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Trump or Harris? Here are the 2024 stakes for airlines, banks, EVs, health care and more

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Former President Donald Trump and Vice President Kamala Harris face off in the ABC presidential debate on Sept. 10, 2024.

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With the U.S. election less than a month away, the country and its corporations are staring down two drastically different options.

For airlines, banks, electric vehicle makers, health-care companies, media firms, restaurants and tech giants, the outcome of the presidential contest could result in stark differences in the rules they’ll face, the mergers they’ll be allowed to pursue, and the taxes they’ll pay.

During his last time in power, former President Donald Trump slashed the corporate tax rate, imposed tariffs on Chinese goods, and sought to cut regulation and red tape and discourage immigration, ideas he’s expected to push again if he wins a second term.

In contrast, Vice President Kamala Harris has endorsed hiking the tax rate on corporations to 28% from the 21% rate enacted under Trump, a move that would require congressional approval. Most business executives expect Harris to broadly continue President Joe Biden‘s policies, including his war on so-called junk fees across industries.

Personnel is policy, as the saying goes, so the ramifications of the presidential race won’t become clear until the winner begins appointments for as many as a dozen key bodies, including the Treasury, Justice Department, Federal Trade Commission, and Consumer Financial Protection Bureau.

CNBC examined the stakes of the 2024 presidential election for some of corporate America’s biggest sectors. Here’s what a Harris or Trump administration could mean for business:

Airlines

The result of the presidential election could affect everything from what airlines owe consumers for flight disruptions to how much it costs to build an aircraft in the United States.

The Biden Department of Transportation, led by Secretary Pete Buttigieg, has taken a hard line on filling what it considers to be holes in air traveler protections. It has established or proposed new rules on issues including refunds for cancellations, family seating and service fee disclosures, a measure airlines have challenged in court.

“Who’s in that DOT seat matters,” said Jonathan Kletzel, who heads the travel, transportation and logistics practice at PwC.

The current Democratic administration has also fought industry consolidation, winning two antitrust lawsuits that blocked a partnership between American Airlines and JetBlue Airways in the Northeast and JetBlue’s now-scuttled plan to buy budget carrier Spirit Airlines.

The previous Trump administration didn’t pursue those types of consumer protections. Industry members say that under Trump, they would expect a more favorable environment for mergers, though four airlines already control more than three-quarters of the U.S. market.

On the aerospace side, Boeing and the hundreds of suppliers that support it are seeking stability more than anything else.

Trump has said on the campaign trail that he supports additional tariffs of 10% or 20% and higher duties on goods from China. That could drive up the cost of producing aircraft and other components for aerospace companies, just as a labor and skills shortage after the pandemic drives up expenses.

Tariffs could also challenge the industry, if they spark retaliatory taxes or trade barriers to China and other countries, which are major buyers of aircraft from Boeing, a top U.S. exporter.

— Leslie Josephs

Banks

Big banks such as JPMorgan Chase faced an onslaught of new rules this year as Biden appointees pursued the most significant slate of regulations since the aftermath of the 2008 financial crisis.

Those efforts threaten tens of billions of dollars in industry revenue by slashing fees that banks impose on credit cards and overdrafts and radically revising the capital and risk framework they operate in. The fate of all of those measures is at risk if Trump is elected.

Trump is expected to nominate appointees for key financial regulators, including the CFPB, the Securities and Exchange Commission, the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation that could result in a weakening or killing off completely of the myriad rules in play.

“The Biden administration’s regulatory agenda across sectors has been very ambitious, especially in finance, and large swaths of it stand to be rolled back by Trump appointees if he wins,” said Tobin Marcus, head of U.S. policy at Wolfe Research.

Bank CEOs and consultants say it would be a relief if aspects of the Biden era — an aggressive CFPB, regulators who discouraged most mergers and elongated times for deal approvals — were dialed back.

“It certainly helps if the president is Republican, and the odds tilt more favorably for the industry if it’s a Republican sweep” in Congress, said the CEO of a bank with nearly $100 billion in assets who declined to be identified speaking about regulators.

Still, some observers point out that Trump 2.0 might not be as friendly to the industry as his first time in office.

Trump’s vice presidential pick, Sen. JD Vance, of Ohio, has often criticized Wall Street banks, and Trump last month began pushing an idea to cap credit card interest rates at 10%, a move that if enacted would have seismic implications for the industry.

Bankers also say that Harris won’t necessarily cater to traditional Democratic Party ideas that have made life tougher for banks. Unless Democrats seize both chambers of Congress as well as the presidency, it may be difficult to get agency heads approved if they’re considered partisan picks, experts note.

“I would not write off the vice president as someone who’s automatically going to go more progressive,” said Lindsey Johnson, head of the Consumer Bankers Association, a trade group for big U.S. retail banks.

— Hugh Son

EVs

Electric vehicles have become a polarizing issue between Democrats and Republicans, especially in swing states such as Michigan that rely on the auto industry. There could be major changes in regulations and incentives for EVs if Trump regains power, a fact that’s placed the industry in a temporary limbo.

“Depending on the election in the U.S., we may have mandates; we may not,” Volkswagen Group of America CEO Pablo Di Si said Sept. 24 during an Automotive News conference. “Am I going to make any decisions on future investments right now? Obviously not. We’re waiting to see.”

Republicans, led by Trump, have largely condemned EVs, claiming they are being forced upon consumers and that they will ruin the U.S. automotive industry. Trump has vowed to roll back or eliminate many vehicle emissions standards under the Environmental Protection Agency and incentives to promote production and adoption of the vehicles.

If elected, he’s also expected to renew a battle with California and other states who set their own vehicle emissions standards.

“In a Republican win … We see higher variance and more potential for change,” UBS analyst Joseph Spak said in a Sept. 18 investor note.

In contrast, Democrats, including Harris, have historically supported EVs and incentives such as those under the Biden administration’s signature Inflation Reduction Act.

Harris hasn’t been as vocal a supporter of EVs lately amid slower-than-expected consumer adoption of the vehicles and consumer pushback. She has said she does not support an EV mandate such as the Zero-Emission Vehicles Act of 2019, which she cosponsored during her time as a senator, that would have required automakers to sell only electrified vehicles by 2040. Still, auto industry executives and officials expect a Harris presidency would be largely a continuation, though not a copy, of the past four years of Biden’s EV policy.

They expect some potential leniency on federal fuel economy regulations but minimal changes to the billions of dollars in incentives under the IRA.

— Mike Wayland

Health care

Both Harris and Trump have called for sweeping changes to the costly, complicated and entrenched U.S. health-care system of doctors, insurers, drug manufacturers and middlemen, which costs the nation more than $4 trillion a year.

Despite spending more on health care than any other wealthy country, the U.S. has the lowest life expectancy at birth, the highest rate of people with multiple chronic diseases and the highest maternal and infant death rates, according to the Commonwealth Fund, an independent research group.

Meanwhile, roughly half of American adults say it is difficult to afford health-care costs, which can drive some into debt or lead them to put off necessary care, according to a May poll conducted by health policy research organization KFF.

Both Harris and Trump have taken aim at the pharmaceutical industry and proposed efforts to lower prescription drug prices in the U.S., which are nearly three times higher than those seen in other countries.

But many of Trump’s efforts to lower costs have been temporary or not immediately effective, health policy experts said. Meanwhile, Harris, if elected, can build on existing efforts of the Biden administration to deliver savings to more patients, they said.

Harris specifically plans to expand certain provisions of the IRA, part of which aims to lower health-care costs for seniors enrolled in Medicare. Harris cast the tie-breaking Senate vote to pass the law in 2022.

Her campaign says she plans to extend two provisions to all Americans, not just seniors: a $2,000 annual cap on out-of-pocket drug spending and a $35 limit on monthly insulin costs.

Harris also intends to accelerate and expand a provision allowing Medicare to directly negotiate drug prices with manufacturers for the first time. Drugmakers fiercely oppose those price talks, with some challenging the effort’s constitutionality in court.

Trump hasn’t publicly indicated what he intends to do about IRA provisions.

Some of Trump’s prior efforts to lower drug prices “didn’t really come into fruition” during his presidency, according to Dr. Mariana Socal, a professor of health policy and management at the Johns Hopkins Bloomberg School of Public Health.

For example, he planned to use executive action to have Medicare pay no more than the lowest price that select other developed countries pay for drugs, a proposal that was blocked by court action and later rescinded.

Trump also led multiple efforts to repeal the Affordable Care Act, including its expansion of Medicaid to low-income adults. In a campaign video in April, Trump said he was not running on terminating the ACA and would rather make it “much, much better and far less money,” though he has provided no specific plans.

He reiterated his belief that the ACA was “lousy health care” during his Sept. 10 debate with Harris. But when asked he did not offer a replacement proposal, saying only that he has “concepts of a plan.”

— Annika Kim Constantino

Media

Top of mind for media executives is mergers and the path, or lack thereof, to push them through.

The media industry’s state of turmoil — shrinking audiences for traditional pay TV, the slowdown in advertising, and the rise of streaming and challenges in making it profitable — means its companies are often mentioned in discussions of acquisitions and consolidation.

While a merger between Paramount Global and Skydance Media is set to move forward, with plans to close in the first half of 2025, many in media have said the Biden administration has broadly chilled deal-making.

“We just need an opportunity for deregulation, so companies can consolidate and do what we need to do even better,” Warner Bros. Discovery CEO David Zaslav said in July at Allen & Co.’s annual Sun Valley conference.

Media mogul John Malone recently told MoffettNathanson analysts that some deals are a nonstarter with this current Justice Department, including mergers between companies in the telecommunications and cable broadband space.

Still, it’s unclear how the regulatory environment could or would change depending on which party is in office. Disney was allowed to acquire Fox Corp.’s assets when Trump was in office, but his administration sued to block AT&T’s merger with Time Warner. Meanwhile, under Biden’s presidency, a federal judge blocked the sale of Simon & Schuster to Penguin Random House, but Amazon’s acquisition of MGM was approved.

“My sense is, regardless of the election outcome, we are likely to remain in a similar tighter regulatory environment when looking at media industry dealmaking,” said Marc DeBevoise, CEO and board director of Brightcove, a streaming technology company.

When major media, and even tech, assets change hands, it could also mean increased scrutiny on those in control and whether it creates bias on the platforms.

“Overall, the government and FCC have always been most concerned with having a diversity of voices,” said Jonathan Miller, chief executive of Integrated Media, which specializes in digital media investment.
“But then [Elon Musk’s purchase of Twitter] happened, and it’s clearly showing you can skew a platform to not just what the business needs, but to maybe your personal approach and whims,” he said.

Since Musk acquired the social media platform in 2022, changing its name to X, he has implemented sweeping changes including cutting staff and giving “amnesty” to previously suspended accounts, including Trump’s, which had been suspended following the Jan. 6, 2021, Capitol insurrection. Musk has also faced widespread criticism from civil rights groups for the amplification of bigotry on the platform.

Musk has publicly endorsed Trump, and was recently on the campaign trail with the former president. “As you can see, I’m not just MAGA, I’m Dark MAGA,” Musk said at a recent event. The billionaire has raised funds for Republican causes, and Trump has suggested Musk could eventually play a role in his administration if the Republican candidate were to be reelected.

During his first term, Trump took a particularly hard stance against journalists, and pursued investigations into leaks from his administration to news organizations. Under Biden, the White House has been notably more amenable to journalists.

Also top of mind for media executives — and government officials — is TikTok.

Lawmakers have argued that TikTok’s Chinese ownership could be a national security risk.

Earlier this year, Biden signed legislation that gives Chinese parent ByteDance until January to find a new owner for the platform or face a U.S. ban. TikTok has said the bill, the Protecting Americans From Foreign Adversary Controlled Applications Act, which passed with bipartisan support, violates the First Amendment. The platform has sued the government to stop a potential ban.

While Trump was in office, he attempted to ban TikTok through an executive order, but the effort failed. However, he has more recently switched to supporting the platform, arguing that without it there’s less competition against Meta’s Facebook and other social media.

— Lillian Rizzo and Alex Sherman

Restaurants

Both Trump and Harris have endorsed plans to end taxes on restaurant workers’ tips, although how they would do so is likely to differ.

The food service and restaurant industry is the nation’s second-largest private-sector employer, with 15.5 million jobs, according to the National Restaurant Association. Roughly 2.2 million of those employees are tipped servers and bartenders, who could end up with more money in their pockets if their tips are no longer taxed.

Trump’s campaign hasn’t given much detail on how his administration would eliminate taxes on tips, but tax experts have warned that it could turn into a loophole for high earners. Claims from the Trump campaign that the Republican candidate is pro-labor have clashed with his record of appointing leaders to the National Labor Relations Board who have rolled back worker protections.

