ReportWire

Tag: Delta Air Lines Inc

  • American Airlines pilots approve sweetened labor deal with big raises

    American Airlines pilots approve sweetened labor deal with big raises

    [ad_1]

    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.

    [ad_2]

    Source link

  • United reaches preliminary, 4-year labor deal with pilots, with up to 40% raises

    United reaches preliminary, 4-year labor deal with pilots, with up to 40% raises

    [ad_1]

    Pilots from United Airlines walk inside the airport as they take part in an informational picket at Newark Liberty International Airport in Newark, New Jersey, May 12, 2023.

    Eduardo Munoz | Reuters

    United Airlines and its pilots’ union have agreed to a preliminary labor deal that includes pay increases of as much as 40.2% over four years, ending months of tense negotiations and airport pickets. The deal makes United’s aviators the latest from a major airline to reach an agreement for higher wages amid the post-pandemic travel boom.

    The preliminary deal, which the Air Line Pilots Association (ALPA) announced Saturday, comes months after Delta Air Lines pilots ratified a new contract that included 34% raises over four years, the first of the top four airlines to reach a new agreement. American Airlines and its pilots’ union reached a new labor deal with 40% raises over four years, though it still faces a ratification vote by members.

    The pandemic paused contract negotiations across the industry but workers have been pushing for higher pay and better working conditions since travel demand returned and talks resumed.

    ALPA said the tentative deal is worth about $10 billion. It includes a host of other improvements including overtime pay, holiday pay and scheduling. Cumulative pay increases range from 34.5% to 40.2% based on the type of aircraft a pilot flies.

    The agreement in principle won’t be finalized until it’s ratified by the company’s 16,000 pilots.

    “We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement with ALPA on it,” United CEO Scott Kirby said in a LinkedIn post. “The four-year agreement, once ratified, will deliver a meaningful pay raise and quality of life improvements for our pilots while putting the airline on track to achieve the incredible potential of our United Next strategy.”

    The pilots overwhelmingly rejected a preliminary, 18-month deal last year.

    United is scheduled to report second-quarter earnings after the market closes Wednesday, and executives are likely to face questions about the cost of the deal during a conference call the next day.

    [ad_2]

    Source link

  • Delta executives say they’re not seeing the drop in airfares that the government reports

    Delta executives say they’re not seeing the drop in airfares that the government reports

    [ad_1]

    Delta Air Lines executives say they’re not seeing the drop in average airfares that federal officials believe are contributing to lower inflation.

    The Labor Department’s latest consumer price index this week showed average airfares falling 8% from May to June on a seasonally adjusted basis.

    “We’re not seeing the same, and it’s a different data point than what we have,” Delta President Glen Hauenstein said on the airline’s second-quarter earnings call. He dismissed the Labor Department’s methodology as a “ample of a sample.”

    Delta Air Lines is reporting record profit and revenue in the second quarter, as summer travelers pack planes and head off on vacation.

    Officials say a Delta flight landed roughly but safely at the Charlotte Douglas International Airport on Wednesday without its front landing gear extended.

    A consumer class action lawsuit filed Tuesday claims Delta Air Lines inaccurately billed itself as the world’s “first carbon-neutral airline” and should pay damages.

    Analysts agreed with Delta’s assessment. JPMorgan’s Jamie Baker said the government figure excludes corporate and most premium travel and is drawn heavily from discount-airline service. He blamed the CPI number for causing airline stocks to fall Wednesday, when the Labor Department report came out.

    Delta executives seemed far more willing to accept the Labor Department’s calculation that average fares last month were 19% lower than they were in June of last year.

    CEO Ed Bastian said it is important to remember that at this time last year, many people were just beginning to travel after two years of the COVID-19 pandemic, but airlines weren’t yet fully staffed. As a result, demand was far stronger than supply.

    “People didn’t care where they were going or how much they spent. They just wanted to go someplace,” he said. “We were seeing fares up 30%, 40%, 50%” for some domestic flights. “That’s obviously not sustainable.”

    The Labor Department’s monthly CPI report indicated that lower prices for airline tickets, gasoline and used cars in June helped produce the lowest inflation since early 2021 — 3% compared with a year earlier.

    [ad_2]

    Source link

  • Delta Air Lines stock surges to 2-year high after earnings beat, raised outlook

    Delta Air Lines stock surges to 2-year high after earnings beat, raised outlook

    [ad_1]

    Shares of Delta Air Lines Inc. surged toward a more-than two-year high Thursday, after the air carrier reported second-quarter profit and revenue that rose above forecast, and boosted its full-year outlook citing continued “robust” travel demand.

