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By Karin Strohecker and David Lawder WASHINGTON (Reuters) -Decisions by most countries to not retaliate against U.S. President Donald Trump's tariffs are among the top factors bolstering the global economy's resilience, IMF Managing Director Kristalina Georgieva said on Tuesday. "The world, so far, and I cannot stress enough, so far, has opted not to retaliate and to continue to trade pretty much on the rules that have existed," Georgieva said during an event at the IMF and World Bank annual meetings in Washington, noting that this avoided debilitating tariff escalation. Earlier on Tuesday, the fund had edged up its 2025 global GDP growth forecast in its World Economic Outlook to 3.2% from a 3.0% forecast in July, but warned that a renewed U.S.-China trade war threatened by Trump could slow output significantly. Also supporting global growth is that the effective U.S. tariff rate has come down from prior estimates, Georgieva told the Bretton Woods Committee event. After calculating that Trump's tariffs announced in April would average 23%, the rate was reduced by U.S. trade deals with the European Union, Japan and other major partners to about 17.5%, she said. "The effective tariff, though, what is being collected when you get exceptions to accommodate the need for the economy to function well, we calculate them somewhere between 9% and 10% so the burden is more than twice less than we thought it would be," she added. Other factors propping up the global economy have been better policies by countries to boost private sector development and more efficient allocation of resources, as well as agility by companies to avoid the worst effects of the tariffs, by front-loading imports and quickly rearranging supply chains. However, she said the resilience could also be tested by the stretched valuations in global markets – especially the tech sector, which has fueled a stellar market rally this year. "This is a bet, very big bet," she said. "If it pays back, fantastic, then our problem with low growth is gone, because we will see increase in productivity and we will see an increase in growth. What if it is either slow to come true or doesn't quite materialize. What then?" IMF chief economist Pierre-Olivier Gourinchas told Reuters earlier that the AI investment boom could lead to a bust similar to the dotcom crash in 2000 that burns equity investors, but that it would not likely result in a systemic crisis because it has not been heavily funded by debt. (Reporting by David Lawder and Karin Strohecker, editing by Lincoln Feast.)

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By Karin Strohecker and David Lawder WASHINGTON (Reuters) -Decisions by most countries to not retaliate against U.S. President Donald Trump's tariffs are among the top factors bolstering the global economy's resilience, IMF Managing Director Kristalina Georgieva said on Tuesday. "The world, so far, and I cannot stress enough, so far, has opted not to retaliate and to continue to trade pretty much on the rules that have existed," Georgieva said during an event at the IMF and World Bank annual meetings in Washington, noting that this avoided debilitating tariff escalation. Earlier on Tuesday, the fund had edged up its 2025 global GDP growth forecast in its World Economic Outlook to 3.2% from a 3.0% forecast in July, but warned that a renewed U.S.-China trade war threatened by Trump could slow output significantly. Also supporting global growth is that the effective U.S. tariff rate has come down from prior estimates, Georgieva told the Bretton Woods Committee event. After calculating that Trump's tariffs announced in April would average 23%, the rate was reduced by U.S. trade deals with the European Union, Japan and other major partners to about 17.5%, she said. "The effective tariff, though, what is being collected when you get exceptions to accommodate the need for the economy to function well, we calculate them somewhere between 9% and 10% so the burden is more than twice less than we thought it would be," she added. Other factors propping up the global economy have been better policies by countries to boost private sector development and more efficient allocation of resources, as well as agility by companies to avoid the worst effects of the tariffs, by front-loading imports and quickly rearranging supply chains. However, she said the resilience could also be tested by the stretched valuations in global markets – especially the tech sector, which has fueled a stellar market rally this year. "This is a bet, very big bet," she said. "If it pays back, fantastic, then our problem with low growth is gone, because we will see increase in productivity and we will see an increase in growth. What if it is either slow to come true or doesn't quite materialize. What then?" IMF chief economist Pierre-Olivier Gourinchas told Reuters earlier that the AI investment boom could lead to a bust similar to the dotcom crash in 2000 that burns equity investors, but that it would not likely result in a systemic crisis because it has not been heavily funded by debt. (Reporting by David Lawder and Karin Strohecker, editing by Lincoln Feast.)

