Germany’s Volkswagen on Tuesday reported a sharp drop in annual operating profit and flagged another tough year ahead as the auto giant continues to grapple with U.S. tariffs and competition in China.

Europe’s biggest carmaker posted 2025 operating profit of 8.9 billion euros ($10.4 billion), down 53% from the year prior, citing U.S. tariffs, currency effects and a strategic shift at Porsche. Analysts had expected annual operating profit to come in at 9.4 billion euros, according to LSEG consensus data.

Full-year revenue held steady at nearly 322 billion euros, compared to 324.7 billion euros in 2024, and the company’s outlook for sales growth is relatively modest in 2026. Volkswagen said it expects revenue to develop in a range between 0% to 3% this year, falling short of analyst expectations.

The company also said it anticipates an operating margin of between 4% and 5.5% in 2026, after coming in at 2.8% in 2025, down from 5.9% a year earlier.

Arno Antlitz, chief operating officer and chief financial officer at Volkswagen, described 2025 as a “really challenging” year but said the company remains “well positioned” in Europe.

“We increased our market share slightly despite increased Chinese competition. In electric vehicles, we even achieved a market share of more than 25%, 27%, so more than in the combustion engine segment,” Antlitz told CNBC’s Annette Weisbach on Tuesday.

Shares of Volkswagen rose 4% during early morning deals. The stock is down more than 12% year-to-date.

The results come as Europe’s automakers struggle to get to grips with a series of industry challenges, including robust competition from Chinese car brands and U.S. President Donald Trump’s import tariffs.

Travelers struggled with hours-long security lines at some airports as officials warned of Transportation Security Administration staffing shortages amid the partial government shutdown.

Houston’s William P. Hobby Airport told customers Sunday to arrive as early as 5 hours before their flights, and warned that security wait times could exceed three hours.

The partial government shutdown has meant that TSA officers are working but without regular paychecks.

TSA callouts rose during the 2018-2019 government shutdown, prompting the closure of some checkpoints and leading to longer screening lines. It ended hours after a shortfall of air traffic controllers curtailed flights on the East Coast. The current shutdown, however, is affecting only Department of Homeland Security employees, including TSA officers.

Hartsfield-Jackson Atlanta International Airport, the world’s busiest, as well as Louis Armstrong New Orleans International Airport, said travelers should arrive at least 3 hours early because of the disruptions.

“Due to impacts from the federal government’s partial shutdown, there is a shortage of TSA workers at the security checkpoint,” New Orleans’ airport said on a post on X. “The Airport has staff on hand to help keep the lines organized, and we will continue to coordinate with our federal partners with the TSA as they navigate this issue.

Sunday’s disruptions rattled the airline industry and travelers just as the busy spring-break travel period gets underway.

“Airlines have done their part to prepare; now Congress and the administration must act with urgency to reach a deal that reopens DHS and ends this shutdown,” Chris Sununu, chief executive of Airlines for America, an industry group that represents American Airlines, Delta Air Lines, Southwest Airlines, United Airlines, and others, said in a statement. “America’s transportation security workforce is too important to be used as political leverage.”

The disruptions come as airlines are grappling with the fallout of the U.S. and Israel’s attacks on Iran, which have led to thousands of canceled flights and driven up the cost of fuel, their biggest expense after labor.

Oil supertanker costs in the Middle East climbed to their highest level on record as conflict between the U.S. and Iran disrupts shipping through the strategically vital Strait of Hormuz.

Major marine war risk providers have started to scrap cover for vessels operating in the Persian Gulf as the fallout from a sudden security shock hobbles key shipping routes in the region.

The benchmark freight rate for Very Large Crude Carriers (VLCCs) — used to ship 2 million barrels of oil from the Middle East to China — hit an all-time high of $423,736 per day on Monday, data from LSEG showed. That marked an increase of more than 94% from Friday’s close.

Alongside a significant jump in oil and gas prices, the stratospheric rise in the cost of hauling crude oil follows the U.S. and Israeli attacks on Iran over the weekend. The expanding conflict has resulted in the effective halt of shipping traffic through the Strait of Hormuz — one of the world’s most important oil choke points, located in the gulf between Oman and Iran.

An Iranian Revolutionary Guards senior official said Monday that the Strait of Hormuz had been closed and warned any vessel attempting to pass through the waterway would be attacked, state media reported. The claim has since been disputed by the U.S. military’s Central Command, CENTCOM, Fox News reported.