    Delta
    DAL,
    -1.46%

    said net income more than doubled to $1.83 billion, or $2.84 a share, from $735 million, or $1.15 a share, in the year-ago period.

    Excluding nonrecurring items, adjusted earnings per share of $2.68 beat the FactSet consensus of $2.40.

    Revenue grew 12.7% to $15.78 billion, well above the FactSet consensus of $14.44 billion,

    For 2023, the company raised its EPS guidance range to $6 to $7 from $5 to $6, and increased its outlook for free cash flow to $3 billion from $2 billion.

    The stock jumped 3.5% in premarket trading, putting it on track to open at the highest price seen during regular-sessions hours since April 2021.

    “Consumer demand for air travel remains robust,” said Chief Executive Ed Bastian.

    Traffic increased 18.0% to 60.80 billion revenue passenger miles while capacity grew 17.1% to 68.99 billion available seat miles. Load factor improved one percentage point to 88%, to beat the FactSet consensus of 87.2%.

    The stock has run up 42.1% over the past three months through Wednesday, while the U.S. Global Jets exchange-traded fund
    JETS,
    -0.81%

    has climbed 22.1% and the S&P 500 index
    SPX,
    +0.74%

    has gained 9.3%.

    [ad_2]

    Source link

  • 2 pilots say they visited 48 US states in less than 48 hours, potentially breaking a world record | CNN

    2 pilots say they visited 48 US states in less than 48 hours, potentially breaking a world record | CNN

    [ad_1]



    CNN
     — 

    Two Delta Air Lines pilots say they visited 48 US states in under 48 hours, potentially breaking a world record, the Atlanta-based carrier reported.

    Captains Barry Behnfeldt and Aaron Wilson completed their goal of stopping in all 48 contiguous states in less time than they expected – accomplishing it in 44 hours and seven minutes, according to a news release.

    Aside from the world-record attempt by the pair of US military veterans, which has not yet been confirmed by Guinness World Records, the men sought to inspire future pilots and raise funds for the Veteran’s Airlift Command.

    The organization provides free, private air travel for combat-injured veterans. Behnfeldt and Wilson have raised over $30,000 for the VAC.

    They also wanted to acknowledge this year as the 120th anniversary of powered flight.

    The pilots initially planned for a trip of 43 hours and 31 minutes while leaving room for setbacks, according to their website.

    The mission began with a conversation between Behnfeldt, who’s worked at Delta for 24 years, and a fellow airline pilot.

    “We were talking one day on one of our legs, and he talked about this pilot that he had flown with that attempted to set this Guinness World Record in landing in 48 states,” Behnfeldt told CNN. “It sparked an interest.”

    From there, Behnfeldt said he reached out to Wilson, who, like Behnfeldt, also pilots Delta planes and also attended the Bowling Green State University School of Aviation.

    “He had all the logistics and everything figured out,” Wilson said in a news release from their alma mater.

    “Flying across the country in a small airplane is something I’ve always wanted to do, so I was immediately sold on the idea,” Wilson said in the release. “I didn’t have any hesitation about saying yes.”

    Behnfeldt, who served in the US Navy for 30 years, said his Navy pal and fellow pilot Thomas Twiddy also joined the pair on the trip as an in-flight technician.

    The trio set off at night on June 4 from Berrien Springs, Michigan, for a journey of 5,008 miles that included no hotel stays – only periods of rest aboard the small plane as each pilot took turns flying to each state.

    Their journey wrapped up on June 6 when they landed in the afternoon in Portland, Maine.

    Flying in Behnfeldt’s single-engine Piper Saratoga plane, they flew across the US intending to spend between 10 minutes and just under a half an hour at each airport, Behnfeldt told CNN.

    The only time the plane was shut off during their brief stops was during the refueling process, Behnfeldt said.

    “And as it turned out, for the 41 stops that we did where we did not take fuel and we didn’t shut down, the average time on the ground was 8 minutes,” said Behnfeldt, who accommodated for about 18 minutes on the ground for fuel stops in his initial planning.

    One of their stops was in Coffeyville, Kansas, around 11:30 p.m., Behnfeldt recalled.

    The pilots planned meticulously for the trip and set aside several minutes for stops at each airport and time for refueling.

    “There were close to 50 people (of all ages) out on the ramp greeting us, and we weren’t supposed to take fuel there,” he said.

    The pilots decided to shut down briefly and refuel and hand out t-shirts at the stop where so many had come out to support them.

    “A 6-year-old girl came up me and asked, ‘Would you sign my T-shirt?’” Behnfeldt said. “It took us a little longer to get through that stop, but it was 100% worth it.”