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By David Lawder WASHINGTON (Reuters) -The International Monetary Fund edged up its 2025 global growth forecast on Tuesday as tariff shocks and financial conditions have proven more benign than expected, but warned that a renewed U.S.-China trade war threatened by President Donald Trump could slow output significantly. The IMF said in its World Economic Outlook that recent trade deals between the U.S. and some major economies have avoided the worst of Trump's threatened tariffs with little retaliation, prompting its second growth upgrade since April. The IMF now predicts global real GDP growth at 3.2% for 2025, up from a July forecast of 3.0% and a more severe April forecast of 2.8% that came after Trump imposed broad global "reciprocal" tariffs and a tit-for-tat escalation with China ensued. It sees global growth at 3.1% in 2026, unchanged from the July forecast. In addition to lower-than-expected tariff rates, global output has been supported by an agile private sector that front-loaded imports and quickly rerouted supply chains, a weaker dollar, fiscal stimulus in Europe and China and an AI investment boom, said IMF chief economist Pierre-Olivier Gourinchas. "So bottom line: not as bad as we feared, but worse than we anticipated a year ago, and worse than we need," he said before the start of IMF and World Bank annual meetings this week. But Trump on Friday shattered the relative calm by threatening 100% duties on Chinese goods – on top of rates averaging 55% – in retaliation for Beijing's dramatically expanded export controls on rare earths. Treasury Secretary Scott Bessent said on Monday that talks were underway to defuse a major U.S.-China trade war escalation. "Obviously, if this were to materialize, this would be a very significant risk for the global economy," Gourinchas told Reuters in an interview, adding escalation could cut growth forecasts significantly and add to uncertainty that is chilling investment and spending. In a downside risk scenario in the report modeling the impact of tariffs that are 30 percentage points higher than current levels on goods from China, and 10 percentage points higher for Japan, the euro area and Asian emerging markets, the IMF finds that this would cut global growth in 2026 by 0.3 percentage points with the negative impact increasing to more than 0.6 percentage points through 2028. Adding in other potential adverse impacts including higher inflation expectations and interest rates and lower demand for U.S. assets, the IMF said global GDP reduction under the scenario could reach 1.2 percentage points in 2026 and 1.8 percentage points by 2027. US GROWTH STABLE But under the IMF's baseline forecasts the U.S. outlook remains resilient, with 2025 growth at 2.0%, a slight upgrade from the 1.9% forecast in July. The IMF forecast 2026 U.S. GDP growth at 2.1%, also a slight improvement from July but well below the 2024 U.S. growth rate of 2.8%. The Fund cited lower-than-feared tariff rates, a fiscal boost from Republicans' tax bill, easier financial conditions and a boom in artificial intelligence investment as supporting U.S. growth. Euro zone growth also improved a bit in the IMF forecasts, to 1.2% from 1.0% in July, due to fiscal expansion in Germany and continued strong momentum in Spain. Japan, which benefited from the front-loading of trade in the first half to beat U.S. tariffs, saw its growth rate significantly increased to 1.1% from 0.7% in July, also driven by stronger wage and domestic consumption growth. This will reverse somewhat next year, with growth settling back to 0.6% for 2026, but represents a 0.1 percentage points upgrade from July. The IMF raised its 2025 growth view in Latin America and the Caribbean region to 2.4% from 2.2% in July, mostly on the back of a 0.8 percentage point upgrade for Mexico, the region's second-largest economy, to 1.0% for 2025 The IMF left its China growth forecasts unchanged at 4.8% for 2025, driven by increased exports that it said were likely unsustainable, and 4.2% for 2026. "The outlook remains worrisome in China, where the property sector is still on shaky footing four years after its property bubble burst," Gourinchas said in a blog accompanying the report. "Financial stability risks are elevated and rising as real estate investment continues to contract, overall credit demand remains weak, and the economy teeters on the edge of a debt-deflation trap." The IMF kept its global headline inflation forecast largely unchanged at 4.2% for 2025 and 3.7% for 2026, but said that there was divergence among countries, with inflation forecasts rising in the U.S. as firms that have held off on raising prices begin to pass on tariff costs to consumers. But the IMF said it revised inflation forecasts lower in some Asian exporting countries, including China, India and Thailand, reflecting primarily lower growth performances. (Reporting by David Lawder; Editing by Andrea Ricci)