“Charterers in the VLCC segment stepped back from the market and avoided securing vessels as multiple incidents have led to increased threat levels around the strait of Hormuz, despite the waterway not being officially closed,” Sheel Bhattacharjee, head of freight pricing in Europe at Argus Media, told CNBC by email.

Oil producers in the Middle East have not yet announced a halt to any production or loading yet, and ports in the UAE, Oman and Kuwait remain operational, Bhattacharjee said, citing market sources.

“But most shipowners were avoiding transits through the strait of Hormuz after insurers cancelled the war risk coverage for vessels in certain areas of the region,” Bhattacharjee said.

It is estimated that roughly one-third of seaborne crude oil trade moves through the strategically important waterway, alongside 19% of global liquefied natural gas (LNG) flows and 14% of global refined products trade, according to Argus Media.

Leading maritime insurers have canceled war risk cover for vessels operating in the Middle East over recent days, amid reports of attacks on multiple ships traversing through the Strait of Hormuz.

Alongside the New York-based American Club, marine insurers including Norway’s Gard and Skuld, Britain’s NorthStandard and the London P&I Club said they were scrapping war risk cover for ships in the region.

Adrian Beciri, CEO of DUCAT Maritime, a Cyprus-based logistics firm specializing in dry bulk, said the knock-on effects of the sprawling Middle East conflict were being felt across the globe.

“We were trying to hire a dry bulk vessel to carry our typical rice food supplies to West Africa, which is around the Cape of Good Hope. You would think that is a million miles away from the conflict zone,” Beciri told CNBC’s “Squawk Box Europe” on Tuesday.

“We actually lost the ship. Someone had paid 50% more than they typically would do to carry coal from Indonesia to the west coast of India. Why did that vessel attract such a high rate? The answer is because the vessel owner was uncertain of getting cargo from the Persian Gulf area,” he continued.

“So, the consequences are far and wide, and this is potentially a double whammy. If we’re looking at the Hormuz closing and the Suez effectively being tampered with by the Houthis, this could be quite significant — much like what we saw during the Covid era and the attacks that were happening there.”

Even if oil tankers are only temporarily blocked from the Strait of Hormuz, it can ratchet up global energy prices, raise shipping costs and create significant supply delays.

The Strait of Hormuz is also key for global container trade. Ports in this region, such as Jebel Ali and Khor Fakkan, are specialized transshipment hubs that serve as intermediary points in global networks.

Shipping giants, including MSC, Maersk, Hapag-Lloyd and CMA CGM, have also issued fresh guidance, seeking to prioritize safety amid a deteriorating security situation.

The first Emirates flight out of Dubai, United Arab Emirates, since the U.S. and Israel attacked Iran took off Monday night bound for Mumbai, India, flight data showed, hours after the airline got the green light from local authorities to resume a “limited number” of flights.

It’s a sign of how airlines are preparing to restart service to the region after thousands of flight cancellations.

Emirates flight EK500 departed at 9:12 p.m. local time, according to Flightradar24, a flight-tracking site. The flight was operated on an Airbus A380, the world’s biggest passenger plane.

Separately, Israeli airline El Al said Monday that it’s considering chartering private jets to bring stranded Israeli citizens home.

The announcements mark a potential improvement after air travel ground to a halt in a large swath of the Middle East over the weekend following the U.S.-Israeli strikes on Iran and subsequent retaliatory strikes.

The attacks shut airspace over a large part of the region, stranding hundreds of thousands of customers around the world and leading to thousands of canceled flights, including those who weren’t flying to and from the area since aircraft couldn’t transit those zones. Dubai is one of the busiest air travel hubs in the world.

The airport authority that owns and manages airports in Dubai said a small number of flights would be permitted to operate from Dubai International and Dubai World Central – Al Maktoum International, but advised travelers to check with their airlines.

For its part, Emirates said it will start operating a “limited number of flights” Monday night and urged customers not to go to the airport unless notified by the airline.

“We are accommodating customers with earlier bookings as a priority,” it said in a post on X. “All other flights remain suspended until further notice,” it said.

El Al said it is considering hiring KlasJet planes to take passengers from European airports to Aqaba, over southern border in Jordan, for customers of the airline. It previously considered flying in and out of Taba, Egypt, but later Monday said that plan was scrapped “due to the lack of approval from the security authorities in Israel.”

Abu Dhabi-based Etihad Airways said Monday that all commercial flights to and from the city are suspended until afternoon local time on Wednesday, though it could operating some cargo and repatriation flights “subject to strict operational and safety protocols.”

