If you meet the criteria to participate in the Premier Status Match offer, your account will be upgraded to Premier Silver, Premier Gold or Premier Platinum status for 120 days based on the level you hold in your current frequent flyer program. 2024 Premier Status Match requests are available for offer periods that begin no later than September 3, 2024, and end by December 31, 2024.
You may still sign up for a 2024 Premier Status Match between September 4 and December 20, 2024, however you must elect to start your 120-day challenge period no later than September 3, 2024. Qualifying flights taken after September 3, but prior to registration will be considered.
The Federal Aviation Administration said that they will temporarily ground and require “immediate inspections of certain Boeing 737 Max 9 planes” after the door on an Alaska Airlines plane blew out mid-flight on Friday night, forcing an emergency landing in Portland, Oregon.
In a news conference in Portland Saturday night, NTSB Chair Jennifer Homendy called the event an “accident, not an incident.”
Homendy, who would not speculate on a cause, said that the plane was forced to return to Portland International Airport just minutes after takeoff “after a mid-cabin door plug…departed the airplane, resulting in rapid decompression.”
A passenger’s image capturing the blown-out window.
STRAWBERRVY | INSTAGRAM
She said that no one happened to be seated in the two adjoining seats, 26A and 26B, to the blown-out door.
“We are very, very fortunate here that this didn’t end up in something more tragic,” Homendy told reporters.
Homendy said there were an undisclosed number of “minor injuries,” but no severe injuries. The airline also reported that several passengers suffered injuries that required “medical attention,” but all have since been “medically cleared.”
“With that said, I imagine this was a pretty terrifying event,” she said. “We don’t often talk about psychological injury, but I’m sure that occurred here.”
Homendy also disclosed the head rests for seats 26A and 25A were lost during the blowout, as was part of the seatback for 26A.
The blowout on Alaska Airlines Flight No. 1282 forced the plane, carrying 174 passengers and six crew members, to make an emergency landing just minutes into its trip from Portland to Ontario, California.
“All of a sudden I heard, like, a big bang. I didn’t know exactly what was going on,” one woman aboard the flight told CBS News. “I look up and the oxygen masks were hanging from the ceiling and then I look to my left and there’s this huge chunk, part of the airplane just missing. The wind is just extremely loud, there’s wind blowing everywhere.”
The door blew off at an altitude of about 16,000 feet, Homendy said, noting that it was fortunate that the plane had yet not reached a cruising altitude of between 30,000 and 35,000 feet.
“Think about what happens when you’re in cruise,” Homendy said. Everybody’s up and walking, folks don’t have seatbelts on. They’re going to restrooms. The flight attendants are providing service to passengers. We could have ended up with something so much more tragic.”
The blown-out door still has not been located by authorities. Based on radar, it is believed to be somewhere in the Cedar Mills suburb in the western Portland metropolitan area, Homendy disclosed, off Barnes Road and Highway 217. Anyone who finds it is asked to contact the NTSB. The FBI is assisting in that search.
“Each aircraft will be returned to service only after completion of full maintenance and safety inspections,” the airline said.
Homendy’s news conference came just after the FAA released an “Emergency Airworthiness Directive” Saturday evening requiring safety inspections for 171 Boeing 737 Max 9 aircraft in operation worldwide. Such directives are issued “when an unsafe condition exists that requires immediate action by an owner/operator,” according to the agency.
Safety inspections for each plane will take between four and eight hours. There have been about 218 such planes delivered around the world, the FAA said, but not all such aircraft were in operation at the time the EAD was issued.
“Safety will continue to drive our decision-making as we assist the NTSB’s investigation into Alaska Airlines Flight 1282,” FAA Administrator Mike Whitaker said.
Transportation officials applauded the FAA’s quick decision.
Transportation Secretary Pete Buttigieg said Saturday, “Safety will always be the top priority for our Department and for FAA. Administrator Whitaker has acted to order these aircraft grounded pending the inspections necessary to ensure that they are safe to operate.”
