third Bridge analysts.

Despite the volatility of the moment, Apple became the first US company to hit $3 trillion in market value, briefly reaching the landmark in early January in the latest demonstration of the tech industry's pandemic power.

Lockdown living 

But tensions between the Washington and Beijing as well as the Ukraine crisis have since added to the market's jitters, with wide swings in recent days.

At the same time, one-time pandemic market darlings have sunk on the prospect of diminishing growth as people are anxious to get back to something closer to pre-virus activity outside their homes.

Netflix lost tens of billions of dollars in market capitalisation last week after projecting growth of just 2.5 million subscribers in the first quarter — its slowest expansion since 2010 and a big downshift from the 55 million subscribers over the last two years as COVID-19 transformed daily life.

Yet in a sign of Apple's continuing capacity to sell a lot of handsets, it reclaimed top smartphone seller honours in China after a six-year gap, clocking a record market share in the final quarter of 2021 as US sanctions hit rival Huawei. 

A surge in sales saw the iPhone maker account for 23 per cent of the highly competitive market in October-December, industry analysis firm Counterpoint said in a report released on Wednesday.

That put the US company in pole position for the first time since the final three months of 2015, toppling China's Vivo.

The App Store posted record quarterly revenue as well as Apple took in more than $19 billion from selling services and software to users of its coveted devices. 

Banner revenue at the App Store comes as Apple defends itself against accusations that its control over the online shop amounts to a monopoly.

However, gradual steps toward in-person living won't be good for business and the company expect growth to "decelerate".

"This is due to a more challenging [comparison] because a higher level of lockdowns around the world last year led to increased usage of digital content and services," CFO Luca Maestri told analysts.

By Carlos Mario Marquez, Oscar Batres
Agence France-Presse

SAN SALVADOR — Karen Hernandez sells mobile phone accessories in El Salvador and says business has been through the roof since the country started using Bitcoin as legal tender.

She hopes President Nayib Bukele will ignore calls from the International Monetary Fund (IMF) to drop use of the cryptocurrency.

"It has been a very, very good experience and increased [our sales]. It has taken us to another level of business," said the 45-year-old shopkeeper.

She owns a small store in the historic centre of the capital, San Salvador, where many handmade signs announce "we accept Bitcoin".

The government created a digital wallet called Chivo that lets users make and receive payments with both Bitcoin and the US dollar, which the Central American country adopted in 2001 to help ensure monetary stability.

Bitcoin has been legal tender since September 2021.

E-wallet training 

In the crowded streets of the capital, restaurants, hardware stores, pharmacies and even street vendors accept payment in the cryptocurrency.

Elizabeth Arevalo, 25, works at a computer store in an old building and teaches customers how to navigate the Chivo wallet so they can use it in her store.

"We give the customers a little orientation on how to use the wallet... Once they learn how to use it, they buy something from us. It's a win-win situation," Said Arevalo.

Not everyone has jumped on the bandwagon, though.

"I couldn't care less if they ditch Bitcoin or not, there's no benefit to me, I only work with the dollar, I don't accept Bitcoin," said banana seller Antonio Molina.

'Large risks' 

On Tuesday, the IMF called on El Salvador to stop using Bitcoin as legal tender.

The IMF's board warned "there are large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection," as well as with issuing Bitcoin-backed bonds.

Bukele responded on Twitter with a meme from The Simpsons that said: "I see you IMF. That's very nice." 

Since coming to power in June 2019, his government has purchased 1,630 Bitcoins with public funds.

Last year, he also announced new Bitcoin bonds worth $1 billion.

Juan Carlos Perez, 40, who runs a technology and perfume store in San Salvador, says he uses Bitcoin in both his personal and professional life.

"There are risks, I know that... vulnerability in the exchange rate, [no] financial market controlling it. But it's practical," said Perez as he checked the Chivo app on his telephone.

'Fragility' 

El Salvador's government is trying to negotiate a $1.3 billion loan with the IMF, which it needs to also secure other loans. Its stance on Bitcoin has not helped.

"The logical thing would be for the El Salvador government to understand the fragility of its situation," said economist Luis Membreno.

He said El Salvador's financial health "revolves around this deal" with the IMF as it also hopes to secure loans of $400 million each from the World Bank and Inter-American Development Bank, and $200 million from the Central American Bank for Economic Integration.

All those loans are subject to the IMF agreement, Membreno said.

Despite its criticism, the IMF board did acknowledge that the use of cryptocurrencies could widen access to banking services in El Salvador.

Bukele "is not going to back down from a personal project of that magnitude", Membreno said.

His economy minister, Alejandro Zelaya, accused the IMF of contradicting itself by opposing Bitcoin while also claiming it is in favour of "boosting financial inclusion".

"It seems that it [Bitcoin] can provide financial inclusion, but you should not do it. The future does not wait for anyone #Bitcoin," Zelaya wrote on Twitter.

MUMBAI — Google will invest up to $1 billion in India's second-largest mobile operator, Airtel, the companies said on Friday, as the Android-maker looks to bolster its presence in the vast nation's booming telecoms market.

The global tech company will buy a $700 million stake in billionaire Sunil Mittal's Bharti Airtel, giving it 1.28 per cent ownership, the firms said in a joint statement.