    Behnfeldt and Wilson will have to wait several weeks before receiving confirmation of whether their impressive flight path qualified as a world record, a Guinness World Record spokesperson told CNN in an email.

    [ad_2]

    Source link

  • Want a climate-friendly flight? It’s going to take a while and cost you more

    Want a climate-friendly flight? It’s going to take a while and cost you more

    [ad_1]

    When it comes to flying, going green may cost you more. And it’s going to take a while for the strategy to take off.

    Sustainability was a hot topic this week at the Paris Air Show, the world’s largest event for the aviation industry, which faces increasing pressure to reduce the climate-changing greenhouse gases that aircraft spew.

    Even the massive orders at the show got a emissions-reduction spin: Airlines and manufacturers said the new planes will be more fuel-efficient than the ones they replace.

    Inflation is pushing in different directions in Europe, rising in Germany and falling again in Spain.

    Halfway into 2023, and so little on Wall Street has gone according to plan. The S&P 500 has climbed roughly 14% as one of the most-predicted and longest awaited recessions in history has yet to appear.

    Royal accounts show that a change in monarchs, double-digit inflation and ongoing costs of renovating Buckingham Palace contributed to a 5% increase in publicly-funded spending by Britain’s royals.

    Applications for unemployment benefits fell significantly last week after it appeared claims had reached a modestly elevated level in recent weeks.

    But most of those planes will burn conventional, kerosene-based jet fuel. Startups are working feverishly on electric-powered aircraft, but they won’t catch on as quickly as electric vehicles.

    “It’s a lot easier to pack a heavy battery into a vehicle if you don’t have to lift it off the ground,” said Gernot Wagner, a climate economist at Columbia University.

    That means sustainable aviation fuel has become the industry’s best hope to achieve its promise of net zero emissions by 2050. Aviation produces 2% to 3% of worldwide carbon emissions, but its share is expected to grow as travel increases and other industries become greener.

    Sustainable fuel, however, accounts for just 0.1% of all jet fuel. Made from sources like used cooking oil and plant waste, SAF can be blended with conventional jet fuel but costs much more.

    Suppliers are “going to be able to kind of set the price,” Molly Wilkinson, an American Airlines vice president, said at the air show. “And we fear that at that point, that price eventually is going to trickle down to the passenger in some form of a ticket price.”

    With such a limited supply, critics say airlines are making overly ambitious promises and exaggerating how quickly they can ramp up the use of SAF. The industry even has skeptics: Nearly one-third of aviation sustainability officers in a GE Aerospace survey doubt the industry will hit its net zero goal by 2050.

    Delta Air Lines is being sued in U.S. federal court by critics who say the carrier falsely bills itself as the world’s first carbon-neutral airline, and that Delta’s claim rests on carbon offsets that are largely bogus. The Atlanta-based airline says the charges are “without legal merit.”

    Across the Atlantic, a consumer group known by its French acronym, BEUC, filed a complaint this week with the European Union’s executive arm, accusing 17 airlines of greenwashing.

    The group says airlines are misleading consumers and violating rules on unfair commercial practices by encouraging customers to pay extra to help finance development of SAF and offset future carbon emissions created by flying.

    In one case, the group’s researchers found Air France charging up to 138 euros ($150) for the green option.

    “Sustainable aviation fuels, they are indeed the biggest technological potential to decarbonize the aviation sector, but the main problem … is that they are not available,” said Dimitri Vergne, a senior policy officer at BEUC.

    “We know that before the end of the next decade — at least — they won’t be available in massive quantities” and won’t be the main source of fuel for planes, Vergne added.

    Producers say SAF reduces greenhouse gas emissions by up to 80%, compared with regular jet fuel, over its life cycle.

    Airlines have been talking about becoming greener for years. They were rattled by the rise of “flight shaming,” a movement that encourages people to find less-polluting forms of transportation — or reduce travel altogether.

    The issue gained urgency this year when European Union negotiators agreed on new rules requiring airlines to use more sustainable fuel starting in 2025 and rising sharply in later years.

    The United States is pushing incentives instead of mandates.

    A law signed last year by President Joe Biden will provide tax breaks for developing cleaner jet fuel, but one of the credits will expire in just two years. Wilkinson, the American Airlines executive, said that was too short to entice sustainable fuel producers and that the credit should be extended by 10 years or longer.

    The International Air Transport Association, an airline trade group, estimates that SAF could contribute 65% of the emissions reductions needed for the industry to hit its 2050 net-zero goal.

    But very few flights are powered by SAF because of the limited supply and infrastructure.

    Just before the Paris Air Show opened, President Emmanuel Macron announced that France would contribute 200 million euros ($218 million) toward a 1 billion euro ($1.1 billion) plant to make SAF.