Meanwhile, Harris has said she’d only exempt workers who make $75,000 or less from paying income tax on their tips, but the money would still be subject to taxes toward Social Security and Medicare, the Washington Post previously reported.

In keeping with the campaign’s more labor-friendly approach, Harris is also pledging to eliminate the tip credit: In 37 states, employers only have to pay tipped workers the minimum wage as long as that hourly wage and tips add up to the area’s pay floor. Since 1991, the federal pay floor for tipped wages has been stuck at $2.13.

“In the short term, if [restaurants] have to pay higher wages to their waiters, they’re going to have to raise menu prices, which is going to lower demand,” said Michael Lynn, a tipping expert and Cornell University professor.

— Amelia Lucas

Tech

Whichever candidate comes out ahead in November will have to grapple with the rapidly evolving artificial intelligence sector.

Generative AI is the biggest story in tech since the launch of OpenAI’s ChatGPT in late 2022. It presents a conundrum for regulators, because it allows consumers to easily create text and images from simple queries, creating privacy and safety concerns.

Harris has said she and Biden “reject the false choice that suggests we can either protect the public or advance innovation.” Last year, the White House issued an executive order that led to the formation of the Commerce Department’s U.S. AI Safety Institute, which is evaluating AI models from OpenAI and Anthropic.

Trump has committed to repealing the executive order.

A second Trump administration might also attempt to challenge a Securities and Exchange Commission rule that requires companies to disclose cybersecurity incidents. The White House said in January that more transparency “will incentivize corporate executives to invest in cybersecurity and cyber risk management.”

Trump’s running mate, Vance, co-sponsored a bill designed to end the rule. Andrew Garbarino, the House Republican who introduced an identical bill, has said the SEC rule increases cybersecurity risk and overlaps with existing law on incident reporting.

Also at stake in the election is the fate of dealmaking for tech investors and executives.

With Lina Khan helming the FTC, the top tech companies have been largely thwarted from making big acquisitions, though the Justice Department and European regulators have also created hurdles.

Tech transaction volume peaked at $1.5 trillion in 2021, then plummeted to $544 billion last year and $465 billion in 2024 as of September, according to Dealogic.

Many in the tech industry are critical of Khan and want her to be replaced should Harris win in November. Meanwhile, Vance, who worked in venture capital before entering politics, said as recently as February — before he was chosen as Trump’s running mate — that Khan was “doing a pretty good job.”

Khan, whom Biden nominated in 2021, has challenged Amazon and Meta on antitrust grounds and has said the FTC will investigate AI investments at Alphabet, Amazon and Microsoft.

— Jordan Novet

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October 13, 2024
American Airlines in talks to pick Citigroup over rival bank Barclays for crucial credit card deal, sources say

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An American Airlines’ Embraer E175LR (front), an American Airlines’ Boeing 737 (C) and an American Airlines’ Boeing 737 are seen parked at LaGuardia Airport in Queens, New York on May 24, 2024.

Charly Triballeau | AFP | Getty Images

American Airlines is in talks to make Citigroup its exclusive credit card partner, dropping rival issuer Barclays from a partnership that dates back to the airline’s 2013 takeover of US Airways, said people with knowledge of the negotiations.

American has been working with banks and card networks on a new long-term deal for months with the aim of consolidating its business with a single issuer to boost the revenue haul from its loyalty program, according to the people.

Talks are ongoing, and the timing of an agreement, which would be subject to regulatory approval, is unknown, said the people, who declined to be identified speaking about a confidential process.

Banks’ co-brand deals with airlines, retailers and hotel chains are some of the most hotly contested negotiations in the industry. While they give the issuing bank a captive audience of millions of loyal customers who spend billions of dollars a year, the details of the arrangements can make a huge difference in how profitable it is for either party.

Big brands have been driving harder bargains in recent years, demanding a bigger slice of revenue from interest and fees, for example. Meanwhile, banks have been pushing back or exiting the space entirely, saying that rising card losses, scrutiny from the Consumer Financial Protection Bureau and higher capital costs make for tight margins.

Airlines rely on card programs to help them stay afloat, earning billions of dollars a year from banks in exchange for miles that customers earn when they use their cards. Those partnerships were crucial during the pandemic, when travel demand dried up but consumers kept spending and earning miles on their cards. Carriers have said growth in card spending has far exceeded that of passenger revenue in recent years.

While it says it has the largest loyalty program, American was out-earned by Delta there, which made nearly $7 billion in payments from its American Express card partnership last year, compared with $5.2 billion for American.

“We continue to work with all of our partners, including our co-branded credit card partners, to explore opportunities to improve the products and services we provide our mutual customers and bring even more value to the AAdvantage program,” American said in a statement.

Delays, regulatory risk

It’s still possible that objections from U.S. regulators, including the Department of Transportation, could further delay or even scuttle a contract between American Airlines and Citigroup, leaving the current arrangement that includes Barclays intact, according to one of the people familiar with the process.

If the deal between American and Citigroup is consummated, it would end an unusual partnership in the credit card world.

Most brands settle with a single issuer, but when American merged with US Airways in 2013, it kept longtime issuer Citigroup on board and added US Airways’ card partner Barclays.

American renewed both relationships in 2016, giving each bank specific channels to market their cards. Citi was allowed to pitch its cards online, via direct mail and airport lounges, while Barclays was relegated to on-flight solicitations.

‘Actively working’

When the relationship came up for renewal again in the past year, Citigroup had good footing to prevail over the smaller Barclays.

Run by CEO Jane Fraser since 2021, Citigroup has the more profitable side of the AA business; their customers tend to spend far more and have lower default rates than Barclays customers, one of the people said.

Any renewal contract is likely to be seven to 10 years in length, which would give Citigroup time to recoup the costs of porting over Barclays customers and other investments it would need to make, this person said. Banks tend to earn most of the money from these arrangements in the back half of the deals.

With this and other large partnerships, Fraser has been pushing Citigroup to aim bigger in a bid to improve the profitability of the card business, said the people familiar.

“We are always actively working with our partners, including American Airlines, to look for ways to jointly enhance customer products and drive shared value and growth,” a Citigroup spokesperson told CNBC.

Meanwhile, Barclays executives told investors earlier this year that they aimed to diversify their co-branded card portfolio away from airlines, for instance, through added partnerships with retailers and tech companies.

Barclays declined to comment for this article.

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September 20, 2024
U.S. airlines cool hiring after adding 194,000 employees in post-Covid spree

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A pilot performs a walkaround before a United Airlines flight

Leslie Josephs/CNBC

U.S. passenger airlines have added nearly 194,000 jobs since 2021 as companies went on a hiring spree after spending months in a pandemic slump, according to the U.S. Department of Transportation. Now the industry is cooling its hiring.

Airlines are close to their staffing needs but the slowdown is also coming in part because they’re facing a slew of challenges.

A glut of flights in the U.S. has pushed down fares and eaten into airlines’ profits. Demand growth has moderated. Airplanes are arriving late from Boeing and Airbus, prompting airlines to rethink their expansions. Engines are in short supply. Some carriers are deferring airplane deliveries altogether. And labor costs have climbed after groups like pilots and mechanics inked new contracts with big raises, their first in years.

Annual pay for a three-year first officer on midsized equipment at U.S. airlines averaged $170,586 in March, up from $135,896 in 2019, according to Kit Darby, an aviation consultant who specializes in pilot pay.

Since 2019, costs at U.S. carriers have climbed by double-digit percentages. Stripping out fuel and net interest expenses, they’ll be up about 20% at American Airlines this year and around 28% higher at both United Airlines and Delta Air Lines from 2019, according to Raymond James airline analyst Savanthi Syth.

It is more pronounced at low-cost airlines. Southwest Airlines‘ costs will likely be up 32%, JetBlue Airways‘ up nearly 35% and Spirit Airlines will see a rise of almost 39% over the same period, estimated Syth, whose data is adjusted for flight length.

Easing hiring

Friday’s U.S. jobs report showed air transportation employment in August roughly in line with July’s.

But there have been pullbacks. In the most severe case, Spirit Airlines furloughed 186 pilots this month, their union said Sunday, as the carrier’s losses have grown in the wake of a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall and an oversupplied U.S. market. Last year, even before the merger fell apart, it offered staff buyouts.

Other airlines are easing hiring or finding other ways to cut costs.

Frontier Airlines is still hiring pilots but said it will offer voluntary leaves of absence in September and October, when demand generally dips after the summer holidays but before Thanksgiving and winter breaks. A spokeswoman for the carrier said it offers those leaves “periodically” for “when our staffing levels exceed our planned flight schedules.”

Southwest Airlines expects to end the year with 2,000 fewer employees compared with 2023 and earlier this year said it would halt hiring classes for work groups including pilots and flight attendants. CFO Tammy Romo said on an earnings call in July that the company’s headcount would likely be down again in 2025 as attrition levels exceed the Dallas-based carrier’s “controlled hiring levels.”

United Airlines, which paused pilot hiring in May and June, citing late-arriving planes from Boeing, said it plans to add 10,000 people this year, down from 15,000 in each 2022 and 2023. It plans to hire 1,600 pilots, down from more than 2,300 last year.

It’s a departure from the previous years when airlines couldn’t hire employees fast enough. U.S. airlines are usually adding pilots constantly since they are required to retire at age 65 by federal law.

Airlines shed tens of thousands of employees in 2020 to try to stem record losses. Packages of more than $50 billion in taxpayer aid that were passed to get the industry through its worst-ever crisis prohibited layoffs, but many employees took carriers up on their repeated offers of buyouts and voluntary leaves.

Then, travel demand snapped back faster than expected, climbing in earnest in 2022 and leaving airlines without experienced employees like customer service agents. It also led to the worst pilot shortage in recent memory.

In response, companies — especially regional carriers — offered big bonuses to attract pilots.

But times have changed. Even air freight giants were competing for pilots in recent years but demand has waned as FedEx and UPS look to cut costs.

American Airlines CEO Robert Isom said in an investor presentation in March that the carrier added about 2,300 pilots last year and that it expects to hire about 1,300 this year.

“We will be hiring for the foreseeable future at levels like that,” he said at the time.

Despite the lower targets, students continue to fill classrooms and cockpits to train and build up hours to become pilots, said Ken Byrnes, chairman of the flight department at Embry-Riddle Aeronautical University.

“Demand for travel is still there,” he said. “I don’t see a long-term slowdown.”

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September 6, 2024
Wells Fargo CEO talks up reasons to love the stock — plus, what’s behind the market drop

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Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.

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May 29, 2024
Stocks, Bonds Remain Lower After Fed’s Beige Book: Markets Wrap
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(Bloomberg) — A slide in bonds dragged down stocks as another weak sale of Treasuries raised concern about swelling supply that could keep driving yields up at a time when the Federal Reserve is in no rush to cut rates.

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Traders also sifted through the Fed’s latest Beige Book survey of regional business contacts, which said economic activity expanded — and most districts saw slight growth. The report also said that prices increased at a modest pace, while employment rose slightly.

Federal Reserve May Beige Book Summary (Text)

The US sold $44 billion of seven-year notes at 4.650% — above the pre-auction level of 4.637%. That’s just a day after two other US offerings totaling $139 billion saw tepid demand. Those bond sales are exerting a growing sway over several asset classes, underscoring how the uncertainties over Fed policy continue to grip markets as inflation shows little signs of moderation.

“Similar to yesterday’s poor 5-year auction, today’s 7-year was weak as well and after a mediocre 2-year,” said Peter Boockvar at The Boock Report.

Treasury 10-year yields climbed six basis points to 4.61%. The dollar advanced against all of its developed-market peers.

The S&P 500 dropped below 5,300. American Airlines Group Inc. tumbled on a disappointing outlook. UnitedHealth Group Inc. led industry losses after saying it sees a “disturbance” coming as states pare enrollees in their Medicaid programs. Marathon Oil Corp. surged as ConocoPhillips agreed to acquire it in a $17 billion deal. BHP Group abandoned its bid for Anglo American Plc.

“Not only are yields rising again in the US, but they are moving higher in other parts of the world,” said Matt Maley at Miller Tabak + Co. “That is not good news for a stock market that’s trading at 22 times forward earnings.”

European bond issuance this year has topped the €1 trillion ($1.1 trillion) mark more than a week before the previous record. German bond yields hit a six-month high as inflation accelerated. Australia’s latest inflation reading suggested rates will remain high for now.

Fed Chair Jerome Powell and his colleagues have stressed the need for more evidence that inflation is on a sustained path to their 2% goal before cutting the benchmark interest rate, which has been at a two-decade high since July.

