Fuel costs to trim record airline profits

Rising jet fuel prices will eat into the world's airline profits, but the industry is still on track for a record year, an airline lobby group forecast Wednesday.

The International Air Transport Association, which represents 240 airlines, forecasts that the global airline industry will earn a profit of $18.7 billion in 2014. That's a record. But the figure is $1 billion lower than its previous profit estimate in December.

North American airlines are expected to be the industry's biggest profit driver, with record 2014 profits of $8.6 billion. That's more than double the previous most profitable year — 2010's $4.2 billion.

The Geneva-based group now forecasts that fuel will average $108 US a barrel, up $3.50 from previous projections.

That will add $3 billion to the industry's fuel bill this year — a figure that will be partially offset by stronger demand in passenger and cargo traffic as the global economy recovers.

"“In general, the outlook is positive," said IATA director general Tony Tyler in a statement. "The cyclical economic upturn is supporting a strong demand environment. And that is compensating for the challenges of higher fuel costs related to geopolitical instability."

But he said industry returns remain at an "unsatisfactory level with a net profit margin of just 2.5 per cent." 

Tyler credits industry consolidation and joint ventures with helping to improve the bottom line.

Industry revenues are expected to total $745 billion this year, with average profit per passenger of $5.65.

Besides rising fuel costs, the airline industry also points to such geopolitical risks as the decision by Venezuela to prevent airlines from taking profits out of the country and the crisis in Ukraine.

The disappearance of Malaysia Airlines Flight MH370 over southeast Asia is, at this point, another unknown.   

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Wildly popular BBM chat service to remain free

CBC News Posted: Oct 25, 2013 9:04 AM ET Last Updated: Oct 25, 2013 4:01 PM ET

Millions of Apple and Android users who are enjoying what some have called BlackBerry's "forbidden fruit" can rest easy with the knowledge that BBM, the company's mobile instant messaging chat service, will remain free for the foreseeable future. 

"It's definitely a free service," Andrew Bocking, executive vice-president of BBM for BlackBerry told The Morning Edition host Craig Norris Friday. "We have other ideas on how to monetize that service."

Bocking said BBM will turn a profit through a combination of marketing and advertising through some yet-to-be-launched features, such as BBM Channels.

BBM Channels is a social networking feature currently in beta testing. Once up and running, it would allow users to amass followers and share content as well as allow BlackBerry to tailor and target ads towards individual users.

"We continue to plan to evolve the service and keep making it more engaging and have more reasons why people will come back to use the service," said Bocking. 

Video and voice chatting services for BBM, which are currently available to BlackBerry users only, is also coming soon to the Apple and Android platforms "within months," Bocking said. 

The launch of BBM on competing platforms has been largely seen by analysts as an attempt to secure new revenue streams for BlackBerry as it tries to regain its footing in a global smartphone market that many credit the Waterloo-based technology company for inventing.  

"This is one we're definitely investing in, this is definitely one of our key strategies, but it's one of many," he said. 

Until this week, BBM was only available to BlackBerry users and the buzz surrounding BBM's launch has been considerable, with six million users pre-registering for the app. 

On Tuesday, BlackBerry boasted that its BBM app had been downloaded 10 million times on Apple and Android devices in the first 24 hours after its launch.

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Samsung files patent for Google Glass-like specs

The Associated Press Posted: Oct 25, 2013 10:01 AM ET Last Updated: Oct 25, 2013 10:01 AM ET

Samsung's sketch shows a thumbnail-sized display over the left eyeglass. Google's eyewear, shown above, has a tiny display over the right eyeglass that shows information and websites. (Reuters)

A patent filing shows Samsung Electronics Co. is working on a device it calls sports glasses in a possible response to Google's internet-connected eyewear.

A design patent filing at the Korean Intellectual Property Office shows a Samsung design for smartphone-connected glasses that can display information from the handset.

It said the glasses can play music and receive phone calls through earphones built into the eyewear's frame. It also gives hands-free control over the smartphone.

Reminiscent of the Google Glass design, Samsung's sketch shows a thumbnail-sized display over the left eyeglass. Google's eyewear has a tiny display over the right eyeglass that shows information and websites.

It was not clear from Samsung's sketch and description whether its eyewear would be equipped with a touch control and a camera like Google Glass nor whether it would connect directly to the mobile internet or be a slave to a smartphone.

Samsung's glasses are designed to connect to a smartphone, but it wasn't clear whether the device would be able to connect directly to the internet as well.

The name and the description specify the Samsung product is designed for outdoors activities or sports.

Samsung did not respond to an email and a call seeking comment.

Google Inc. is testing an early version of Google Glass with 10,000 people in the U.S. after giving the public a first look at its internet-connected eyewear in June last year. The early version can take pictures, record videos, navigate maps and works without a smartphone.

Other tech companies are also exploring ways to bring mobile computing to everyday objects such as watches and glasses.

Samsung introduced a smartphone-connected watch called the Galaxy Gear last month. Sony also announced a smart watch.

Samsung filed the application for the eyewear design patent on March 8.

October 26: There's Gold in Them Thar Trees Oct. 25, 2013 5:02 PM They say that money doesn't grow on trees. But it appears that gold does. Scientists in Australia have discovered gold particles in the leaves of eucalyptus trees that grow above gold deposits. And they might provide a natural detection system for mining companies.

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