    Many airlines have touted investments in SAF producers such as World Energy, which has a plant in Paramount, California, and Finland’s Neste.

    United Airlines plans to triple its use of SAF this year, to 10 million gallons — but it burned 3.6 billion gallons of fuel last year.

    Some see sustainable fuel as a bridge to cleaner technologies, including larger electric planes or aircraft powered by hydrogen. But packing enough power to run a large electric plane would require a fantastic leap in battery technology.

    Hydrogen must be chilled and stored somewhere — it couldn’t be carried in the wings of today’s planes, as jet fuel is.

    “Hydrogen sounds like a good idea. The problem is the more you look into the details, the more you realize it’s an engineering challenge but also an economics challenge,” Richard Aboulafia of AeroDynamic Advisory, an aerospace consultancy, said at the Paris Air Show. “It’s within the realm of possibility, (but) not for the next few decades.”

    ___

    This story has been corrected to note that Wagner is at Columbia University, not New York University.

    Koenig reported from Dallas. AP journalists Jade Le Deley and Tristan Werkmeister in Le Bourget, France, and Kelvin Chan in Toronto contributed.

    [ad_2]

    Source link

  • Justice Department wins lawsuit to undo JetBlue, American Airlines partnership in the Northeast

    Justice Department wins lawsuit to undo JetBlue, American Airlines partnership in the Northeast

    [ad_1]

    An American Airlines plane takes off near a parked JetBlue plane at the Fort Lauderdale-Hollywood International Airport on July 16, 2020 in Fort Lauderdale, Florida.

    Joe Raedle | Getty Images

    A federal judge Friday ordered American Airlines and JetBlue Airways to end their partnership in the Northeast, a win for the Justice Department after it sued to undo the alliance arguing it was anti-competitive.

    The lawsuit, filed in September 2021, alleged that the airlines’ alliance was effectively a merger that would hurt consumers by driving up fares. The trial began a year later in Boston and wrapped up in December.

    Both airlines expressed disappointment with the decision and said they were considering next steps.

    “It makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arms-length rivals regularly challenging each other in the marketplace of competition,” U.S. District Judge Leo Sorokin said in his ruling.

    Fort Worth, Texas-based American Airlines and New York-based JetBlue Airways argued they needed the so-called Northeast Alliance to better compete with other large carriers Delta Air Lines and United Airlines in congested airports in the region.

    “Whatever the benefits to American and JetBlue of becoming more powerful — in the northeast generally or in their shared rivalry with Delta — such benefits arise from a naked agreement not to compete with one another,” Sorokin wrote. “Such a pact is just the sort of ‘unreasonable restraint on trade’ the Sherman Act was designed to prevent.”

    He ordered the airlines to end the partnership 30 days after the ruling. The carriers are likely to challenge the decision. A JetBlue spokeswoman said the carrier is studying the decision and evaluating next steps. 

    “We are disappointed in the decision,” the spokesperson said. “We made it clear at trial that the Northeast Alliance has been a huge win for customers. Through the NEA, JetBlue has been able to significantly grow in constrained northeast airports, bringing the airline’s low fares and great service to more routes than would have been possible otherwise.”

    “The Court’s legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance,” an American Airlines spokesman said in a statement. “There was no evidence in the record of any consumer harm from the partnership, and there is no legal basis for inferring harm simply from the fact of collaboration.”

    Undoing the partnership would be difficult, especially during the peak summer travel season, which airlines have already sold tickets for.

    JetBlue and American are not allowed to coordinate fares under the partnership, which was approved in the final days of the Trump administration in 2021 and has since expanded.

    JetBlue had previously warned in a securities filing a ruling against the NEA “could have an adverse impact on our business, financial condition, and results of operations.

    “Additionally, we are incurring costs associated with implementing operational and marketing elements of the NEA, which would not be recoverable if we were required to unwind all or a portion of the NEA,” the company said.

    The Justice Department didn’t immediately respond to a request for comment.

    The department separately in March filed an antitrust lawsuit to block JetBlue’s proposed acquisition of budget carrier Spirit Airlines, arguing the deal would drive up fares, “harming cost-conscious fliers most acutely.”

    That combination faces a high hurdle for approval by the Biden administration, which has vowed to take a hard line against what it views as anti-competitive deals.

    [ad_2]

    Source link

  • Treasury yields little changed as focus remains on economic outlook, earnings

    Treasury yields little changed as focus remains on economic outlook, earnings

    [ad_1]

    John Zich | Bloomberg | Getty Images

    U.S. Treasury yields were little changed on Tuesday, as investors continued to assess the outlook for the U.S. economy and digested the latest round of corporate earnings.

