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Korean Air Finalizes $44.8 Billion Boeing Order, Clears Final Hurdle for Asiana Merger

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Korean Air Finalizes $44.8 Billion Boeing Order, Clears Final Hurdle for Asiana Merger

Korean Air (KRX:003490) has finalized a $44.8 billion order for new aircraft and engines, completing a purchase commitment first announced in 2025, the flag carrier and Boeing announced on Wednesday.

The acquisition includes an order for 103 Boeing aircraft valued at $36.2 billion, consisting of 20 777-9s, 25 787-10s, 50 737-10s and eight 777-8 Freighters.

The purchase commitment marks Korean Air's first order for the 777-8 Freighter.

Additionally, Korean Air finalized an $8.6 billion agreement with GE Aerospace and CFM International. The deal covers 21 spare engines and a 15-year maintenance service contract covering 28 aircraft.

The purchase is expected to modernize the company's fleet, especially as it prepares to integrate with Asiana Airlines (KRX:020560). The new planes will help improve fuel efficiency and reduce carbon emissions, Korean Air said.

In a separate development, South Korea's antitrust regulator approved Korean Air's plan to merge its frequent-flyer mileage program with Asiana's following a 15-month review. The approval clears one of the final regulatory hurdles before the carriers are legally combined in December.

Last week, the Korea Fair Trade Commission initiated deliberation proceedings against Korean Air and three employees for allegedly deleting work files and emails during an on-site investigation.

The watchdog also advanced corrective action applications involving other carriers tied to the Korean Air and Asiana merger, including Jin Air (KRX:272450), Air Busan (KRX:298690) and Air Seoul.

What else is happening in US Markets?

South32 Eyes Higher Operating Margin After Alcoa Deal Slims Portfolio
US Markets

South32 Eyes Higher Operating Margin After Alcoa Deal Slims Portfolio

South32 (ASX:S32) said late Tuesday that it expects higher returns from a simplified business following its agreement to sell aluminum value chain assets to Alcoa in a $5.6 billion deal.The company expects its group operating margin to rise to at least 48% after the transaction from 31% in fiscal 2026, with potential for further margin expansion from overhead reduction and the commissioning of its US-based Taylor project for zinc, lead, and silver mining.South32, which holds assets across Australia, Africa, and the Americas, will produce five commodities following the deal, down from seven as of fiscal 2026, while its count of operated sites will fall to four from seven.According to a July 1 filing, Alcoa's payment will comprise $3.1 billion in cash, about $1 billion in Alcoa shares, $750 million of assumed net debt, and up to $750 million in contingent value rights linked to realized London Metal Exchange aluminium and alumina prices through 2030.In a July 2 note commenting on the initial deal disclosure, Jefferies believes that a more coherent portfolio makes the potential for a material medium-term valuation re-rating for the company, which the investment firm said has historically traded at a discount compared to its peers.The investment broker believes that the deal removes South32's largest structural valuation overhang, shifting focus to base and precious metals.In a Sept. 10 filing, Alcoa priced a $2.6 billion senior notes offering to help finance the deal, which includes $1.5 billion of 6.625% notes due 2034 and $1.1 billion of 6.875% notes due 2036.

ASX:AAIASX:S32
Trip.com Swings to Quarterly Loss as China Antitrust Penalty Offsets Revenue Jump
US Markets

Trip.com Swings to Quarterly Loss as China Antitrust Penalty Offsets Revenue Jump