The Flight Attendants Union said, “This is a critical move to ensure the safety of all crew and passengers, as well as confidence in aviation safety. Lives must come first always.”
Alaska Airlines disclosed in a news release Saturday that the plane in question had been recently delivered from Boeing on Oct. 31.
“If this had happened at higher altitude, the odds are it could have been a whole lot worse,” CBS News travel editor Peter Greenberg said. “…This still seems like an anomaly, because if its actually a design fault with the entire fleet, you have a very serious problem.”
Alaska Airlines said that the portion of the plane which tore off is known as a “plug door — a specific panel of the fuselage near the rear of the aircraft.”
The airline said Friday that it would ground all 65 of its Boeing Max 9 aircraft. On Saturday morning, the airline said that inspections on more than a quarter of the fleet had been completed with “no concerning findings,” and that those planes would be returned to service.
However, after the airline cleared the 18 aircraft, the FAA then issued its order, and all 18 aircraft were again grounded.
Alaska Air said that it had canceled 160 flights as of Saturday afternoon, impacting about 23,000 fliers. The airline noted that guests whose flights had been canceled by the groundings could rebook their travel or request a refund.
“We deeply apologize to our guests whose flights have been impacted,” the airline said.
Boeing said in a statement to CBS News that “Safety is our top priority and we deeply regret the impact this event has had on our customers and their passengers. We agree with and fully support the FAA’s decision to require immediate inspections of 737-9 airplanes with the same configuration as the affected airplane. In addition, a Boeing technical team is supporting the NTSB’s investigation into last night’s event. We will remain in close contact with our regulator and customers.”
In the U.S., only Alaska Airlines and United Airlines use the Boeing 737 Max 9 aircraft. United has about 80 of the planes, but it’s not clear how many were operating at the time of the Alaska Airlines incident. United expects about 60 flight cancelations Saturday due to the grounding.
United said the airline is working directly with impacted customers to find them alternative travel options.
Kerry Breen is a reporter and news editor at CBSNews.com. A graduate of New York University’s Arthur L. Carter School of Journalism, she previously worked at NBC News’ TODAY Digital. She covers current events, breaking news and issues including substance use.
United Airlines has announced a one week promotion that kicks off on January 8, 2024. The airline promises surprise flight deals every day, all week long.
Just keep an eye on your United app starting January 8, 2024. Each day from Monday through Friday (January 8-12), United will offer a 24-hour MileagePlus® award sale to a different international destination.
Just check back every day next week to see what surprise adventure could be in store for you in 2024.
Following recent scares involving pilots, and as a record number of travelers take to the skies, United Airlines CEO Scott Kirby told “CBS Mornings” that the company works to make sure pilots’ mental health is “in a good place.”
Kirby said United pilots undergo training every nine months, including simulator sessions designed to prepare them for scenarios that he said will hopefully never happen. The training, combined with the airline’s policies, aim to ensure pilots are mentally and physically fit to handle the stresses of flying.
“We have all kinds of policies in place where people can, whether it’s a mental health or substance abuse, anything that’s going on in their lives, illness, even fatigue, that they can call off and not come to work without penalties, without repercussions, and they have really good protections to ensure that that doesn’t happen,” said Kirby.
In response, the Federal Aviation Administration recently announced it is creating a new committee that will examine pilot mental health and some challenges pilots face in reporting mental health issues to the agency.
Meanwhile, the Transportation Security Administration recorded its busiest day ever over the Thanksgiving holiday weekend, with nearly 3 million passengers flying on Sunday. United Airlines reported welcoming over 4-and-a-half million travelers during the holiday week, a 9% increase from last year.
Earlier this month, a U.S. Senate panel announced it would be investigating the rise in seat and baggage fees for five major airlines, including United.
Kirby said that the airline has worked hard to reduce fees and has gotten rid of change fees. While baggage fees in the airline industry are up nearly $2 billion in the last four years, Kirby said United has earned more from baggage fees because of an increase in volume, not an increase in its fees.