“We continue to believe that US sovereign yields should end the year lower as inflation and economic growth slow and the Fed cuts rates in the last months of the year,” said Solita Marcelli at UBS Global Wealth Management.

Meantime, the options market is betting that the S&P 500 will see muted swings following this week’s bond auctions and the Fed’s favorite underlying inflation gauge Friday, with traders instead looking ahead to next month’s reading on consumer prices and the central bank’s upcoming meeting.

The benchmark equities gauge is implied to move just 0.5% in either direction following the personal consumption expenditures price index, based on the cost of at-the-money puts and calls, per Stuart Kaiser, Citigroup Inc.’s head of US equity trading strategy.

The reading is less than the implied move on June 7 — the next jobs report — and CPI and the Fed’s upcoming rate decision — both on June 12, which would be the largest ahead of a central bank meeting since December, Kaiser said.

Economists expect the PCE minus food and energy to rise 0.2% in April. That would mark the smallest advance so far this year for the measure. The overall PCE price index probably climbed 0.3%. Increases this year stand in contrast to relatively flat readings in the final three months of 2023, underscoring uneven progress for the Fed in its inflation fight.

Bank of America Corp. clients were net sellers of US equities for a fourth consecutive week as they offloaded $2 billion dollars worth of shares during the five-day period ended last Friday.

Outflows came chiefly from hedge funds and retail investors as institutions were net buyers, quantitative strategists led by Jill Carey Hall wrote.

Hedge funds’ exposure to US technology behemoths hit a record high following Nvidia Corp.’s estimate-thumping earnings report last week, according to Goldman Sachs Group Inc.’s prime brokerage.

The so-called Magnificent Seven companies — Nvidia, Apple Inc., Amazon.com Inc., Meta Platforms Inc., Alphabet Inc., Tesla Inc. and Microsoft Corp. — now account for about 20.7% of hedge funds’ total net exposure to US single stocks, the report showed.

Corporate Highlights:
- Exxon Mobil Corp. investors voted in line with board recommendations on all shareholder proposals at its annual meeting Wednesday despite vocal opposition to the company’s lawsuit against activists.
- Abercrombie & Fitch Co. shares jumped after the retailer blew past first-quarter sales estimates, extending its bounce back from the teen fashion graveyard.
- Dick’s Sporting Goods Inc. raised its outlook for the year and reported sales that surpassed analysts’ estimates with strong demand for sports gear across categories.
- Robinhood Markets Inc. announced a plan to repurchase as much as $1 billion of its own shares.
- Lenovo Group Ltd. plans to sell $2 billion worth of zero-coupon convertible bonds to Saudi Arabia’s sovereign wealth fund, part of a broader strategic pact with the tech-hungry kingdom.
Key events this week:
- Eurozone economic confidence, unemployment, consumer confidence, Thursday
- US initial jobless claims, GDP, Thursday
- Fed’s John Williams and Lorie Logan speak, Thursday
- Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday
- China official manufacturing and non-manufacturing PMI, Friday
- Eurozone CPI, Friday
- US consumer income, spending, PCE deflator, Friday
- Fed’s Raphael Bostic speak, Friday
Some of the main moves in markets:

Stocks
- The S&P 500 fell 0.5% as of 2:02 p.m. New York time
- The Nasdaq 100 fell 0.4%
- The Dow Jones Industrial Average fell 0.9%
- The MSCI World Index fell 0.9%
Currencies
- The Bloomberg Dollar Spot Index rose 0.4%
- The euro fell 0.4% to $1.0814
- The British pound fell 0.4% to $1.2713
- The Japanese yen fell 0.3% to 157.63 per dollar
Cryptocurrencies
- Bitcoin fell 1% to $67,540.43
- Ether fell 1.6% to $3,765.61
Bonds
- The yield on 10-year Treasuries advanced six basis points to 4.61%
- Germany’s 10-year yield advanced 10 basis points to 2.69%
- Britain’s 10-year yield advanced 12 basis points to 4.40%
Commodities
- West Texas Intermediate crude fell 0.6% to $79.39 a barrel
- Spot gold fell 0.8% to $2,343.29 an ounce
This story was produced with the assistance of Bloomberg Automation.

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©2024 Bloomberg L.P.
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May 29, 2024
CNBC’s best credit cards of 2024
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There are credit cards designed to meet all kinds of financial situations and needs. Whether you’re a foodie, road warrior, traveler, student or someone looking to build credit, there are many card options to choose from.

To help narrow down the best credit card for your lifestyle, each month, CNBC Select publishes a list of the top credit cards available. It can change depending on limited-time sign-up bonuses, benefits and more.

However, some cards deserve extra recognition for consistently differentiating themselves from the competition and topping our rankings month after month. These cards offer extra generous rewards and perks and continuously evolve to meet changing needs.

Here, CNBC Select rounds up the best credit cards of 2024 for a variety of consumer habits based on rewards, fees, introductory and standard APRs, as well as other perks like annual statement credits, discounts at select retailers and built-in insurance. (See our methodology for more information on how we choose the best credit cards of 2024.)

Best credit cards of 2024

Best cash-back credit card: Chase Freedom Unlimited® Card

Best travel rewards card: American Express® Gold Card

Best credit card welcome bonus: Chase Sapphire Preferred® Card

Best no annual fee credit card: Citi® Double Cash Card

Best no annual fee travel credit card: Discover it® Miles

Best balance transfer credit card: Citi Simplicity® Card

Best low-interest credit card: Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union

Best secured credit card: Discover it® Secured Credit Card

Best for building credit: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Best for college students: Discover it® Student Cash Back

Best dining rewards credit card: Chase Sapphire Reserve®

Best gas rewards credit card: PenFed Platinum Rewards Visa Signature® Card

Best grocery rewards credit card: Blue Cash Preferred® Card from American Express

Best for paying rent: Bilt Mastercard®

Best entertainment rewards credit card: Capital One Savor Cash Rewards Credit Card

Best credit card for Global Entry and/or TSA PreCheck® credit: Capital One Venture Rewards Credit Card

Best for airport lounge access: The Platinum Card® from American Express

Best for premium perks: Capital One Venture X Rewards Credit Card

Best cash-back credit card

Chase Freedom Unlimited®

Rewards

Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Welcome bonus

INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!

Annual fee

Intro APR

0% for the first 15 months from account opening on purchases and balance transfers

Regular APR

Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

Member FDIC. Terms apply.

Who’s this for? The Chase Freedom Unlimited® Card is ideal for consumers who want a robust rewards card with no annual fee.

Cardholders earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on drugstores and dining at restaurants (including takeout) and 1.5% on all other purchases. Plus, there’s a generous welcome bonus.

This card has no annual fee, and you can benefit from an introductory APR offer. This card also offers 5% cash back on Lyft purchases through March 31, 2025 and complimentary three months of DashPass with 50% off for the next nine months. Simply activate by December 31, 2024.

Best travel rewards card

American Express® Gold Card

Rewards

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Welcome bonus

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Annual fee

Intro APR

Regular APR

Balance transfer fee

Foreign transaction fee

Credit needed

Who’s this for? If you love food and travel, the American Express® Gold Card could be the ideal card for you. Whether you dine out or cook at home, this card earns a competitive 4X points per dollar spent at restaurants and 4X points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Plus, travelers can benefit from the 3X points on flights booked directly with airlines or on amextravel.com.

The value of Membership Rewards points varies depending on how cardholders redeem them. You can use them in a variety of ways, from paying with points at checkout at sites like Amazon to redeeming for gift cards or a statement credit to booking travel. See more on how points are calculated.

Cardholders also receive an annual dining credit of up to $120 ($10 in statement credits a month) at participating partners, including Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Terms apply. Enrollment required. There are also *no foreign transaction fees.

This card does have a *$250 annual fee, but it can be reduced to effectively $130 if you take advantage of the $120 dining credit each year. Then, the rewards you earn help further “pay” for the card.

Gold Card members can also participate in Amex Offers, where you can earn statement credits or bonus Membership Rewards® points at select retailers. For example, a recent offer for Wine.com states: “Spend $50 or more, get $10 back.” These limited-time offers are location-based and additional terms apply.

*See rates and fees.

Best credit card welcome bonus

Chase Sapphire Preferred® Card

Rewards

Enjoy beneﬁts such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.

Welcome bonus

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.

Annual fee

Intro APR

Regular APR

21.49% – 28.49% variable on purchases and balance transfers

Balance transfer fee

Either $5 or 5% of the amount of each transfer, whichever is greater

Foreign transaction fee

Credit needed

Who’s this for? If you want to get a lot of value right out of the gate, consider the Chase Sapphire Preferred. The card is currently offering new cardholders the chance to earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Travel℠. You can even potentially get more value if you transfer Chase points to Chase’s travel partners, like Hyatt hotels and United Airlines, and book business-class flights and luxury hotels.

The Sapphire Preferred is also a great travel rewards credit card and has strong earning categories for those who spend on travel and dining. It earns 5X on travel purchased through Chase Travel℠, 3X on dining, select streaming services and online groceries, 2X on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.

Best no annual fee credit card

Citi Double Cash® Card

Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24

Welcome bonus

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Annual fee

Intro APR

0% for the first 18 months on balance transfers; N/A for purchases

Regular APR

Balance transfer fee

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies

Foreign transaction fee

Credit needed

See rates and fees. Terms apply.

Who’s this for? The Citi® Double Cash Card is a straightforward rewards card that continues to offer one of the best flat-rate cash-back programs since it launched in 2014. Cardholders earn 2% cash back on all purchases — 1% when you make a purchase and an additional 1% when you pay your credit card bill.

There is no limit to the amount of cash back you can earn and you don’t have to worry about activating bonus categories. Cashback can be redeemed for a statement credit or direct deposit.

This card is also a good choice for debt consolidation as it offers a useful introductory APR offer on balance transfers.

Best no annual fee travel credit card

Discover it® Miles

Rewards

Automatically earn unlimited 1.5x Miles on every dollar of every purchase.

Welcome bonus

Discover will match all the Miles earned for all new cardmembers at the end of your first year.

Annual fee

Intro APR

0% Intro APR for 15 months on purchases.

Regular APR

17.24% to 28.24% Variable

Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee

Credit needed

*See rates and fees, terms apply.

Who’s this for? The Discover it® Miles card comes with a generous rewards program — all for zero annual fee — that makes it a standout among travel cards.

The Discover it Miles card offers users unlimited 1.5X miles for every dollar spent on all purchases. But for higher spenders, Discover offers a welcome bonus that’s hard to beat: It will do a mile-for-mile match of all miles earned the first year (for new card members in their first year only). If you rack up 35,000 miles within the first 12 months, Discover will match you with 35,000 miles. That’s a total of 70,000 miles or $700 toward travel.

With this card, there are no blackout dates when you pay for travel purchases using your card. And, you can easily redeem miles as a statement credit for travel, restaurant or gas station purchases, as well as a deposit to your bank account. The best part is that miles earned never expire — even if your account is closed.

Best balance transfer credit card

Citi Simplicity® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases

Regular APR

Balance transfer fee

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

Foreign transaction fee

Credit needed

Who’s this for? The Citi Simplicity® Card offers one of the longest balance transfer intro periods at 0% for 21 months from the date of the first transfer (after, 18.49% – 29.24% variable APR). Balance transfers must be completed within four months of account opening. This is nearly two years to pay off debt, which can be helpful if you have a large balance or if your cash flow doesn’t allow you to pay off the debt within the 6-, 12- or 15-month time periods of other balance transfer cards.

This card has no annual fee and comes with an introductory balance transfer fee: either 3% ($5 minimum) for transfers completed within the first 4 months of account opening, then up to 5% ($5 minimum). This can be worthwhile if you’re paying high-interest charges.

New cardholders have four months to complete their balance transfer (longer than the typical 60 to 90 days). While you have more time to complete a transfer, the intro APR period starts at account opening — so try to make the transfer as soon as possible to get the most benefit of the interest-free period.

This card also never charges late fees (though we always recommend you pay your balance on time and in full). There isn’t a welcome bonus or a rewards program.

Best low-interest credit card

Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union

Rewards

3X points on gas and grocery purchases and 1.5X points on all other purchases

Welcome bonus

Earn 10,000 points when you spend $1,500 within the first 90 days

Annual fee

Intro APR

N/A for purchases and balance transfers

Regular APR

13.74% to 18.00% variable on purchases; 13.74% to 17.99% on balance transfers.

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

Low 9.49% to 16.49% variable APR

No fee charged on purchases made outside the U.S.