Up to $300 million more will be invested in "mutually agreeable" commercial projects over the next five years, including exploring opportunities to "bring down the barriers of owning a smartphone" in the price-conscious market.

"We are proud to partner on a shared vision for expanding connectivity and ensuring equitable access to the Internet for more Indians," Sundar Pichai, the Indian-born chief executive of Google parent Alphabet said in a statement.

Google already holds a 7.7 per cent stake in Indian market leader Reliance Jio, owned by Asia's richest man, Mukesh Ambani, following a $4.5 billion investment in 2020.

The two companies collaborated on a 4G-enabled, low-cost smartphone, launched in November last year.

Jio has been locked in fierce competition with Airtel and British telecoms giant Vodafone's local unit Vi since it kicked off a price war in 2016 by offering dirt-cheap internet and free calls.

TOKYO — The Nissan auto alliance said on Thursday it will invest more than $25 billion in electric vehicles over the next five years, marking the latest massive cash injection into the fast-growing sector by the auto industry.

Nissan, Renault and Mitsubishi Motors said the latest outlay followed $11 billion already spent on its "offensive strategy in electrification", promising 35 new electric models by 2030.

Major global carmakers are increasingly prioritising electric and hybrid vehicles as concern about climate change grows. At present, around 10 per cent of European car sales are EVs, but the US figure is just two per cent.

The alliance vowed to boost cooperation by using five common manufacturing platforms for most models -- adding a new platform in 2024 to the existing four -- as it ploughs 23 billion euros ($25.7 billion) into its EV strategy.

Some of the headline figure had already been announced by each company, but it marks the first concrete target set collectively by the trio since the reorganisation of top executives at Japan's Nissan and France's Renault.

That restructuring was triggered by the saga surrounding the 2018 arrest of former Nissan boss Carlos Ghosn, which exposed rifts in the alliance.

"Three years ago, the alliance was experiencing a crisis unprecedented in its history based on a lack of trust," alliance chair Jean-Dominique Senard told reporters.

But "this period belongs to the past" and the partnership is "stronger than ever" due to solid foundations and flexible cooperation, he said.

"Together, we are making the difference for a new and global sustainable future," Senard added in a statement.

To achieve its goals, the alliance said it aimed to increase cooperation on common platforms from 60 per cent to 80 per cent of its models by 2026.

The trio also announced a target of reaching a total EV battery production capacity of 220 Gigawatt hours by the end of the decade, with Nissan tasked with leading the development of solid-state battery technology.

As demand grows for less polluting vehicles and pressure grows to reduce the auto industry's role in climate change, major automakers are announcing targets to gradually phase out fossil fuel-powered vehicles.

In December, the world's top-selling carmaker Toyota also unveiled a more ambitious plan for its electric vehicle business, hiking its EV sales goal by 75 percent.

German auto giant Volkswagen has also said it will bulk up its investment in electric vehicles and digitalisation to 89 billion euros over the next five years.

Japanese electronics giant Sony recently announced it will found a company this year to explore jumping into the rapidly growing EV market.

NEW YORK — Tesla rode rising demand for electric vehicles to a record $5.5 billion profit in 2021, but Elon Musk's company cautioned on Wednesday that supply chain problems would continue to crimp production through 2022.

The electric carmaker, which scored an 87 per cent jump in auto deliveries last year in spite of the global semiconductor shortage, reported a 71 per cent rise in revenues to $53.8 billion.

But Tesla said it saw no immediate relief from supply chain woes that have hit activity "for several quarters," it said.

"We plan to grow our manufacturing capacity as quickly as possible," it said in a news release that reiterated the company's target of 50 per cent annual growth.

"The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain," Tesla said.

"Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022."

Musk said he was heartened by announced new semiconductor capacity that should alleviate the imbalance by the end of 2022 or early 2023. 

But "there could be other issues" that surface this year, he said during a conference call with analysts and investors. 

Musk cited the supply chain issues as a factor in a decision to defer rollouts of new products this year, adding that the company will do engineering of its "Cybertruck" electric pickup with an eye towards a possible launch in 2023.

"The fundamental focus of Tesla is scaling vehicles," Musk said, adding that had the company introduced new models in 2021, it would have resulted in lower overall production.

Musk has previously also discussed introducing a $25,000 electric vehicle, but said that product too was not on the front burner.

"We have too much on our plate," Musk said.

More factories ahead? 

In the most recent quarter, Tesla scored a $2.3 billion profit, up more than eight times the year-ago level as revenues jumped 65 per cent to $17.7 billion.

Tesla has been ramping up production at factories in California and Shanghai, while also building new facilities in Germany and Texas.

Tesla said it began building Model Y vehicles in Texas in late 2021, while it started equipment testing in Germany around the same time.

"We are still in the process of finalising the manufacturing permit from local authorities" in Germany, Tesla said.

Musk said he is looking at adding more manufacturing locations, with further announcements likely in late 2022.

CFRA Research analyst Garrett Nelson characterized the company's cautious remarks on supply chains as unalarming.

"Tesla has become masterful at underpromising and overdelivering and has now beat (expectations) in nine of the past 10 quarters," Nelson wrote. "We reiterate a 'Buy' opinion."

Shares of Tesla gained 0.8 per cent to $944.50 in after-hours trading.