Trip.com Group (HKG:9961) incurred a loss in the second quarter of 2026 after Chinese regulators imposed a multibillion yuan antitrust penalty on the online travel operator, offsetting its revenue gains.The Shanghai-based company, which also operates executive and international headquarters in Singapore, posted an attributable net loss of 2.5 billion yuan in the second quarter, versus a net income of 4.8 billion yuan a year earlier.Loss per ordinary share and per ADS was 3.89 yuan, compared with earnings per share of 6.97 yuan a year prior.The swing was driven largely by a 5.2 billion yuan anti-monopoly penalty imposed by China's State Administration for Market Regulation on the company in July over "monopolistic conduct."The SAMR penalty pushed Trip.com's general and administrative expenses up 477% year over year to 6.3 billion yuan.Stripping out that fine, attributable net income would have been 2.7 billion yuan, the company said.Meanwhile, total net revenue rose 6% year over year to 15.7 billion yuan, which the company attributed to "resilient travel demand." On a quarter-over-quarter basis, however, revenue fell 3% due to elevated energy prices and geopolitical volatility.Accommodation reservation revenue, the company's largest segment, edged up 6% year over year to 6.6 billion yuan, while transportation ticketing revenue fell 1% to 5.4 billion yuan.Revenue from the company's international business grew more than 50% from a year earlier, while inbound-travel revenue rose at a high-double-digit rate.Trip.com Executive Chairman James Liang hinted at the company's plans to advance its AI capabilities "across every stage of the travel journey" as part of its new strategy called Globalization and Great Quality, or G2."We are expanding our offerings to include new travel and lifestyle experiences, while leveraging technology and international marketing to help partners differentiate and drive sustainable growth," added Trip.com CEO Jane Sun.

HKG:9961
Update: Equities Log Back-to-Back Declines Before Fed Decision as Yields, Oil Jump
US Markets

Update: Equities Log Back-to-Back Declines Before Fed Decision as Yields, Oil Jump

(Updates with market moves at the end of the day, and other changes, if any.)US stocks dropped for a second consecutive session on Tuesday as traders fretted over surging bond yields and oil prices while bracing for an interest rate hike from the Federal Reserve.The Nasdaq Composite shed 0.8% to close at 25,981.57, while the Dow Jones Industrial Average fell 0.6% to 52,093.11. The S&P 500 dipped 0.5% to 7,585.73. Except energy and materials, all sectors ended in the red, led by consumer discretionary.The Federal Open Market Committee began its two-day policy meeting on Tuesday.Markets are now pricing in a 95% probability that the FOMC will hike its benchmark lending rate by 25 basis points, according to the CME FedWatch tool.Goldman Sachs said the Fed will likely avoid disappointing markets.Treasury yields were higher, with the 10-year yield up 4.3 basis points at 5.004%. It hit 5.041% earlier in the day, the highest since July 2007, CNBC reported. The two-year yield advanced 3.7 basis points to about 4.7%.West Texas Intermediate crude oil jumped 4.4% to $105.81 a barrel in Tuesday late-afternoon trade, while Brent climbed 2.8% to $108.63.Crude loadings at Saudi Arabia's Red Sea export terminal in Yanbu had been halted, Reuters reported Tuesday, citing shipping industry sources. Saudi Arabia -- which is the world's biggest oil exporting nation -- has notified European customers of its decision to cancel some crude cargoes scheduled for late-September delivery, according to the news agency.Separately, Libya halted operations at three oil fields, though the issue was not related to the US-Iran conflict, Reuters reported.These developments come as Saudi's key East-West crude oil pipeline remained shut following recent attacks by Yemen's Iran-aligned Houthis."The East-West pipeline is expected to remain out of service for several weeks, and without a pickup in flows through the Strait of Hormuz, its closure will further exacerbate an already tight global supply situation," Saxo Bank said Tuesday in a report.In company news, Axon Enterprise (AXON) shares tumbled 9.8%, the second-worst performer on the S&P 500. The company said it intends to offer $1 billion of 0% convertible senior notes due 2031 in a public offering.Salesforce (CRM) is expanding its partnerships with Nvidia (NVDA), Alphabet's (GOOG, GOOGL) Google Cloud, and Amazon.com's (AMZN) Amazon Web Services to strengthen its agentic enterprise capabilities and expand its artificial intelligence footprint across third-party infrastructure.Shares of Salesforce fell 1.5%. Alphabet and Amazon also dropped, while Nvidia edged higher.Spot gold edged down 0.1% to $4,296.37 per troy ounce, while silver rose 0.1% to $64.20 per ounce.

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