Cons

Credit union membership required, though it’s free

No special financing on purchases or balance transfers

Balance transfer fee of 1.5%, or $50, whichever is greater.

Estimated return after 1 year: $543

Estimated return after 5 years: $2,314

Rewards totals incorporate the points earned from the welcome bonus

Who’s this for? The Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union stands out for offering low interest rates, a strong rewards program and no foreign transaction fees — all at no annual fee.

This card offers a variable APR of 13.74% to 18.00% on purchases. If you carry a balance, you can benefit from low interest charges compared to other cards that have high interest rates. Balance transfers do incur a fee of $10.00 or 2.00% of the amount of each cash advance, whichever is greater.

Beyond interest rates, the Visa® Titanium Signature Rewards Card offers a generous rewards program: Earn 3X points on gas and grocery purchases and 1.5X points on all other purchases. Plus, there’s a welcome bonus of 10,000 points after you spend $1,500 within the first 90 days.

In order to open this card, you need to join Andrews Federal Credit Union, but anyone can join. If you don’t meet the qualification requirements, you can opt to join the American Consumer Council (ACC) for free with the promo code “Andrews.”

Best secured credit card

Discover it® Secured Credit Card

Rewards

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.

Welcome bonus

Discover will match all the cash back you’ve earned at the end of your first year

Annual fee

Intro APR

Regular APR

Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee

Credit needed

*See rates and fees, terms apply.

Pros

Cash-back program

Generous welcome bonus

Starting at seven months from account opening, Discover will automatically review your credit card account to see if you can transition to an unsecured line of credit and return your deposit

Cons

Cash-back program limits earnings: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%

Low credit line prevents cardholders from charging high-cost items or many expenses

Who’s this for? The Discover it® Secured Credit Card is a well-rounded secured card that offers many benefits that are typically found with unsecured cards. Cardholders can earn cash back, receive a generous welcome bonus, use the card overseas without incurring added fees and more — all for no annual fee.

Cardholders earn a competitive 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%. Plus, you can earn unlimited 1% cash back on all other purchases automatically. The welcome bonus is also unique: For new card members in the first year only, Discover will automatically match all the cash back you’ve earned at the end of your first year. So, if you earn $50 cash back at the end of the first year, Discover will give you an additional $50.

This card requires a minimum $200 security deposit, which is fairly standard for secured credit cards. It stands out from the crowd because it gives users a clear path to upgrading to an unsecured card (and getting their deposit back). Starting at seven months from account opening, Discover will automatically review your credit card account to see if they can transition you to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you’ll qualify for an unsecured credit card.

Best for building credit and average credit

Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Rewards

1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants

Welcome bonus

Annual fee

Intro APR

Regular APR

18.24% – 32.24% variable

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

No credit history required (if you do have a credit history, that does factor into the credit decision)

No fees whatsoever

1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants

Credit limits range from $300 to $10,000

Cons

Card isn’t for rebuilding credit, but it’s good for building credit

No special financing offers

No welcome bonus

Estimated rewards earned after 1 year: $249

Estimated rewards earned after 5 years: $1,577

Who’s this for? The Petal 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank, is easier to get approved for because it takes a different approach to the credit card application process. Instead of judging your creditworthiness solely based on credit history, Petal may ask you to link bank accounts during the application process. Then, WebBank analyzes your bank statements and other data, such as bill payments and earnings, to determine your eligibility.

This is especially beneficial for applicants who may not have any credit history. However, if you do have a credit history, that does factor into the credit decision.

The Petal 2 Visa Credit Card is one of the few cards that charge zero fees*: no annual fee, no late payment fee and no foreign transaction fees. And it stands out for consumers trying to build credit because there’s no security deposit required.

It also offers a rewards program with 1% cash back on eligible purchases right away, which can increase up to 1.5% cash back after you make 12 on-time monthly payments. This is not only a nice perk, but a great way to encourage responsible behavior. Cardholders also earn 2% to 10% cash back from select merchants.

Best for college students

Discover it® Student Cash Back

Rewards

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.

Welcome bonus

Discover will match all the cash back earned for all new cardmembers at the end of your first year

Annual fee

Intro APR

0% for 6 months on purchases

Regular APR

18.24% – 27.24% Variable

Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee

Credit needed

*See rates and fees, terms apply.

Who’s this for? The Discover it® Student Cash Back is a well-rounded card that offers college students enrolled in a two- or four-year college the chance to build credit while earning rewards. You must be over 18 and a U.S. citizen to apply.

Upon activation, cardholders can earn 5% cash back on rotating categories up to a $1,500 maximum each quarter (then 1%). All other purchases earn unlimited 1% cash back automatically.

There is also an introductory APR offer which can be perfect for financing dorm room essentials or textbooks. After you graduate, your Discover it student credit card becomes a regular credit card.

Best dining rewards credit card

Chase Sapphire Reserve®

Rewards

Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025

Welcome bonus

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Travel℠.

Annual fee

Intro APR

Regular APR

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

$300 annual travel credit for travel purchases

Global Entry or TSA PreCheck application fee credit up to $100 every four years

Priority Pass™ Select lounge access at 1,000+ VIP lounges in over 500 cities worldwide

Points are worth 50% more when redeemed for travel via Chase Travel℠

Special benefits at The Luxury Hotel & Resort Collection

Complimentary year of Lyft Pink membership

Cons

High annual fee, but it can be offset by taking advantage of all the card’s perks

No introductory APR

Estimated rewards earned after 1 year: $1,469

Estimated rewards earned after 5 years: $3,346

Rewards totals incorporate the points earned from the welcome bonus

Who’s this for? The Chase Sapphire Reserve® is geared toward foodies and frequent travelers looking for luxurious perks, such as free airport lounge access and complimentary hotel room upgrades. Cardholders earn a competitive 3X points on dining and travel worldwide. Based on CNBC Select’s calculations, we found the average American using this card could earn an estimated $165 per year in rewards for dining purchases alone (assuming you redeem rewards for travel via Chase Ultimate Rewards®, receiving 50% more value).

The value of Chase rewards points varies depending on how you use them. If you redeem points for cash and gift cards, each point is worth $.01, which means that 100 points equals $1 in redemption value. (See more on how the value of points is calculated.)

This card has a unique benefit where all points are worth 50% more when redeemed for travel via Chase Ultimate Rewards®. For example, 60,000 points are worth $900 redeemed toward airfare, hotels, car rentals and cruises when you redeem through Chase Ultimate Rewards®. This perk is a great way to get the most value for your rewards.

While this card has a robust travel rewards program, it also comes with a steep $550 annual fee. All the card’s added credits and benefits provided by Chase can help offset the annual cost. The $300 annual travel credit effectively reduces the annual fee to $150. Cardholders can take advantage of a Priority Pass™ Select membership that has a value of about $429. They also get a Global Entry or TSA PreCheck application fee credit of up to $100 every four years.

Best gas rewards credit card

PenFed Platinum Rewards Visa Signature® Card

Rewards

5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on supermarket purchases, 1X point on all other purchases

Welcome bonus

15,000 points when you spend $1,500 in the first 3 months from account opening

Annual fee

Intro APR

0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening.*

Regular APR

17.99% variable on purchases; 17.99% non-variable on balance transfers

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

High 5X points on gas at the pump and 3X on supermarket purchases

No bonus category activations

Good special financing offer on balance transfers

Estimated rewards earned after 1 year: $513

Estimated rewards earned after 5 years: $2,167

Rewards totals incorporate the points earned from the welcome bonus.

*0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.

Who’s this for? Among the cards we analyzed, the PenFed Platinum Rewards Visa Signature® Card currently offers the highest rewards rate at gas stations with 5X points per dollar spent for gas purchases at the pump.

This card has no annual fee, so road warriors can maximize their savings. In addition to earning high rewards at gas stations, cardholders also benefit from unlimited 3X points for supermarket purchases.

PenFed is a credit union, so membership is required to open the PenFed Platinum Rewards Visa Signature® Card. Anyone can join by completing a few extra steps: You need to apply, open a savings account with a $5 deposit and maintain a $5 account balance.

Best grocery rewards credit card

Blue Cash Preferred® Card from American Express

Rewards

6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

Welcome bonus

Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months.

Annual fee

$0 intro annual fee for the first year, then $95.

Intro APR

0% for 12 months on purchases from the date of account opening

Regular APR

19.24% – 29.99% variable. Variable APRs will not exceed 29.99%.

Balance transfer fee

Either $5 or 3% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

See rates and fees, terms apply.

Pros

High 6% cash back at U.S. supermarket spending (up to $6,000 a year, then 1%)

Unlimited 6% cash back on select U.S. streaming subscriptions

Unlimited 3% cash back at U.S. gas stations and on transit

Cons

2.7% fee on purchases made abroad

Estimated rewards earned after 1 year: $679

Estimated rewards earned after 5 years: $2,397

Rewards totals incorporate the cash back earned from the welcome bonus

Who’s this for? Frequent grocery shoppers will be happy to learn the Blue Cash Preferred® Card from American Express offers the highest cash-back rate at U.S. supermarkets at 6% (on up to $6,000 per year in purchases, then 1%). The average American can earn $310 in cash back each year when they do their shopping at qualifying supermarkets.

If you want to maximize cash back on groceries, this card is for you. In addition to high grocery rewards, there’s an unlimited 6% cash back on select streaming subscriptions, unlimited 3% cash back at U.S. gas stations, unlimited 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on all other purchases.

Cardmembers can also take advantage of Amex Offers, where users earn a statement credit or additional cash back at select retailers. For example, a recent offer gave you $25 back each month (up to three times), if you spent $70 or more a month on Sun Basket meal kit delivery. These limited-time offers are location-based and additional terms apply.

This card has $0 intro annual fee for the first year (then $95), but it can be offset by the cash back you earn and discounts you can get through the Amex Offers. (See rates and fees)

Best for paying rent

Bilt Mastercard®

Rewards

Earn Bilt Points when you make 5 transactions that post each statement period – up to 1x points on rent payments without the transaction fee (up to 100,000 points each calendar year), 3x points on dining, 2x points on travel, and 1x points on other purchases.

Welcome bonus

Annual fee

Intro APR

Regular APR

Balance transfer fee

Introductory fee of either $5 or 3% of the amount of each balance transfer, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer ($5 minimum).

Foreign transaction fee

Credit needed

See rates/fees and rewards/benefits; terms apply.

Pros

No annual fee

Solid rewards on broad spending categories

Ability to pay your rent with no transaction fees

Transfer points to leading frequent traveler programs at a 1:1 rate, including American Airlines, United and World of Hyatt®

Cons

No welcome offer

No introductory 0% APR

Who’s this for? The Bilt Mastercard® is the only credit card that lets you earn travel rewards on rent payments with no fees.

So long as you make at least five card transactions per statement period, you’ll earn 3X points on dining, 2X points on travel 1X points on rent (on up to $50,000 in rent payments every year) and everything else. Thanks to a new partnership with Lyft, cardholders can now also earn up to 5X points on their rideshares.

Thanks to the BiltProtect feature, cardholders are protected from using up their entire credit limit or risk going into debt by charging their rent to their card every month. Other benefits include cell phone protection; Purchase Assurance Plus, which covers your purchases for 90 days; exclusive discounts with brands like Lyft, DoorDash and ShopRunner; and access to the Mastercard Luxury Hotels & Resorts portfolio, which offers amenities like upgrades, free breakfast and property credits.

Bilt Rewards points are extremely flexible. They can be redeemed for travel either by transferring them to airline and hotel partners or by booking through the Bilt Travel Portal at a fixed rate of 1.25 cents per point. Other redemption options include using them to shop online, book fitness classes, pay rent and even make a down payment on a home.

Best entertainment rewards credit card

Capital One Savor Cash Rewards Credit Card

Rewards

4% cash back on dining and entertainment, 4% on eligible streaming services, 3% at grocery stores and 1% on all other purchases

Welcome bonus

Earn a one-time $300 cash bonus once you spend $3,000 on purchases within the first three months from account opening

Annual fee

Intro APR

Regular APR

Balance transfer fee

3% for promotional APR offers; none for balances transferred at regular APR

Foreign transaction fee

Credit needed

Pros

Unlimited 4% cash back on entertainment purchases

Ability to redeem rewards at any amount, unlike some other cards with $25 minimums

No fee charged on purchases made outside the U.S.

Cons

$95 annual fee

No introductory 0% financing offers for purchases or balance transfers

Who’s this for? Sports fans, movie buffs and adventure seekers will all find a common reason to like the Capital One Savor Cash Rewards Credit Card: unlimited 4% cash back on entertainment purchases. Compared to other rewards cards, this is the highest unlimited rewards rate on entertainment spending, whether you’re buying movie tickets, taking a family trip to the zoo or spending the evening bowling with friends.