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By Jesus Calero (Reuters) -Global sales of fully electric and plug-in hybrid vehicles rose 26% in September from a year ago to a record 2.1 million units, driven by strong demand in China and a late U.S. tax-credit rush, market research firm Rho Motion said on Wednesday. China accounted for about two-thirds of global sales with about 1.3 million units, while North America also hit a record as U.S. buyers moved to secure incentives before they expired, said Rho Motion data manager Charles Lester. WHY IT'S IMPORTANT China is the world's biggest car market and accounts for more than half of global EV sales, which in Rho Motion's data include battery-electric vehicles and plug-in hybrids. September, typically China's busiest month for car buying, saw sales rise as shoppers looked to make the most of trade-in subsidies before some regions started phasing them out. U.S. demand reflected a surge as buyers rushed to claim the expiring $7,500 EV tax credit, although demand is expected to decline sharply in the fourth quarter "as both consumers and businesses lose access to the federal incentives that have underpinned EV purchases", Rho Motion said. Europe also hit a new high, helped by incentives in Germany and strong demand in Britain, while Tesla's rollout of a lower-cost Model Y in Europe is expected to further intensify competition in coming months. BY THE NUMBERS Global sales of battery-electric vehicles and plug-in hybrids rose 26% to a record 2.1 million units in September, Rho Motion data showed.  Chinese sales rose to about 1.3 million vehicles. European sales jumped 36% to 427,541 units, while North American sales climbed 66% to about 215,000. Sales in the rest of the world jumped 48% to 153,594 vehicles. KEY QUOTE "With the federal incentive gone, U.S. demand is expected to drop sharply in the final quarter of the year," Lester said.  Some automakers such as General Motors and Hyundai are trying to soften the blow by offering discounts or tapping dealer inventories, but overall production is being scaled back, he added.  (Reporting by Jesus Calero; Editing by Alexander Smith)

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By Stephen Culp NEW YORK (Reuters) -Wall Street closed mixed on Tuesday and gold touched a record high as investors weighed upbeat economic sentiment from the International Monetary Fund and Federal Reserve Chair Jerome Powell against revived U.S.-China trade tensions. Stocks lost some momentum late in the session after U.S. President Donald Trump posted on social media that he was considering ending some trade ties with China. The Dow reversed an early selloff to nab modest gains, while crude prices fell and benchmark U.S. Treasury yields eased. The S&P 500 and the Nasdaq finished the session in negative territory. Powell said in a speech on Tuesday that the overall U.S. economy "may be on a somewhat firmer trajectory than expected," while also cautioning that "there is no risk-free path for policy as we navigate the tension between our employment and inflation goals." That echoed an IMF report which raised its global growth outlook as tariff shocks and financial conditions have proven more benign than expected. But the IMF warned that the trade war between the world's two largest economies could significantly slow output. "What we have here is a market that has one ear constantly listening to the trade war rhetoric and then we have the other ear, which is in tune to the fundamentals of the stock market," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. The U.S. and China began charging tit-for-tat port fees on Tuesday. Bilateral trade tensions, which have rattled world markets this year, flared up late last week after China tightened controls on its rare earth exports. Trump retaliated by threatening to hike tariffs on Chinese imports into the triple digits. BANK EARNINGS KICK OFF EARNINGS SEASON Upbeat quarterly results from high-profile financial firms including JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo kicked off third-quarter earnings season. "If the banks are a guide, it will probably be a good earnings season," Cardillo added. "That's another supportive factor because to a certain degree, it validates the recent market highs."  The Dow Jones Industrial Average rose 202.88 points, or 0.44%, to 46,270.46, the S&P 500 fell 10.41 points, or 0.16%, to 6,644.31 and the Nasdaq Composite fell 172.91 points, or 0.76%, to 22,521.70.  European stocks closed lower as renewed U.S.-China trade tensions soured market sentiment, as investors eyed developments in France, where the prime minister appeared set to hold off on a key pension overhaul. MSCI's gauge of stocks across the globe  fell 2.45 points, or 0.25%, to 978.64. The pan-European STOXX 600 index fell 0.37%, while Europe's broad FTSEurofirst 300 index fell 7.41 points, or 0.33%. Treasury yields declined but were off earlier lows, following Powell's speech and the IMF's revised growth outlook. The yield on benchmark U.S. 10-year notes fell 2.3 basis points to 4.028%, from 4.051% late on Friday. The 30-year bond yield  fell 1.1 basis points to 4.6234% from 4.634% late on Friday. Oil prices dipped on trade war jitters and a report from the International Energy Agency which raised the prospect of increased supplies and dampening demand. U.S. crude fell 1.33% to settle at $58.70 per barrel, while Brent settled at $62.39 per barrel, down 1.47% on the day. The dollar eased while the Swiss franc and Japanese yen firmed due to heightened trade-driven risk. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.26% to 99.04, with the euro up 0.31% at $1.1604. Against the Japanese yen, the dollar weakened 0.37% to 151.71. Gold broke past $4,100, boosted by safe-haven demand arising from the latest salvo in the Washington-Beijing trade spat. Spot gold rose 0.75% to $4,140.97 an ounce. U.S. gold futures rose 0.77% to $4,140.20 an ounce. (Reporting by Stephen Culp; Additional reporting by Amanda Cooper in London; Gregor Stuart Hunter in Singapore; Editing by Timothy Heritage, Richard Chang and Deepa Babington)