    As of around 2:20 a.m. ET, the yield on the benchmark 10-year Treasury note was fractionally higher at 3.5946% while the yield on the 30-year Treasury bond also nudged marginally upwards to 3.8080%. Yields move inversely to prices.

    Corporate earnings season dominates this week’s agenda, with giants Johnson & JohnsonBank of America and Goldman Sachs all set to report before the opening bell on Wall Street on Tuesday.

    On the data front, traders will have an eye on the March housing starts and building permits figures due at 8:30 a.m. ET. Housing starts for the month are expected to have fallen by 3.4% to 1.40 million units, according to Dow Jones consensus estimates, while building permits are projected to drop by 4.9% to 1.45 million units.

    Markets are closely following economic data for a read on where the Federal Reserve might take interest rates at its next meeting in early May. More than 84% of traders are calling a 25 basis point hike at the next policy meeting, according to CME Group’s FedWatch tool.

    An auction will be held Tuesday for $34 billion of 52-week Treasury bills.

    [ad_2]

    Source link

  • Delta stock surges after airline swings to profit, beats revenue forecasts and provides upbeat outlook

    Delta stock surges after airline swings to profit, beats revenue forecasts and provides upbeat outlook

    [ad_1]

    Shares of Delta Air Lines Inc. surged Thursday, after the air carrier swung to a first-quarter profit as revenue rose above expectations, and said it was “confident” in its full-year projections given a “strong” outlook for the current quarter.

    The company reported a net loss that narrowed to $363 million, or 57 cents a share, from $940 million, or $1.48 a share, in the same period a year ago.

    But…

    [ad_2]

    Source link

  • Delta Air Lines posts quarterly loss but forecasts profit as peak travel season approaches

    Delta Air Lines posts quarterly loss but forecasts profit as peak travel season approaches

    [ad_1]

    Airbus A330 Neo widebody aircraft meant for Delta airlines being tested in Toulouse, France.

    Nurphoto | Nurphoto | Getty Images

    Delta Air Lines posted a wider loss than it previously estimated for the first three months of the year but forecast revenue growth and profits for the second quarter that were ahead of analysts’ estimates, signaling strong travel demand despite weakness in other sectors.

    The Atlanta-based carrier said it expects sales in the current quarter to increase by 15% to 17% over last year, with adjusted operating margins of as much as 16% and adjusted earnings per share of between $2 to $2.25. Analysts polled by Refinitiv had anticipated second-quarter revenue growth of 14.7% and earnings per share of $1.66. The airline projected “record advance bookings for the summer.”

    Delta said it plans to grow capacity 17% in the second quarter from a year earlier.

    But for the first quarter, adjusted revenue and adjusted earnings came in below analyst estimates. Unit costs, excluding fuel were up 4.7% on the year, partly driven by winter storms that grounded flights.

    Here’s how Delta performed in the period, ended March 31, compared with Wall Street expectations based on Refinitiv consensus estimates:

    • Adjusted earnings per share: 25 cents vs. 30 cents expected.
    • Adjusted revenue: $11.84 billion vs. $11.99 billion expected.

    U.S. carriers generally make the bulk of their revenue during the busy spring and summer travel season and Delta’s outlook points to more strength in travel demand, and strong pricing power.

    The airline said sales from premium cabins like first class is outpacing revenue from standard coach.

    Delta shares were up more than 3% in premarket trading.

    In the first quarter, Delta posted a net loss of $363 million, or 57 cents per share, citing, in part, a new, four-year pilot contract that includes 34% raises. That’s still improvement from the year-ago period, when travel was on the rebound and the company reported a net loss of $940 million, or $1.48 per share.

    Adjusting for one-time items, the company reported net income of $163 million, or 25 cents per share, up from a loss of $748 million, or $1.23 per share, during the first quarter of 2022.

    Delta executives will hold a call with analysts to discuss results at 10 a.m.

    [ad_2]

    Source link

  • Earnings playbook: Your guide to trading the start of a big reporting season this week

    Earnings playbook: Your guide to trading the start of a big reporting season this week

    [ad_1]

    [ad_2]

    Source link

  • American Airlines stock dives after profit outlook raised, but disappoints Wall Street

    American Airlines stock dives after profit outlook raised, but disappoints Wall Street

    [ad_1]

    Shares of American Airlines Group Inc. were rocked Wednesday, after the air carrier raised its profit outlook, but not by enough to match Wall Street expectations.

    The company said before the open that it expects first-quarter adjusted earnings per share of 1 cent to 5 cents, compared with a per-share loss of $2.32 a year ago. While that’s better than previous guidance for an “approximately breakeven” quarter, the average EPS estimate of analysts surveyed by FactSet was 5 cents.