Cardholders can also benefit from exclusive access to entertainment events, such as the iHeartRadio Music Festival and the Capital One JamFest.

Beyond entertainment perks, there’s also 10% cash back on Uber rides, 4% cash back on dining and popular streaming services, 3% at grocery stores and 1% on all other purchases. Plus, you can enjoy an Uber One membership through Nov. 14, 2024 and foodie-centric perks through Capital One Dining.

This card does come with a $95 annual fee, but can be offset by the cash back you earn.

Best credit card for Global Entry and/or TSA PreCheck credit

Capital One Venture Rewards Credit Card

Rewards

5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 2X miles per dollar on every other purchase

Welcome bonus

Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening

Annual fee

Intro APR

N/A for purchases and balance transfers

Regular APR

19.99% – 29.99% (Variable)

Balance transfer fee

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fee

Credit needed

Pros

5 miles per dollar on hotel and rental cars booked through Capital One Travel

Global Entry or TSA PreCheck application fee credit up to $100 every 4 years

Cons

No introductory APR

There’s a $95 annual fee

Who’s this for? The Capital One Venture Rewards Credit Card offers excellent rewards rates: Earn 5X miles on hotel and rental cars booked through Capital One Travel and 2X miles per dollar spent on all other spending. While Venture does come with a $95 annual fee, that’s low compared to some other rewards cards, with some annual fees of up to $550.

In addition to rewards, every four years cardholders receive a credit for a Global Entry or TSA PreCheck application, up to $100. Cardholders now also get two free visits to Capital One airport lounges per year. If you travel often, these are great perks that can save you time and money.

This card has no foreign transaction fees and comes with a bunch of additional travel perks, such as 24-hour travel assistance services and an auto rental collision damage waiver.

*Terms, conditions and exclusions apply. Refer to your Guide to Benefits for more details.

Best for airport lounge access

The Platinum Card® from American Express

Rewards

Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases

Welcome bonus

Earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.

Annual fee

Intro APR

Regular APR

Balance transfer fee

Foreign transaction fee

Credit Needed

See rates and fees, terms apply.

Pros

Up to $200 in annual airline fee credits

$200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply.

Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings, which requires a minimum two-night stay, through American Express Travel when you pay with your Platinum Card®.

$240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.

$155 Walmart+ Credit: Use your Platinum Card® to pay for a monthly Walmart+ membership (subject to auto-renewal) and receive a statement credit that covers the full cost each month. $12.95 plus applicable taxes. Plus Up Benefits not eligible.

Cons

$695 annual fee

No special financing offers on new purchases

Who’s this for? The Platinum Card® from American Express is for those who want a luxury card with a lengthy list of benefits. Although best known for its travel perks, this card also offers a number of everyday benefits, including digital entertainment, shopping and wellness credits (enrollment required), so you don’t need to be a road warrior to benefit from it.

To start, cardholders earn a respectable 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel (on up to $500,000 per calendar year), 5X points on prepaid hotels booked with American Express Travel and 1X points on all other purchases.

In addition, cardholders can enjoy over a dozen premium travel and lifestyle benefits, including:

Up to $200 annual hotel credit

Up to $200 annual airline fee credit

Up to $300 annual Equinox credit

Up to $100 annual Saks Fifth Avenue credit

Up to $189 credit to enroll in CLEAR®

Up to $240 annual digital entertainment credit

Up to $155 annual Walmart+ credit. Plus Ups not eligible.

Worldwide airport lounge access, including Delta SkyClubs and Amex Centurion Lounges

Up to $200 annual Uber credit

Up to $100 fee credit for Global Entry or TSA PreCheck

Automatic hotel elite status with Hilton Honors and Marriott Bonvoy

Comprehensive travel insurance

Complimentary Amex concierge service

Terms apply

Its $695 annual fee (see rates and fees) is higher than any other card on this list, but you can definitely come out ahead if you take full advantage of the benefits. And that’s before factoring in the card’s welcome offer, which many rewards experts value at $2,000. (See more on how the value of points is calculated.)

Best for premium perks

Capital One Venture X Rewards Credit Card

Rewards

10 Miles on hotels per dollar and rental cars, 5 Miles per dollar on flights when booked via Capital One Travel; unlimited 2X miles on all other eligible purchases

Welcome bonus

Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening

Annual fee

Intro APR

Regular APR

19.99% – 29.99% (Variable)

Balance transfer fee

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fees

Credit needed

See rates and fees, terms apply.

Pros

Large welcome bonus

No foreign transaction fees

Up to $100 statement credits for either Global Entry or TSA PreCheck®

Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network

Cons

High annual fee

No introductory 0% APR period

Who’s this for? If you value simplicity and want one, strong standalone credit card, it doesn’t get much better than the Capital One Venture X Rewards Credit Card. It offers a straightforward rewards structure, a myriad of valuable benefits and a lower annual fee than other high-end cards with similar features.

Cardholders earn 2X miles on everyday purchases, plus 5X miles on flights and a whopping 10X miles on hotels and cars booked through Capital One Travel. These miles can be transferred to airline and hotel partners, such as Accor Live Limitless, Air Canada Aeroplan and Etihad Guest. You can also redeem rewards toward travel through Capital One Travel, cash-back, gift cards, experiences and more.

On top of that, the Venture X card offers up to $100 in statement credit for either Global Entry or TSA PreCheck®, complimentary cell phone insurance, special perks on hotel stays book through the Premier Collection and access to Capital One Lounges as well as the extensive network of Priority Pass and Plaza Premium airport lounges worldwide. Every year, cardholders receive up to $300 back in statement credits each year for bookings made through Capital One Travel and a 10,000-mile bonus on each account anniversary (worth at least $100 for travel), making it easy to recoup the $395 the annual fee.

*Terms, conditions and exclusions apply. Refer to your Guide to Benefits for more details.

Things to consider before choosing a credit card

Having a credit card is an important piece of your financial profile, but with so many options available, it can be hard to find the best one for your needs. Here are some common questions to ask yourself so you can decide what’s the best credit card for you.

Do you want to earn rewards?

There are hundreds of rewards credit cards out there, where you can earn cash back, points or miles on every purchase you make.

And if you want to earn rewards, what specific categories are most important to you?

Rewards credit cards come in all shapes and sizes. If you want to maximize rewards in specific categories, check out cards offering bonus rewards on gas, groceries, restaurants, entertainment, travel and more. Or keep it simple and opt for a flat-rate cash-back card.

Learn more: Are credit card points taxable? Here’s when you may have to pay taxes on your rewards

Are you looking to get out of debt?

If you’re carrying a balance on a high-interest credit card, consider transferring it to a balance transfer credit card offering no interest for up to 21 months. There are even cards with no balance transfer fees.

Do you want to build credit?

Experts agree the sooner you build credit, the better. Credit cards are a great way to do that. Check out secured cards for credit newbies or other cards for building or rebuilding credit.

Do you travel abroad?

A credit card with no foreign transaction fees is essential to save you the typical 3% fee per purchase made outside the U.S. Also, it can be a good idea to consider cards that waive Global Entry or TSA PreCheck application fees.

Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.

What credit score do I need to get the best cards?

When you apply for a credit card, the bank or lender will review your credit report from one or more of the three major credit bureaus. It will also typically check your FICO credit score, the top credit cards usually require a very good or excellent credit score.

This is how FICO credit scores are classified according to myFICO:

Poor/bad credit: Less than 580

Fair credit: 580-669

Good credit: 670-739

Very good credit: 740-799

Exceptional/excellent credit: 800 or higher

Building and maintaining a healthy credit score helps your personal finances in all sorts of ways outside of increasing your chances of getting approved for a great sign-up bonus. Your FICO score is calculated based on the following factors and each is weighted differently:

Payment history: 35%

Total debt: 30%

Length of credit history: 15%

New credit: 10%

Credit mix: 10%

FAQs

How many credit cards should I have?

Many people have multiple credit cards, and there are benefits to this. It can help increase your credit score by giving you more available credit and therefore a better credit utilization ratio.

At its most basic, having access to more credit can help you finance more purchases if you don’t have enough cash to cover everything up front.

You can also earn more rewards by optimizing which card you use for certain spending categories. For instance, you may make all your dining purchases with a card that earns bonus rewards in that category, but another card with a bonus multiplier for grocery purchases.

Ultimately, it’s up to you to decide how many credit cards you need. Make sure to evaluate your spending habits and research what card would be best for you.

What do I need to apply for a credit card?

Applying for a credit card is easy, and you’ll often get an instant decision on whether you’re approved or denied. To apply for a credit card, you’ll generally need to provide the following:

Full legal name

Date of birth

Social Security or Individual Taxpayer Identification Number

Mailing address

Email address and/or phone number

Annual income

Housing costs

How old do I have to be to get a credit card?

What is the easiest credit card to get?

Secured credit cards are generally the easiest credit cards to be approved for. They are similar to traditional cards (they extend credit, can incur interest charges and in some cases can even earn rewards) but require you to put down a security deposit to access a line of credit. The amount you deposit usually becomes your credit limit.

Which type of card is most accepted?

There are four major credit card issuers: American Express, Discover, Mastercard and Visa.

Visa and Mastercard are the most widely accepted credit card networks globally. That said, American Express and Discover still have 99% acceptance rates among U.S. merchants who take credit cards and are increasing their international footprints.

What is a credit card’s billing cycle?

When it comes to credit cards, most billing cycles are one month or 28 to 31 days. After your billing cycle ends, you typically have what is known as a grace period where you can pay off your full balance without incurring any interest charges. However, if you pay off your card balance before the billing cycle ends, it will help to keep your credit utilization down, which boosts your credit score.

Keep in mind that the grace period may not apply to all charges. Balance transfers and cash advances are usually charged interest starting on the transaction date.

Do I need a business credit card?

Having a separate credit card for your small business or side hustle is important so you can keep your personal and business activities separate. Business credit cards come in all shapes and sizes, there are business cards that offer cash-back rewards, travel rewards and everything in between.

The right business credit card for you should offer bonus rewards that align with your business spending. To keep it simple, you can start your business credit card search at the bank where you currently have your business bank accounts. If you bank with Wells Fargo, Bank of America or Chase, then it may be easiest to have all of your accounts with one institution.

Many of the banks that offer the best consumer cards also have top-notch business cards. For example, Chase has the Ink Business line of small business cards, which includes the Ink Business Unlimited® Credit Card and the Ink Business Cash® Credit Card. Both cards have no annual fee, hefty sign-up bonuses and generous bonus spending categories.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards.

Our methodology

To determine which cards offer the best value, CNBC Select analyzed over 250 of the most popular credit cards available in the U.S. We compared each card on a range of features, including rewards (e.g., cash back, points and miles), annual fees, welcome bonuses, introductory and standard APR, balance transfer fees and foreign transaction fees, as well as factors such as required credit score when available. We also considered additional perks (e.g., ongoing travel or merchant statement credits), consumer protections, the application process and how easy it is to redeem points.

For the cards that offered a rewards program, we considered consumer spending data from location intelligence firm Esri to determine what bonus categories are most useful for consumers. Since the value of a point or mile varies based on what they can be redeemed for, we also considered things like transferability and ability to redeem for cash-back.

When choosing the best balance transfer card, we focused on the card that provides consumers with the cheapest way to pay off their debt rather than the number of rewards they could potentially earn. When you’re in credit card debt, your primary focus should be repayment. Earning rewards should be seen as a bonus, and you don’t want to spend beyond your means to earn points.

For rates and fees of the American Express® Gold Card, click here.

For rates and fees of the Blue Cash Preferred® Card from American Express, click here.

For rates and fees of the Discover it® Secured Credit Card, click here.

For rates and fees of the Discover it® Student Cash Back, click here.

For rates and fees of the Discover it® Miles, click here.

For rates and fees of The Platinum Card® from American Express, click here.

Petal 2 Visa Credit Card issued by WebBank.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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April 9, 2024
United Airlines raises checked bag fee $5, following American

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United Airlines planes at Denver International Airport.

Leslie Josephs | CNBC

United Airlines is raising the price to check bags, becoming the latest carrier this year to hike a fee that generated more than $5 billion for airlines in the first nine months of 2023 alone.

United economy passengers who book domestic tickets starting Feb. 24 will pay $40 for a first checked bag, or $35 if they prepay online at least 24 hours before their flight, an increase of $5. A second checked bag will cost $50 at the airport, or $45 in advance, up $5 for both options.

The changes apply to most flights throughout North America, a United spokeswoman said.