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By Nandita Bose WASHINGTON (Reuters) -U.S. support for Argentina hinges on the ruling party of President Javier Milei succeeding in this month's midterm legislative elections, President Donald Trump said on Tuesday, saying "we're not going to waste our time" if Milei's party does not win. Trump and Milei were meeting at the White House just days after the U.S. agreed to provide a major financial lifeline to the South American nation. "I'm with this man because his philosophy is correct, and he may win it," Trump said ahead of a White House lunch with Milei and members of Trump's cabinet. "He may not win, but I think he's going to win. And if he wins, we're staying with him. And if he doesn't win, we're gone." Trump's remark rattled Argentine markets that had been buoyed by the support package recently announced by U.S. Treasury Secretary Scott Bessent. The centerpiece of that deal is a $20 billion currency swap with Argentina's central bank, exchanging stable U.S. dollars for volatile pesos. Argentina's main stock market reversed earlier gains and was down about 2% following Trump's comments. Bessent said at Tuesday's meeting that the package, full details of which have not been announced, is predicated on the continuance of economic policies favored by the Trump administration. Well before Elon Musk's Department of Government Efficiency, or DOGE, tore through U.S. government departments, Milei took his own "chainsaw" to Argentina's government, cutting tens of thousands of public sector jobs to address a long-running fiscal deficit. Milei also created a deregulation ministry to target sectors where officials said local prices were artificially high due to a lack of competition.  "Going back to Peronist policies would cause a rethink," Bessent said. Bessent said, however, that the aid package was not dependent on Argentina ending a separate swap line arrangement with China. The economic lifeline for Argentina marks an unusual move for the U.S., particularly under an administration that has largely eschewed major foreign interventions.  The White House has framed the deal as a strategic effort to stabilize a key regional ally. But it has drawn criticism at home. Many Democratic lawmakers have accused Trump of prioritizing foreign bailouts and investor protections while the U.S. government remains shut down. American farmers have also voiced frustration, noting that China has shifted soybean purchases from U.S. producers to Argentine growers this year. While details of the agreement remain unclear, the bailout could offer Milei a much-needed political boost as he works to stave off a deepening economic crisis and shore up his party's support. He suffered a major setback last month when his party lost a key provincial election and now faces a critical midterm vote later this month. "It benefits the government to reach the election with a stable exchange rate, without having the peso devaluing, and without draining the central bank's reserve," said Ignacio Labaqui, a political analyst in Buenos Aires. At the concert-style Buenos Aires launch party of Milei's latest book last week, several of his supporters said that seeking help from Trump was simply a tool at his disposal and should not be politicized. "No country grows on its own, without outside help," said Kevin Nehuen, 24, a Milei supporter who traveled from the province of Neuquen in the Patagonia region. He pointed to how previous Argentine governments agreed to currency swaps with China to boost reserves. But the aid has also faced criticism from Argentina's left. From her apartment in Buenos Aires, where she is serving a sentence for corruption, former President Cristina Kirchner tweeted last month that "the 'help' from the 'forces of the north'" represents "food for today and hunger for tomorrow." The assistance also underscores the extent to which the Trump administration is willing to support a political ally who has cultivated strong ties with the president and American conservatives in recent years.  Milei, whom Trump has described as his "favorite president," was one of two world leaders onstage during Trump's inauguration. (Reporting by Nandita Bose in Washington; Additional reporting by Andrea Shalal and Leila Miller; Editing by Ross Colvin, Alistair Bell and Edmund Klamann)