    The…

    [ad_2]

    Source link

  • Wall Street says bad news is no longer good news. Here’s why | CNN Business

    Wall Street says bad news is no longer good news. Here’s why | CNN Business

    [ad_1]

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    There’s been a seismic shift in investor perspective: Bad news is no longer good news.

    For the past year, Wall Street has hoped for cool monthly economic data that would encourage the Federal Reserve to halt its aggressive pace of interest rate hikes to tame inflation.

    But at its March meeting — just days after a series of bank failures raised concerns about the economy’s stability — the central bank signaled that it plans to pause raising rates sometime this year. With an end to interest rate hikes in sight, investors have stopped attempting to guess the Fed’s next move and have turned instead to the health of the economy.

    This means that, whereas softening economic data used to signal good news — that the Fed could potentially stop raising rates — now, cooling economic prints simply suggest the economy is weakening. That makes investors worried that the slowing economy could fall into a recession.

    What happened last week? Markets teetered after a slew of economic reports signaled that the red-hot labor market is finally cooling (more on that later), flashing warning signals across Wall Street.

    Investors accordingly shed high-growth, large-cap stocks that have surged recently to rush into defensive stocks in industries like health care and consumer staples.

    While tech stocks recovered somewhat by the end of the short trading week — markets were closed in observance of Good Friday — the Nasdaq Composite still slid 1.1%. The broad-based S&P 500 fell 0.1% and the blue-chip Dow Jones Industrial Average gained 0.6%.

    What does this mean for markets? Now that Wall Street is in “bad news is bad news and good news is good news” mode, it will be looking for signs that the economy remains resilient.

    What hasn’t changed is that investors still want to see cooling inflation data. While the central bank has signaled that it will pause hiking rates this year, its actions so far have only somewhat stabilized prices. The Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, rose 5% for the 12 months ended in February — far above its 2% inflation target.

    Moreover, Wall Street might be overly optimistic about how the Fed will act going forward: Some investors expect the central bank to cut rates several times this year, even though the central bank indicated last month that it does not intend to lower rates in 2023.

    It’s unclear how markets will react if the Fed doesn’t cut rates this year. But there likely won’t be a notable rally unless the central bank pivots or at least indicates that it plans to soon, said George Cipolloni, portfolio manager at Penn Mutual Asset Management.

    Commentary that’s hawkish or reveals inflation worries could hurt markets, he adds. “It keeps that boiling point and that temperature a little high.”

    What comes next? The Fed holds its next meeting in early May. Before then, it will have to parse through several economic reports to get a sense of how the economy is doing, and what it will be able to handle. Markets currently expect the Fed to raise interest rates by a quarter point, according to the CME FedWatch tool.

    The labor market appears to be cooling somewhat, at least according to the slew of data released last week. But it’s still far too early to assume that the job market has lost its strength.

    President Joe Biden said in a statement Friday that the March data is “a good jobs report for hard-working Americans.”

    The March jobs report revealed that US employers added a lower-than-expected 236,000 jobs last month. Economists expected a net gain of 239,000 jobs for the month, according to Refinitiv.

    The unemployment rate dropped to 3.5%, according to the Bureau of Labor Statistics. That’s below expectations of holding steady at 3.6%.

    The jobs report was also the first one in 12 months that came in below expectations.

    But that doesn’t mean that the job market isn’t strong anymore.

    “The labor market is showing signs of cooling off, but it remains very tight,” Bank of America researchers wrote in a note Friday.

    Still, other data released last week help make the case that cracks are finally starting to form in the labor market. The Job Openings and Labor Turnover Survey for February revealed last week that the number of available jobs in the United States tumbled to its lowest level since May 2021. ADP’s private-sector payroll report fell far short of expectations.

    What this means for the Fed is that the cooldown in the latest jobs report likely won’t be enough for the central bank to pause rates at its next meeting.

    “The Fed will more than likely raise rates in May as the labor market continues to defy the cumulative effects of the rate hikes that began over a year ago,” said Quincy Krosby, chief global strategist at LPL Financial.

    Monday: Wholesale inventories.

    Tuesday: NFIB Small Business Optimism Index. Earnings from CarMax (KMX), Albertsons (ACI) and First Republic Bank (FRC).

    Wednesday: Consumer Price Index and FOMC meeting minutes.

    Thursday: OPEC monthly report and Producer Price Index. Earnings from Delta Air Lines (DAL).

    Friday: Retail sales and University of Michigan consumer sentiment survey. Earnings from JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C) and PNC Financial Services (PNC).