Airline and travel stocks fell Monday after airspace closures throughout the Middle East forced carriers to cancel thousands of flights, disrupting trips as far as Brazil and the Philippines.

United Airlines, which has the most international exposure of the U.S. carriers, was down 6% in premarket trading. Service to Tel Aviv, Israel, is one of the airline’s most profitable routes, but airlines were also was forced to pause flights to Dubai, in the United Arab Emirates, one of the busiest airport hubs in the world.

Dubai is a home base for airline Emirates.

Shares of Delta Air Lines and American Airlines were also each off about 6%. Flights through the Middle East were grounded including to destinations like Tel Aviv.

Other carriers like Southwest Airlines, which is more U.S.-focused, had smaller stock moves but shares still fell as investors assessed a possible run-up in oil prices. Fuel is generally airlines’ biggest cost after labor.

Hotel chains also fell, with Marriott International and Hilton Worldwide Holdings down.

International travel has been a bright spot in the travel sector. In January, international air travel demand jumped 5.9% from a year ago while domestic flight demand was nearly flat, the International Air Transport Association, an airline industry group, said in a report on Monday.

Travelers are stranded as far away as Australia, Brazil and the Maldives after the U.S. and Israel launched strikes on Iran this weekend. With airspace in the region still closed, getting home could be a challenge at least several days.

Here’s what to know:

Auto giant Stellantis on Thursday reported its first-ever annual loss after posting substantial charges amid a major strategic shift.

The multinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, posted a full-year 2025 net loss of 22.3 billion euros ($26.3 billion), compared to full-year profit of 5.5 billion euros a year ago.

The net loss was impacted by 25.4 billion euros in write-downs from last year, Stellantis said, as the firm scales back its electric vehicle strategy.

The company said it had suspended its dividend for 2026, as it had previously flagged, and issued up to 5 billion euros of hybrid bonds. It also reiterated its 2026 forecasts, including a mid-single-digit percentage increase in net revenues and a low-single-digit adjusted operating margin.

“Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies,” Stellantis CEO Antonio Filosa said in a statement.

“In 2026 our focus will be on continuing to close the execution gaps of the past, adding further momentum to our return to profitable growth,” he added.

Milan-listed shares of Stellantis rose 0.2% shortly after Thursday’s opening bell. The stock is down more than 31% so far this year.

Other earnings highlights:

• Adjusted operating loss of 842 million euros in 2025, compared to an adjusted operating income of 8.65 billion euros in 2024.
• Estimates net tariff expenses of 1.6 billion euros in 2026.
• Stellantis said it expects positive industrial free cash flow in 2027.

Over the second half of 2025, Stellantis it delivered a “solid” performance, noting consolidated shipments came in at 2.8 million units, with North America posting the strongest contribution.

Net revenues rose 10% to 79.25 billion euros through the latter half of 2025 when compared to the same period a year ago.

These results reflect the initial impact of improved operational efficiencies, disciplined commercial strategies and the strength of the firm’s global brand portfolio, Stellantis said.

Panama annulled key port contracts held by a subsidiary of Hong Kong-based CK Hutchison in its official gazette Monday, transferring interim operations of the ports to Danish shipping giants A.P. Moller-Maersk and Swiss-based Mediterranean Shipping Co.

The notice formalized a Supreme Court ruling last month that the concessions for the Balboa and Cristobal terminals near the Panama Canal, which Panama Port Company, a subsidiary of CK Hutchison, had held for more than two decades, were unconstitutional.

The Panamanian government on Monday formally assumed control of the port facilities, including cranes, vehicles, computer systems and software under a decree aimed at ensuring uninterrupted operations until a new concession is awarded within 18 months.

Under the interim arrangement, APM Terminals, a unit of Maersk, will operate the Balboa port on the Pacific side of the canal, while MSC’s port operating subsidiary, Terminal Investment, will run the Cristobal port on the Atlantic side.

Shares of CK Hutchison fell 0.9% at the open Tuesday. The stock has climbed over 20% so far this year.

CNBC reached out to CK Hutchison, Panama Ports Company, Maersk and MSC for comment but did not receive a response by publication.

The simmering dispute has become a geopolitical flashpoint between Washington and Beijing, with Panama caught in the crossfire.

After U.S. President Donald Trump alleged last year that China was “running the Panama Canal,” CK Hutchison negotiated a $23 billion deal with a BlackRock-led consortium to sell its non-Chinese port assets. Beijing swiftly intervened, describing the sale as  “kowtowing” to American pressure and stalling the transaction.