“There are some other airlines that have, you know, have added a lot of fees, some of which I think are egregious,” he said.
A recent video of American Airlines crew members mishandling a passenger’s wheelchair went viral on social media, sparking some people with disabilities to speak out about their negative travel experiences.
The video, which has been viewed 3 million times on TikTok, shows a baggage handler sending a wheelchair crashing down and off of a ramp. Wheelchair users say it’s not uncommon for them to be mishandled or broken during air travel.
“I’ve had so many terrible experiences”
Cory Lee, an avid traveler who uses a wheelchair and writes a blog, Curb Free with Corey Lee that highlights accessible sites around the globe, said flying is easily the worst part of travel. He estimates that his customized, powered wheelchair, which costs $40,000, is damaged about half the times he flies.
“It’s the part that I dread the most out of anything,” Lee told CBS MoneyWatch. “I’ve had so many terrible experiences on planes and in airports being transferred out of my wheelchair.”
In 2022, the 10 largest U.S. airlines lost, damaged or destroyed more than 11,000 wheelchairs and scooters, according to the Department of Transportation. That represents 1.5% of all wheelchairs and scooters boarded onto planes.
American Airlines said it’s investigating the incident captured on video.
“This visual is deeply concerning, and we are gathering more details so that we can address them with our team,” the carrier said in a statement to CBS MoneyWatch. The airline added that it routinely trains team members on how to properly handle wheelchairs and is committed to improving the experience of people who fly with them.
Lee said his wheelchair has been damaged countless times, often necessitating costly repairs in foreign destinations. After landing in Barcelona, Spain, while on a trip last summer, for example, he realized that one of his chair’s wheels had been broken en route. That required him to find a repair shop in Spain and spend $300 to reattach the wheel. He filed a claim with the airline and was later reimbursed.
Airline personnel have also dropped him in helping him in and out of his chair, Lee noted.
Cory Lee, an avid traveler, said airlines often mishandle his customized $40,000 wheelchair, requiring repairs in foreign locales.
Courtesy of Cory Lee
Indeed, for disabled passengers, the risks go beyond damage to their wheelchairs. In August, United Airlines agreed to pay $30 million to the family of a quadriplegic man who went into a coma following an incident as he was being wheeled off a plane. The family of Nathaniel Foster Jr. alleged in a lawsuit that United “failed to abide by the standard of care owed to disabled passengers” after an agent “aggressively” pushed his wheelchair while helping him deplane in 2019.
A push to change planes
Under Transportation Security Administration regulations, wheelchairs and other mobility devices are not allowed in aircraft cabins. That means people who use wheelchairs must be transferred from their chair to an airplane seat.
Advocates for people with disabilities want airlines to install wheelchair-friendly seats in planes to ease some of the frustrations of travel. All Wheels Up, an organization advocating for accessible planes, is pushing for solutions that would allow people who use wheelchairs to independently maneuver themselves onto planes, such as by installing a wheelchair spot on planes.
A bill for airline passengers with disabilities, The Mobility Aids On Board Improve Lives and Empower All (MOBILE) Act, was introduced in June to the U.S. House of Representatives and the Senate. It would task the Secretary of Transportation with researching alternatives to allow wheelchair users to fly seated in their wheelchairs, among other things. It would also require the Department of Transportation to track and publicly report detailed information on any damage airlines cause to mobility devices.
Lee said his “ultimate dream” is to be able to stay in his wheelchair when he flies.
“Other forms of public transportation, like trains, the subway and busses, have a wheelchair spot that I am able to use,” he told CBS MoneyWatch. “Air travel is the last mode of transportation I cannot stay in my wheelchair for. It hasn’t improved at all for wheelchair users, it has been the same for decades.”
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News streaming to discuss her reporting.