    [ad_2]

    Source link

  • Key inflation data and earnings reports loom as labor market signals a slowing U.S. economy

    Key inflation data and earnings reports loom as labor market signals a slowing U.S. economy

    [ad_1]

    [ad_2]

    Source link

  • Delta passenger opens door, deploys emergency exit slide on plane at Los Angeles airport | CNN

    Delta passenger opens door, deploys emergency exit slide on plane at Los Angeles airport | CNN

    [ad_1]



    CNN
     — 

    A Delta Air Lines passenger was arrested after opening one of the plane’s doors and sliding down an emergency exit slide as the plane prepared for takeoff from Los Angeles to Seattle Saturday, officials said.

    The incident on Delta Flight 1714 took place around 10:40 a.m. local time, while the plane was stationary at the Los Angeles International Airport, according to the Federal Aviation Administration.

    The plane, a Boeing 737, was on the runway holding to taxi for takeoff when the passenger exited the aircraft after activating the emergency exit slide, the FAA said.

    The passenger was initially detained by Delta staff before being arrested by local law enforcement, the statement read.

    “Customers are being reaccommodated on a new aircraft and we apologize for the inconvenience and delay in their travel plans,” the FAA said.

    The FAA is investigating the incident. CNN has reached out to Delta and Los Angeles airport police for additional information.

    [ad_2]

    Source link

  • Family of student who died during 2021 hazing incident sues Delta Chi fraternity for $28 million | CNN

    Family of student who died during 2021 hazing incident sues Delta Chi fraternity for $28 million | CNN

    [ad_1]



    CNN
     — 

    The family of a 19-year-old Virginia college student who died during a hazing incident in 2021 is suing the Delta Chi fraternity and several others for $28 million, according to a lawsuit filed Monday.

    Adam Oakes, a freshman at Virginia Commonwealth University, had been offered a bid to join the Delta Chi fraternity and had gone to a party to begin the initiation process on February 26.

    Oakes died during a “Big Brother ritual” where he was coerced to drink an entire bottle of Jack Daniel’s whiskey, leaving him “dangerously intoxicated,” according to the wrongful death lawsuit filed in Richmond Circuit Court.

    Other fraternity members took Oakes and the other pledges outside to throw up on the lawn, but Oakes did not throw up, according to the lawsuit. They then took him “back into the fraternity house and abandoned him on the floor,” the lawsuit states.

    The next morning, Oakes was pronounced dead at the scene, with a blood-alcohol content level of .419%, according to the suit.

    In the wrongful death lawsuit, obtained by CNN affiliate WTVR, 13 VCU Delta Chi chapter members are listed as those being involved in the hazing procedure.

    Eleven of them were charged in connection with the death of Oakes by the Richmond Police, CNN previously reported. All 11 were charged with unlawful hazing of a student and six were additionally charged with purchasing and providing alcohol to a minor in September 2021, according to Richmond Police.

    Of those 11, four have pleaded guilty, three have not entered a plea, two had their cases dropped, one pleaded no contest and one entered a different plea, according to court records.

    The Richmond Commonwealth Attorney’s Office told CNN that since several of the defendants charged in the case have pending court dates, the “rules of ethics and professional responsibility prevent” them from commenting on the case.

    The Delta Chi fraternity house at Virginia Commonwealth University in Richmond, Virginia.

    According to the suit, the VCU Chapter of Delta Chi operates as an unincorporated association, but the incorporated arm has “the power to revoke the charter of the chapter, order that its activities cease and, in effect, deem the existence of the unincorporated association as being terminated.”

    “Unknown to Adam and his family, and known and never disclosed by Delta Chi or the VCU Chapter to Adam, is that the VCU Chapter has a long history of engaging in high-risk misconduct at VCU that resulted in VCU revoking its recognition in August 2018, and prohibiting its presence or activity at VCU, for a period of four years ‘due to serious health and safety concerns’ involving the VCU Chapter and its activities,” the lawsuit states.

    Despite this, the chapter’s legal counsel worked to reinstate the organization on campus, the lawsuit added.

    In statement shared with CNN Wednesday, Delta Chi’s International Headquarters for the Fraternity said, “Adam’s death and other tragedies in recent years make clear that fraternity members, organizations, and society continue to have more work to do.”

    “Hazing, the misuse of alcohol, and putting the health and safety of any person at risk has no place in Delta Chi,” the statement said. “The Fraternity continues to fund hazing prevention research, support meaningful anti-hazing legislation and provide member safety and hazing prevention education to Delta Chi chapters.”

    CNN has reached out to VCU and the Oakes’ family attorney for comment.