In 2020, United raised the price to check a bag at the airport by $5 to $35 but kept it steady at $30 if travelers paid for the service in advance.

Certain credit card holders, frequent flyers with elite status, active military and travelers in top-tier classes can still check a bag for free, United said.

Earlier this week, American Airlines raised its fee to check a first bag on domestic flights to $35 if purchased in advance and $40 at the airport. Both options were previously $30. A second checked bag will go up from $40 to $45.

Airlines and other companies have been grappling with how to grow profits while reining in costs, such as new labor contracts, whileÂ pricing powerÂ has waned.

JetBlue and Alaska Airlines have also raised bag fees this year.

Don’t miss these stories from CNBC PRO:

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February 23, 2024
How Denver International Airport became one of the fastest-growing airports in the world

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Last year was Denver International Airport’s busiest on record.

While airline stocks have yet to fully recover to pre-pandemic levels, passengers have returned in droves — and millions of them are flying through the Colorado hub.

“We will end 2023 much higher than our forecast at about 78 million passengers annually,” said Phil Washington, CEO of the Denver International Airport. “So this has been tremendous growth.”

The airport, known as DIA to Colorado locals, opened in 1995. It was originally built to handle 50 million passengers per year, but now that number is expected to reach more than 100 million people per year by 2027, according to DIA estimates.

OAG, a global travel data provider, said Denver went from the 21st busiest airport in the world in 2019 to the sixth in 2023.

United Airlines is Denver’s biggest operator with 46.7% market share, followed by Southwest at 30.7% and Frontier Airlines at 9.7%, according to DIA.

The midcontinent airport has become United’s busiest hub. It recently invested nearly $1 billion in Denver to add more gates, flights and destinations, and opened the largest lounge in its network.

“About 60% of our customers are connecting from other places. Forty percent of our customers are local Denver, and it’s a fast growing city,” said Jonna McGrath, vice president of Denver Airport operations for United Airlines. “We want to grow before 2030 to about 650 flights a day.”

CNBC got a behind-the-scenes look at United’s Denver operations and explored how the airport and the airline plan to keep up with demand.

Watch the video to learn more.

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January 20, 2024
Judge blocks JetBlue-Spirit merger after DOJ's antitrust challenge

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LaGuardia International Airport Terminal A for JetBlue and Spirit Airlines in New York.

Leslie Josephs | CNBC

A federal judge Tuesday blocked JetBlue Airways‘ purchase of Spirit Airlines after the Justice Department sued to stop the merger, saying the deal would drive up fares for price-sensitive consumers by taking the discount carrier out of the market.

JetBlue’s proposed $3.8 billion purchase of discounter Spirit would have produced the country’s fifth-largest airline, a deal the carriers had said would help them better grow and compete against larger rivals like Delta and United.

“JetBlue plans to convert Spirit’s planes to the JetBlue layout and charge JetBlue’s higher average fares to its customers,” U.S. District Court Judge William Young wrote in his decision. “The elimination of Spirit would harm cost-conscious travelers who rely on Spirit’s low fares.”

The decision, handed down Tuesday, marks a victory for a Justice Department that has aggressively sought to block deals it views as anti-competitive.

“Today’s ruling is a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward,” Attorney General Merrick Garland said in a statement. “The Justice Department will continue to vigorously enforce the nation’s antitrust laws to protect American consumers.”

The DOJ alleged in its lawsuit, filed in March, that JetBlue’s acquisition of the budget airline would force many passengers to pay higher fares by eliminating Spirit and “about half of all ultra-low-cost airline seats in the industry.”

Spirit has grown rapidly in recent years by offering cheap fares and fees for everything else from seat assignments to carry-on luggage, a no-frills model that has become a favorite punchline for late-night comedians.

“Spirit is a small airline. But there are those who love it,” Young, who was appointed by former President Ronald Reagan, wrote in his ruling. “To those dedicated customers of Spirit, this one’s for you.”

Spirit shares plunged after the ruling and ended the day down 47%, while JetBlue’s stock gained about 5%.

Spirit’s market capitalization as of Friday’s close was $1.66 billion, less than half of JetBlue’s proposed purchase price. The Miramar, Florida-based airline has been struggling with grounded airplanes due to an engine manufacturing issue and softer-than-expected travel demand.

Spirit Airlines and JetBlue Airways stock after a federal judge blocked the carrier’s proposed merger.

JetBlue and Spirit said in a joint statement that they disagreed with the ruling and were evaluating next steps.

“We continue to believe that our combination is the best opportunity to increase much needed competition and choice by bringing low fares and great service to more customers in more markets while enhancing our ability to compete with the dominant U.S. carriers,” the carriers said.

A different U.S. District Court judge in Massachusetts sided with the Justice Department last year to block JetBlue’s regional alliance with American Airlines in the Northeast, a partnership that allowed the carriers to coordinate routes and schedules.

JetBlue and Spirit said Tuesday that “JetBlue’s termination of the Northeast Alliance and commitment to significant divestitures have removed any reasonable anti-competitive concerns that the Department of Justice raised.”

Hard-won deal

JetBlue fought hard for Spirit. It launched a hostile takeover bid weeks after Frontier Airlines and Spirit agreed to merge in a cash-and-stock deal. Frontier’s business model is more similar to Spirit’s, and both airlines have similar fleet configurations, unlike JetBlue’s more full-service model which stands in contrast to Spirit’s discount strategy.

After Spirit’s board rejected JetBlue’s initial takeover offer, Spirit CEO Ted Christie said in May 2022 that he didn’t think a JetBlue deal would be approved by regulators, citing the American Airlines partnership and JetBlue’s plan to take seats out of the market.

“It will not happen in our opinion and for that reason our board has rejected it and to imply otherwise again, we think is insulting,” he said on CNBC’s “Squawk Box” at the time.

Spirit shareholders ended up rejecting the Frontier deal and months later approving a sweetened JetBlue proposal in October 2022.

New CEO

Young’s decision leaves New York-based JetBlue grappling with next steps, tasking incoming CEO Joanna Geraghty with steering the airline on a new path. Geraghty was announced as successor to CEO Robin Hayes after he said earlier this month that he would retire.

JetBlue argued access to Spirit’s similar fleet of Airbus planes would allow it to grow quickly when planes and pilots are in short supply, growth it said it needs to compete against bigger airlines. The carrier operates in highly congested airspace in New York and other cities, and had planned to use Spirit as a way to gain access to more routes and travelers.

Years of previous consolidation left United, Delta, American and Southwest in control of about three-quarters of the domestic market.

JetBlue planned to remodel Spirit’s yellow planes by removing the branding and seats from the tightly packed jets to provide more of a full-service model.

“Although Spirit’s yellow aircraft livery would not immediately be repainted as JetBlue planes, at the moment the merger is consummated, Spirit and JetBlue would no longer be competitors,” Young wrote in his decision.

Don’t miss these stories from CNBC PRO:

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January 16, 2024
Flight cancellations pile up as winter storm, 737 Max 9 grounding disrupt travel

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An Embraer E175LR passengers aircraft of American Eagles airlines (C) taxxing before take-off to Pittsburg is seen at La Guardia Airport on January 9, 2024.

Charly Triballeau | Afp | Getty Images

Airlines canceled about 2,000 U.S. flights Friday as they grapple with winter weather and the grounding of Boeing 737 Max 9 planes.

Storms in the Midwest helped drive more than 4,500 delays, with major disruptions around Chicago and Detroit, major hubs for the largest U.S. carriers, according to flight-tracker FlightAware.

About 40% of flights at Chicago’s O’Hare International Airport, a hub for United Airlines and American Airlines, were canceled after a snowstorm led to an over two-hour ground stop. Detroit Metropolitan Wayne County Airport, a hub for Delta Air Lines, had about 20% of flights Friday either delayed or canceled due to the storms.

Southwest Airlines, which has a big operation out of Chicago Midway, canceled more than 400 flights, while more than 900 were delayed.

United canceled about 10% of its mainline flights and delayed about 20%.

Last week, the Federal Aviation Administration grounded Boeing 737 Max 9s after a door plug blew off an Alaska Airlines flight, so the jets can undergo inspections. That grounding has continued to disrupt travel for both United and Alaska Airlines, the only two U.S. airlines that operate the aircraft.

Alaska Airlines said Friday it would cancel all flights on the Max 9 through Sunday as it waits for documentation from Boeing and the FAA to begin inspections.

About 20% of the carrier’s flights were canceled Friday and more than 10% were delayed, FlightAware data showed. Alaska said that between 110 and 150 flights per day would be impacted by the grounding of the Max 9.

“We regret the significant disruption that has been caused for our guests by cancellations due to these aircraft being out of service,” the company said.

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January 12, 2024
Boeing’s financials won’t be hurt by latest 737 Max issues, analysts say. The company’s size is one reason.

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Alaska Airlines, United Airlines and Turkish Airlines have all grounded their Boeing 737 Max 9 airplanes after part of one such jet tore away during an Alaska Airlines flight on Friday. But despite the potential safety risks for travelers and further damage to Boeing’s
BA,
-8.03%
reputation, some Wall Street analysts, for now, have downplayed the financial impact for the jet maker.

In part, they pointed to the company’s status as one of two major players in aircraft production — the other being Airbus
EADSY,
+3.52%.
They also cited a tighter supply of available aircraft and limited near-term impact, at least while investigators try to figure out the cause of the incident.

Those airlines and others took the action over the weekend after a panel on a jet blew out about 10 minutes into Alaska Airlines Flight 1282 at an altitude of about 16,000 feet.

No one died in the incident. But the Federal Aviation Administration ordered the temporary grounding of certain Boeing 737 Max 9 aircraft. The order covered 171 planes.

Shares of Boeing fell 8.2% as the stock weighed on the Dow Jones Industrial Average
DJIA.

Still, some Wall Street analysts on Monday said to buy the stock anyway. They said the latest difficulties with the aircraft — which follow the 2019 grounding of Max jets by many nations following two fatal crashes — were unlikely to have a big near-term financial impact.

BofA analysts, in a research note dated Sunday, said that “at this point in time, due to the duopoly nature of the industry, we do not see this impacting orders for any of the 737 MAX variants. However, if the hits to the program do keep coming … at some point, the flying public may lose confidence in the 737 MAX which could ultimately impact sales.”

The analysts said it wasn’t clear yet whether the blowout on Friday was due to an assembly mistake at Boeing, an improper installation from fuselage maker Spirit AeroSystems or oversight issues elsewhere. But they noted that the aircraft was relatively new, having been delivered on Oct. 31. And they said that “some scrutiny must be saved for regulators as well, as the FAA is ultimately responsible for certificating these aircraft before delivery.”

Spirit AeroSystems’ stock
SPR,
-11.13%
was down 11%.

Analysts at William Blair also said they didn’t expect a big hit to Boeing’s financials.

“While the Alaska Airlines door plug accident was terrifying, we do not believe that it will have a major financial impact, unless another incident occurs after the aircraft returns to service,” they said in a note on Monday.

Analysts there estimated that over the past two months, the Max 9 made up less than one-fifth of Boeing’s total deliveries. They said those deliveries would only be “modestly impacted over the first quarter as it could take some time to determine the cause.”

Of the 23 analyst ratings on Boeing’s stock tracked by FactSet, 18 are buy ratings or the equivalent.

Read more: How Boeing’s latest 737 Max problem is hurting the Dow

However, Morgan Stanley analyst Ravi Shanker said the 737 Max 9 issues will likely disrupt first-quarter results for United Airlines
UAL,
+2.78%
and Alaska Air
ALK,
-0.21%.

“This will hopefully be a situation resolved in days/weeks rather than months, but it will also serve as a reminder of how fragile airline capacity can be despite the overhang of capacity,” Shanker said in a Monday research note.

United Airlines’ stock rose 2.4% on Monday, while Alaska Air’s dipped by 0.3%.

Along with United Airlines, Alaska Airlines and Turkish Airlines, Copa Airlines and Aeromexico grounded about 40 Boeing 737 Max 9 planes, according to reports.

According to Deutsche Bank analysts, the affected fleet accounts for 16.1% of Alaska Airlines flights and 6.6% of United flights, although United has more 737 Max 9 aircraft than Alaska.

Other airlines with the plane in their fleet include Jet Airways of India with one plane, Jin Air of Korea with three, KLM Royal Dutch Airlines
KLMR,

with five and Korean Air Lines
003490,
-1.52%
with nine, according to Planespotter.net.

European regulators also grounded the 737 Max 9 for inspection.

Some major airlines do not have any 737 Max 9s in their fleets, including American Airlines
AAL,
+7.21%,
Southwest Airlines
LUV,
-0.10%
and Air Canada
AC,
+3.42%,
according to reports.