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By Utkarsh Shetti (Reuters) -General Motors said on Tuesday it would take a $1.6 billion charge in the third quarter as it reshapes its electric vehicle strategy following the scrapping of a key federal incentive that is likely to dampen demand. GM's disclosure is one of the clearest indications yet that U.S. automakers are scrambling to adapt their production plans in response to slowing EV demand. The EV market also faces fresh strain after the Trump administration scrapped a $7,500 federal tax credit for electric vehicles, a key industry support, with auto executives warning of a sharp near-term drop in battery-car sales before an eventual rebound. EV ADOPTION RATE TO SLOW In a filing, GM said it expects "the adoption rate of EVs to slow" following recent policy changes, including the termination of certain consumer tax incentives and reduced emissions-rule stringency. "The charge is a special item driven by our expectation that EV volumes will be lower than planned because of market conditions and the changed regulatory and policy environment," GM told Reuters in a statement. Shares of the company were up 2.1% in morning trade. Automakers are also working to cushion the impact of President Donald Trump's tariffs, which forced GM to take a $1.1 billion hit in the previous quarter. The company has estimated a bottom-line impact of $4 billion to $5 billion this year from trade headwinds and said it could take steps to offset at least 30% of the blow. Morningstar senior analyst David Whiston noted that other automakers could follow GM's suit and announce their own EV-related impairments. Ford declined to comment on its EV plans, while Stellantis did not immediately respond to a Reuters request for comment. GM'S $1.6 BILLION CHARGE "The charge doesn’t come as a surprise given recent market developments and the fact GM had made probably the most aggressive EV push of any traditional automaker," said Garrett Nelson, a senior equity analyst at CFRA Research. "We think the automakers who chose to invest more heavily in hybrid vehicle development such as Toyota and Honda are poised to benefit in the U.S. auto market." Both GM and crosstown rival Ford had launched a program that would have allowed dealers to offer a $7,500 tax credit on EV leases after the federal subsidy expired, before walking back on those plans. The charges include a $1.2 billion non‑cash impairment tied to EV capacity adjustments and $400 million for contract‑cancellation fees and commercial settlements. While the changes will not affect GM's current portfolio of Chevrolet, GMC, and Cadillac EVs in production, the company did warn of possible additional charges as it reassesses capacity and manufacturing footprint. GM said the charges will be recorded as adjustments to non‑GAAP results for the third quarter, which are scheduled for release early next week. (Reporting by Utkarsh Shetti and Shivansh Tiwary in Bengaluru; Editing by Tasim Zahid)

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By Max A. Cherney (Reuters) -Intel announced on Tuesday a new artificial intelligence chip for the data center that it plans to launch next year, in a renewed push to break into the AI chip market. The new chip (GPU) will be optimized for energy efficiency and support a wide range of uses such as running AI applications, or inference, Intel Chief Technology Officer Sachin Katti said at the Open Compute Summit on Tuesday. "It emphasizes that focus that I talked about earlier, inference, optimized for AI, optimized, optimized for delivering the best token economics out there, the best performance per dollar out there," Katti said. The new chip, called Crescent Island, is the struggling U.S. chipmaker's latest attempt to capitalize on the frenzy in AI spending that has generated billions in revenue for AMD and Nvidia.  The company's plans trail behind competitors and represent the significant challenge Intel's executives and engineers face to capture a meaningful portion of the market for AI chips and systems. Intel CEO Lip-Bu Tan has vowed to restart the company's stalled AI efforts after the company effectively mothballed projects such as the Gaudi line of chips and Falcon Shores processor.  Crescent Island will feature 160 gigabytes of a slower form of memory than the high bandwidth memory (HBM) that is found on AMD and Nvidia's data center AI chips. The chip will be based on a design that Intel has used for its consumer GPUs. Intel did not disclose which manufacturing process Crescent Island would use. The company did not immediately respond to a request for comment. MIX AND MATCH Since the generative AI boom with the launch of OpenAI's ChatGPT in November 2022, startups and large cloud operators have rushed to grab GPUs that help run AI workloads on data center servers. The demand explosion has led to a supply crunch and sky-high prices for chips designed or suited for AI applications. Katti said at the San Jose trade show that the company would release new data center AI chips every year, which would match the annual cadence set by AMD, Nvidia and several of the cloud computing companies that make their own chips. Nvidia has dominated the market to build large AI models such as the one used for ChatGPT. Tan has said the company plans to focus its design efforts on building chips useful for running those AI models – which work behind the scenes to make AI software operate. "Instead of trying to build for every workload out there, our focus is increasingly going to be on inference," Katti said. Intel has taken an open and modular approach in which customers can mix and match chips from different vendors, Katti said. Nvidia said last month it would invest $5 billion in Intel, taking a roughly 4% stake and becoming one of its largest shareholders as part of a partnership to co-develop future PC and data center chips. The deal is part of Intel's effort to ensure that Intel's central processors (CPUs) are installed in every AI system that gets sold, Katti said.  (Reporting by Akash Sriram in Bengaluru and Max Cherney in San Francisco; Editing by Shilpi Majumdar and Stephen Coates)