    [ad_2]

    Source link

  • Pro Picks: Watch all of Friday’s big stock calls on CNBC

    Pro Picks: Watch all of Friday’s big stock calls on CNBC

    [ad_1]

    [ad_2]

    Source link

  • Delta Air Lines sales, profits top estimates in strong finish to 2022

    Delta Air Lines sales, profits top estimates in strong finish to 2022

    [ad_1]

    Delta Air Lines Airbus A330neo or A330-900 aircraft with neo engine option of the European plane manufacturer, as seen departing from Amsterdam Schiphol AMS EHAM International airport.

    Nicolas Economou | NurPhoto | Getty Images

    Delta Air Lines‘ fourth-quarter profit topped analysts’ expectations, and its revenue grew from three years ago, the latest signs of consumers’ willingness to shell out for air travel.

    The airline generated $13.44 billion in the final three months of 2022, topping the $11.44 billion in sales it brought in three years earlier. High costs ate away at some of Delta’s profits, but its net income still totaled $828 million, down from $1.1 billion in the same three-month period of 2019.

    Delta CEO Ed Bastian said in a news release the carrier “rose to the challenges of 2022, delivering industry-leading operational reliability and financial performance.”

    Here’s how Delta performed in the fourth quarter, compared with Wall Street expectations based on Refinitiv consensus estimates:

    • Adjusted earnings per share: $1.48 vs. $1.33 expected.
    • Adjusted revenue: $12.29 billion, excluding refinery sales, vs. $12.23 billion expected.

    Airlines have largely been upbeat about the fourth quarter, despite concerns about a recession and weakness from some retailers and other businesses. On Thursday, American Airlines hiked its revenue and profit forecast for the period, sparking a broad rally in the sector.

    That was even after severe winter weather disrupted flights coast to coast over the year-end holidays, prompting mass cancellations. Southwest Airlines in particular struggled to recover and said its meltdown could cost it more than $800 million. American and Southwest report on Jan. 26.

    Delta expects to earn 15 cents to 40 cents a share on an adjusted basis in the first quarter of 2023 and for its sales to increase 14% to 17% over the same quarter of 2019. It forecast full-year 2023 earnings of $5 to $6 a share.

    Delta’s shares were down more than 4% in premarket trading.

    This is breaking news. Check back for updates.

    [ad_2]

    Source link

  • FAA orders airlines to pause departures after system outage

    FAA orders airlines to pause departures after system outage

    [ad_1]

    Shannon Stapleton | Reuters

    Hundreds of U.S. flights were delayed Wednesday morning after the Federal Aviation Administration suffered an outage of the system that sends messages to pilots.

    The FAA said on its website that domestic departures would be paused until 9:30 a.m. ET. The agency said it was working to restore the Notice to Air Missions System.

    The White House said Transportation Secretary Pete Buttigieg had briefed President Joe Biden on the outage. “There is no evidence of a cyberattack at this point, but the President directed DOT to conduct a full investigation into the causes,” White House press secretary Karine Jean-Pierre said in a tweet.

    More than 1,200 U.S. flights were delayed on Wednesday by 7:25 a.m. ET, according to FlightAware.

    “This technology issue is causing significant operational delays across the National Airspace System,” said Airlines for America, an industry group that represents major U.S. carriers, including Delta, American, United, Southwest and others.

    Austin-Bergstrom International Airport in Texas said in a tweet that arriving and departing passengers should expect delays throughout the day.

    This is breaking news. Please check back for updates.

    [ad_2]

    Source link

  • Airline stocks fell premarket after FAA says all U.S. flights grounded over computer outage

    Airline stocks fell premarket after FAA says all U.S. flights grounded over computer outage

    [ad_1]

    Airlines stocks fell across the board in premarket trade Wednesday, after the Federal Aviation Administration said a computer outage had led to all U.S. fights being grounded. The agency said on its website that its “Notice to Air Missions” system has been activated “to address the equipment outage issues for the U.S. NOTAM system.” A NOTAM is a notice for workers engaged in flight operations. There was no indication of when service might be restored. Southwest Airlines Co.
    LUV,
    +1.68%

    led the decliners, falling 2.5%. American Airlines Group Inc.
    AAL,
    +3.97%

    was down 1.6%, United Airlines Holdings Inc.
    UAL,
    +5.54%

    was down 0.8%, JetBlue Airways Corp.
    JBLU,
    +4.92%

    was down 0.7% and Delta Air Lines Inc.
    DAL,
    +3.59%

    was down 0.7%. The U.S. Global Jets ETF
    JETS,
    +2.40%

    was down 0.7% and has fallen 14% in the last 12 months, while the S&P 500
    SPX,
    +0.70%

    has fallen 17%.

    [ad_2]

    Source link