Also read: Shares in Boeing slump, supplier Spirit AeroSystems tanks, after panel blows out

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January 8, 2024
Forget the in-flight food — these are best and worst airlines when flying goes wrong
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Modern aircraft, comfortable seats and unflappably pleasant flight attendants.

These are factors many rankings consider in determining the world’s best airlines.

But they overlook a crucial element, according to the passenger rights company AirHelp — how airlines treat customers when problems occur.

“We believe that an airline should be assessed not just by how they treat their passengers during business as usual, but also by the consideration they show customers when things go wrong,” the report stated.

To compile its annual “AirHelp Score,” the organization evaluated 83 airlines based on punctuality, customer opinions, and how efficiently they handle customers’ compensation claims.

Each factor was weighted equally in the scoring, said Tomasz Pawliszyn, CEO at AirHelp.

The best and worst airlines of 2023

Based on data from Jan. 1 to Sept. 30 2023, these are the airlines that topped the 2023 AirHelp Score:

1.     Qatar Airways – 8.38

2.     Eurowings – 8.27

3.     LOT Polish Airlines – 8.11

4.     Etihad Airways and All Nippon Airways – 8.09 (tie)

6.     Austrian Airlines – 8.07

7.     American Airlines – 7.97

8.     China Airlines – 7.92

9.     Wideroe – 7.89

10. United Airlines – 7.88

Qatar Airways has topped every “AirHelp Score” ranking since 2015 — but one. In 2016, the Doha-based airline fell to No. 2, behind Singapore Airlines.

Thiago Prudencio | Sopa Images | Lightrocket | Getty Images

The 10 lowest-scoring airlines on AirHelp’s 2023 list are:

1.     Tunisair – 4.12

2.     British Airways – 5.03

3.     Frontier Airlines and Pegasus Airlines – 5.18 (tie)

5.     Czech Airlines – 5.20

6.     Air Canada – 5.68

7.     Spirit – 5.69

8.     TAROM and Azores Airlines – 5.71 (tie)

10. Air Austral – 5.77

Qatar Airways has topped every “AirHelp Score” ranking since 2015 — but one. In 2016, the Doha-based airline fell to No. 2, behind Singapore Airlines. In 2022, it tied for the No. 1. spot with Etihad Airways, Pawliszyn told CNBC Travel.

The 2023 full list can be found at AirHelp’s website.

Best and worst airlines for passenger claims

The five airlines that scored the highest on compensation claim processing alone — which evaluates how airlines handle claims (“Do they ignore or wrongfully reject claims?”) as well as response and payout times, are:

China Airlines and Brussels Airlines – 8.2 (tie)

United Airlines, SAS Scandinavian Airlines and airBaltic – 8.1 (tie)

Stranded passengers crowd an airline counter at Changshui International Airport in Kunming, China on Jan. 4, 2013.

Str | Afp | Getty Images

Those faring the worst in terms of claims resolution are:

British Airways – 1

Gulf Air – 1.4

Czech Airlines, Aircalin and Vietnam Airlines – 1.7 (tie)

British Airways may have placed last as a result of being understaffed, said Pawliszyn.

“As one of the largest and most popular airlines, they probably handle a large load of claims,” he said.

In response to CNBC Travel’s request for comment, British Airways stated: “We’re working hard to improve our response times … We’ve recruited an extra 1,500 new colleagues to help and introduced new automated technology to resolve easier claims faster, with the vast majority of cases resolved within seven weeks.

The airline added that more than half of outstanding cases relate to EU compensation claims which take time, due to checks that must be performed.

Top airlines in other categories

Highest on-time scores: Eurowings and Oman Air

Highest customer review scores: All Nippon Airways, Garuda Indonesia and Emirates

Singapore Airlines, which tops most major airline rankings, came in at No. 26 on the list, dragged down by a claim processing score of 5.4. Another highly regarded airline, Emirates, ranked No. 24 on the list for the same reason.

Claims processing is ‘crucial’

AirHelp told CNBC it uses its own data to monitor how well airlines process customer claims for compensation.

The organization “helps passengers claim compensation following delayed or cancelled flights under several international air passenger rights regulations including EC 261 in Europe and ANAC 400 in Brazil,” he said.

“Examples where a passenger may be able to make a claim are flights on a European airline where the passenger arrived over three hours late at their destination, or a flight that was canceled by the airline less than two weeks before departure.”

He said claims processing is critical because it directly impacts passenger satisfaction and an airline’s overall operational efficiency.

“Swift resolutions over claims like lost baggage, flight disruptions, or other inconveniences could prevent passengers from selecting another airline for their future travel plans,” said Pawliszyn. “It’s crucial for maintaining a positive reputation and customer loyalty.”
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December 17, 2023
Southwest, pilots' union near a preliminary labor deal, the last of the major U.S. airlines

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Southwest Airlines Boeing 737-700 aircraft is seen landing at dusk time at Ronald Reagan Washington National Airport in Arlington, Virginia.

Nicolas Economou | Nurphoto | Getty Images

Southwest Airlines and its pilots’ union are closing in on a new contract that would raise pay for the carrier’s more than 11,000 aviators and end months of contentious negotiations, weeks ahead of the crucial holiday travel season.

The company and the union have agreed on pay, retirement and other items but are working on an implementation schedule, the Southwest Airlines Pilots Association said in a message to its members on Thursday.

Delta Air Lines, United Airlines and American Airlines have already finalized multibillion-dollar labor agreements with pilots this year as unions pushed for pay hikes, better scheduling and other improvements after the Covid pandemic derailed contract talks.

If a preliminary agreement is approved by Southwest pilots’ union board in the coming weeks, it would then go to pilots for a ratification vote.

The union and the airline declined to provide specifics of the deal.

Southwest and the union “are working hard to close out the few remaining items,” an airline spokesman told CNBC. “Southwest remains committed to reaching an agreement that rewards our Pilots and places them competitively in the industry.”

Southwest reached a preliminary agreement with its flight attendants’ union earlier this fall that includes 36% pay increases for cabin crew members.

A labor deal with its pilots would end a period of tense negotiations between the company and the union, which recently included laying groundwork for a potential strike, though strikes are extremely rare in the airline industry.

It would also become the latest in a string of big labor deals this year, including agreements between Hollywood writers, actors and studios as well as between automakers and the United Auto Workers union, following strikes.

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December 1, 2023
CNBC Daily Open: Singing the OPEC blues

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A view of the Minion balloon at the 2023 Macy’s Thanksgiving Day Parade on November 23, 2023 in New York City.

Gotham | Getty Images Entertainment | Getty Images

This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Happy Thanksgiving
U.S. markets were shut Thursday for the Thanksgiving holiday. European stocks closed slightly higher on Thursday, with the pan-European Stoxx 600 index up 0.3%. Oil and gas companies pulled ahead with a 1.4% gain despite the continued fall in oil prices after OPEC delayed its policy-setting meeting.

Minute, but significant
Airlines are expecting record travel demand this Thanksgiving. Major airlines are rolling out strategies that executives say could translate to lower costs and more efficient operations, even if the time savings on paper look negligible. New technology to assign flight gates at Dallas/Fort Worth International Airport helped American Airlines avoid many of its planes crossing from the east side to the west side of the sprawling airport, saving an average of two minutes of taxi time per flight, adding up to about 11 hours saved a day, the carrier said.

Crypto hack
Two cryptocurrency platforms linked to high-profile digital entrepreneur Justin Sun were hacked, with an estimated $115 million likely to have been stolen to date. The targeted projects include the HTX digital currency exchange, formerly known as Huobi, from which hackers drained around $30 million worth of cryptocurrencies, the company said in a statement on Wednesday. So-called blockchain bridge Heco Chain was also attacked, HTX confirmed.

Deutschland woes
Germany’s major banks need to increase their provisions for non-performing loans, as corporate insolvencies and credit risks mount, according to Bundesbank Vice-President Claudia Buch. Europe’s largest economy has been dubbed the “sick man of Europe” by some economists, after entering a technical recession earlier this year while economic activity faces further downward pressure from a collapse in construction.

[PRO] Betting against AI hype
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The bottom line

The 23-nation OPEC alliance of oil producers has delayed its next meeting by four days to Nov. 30, which means it will coincide with the start of this year’s United Nations Climate Change Conference (COP28), hosted by OPEC member the United Arab Emirates in Dubai.

OPEC will hold its meeting online to avoid creating travel issues for its energy ministers.

Bloomberg reported the delay is due to a rift between Saudi Arabia and some African nations over output quotas to arrest falling oil prices — which may yet linger if there is a lack of agreement and compliance among cartel members. No reason was officially provided for the delay.

Ahead of the COP28 meeting, the head of the International Energy Agency said oil and gas companies need to invest more in clean energy.

“The industry needs to commit to genuinely helping the world meet its energy needs and climate goals – which means letting go of the illusion that implausibly large amounts of carbon capture are the solution,” IEA Executive Director Fatih Birol said in a statement ahead of the United Nations Climate Change Conference in Dubai next week.

The technology captures carbon dioxide from industrial operations before emissions enter the atmosphere, and stores it underground. Excessive reliance on this technology has been blamed for the chronic underinvestment in clean energy by oil and gas companies.

Unless the energy companies do a course correction, dreams of transiting to a global economy with net zero carbon emissions by 2050 will remain just that — pipe dreams.

— CNBC’s Spencer Kimball contributed to this report.

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November 23, 2023
The Israel-Hamas war is affecting the financial outlooks of these large companies

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The ‘Rhapsody of the Seas’ cruise liner carrying US citizens leaves the Israeli port of Haifa to be evacuated to the Mediterranean island of Cyprus on October 16, 2023, amid the ongoing battles between Israel and the Palestinian Islamist group Hamas.

Aris Messinis | AFP | Getty Images

Some of the world’s most well-known companies are already seeing the Israel-Hamas war weighing on operations.

On Oct. 7, militant group Hamas struck Israeli towns in a surprise attack and took more than 200 hostages. More than 7,000 people have been killed in Gaza, per Palestinian health officials, while the Israeli Defense Forces said more than 1,400 have been killed in the country.

Corporations that do business or have operations in the region have already begun seeing the war change their financial outlooks as the unrest weighs on everything from advertising dollars to tourism to supply chains. These early admissions come as world leaders grow increasingly concerned that the conflict will further intensify, with international calls for a cease-fire being rejected.

United Airlines said fourth-quarter performance could vary depending on the length of flight suspensions in Tel Aviv. Its updated range for adjusted earnings per share came in below analysts’ forecasts.

“We have unmatched geographic diversity with a large domestic network complemented by the largest long-haul international network and both are solidly profitable,” CEO Scott Kirby said earlier this month. “While this is a great attribute, it does create some short-term risk and volatility as we’re seeing right now with the transitory hit to margins this quarter as a result of the tragedy in Israel.”

Travel changes

United is one of several carriers including Delta Air Lines and American Airlines that have rushed to change schedules as the conflict has unfolded. Notably, El Al, the Israeli flag carrier, said it would fly on the Jewish Sabbath for the first time in more than four decades to help bring reservists abroad back to the country.

Across the travel industry, the war is on the mind of corporate leaders. Plane-maker Boeing said in a regulatory filling that the conflict could potentially affect certain suppliers, in addition to airlines.

About 1.5% of Royal Caribbean capacity in the fourth quarter had planned to visit Israel, CEO Jason Liberty said on the cruise line’s call on Thursday. A few of the adjusted sailings that were previously expected have home ports in Haifa, a city in the northern region of the country.

The company also offered free use of its Rhapsody of the Seas vessel to the U.S. government to aid in the evacuation of Americans from Israel. Between the changed itineraries and use of the ship, the company estimated it would have an impact of 5 cents per share on its earnings. The company expects to see between $6.58 and $6.63 in adjusted earnings per share for the year.

El Al Airlines airplane flying on February 2023.

Nurphoto | Nurphoto | Getty Images

“I would … like to recognize the incredible effort from our shoreside teams and crew on board Rhapsody of the Seas who have been working tirelessly with the U.S. Department of State to help safely evacuate Americans from Israel,” Liberty said. “My heartfelt gratitude goes out to all involved.”

Still, Liberty said the cruise line’s customer base is sticky, so it may become more of a question of where they are going to travel rather than if they are going to cancel their plans.

“They’re going to go somewhere with us,” he said. “That’s what we’re focused on making sure they’re doing.”

‘Unpredictable nature’

Technology companies were among those seeing the conflict affect the workforce, advertising spending and supply chains.

Snap said in its latest earnings release that it saw pauses in spending from a “large number of primarily brand-oriented advertising campaigns” immediately after the war began. That has weighed on revenue quarter to date.