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By Max A. Cherney SAN FRANCISCO (Reuters) -Broadcom is launching a new networking chip on Tuesday that will help companies build artificial intelligence computing systems by stringing together hundreds of thousands of chips that crunch data, deepening its rivalry with Nvidia. The chip, called the Thor Ultra, enables computing infrastructure operators to deploy far more chips than they otherwise could, allowing them to build and run the large models used to power AI apps such as ChatGPT. The Thor Ultra will battle Nvidia's networking interface chips and aim to further entrench Broadcom's control of network communications inside data centers designed for AI applications. It comes after Broadcom on Monday unveiled a deal to roll out 10 gigawatts worth of custom chips for ChatGPT maker OpenAI beginning in the second half of 2026, challenging Nvidia's grip on the AI accelerator market. AI represents a big opportunity for Broadcom. Chief executive Hock Tan said late last year the market the company is going after for its various AI chips is in the range of $60 billion to $90 billion in 2027, divided between its networking chips and the data center processors it helps Alphabet's Google and OpenAI make. Broadcom reported AI revenue of $12.2 billion in fiscal 2024. In September, it announced a new, unnamed $10 billion customer for its custom data center AI chips. The Thor Ultra chip, part of Broadcom's growing catalog of networking chips, operates as a critical link between an AI system and the rest of the data center. The networking chips help data center operators move information around inside a facility. "In the distributed computing system, network plays an extremely important role in building these large clusters," Ram Velaga, a Broadcom senior vice president, told Reuters. "So I'm not surprised that anybody who's in the GPU business wants to make sure that they are participating in the networking." FOCUSING ON CHIP DESIGN While networking chips are crucial to the company's plans, the AI chips Broadcom helps design for large cloud computing companies such as Google are lucrative. Broadcom has worked on multiple generations of Google's Tensor processor, which Google began designing more than a decade ago. The Tensor chips have generated billions of dollars in revenue for Broadcom, according to analyst estimates. During a tour in September of Broadcom's San Jose network chip-testing labs where engineers work on current and forthcoming designs of its networking chips, company executives detailed measures taken to construct and test new networking processors. Towards that end, Broadcom's engineers doubled the bandwidth on Thor Ultra compared with the prior version. They put the chips through rigorous testing and evaluation from the earliest stages of production. To make a chip like the Thor Ultra or flagship series of Tomahawk networking switches, the engineers build an entire system around the chip. With the hardware system team, the engineers will discuss what kind of package the chip uses, how much power it will need and how much heat it will emit, Velaga said. Broadcom does not sell servers itself but offers the designs for components and systems it creates for testing to its customers in order to give them a reference point to construct the networking infrastructure around it. "For every dollar we invest in our silicon, there is at least $6 to $10 that our ecosystem partners are investing," Velaga said. "So a lot of our focus is on design, as if we are almost ready to take it to production." (Reporting by Max A. Cherney in San Francisco; Editing by Muralikumar Anantharaman)

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CHICAGO (Reuters) -Spirit Airlines said on Tuesday it will fully implement its transformation plan by the end of 2027, when the bankrupt carrier expects to produce about $220 million in net income. In a regulatory filing, the discount airline estimated its adjusted operating loss in 2025 at $819 million. The ultra-low-cost carrier has reduced its network, fleet size and plans to furlough pilots and flight attendants to put it on firmer financial footing, after the airline filed for bankruptcy for a second time in a year in August. Spirit said its earnings before interest, taxes, depreciation, amortization and rental costs (EBITDAR), a measure of operating performance, are estimated to be about $900 million by the end of 2027. The carrier estimates $211 million in savings from two furloughs, one of which has already been executed. Spirit said fleet reductions will result in annualized estimated rent savings of $400 million and a reduction in lease liability of over $3 billion. (Reporting by Rajesh Kumar Singh and Doyinsola Oladipo in New York; Editing by Chris Reese and Deepa Babington)

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