The Hong Kong conglomerate has pushed back since the ruling last month and initiated arbitration proceedings against Panama. On Feb. 12, CK Hutchison said that “any steps” that Maersk or its subsidiary takes to operate the ports without its agreement will likely “result in legal recourse.”

Beijing also warned that the Central American country will “pay a heavy price both politically and economically” unless it changes course.

The Panama court’s ruling was seen as a major victory for the U.S., given that the White House has made blocking China’s influence over the global trade artery one of its top priorities.

China has reportedly directed state firms to halt talks over new projects in Panama and urged shipping companies to consider rerouting cargo through other ports, Bloomberg reported last week.

— CNBC’s Emily Chan contributed to this story.

The Transportation Security Administration said on Sunday that its PreCheck airport screening lanes are operational, an about-face hours after the Department of Homeland Security said the faster security checkpoints were paused amid the partial government shutdown.

Travel industry leaders said they received little, if any, warning of the changes to PreCheck, a program that allows its 20 million pre-screened members to pass through airport security faster than at standard lanes. Industry members spoke with DHS officials in the past few hours and expressed alarm about the sudden decision, people familiar with the matter said.

“At this time, TSA PreCheck remains operational with no change for the traveling public,” TSA officials said in a statement. “As staffing constraints arise, TSA will evaluate on a case by case basis and adjust operations accordingly. Courtesy escorts, such as those for Members of Congress, have been suspended to allow officers to focus on the mission of securing America’s skies.”

DHS early Sunday said that PreCheck and Global Entry and other program suspensions were scheduled to take effect at 6 a.m. ET on Sunday. As of 12:40 p.m. ET, its updated statement still included a suspension of Global Entry but it had removed its mention of PreCheck.

“We are glad that DHS has decided to keep PreCheck operational and avoid a crisis of its own making,” Geoff Freeman, chief executive of U.S. Travel, an industry group whose members include major airlines, hotel chains like Hyatt and Marriott International and tourism boards around the country.

The move comes as a partial U.S. government shutdown that has left thousands of DHS workers, including TSA airport screeners, working without pay since it started on Feb. 14.

“TSA and CBP are prioritizing the general traveling population at our airports and ports of entry and suspending courtesy and special privilege escorts,” DHS Secretary Kristi Noem said in a statement.

Noem blamed Democrats for the shutdown.

“Shutdowns have real world consequences, not just for the men and women of DHS and their families who go without a paycheck, but it endangers our national security,” she said. “The American people depend on this department every day, and we are making tough but necessary workforce and resource decisions to mitigate the damage inflicted by these politicians.” 

Senate Minority Leader Chuck Schumer, (D-N.Y.), pushed back, saying the Trump administration is “choosing to inflict pain on the public instead of adopting common sense” reforms of Immigration and Customs Enforcement, or ICE.

DHS did not say whether it expected to reverse its suspension of Global Entry or what prompted the change. The White House referred an inquiry from CNBC to DHS.

Travel industry experts sharply criticized the move before it was reversed, which comes just months after last year’s record federal government shutdown cost airlines millions of dollars and hurt bookings, according to executives. The sector’s leaders have repeatedly complained about how air travel has ended up at the center of repeated shutdowns and have pushed lawmakers to ensure that essential government workers are paid during funding lapses.

The government shutdown in the fall, the longest ever, cost the travel industry and other sectors $6.1 billion, the group said. Those disruptions affected about 6 million travelers.

“A4A is deeply concerned that TSA PreCheck and Global Entry programs are being suspended and that the traveling public will be, once again, used as a political football amid another government shutdown,” said Airlines for America CEO Chris Sununu. The group represents American Airlines, Delta Air Lines, Southwest Airlines, United Airlines and other major carriers.

“The announcement was issued with extremely short notice to travelers, giving them little time to plan accordingly, which is especially troubling at this time of record air travel,” he added.

The U.S. Travel Association said earlier: “We are disgusted that over the last 90 days, Democrats and Republicans have used air traffic controllers, TSA, CBP and the entire travel experience as a means to achieve political ends,” it said in a statement.

The measures come as a massive winter storm bears down on the Northeast U.S., which could disrupt airline flights for days.

Airlines have canceled thousands of flights through Monday and waived cancellation and change fees for airports spanning Virginia to Maine ahead of the East Coast blizzard.

— CNBC’s Garrett Downs contributed to this article.

This story is developing. Please check back for updates.