While the company said some of the campaigns that initially paused have now resumed, the company has also seen others that didn’t originally stop advertising now pause. Snap said it would be “imprudent” to offer formal guidance on what to expect for the current quarter “due to the unpredictable nature of war.”

Meta finance chief Susan Li said the Facebook and Instagram parent has seen softer advertising spending so far in the quarter, correlating in timeline with the start of the conflict. Li noted that it isn’t necessarily due to any one event, but cooler spending has aligned in the past with the start of conflicts such as the Russian invasion of Ukraine last year.

“This is something that we’re continuing to monitor,” Li told analysts during the company’s earnings call on Wednesday. “We’ve reflected the latest trends and advertiser reaction that we’ve seen into our Q4 outlook — which, again, we think reflects the greater uncertainty and volatility in the landscape ahead.”

Align Technology is expecting increased headwinds from the uncertainty and potential supply chain issues tied to the conflict, according to Chief Financial Officer John Morici. He said the fourth-quarter operating margin, when adjusted for generally accepted accounting principles, should be down from the prior quarter as the company offers severance to adjust to headcount changes in this situation.

Multiple corporations including Aon and West Pharmaceutical noted a continued focus on supporting employees and their family members who live and work in the region. Israel is known in part for its vibrant startup and technology scene, with entrepreneurs now wondering how to push forward in the new normal, especially as citizens get called to serve in reserve units.

ServiceNow CEO William McDermott said during the company’s call with analysts on Wednesday that employee Shlomi Sividia was among those murdered at the Supernova Music Festival. He said Sividia was “highly respected, admired and a good friend to many.”

“We stand in solidarity with our team and with their families. Terrorism has caused the unfathomable humanitarian crisis that now engulfs millions of people in Israel and Gaza,” McDermott said. “Our hearts pray for the innocent on all sides. Even with optimism in short supply, we choose to honor the dream of a peaceful and prosperous future for the Middle East region.”

Companies specializing in defense have also been on alert as another international conflict breaks out.

General Dynamics, the biggest U.S. artillery shell producer, had already been ramping up artillery production to meet needs amid the war in Ukraine, according to finance chief Jason Aiken. Now, the company is working to increase production to as high as 100,000 units per month, up from 14,000.

“I think the Israel situation is only going to put upward pressure on that demand,” Aiken said during General Dynamics’ Wednesday earnings call.

— CNBC’s Robert Hum, Morgan Brennan and Leslie Josephs contributed reporting.

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October 28, 2023
Major airlines suspend Israel flights after attacks

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Passengers look at a departure board at Ben Gurion Airport near Tel Aviv, Israel, on October 7, 2023, as flights are canceled because of the Hamas surprise attacks.

Gil Cohen-magen | AFP | Getty Images

Several airlines suspended service to Israel this weekend after surprise attacks by Hamas and Israeli retaliation left hundreds dead.

United Airlines, Delta Air Lines and American Airlines each scrubbed service to Tel Aviv. United Flight 954, which departed San Francisco Friday night for Israel, turned back near Greenland, according to flight-tracker FlightAware.

Lufthansa Group said all of its flights, including those on Swiss International Air Lines and Austrian Airlines, were suspended into Tel Aviv through Monday.

“We are continuously monitoring the security situation in Israel and are in close contact with the authorities,” Lufthansa said in a statement. “The safety of our guests and crew members has top priority for Lufthansa.”

Israeli airline El Al said Sunday that its flights are “operated as scheduled.”

El Al and other carriers also offered travel waivers for customers to delay or cancel their trips.

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October 8, 2023
Delta CEO says carrier went ‘too far’ in SkyMiles changes, promises modifications after frequent flyer backlash

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Delta Air Lines Boeing 717-200 airplane as seen on the final approach landing at New York JFK John F. Kennedy International Airport, NYC, USA.

NurPhoto / Contributor

Delta Air Lines CEO Ed Bastian said the airline will make “modifications” in the next few weeks to its loyalty program after a recently announced overhaul that would make it more expensive for many travelers to earn elite status and get into airport lounges was met with a backlash from customers.

“No question we probably went too far,” Bastian said at the Rotary Club of Atlanta on Monday.

The program changes, which Delta unveiled earlier this month, would reward customers with elite status based on how much they spent, a model similar to that of American Airlines, and reduce access to Delta popular airport Sky Club lounges for many American Express cardholders.

JetBlue Airways tried to capitalize on some customers’ anger over Delta’s changes by offering frequent flyer status matching, saying, “we’ve made it easy for you to cozy up to a new loyalty program and see where it goes.”

Delta has been grappling with a surge in elite travelers, bolstered by Covid pandemic and post-pandemic spending, and swarms of travelers trying to get into its lounges, leading to long lines for many customers. The airline and rivals including American and United have been racing to build bigger airport lounges to cater to swelling numbers of big spenders.

Bastian said the airline will announce the updated program changes in the coming weeks. A Delta spokesman declined to comment further on the changes.

“It’s gotten to the point, honestly, where we have so much demand for our premium product and services that are far in excess of our ability to serve it effectively in terms of our assets,” Bastian said.

He said that over Covid, the airline has doubled the number of Diamond Medallion status members.

David Neeleman, CEO of Breeze Airways and founder of JetBlue, told CNBC on Wednesday that he has Delta Medallion status and that he tries to use Delta’s airport lounges but that sometimes “there’s a big line and it’s not worth it.”

Delta last year announced several changes to crack down on overcrowding at the clubs, such as barring employees from using them when flying standby with company travel privileges, even if they had qualifying credit cards. The Atlanta-based carrier also raised prices for club memberships for regular customers.

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September 28, 2023
More companies, especially airlines, warn higher costs will eat into profits

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An American Airlines 787 is loaded with cargo at Philadelphia International Airport.

Leslie Josephs/CNBC

More companies are warning that a surge in the cost of fuel and employee pay hikes will eat into profits this quarter.

Companies from aerospace manufacturers to package delivery giant UPS are digesting big new labor deals. Meanwhile, unions from the auto industry to Hollywood are pushing for better compensation. Airlines, whose biggest expenses are jet fuel and labor, are getting hit particularly hard.

Delta Air Lines on Thursday cut its adjusted earnings forecast for the third quarter to between $1.85 and $2.05 a share, down from an earlier forecast of $2.20 to $2.50. Delta said it is paying more for fuel than it expected but said maintenance costs were also more than it anticipated.

U.S. jet fuel at major airports averaged $3.42 a gallon as of Tuesday, up 38% from two months ago, according to Airlines for America, an industry group.

On Wednesday, American Airlines trimmed its earnings forecast, following revisions at Alaska Airlines and Southwest Airlines. American expects to adjusted earnings per share of between 20 cents and 30 cents in the third quarter, down from a previous forecast of as much as 95 cents a share, citing more expensive fuel and a new pilot labor deal.

The company expects to recognize a $230 million expense for that new contract, which includes immediate 21% raises for pilots, and compensation increasing more than 46% over the duration of the four-year contract, including 401(k) contributions.

Elsewhere, labor unions from Detroit to Hollywood have pushed hard for raises, better benefits and schedules in new contracts. UPS and the Teamsters union representing about 340,000 workers at the package carrier in July reached a new labor deal that includes raises for both full- and part-time workers, and narrowly avoided a potential strike.

UPS workers ratified the agreement ratified last month. By the end of the five-year contract, a driver could make $170,000 in pay and benefits, the company said.

Earlier this week, the delivery giant outlined the costs associated with the deal and said it the expenses from it will increase at 3.3% compound annual growth rate over the next five years.

“Year one costs more than we originally forecast,” said Brian Newman, the company’s CFO, said on an investor call this week. He said it will cost $500 million more in the back half of 2023 than expected, he said.

As of midday Thursday, the United Auto Workers and Detroit automakers appeared far apart on labor talks for new labor deals, setting up “likely” strategic strikes at the companies after an 11:59 p.m. ET Thursday deadline, UAW President Shawn Fain said Wednesday night. The union has sought more than 30% hourly pay increases, a reduced 32-hour work week, and other improvements.

Other unions are also seeking higher compensation. The Hollywood writers and actors strikes began in May and mid-July, respectively, with members demanding better pay to match changing industry dynamics in the entertainment-streaming era.

American Airlines offered flight attendants 11% pay increases the date a new contract starts, and 2% raises after that. But the Association of Professional Flight Attendants said the union wants 35% increases at the start of a new deal, followed by 6% annual raises.

Unions have complained that workers didn’t get raises during high inflation in recent years since the Covid pandemic derailed talks.

Strong travel demand has helped the largest carriers more than cover their higher expenses. But some carriers are seeking cracks in sales just as a slower travel period after summer begins. Spirit Airlines on Wednesday said it expects a deeper loss than previously forecast and lower revenue.

Frontier Airlines warned Wednesday that “in recent weeks, sales have been trending below historical seasonality patterns,” and forecast an adjusted loss for the quarter.

– CNBC’s Michael Wayland and Gabriel Cortes contributed to this article.

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September 14, 2023
Delta will make it harder to get into airport lounges, changes rules to earn elite status
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Delta’s new SkyClub at John F. Kennedy International Airport in New York.

Leslie Josephs/CNBC

Delta Air Lines is changing how customers can earn elite frequent flyer status and is making it harder for many American Express cardholders to get into the carrier’s airport lounges, the latest reality check for air travel’s era of mass luxury.

Starting Jan. 1, customers will earn Delta Medallion status solely based on their spending, instead of a combination of dollars spent with the carrier and flights. The new model is similar to one that American Airlines adopted earlier this year.

Major airlines have continually raised the requirements to earn status as customer spending at the airline and on co-branded credit cards has surged in recent years, swelling the ranks of these high-paying customers. Elite status can come with a variety of perks, from early boarding to upgrades to first class and lounge access.

“We want customers to be able to receive status with activity beyond just air travel,” Dwight James, Delta’s senior vice president of customer engagement and loyalty, told CNBC.

Next year, Delta customers will earn 1 Medallion Qualifying Dollar for every $1 they spend on Delta flights, car rentals, hotels and vacation packages booked through the airline.

The ratio isn’t 1:1 for dollars spent through co-branded American Express cards. Delta SkyMiles Reserve and Reserve Business American Express card members earn 1 Medallion Qualifying Dollar for every $10 spent on the card, while Delta SkyMiles Platinum and Platinum Business American Express Card Members earn 1 Medallion Qualifying Dollar for every $20 spent.

Here are the new status requirements:

Silver Medallion – 6,000 MQDs

Gold Medallion – 12,000 MQDs

Platinum Medallion – 18,000 MQDs

Diamond Medallion – 35,000 MQDs

Raising the bar on Sky Club entry

Delta is limiting access to its popular Sky Club airport lounges through certain American Express credit cards after grappling with overcrowding at some of them, drawing complaints from travelers.

Instead of the current unlimited visits, starting Feb. 1, 2025, American Express Platinum and Platinum Business cardholders will get six visits a year, unless they spend $75,000 on the card in a calendar year.

Meanwhile, Delta SkyMiles Reserve and Reserve Business cardholders will get 10 Sky Club visits a year, a limit they can skirt by also spending $75,000 in a year.

Delta’s SkyMiles Platinum and Platinum Business American Express cards will no longer get club access through the cards itself, although customers can enter by buying a club membership or if they have elite status with Delta that allows them to pick a club membership as a perk.

“Some of the changes that we’re making ensures that we’re taking care of our most premium customers with our most premium assets, one of those being the Sky Club,” James said. He said the changes were made in conjunction with American Express.

The airline last year announced several changes to crack down on overcrowding at the clubs, including barring employees from using them when flying standby with company travel privileges, even if they had qualifying credit cards. It also raised prices for club memberships for regular customers.

Delta and its competitors are racing to build bigger and more modern lounges to accommodate customers. United Airlines, for example, on Wednesday opened a 35,000 square-foot club at its hub at Denver International Airport, the largest in its network, after opening a 24,000 square-foot club at the airport earlier this summer.
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September 13, 2023
American Airlines pilots approve sweetened labor deal with big raises

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An American Airlines plane takes off from the Miami International Airport on May 02, 2023 in Miami, Florida.

Joe Raedle | Getty Images

American Airlines pilots approved a sweetened labor deal, making the carrier the second major U.S. airline to seal a new contract with its highest-paid work group.

The more than 15,000 pilots at American will get immediate raises of 21% with compensation rising more than 46% over the duration of the contract, their union said Monday.

Delta Air Lines pilots ratified a new agreement earlier this year.

This is breaking news. Check back for updates.

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August 21, 2023