A wild idea recently circulated about the future of aviation: If passengers lose weight via obesity drugs, airlines could potentially cut down on fuel costs. In September, analysts at Jefferies Bank estimated that in the “slimmer society” obesity drugs will create, United Airlines could save up to $80 million in jet fuel annually.
In the past year, as more Americans have learned about semaglutide, which is sold for diabetes under the brand name Ozempic and for obesity under the name Wegovy, hype has become completely divorced from reality. For all the grand predictions, just a fraction of Americans who qualify for obesity drugs are on them. With a list price of roughly $1,350 a month, Wegovy is far too expensive, under-covered by insurance, and in limited supply to be a routine part of health care.
But that possibility is beginning to seem very real. The results of a highly anticipated study published on Saturday indicate that Wegovy can have profound effects on heart health, which potentially opens up the drug to even more patients. A few days earlier, the FDA approved Zepbound, an obesity drug that is a bit cheaper and appears more potent than Wegovy. If there was any doubt before, now it is undeniable: Obesity drugs “are here to stay,” Kyla Lara-Breitinger, a cardiologist at the Mayo Clinic, told me. “There’s only going to be more and more of them.” They are now poised to become deeply entrenched in American health care, perhaps eventually even joining the ranks of commonly used drugs such as statins and metformin.
Considering that obesity is linked to all sorts of major heart ailments, it is no big surprise that a weekly shot for weight loss might have some cardiovascular benefits. But because this class of obesity drugs, known as GLP-1 agonists for the hunger hormone they target, is so new, doctors did not know that for sure. Starting in 2018, Novo Nordisk, the company that manufactures semaglutide, began to look for answers in a study of more than 17,600 people with obesity and cardiovascular disease. In this group, results of a trial named SELECT show that Wegovy reduced the risk of major cardiac events—stroke, heart attack, death—by 20 percent. Even compared with studies on common heart medications such as Praluent and Repatha, the Wegovy results are “impressive,” Eugene Yang, a cardiologist and professor of medicine at the University of Washington, told me.
How exactly the drug prevents major cardiac events isn’t fully understood. Some of the effects can likely be chalked up to weight loss itself, which is associated with improvements in metrics that influence heart health, such as blood pressure, Yang said. But mechanisms independent of weight loss may also be at work. In the trial, lower rates of cardiovascular events began showing up before participants lost weight. One explanation is the drug’s impact on inflammation, which is associated with heart disease: C-reactive protein, a rough proxy for inflammation, dropped by nearly 40 percent in study participants.
Regardless of how Wegovy works, Yang said, “it has the potential benefit of being very significant” as a new line of treatment for heart disease, the leading cause of death nationwide. Novo Nordisk has already applied for expanded FDA approval and anticipates receiving it within six months. Approval would also show that Wegovy has a medical benefit beyond weight loss, pressuring insurers to cover it. Right now, for instance, Medicare does not, in part because obesity has long been viewed as a cosmetic issue, not a medical one. Even with private coverage, the drug is still frequently out of reach. The SELECT trial makes it “unequivocally clear” that obesity is a health condition that can be treated with drugs, Ted Kyle, an obesity-policy expert, told me. Still, the study leaves room for pushback: The absolute risk reduction of cardiovascular events was 1.5 percent, which is, by some reckonings, quite small. A higher risk reduction would have “put more pressure” on insurers and manufacturers to make the drugs more affordable for Americans, Lara-Breitinger said.
Still, the findings are robust enough that it seems likely that the heart benefits of obesity drugs will lead more Americans to take them—if not immediately, then eventually. The approval of a new drug could do the same. Tirzepatide, which Eli Lilly has sold as a diabetes drug under the name Mounjaro, will be marketed as Zepbound for obesity—and it is coming for Wegovy’s throne. In one study, people on tirzepatide lost an average of 18 percent of their body weight; for comparison, in another study patients on Wegovy lost an average of 15 percent. At a little over $1,000 a month, Zepbound is not cheap, but its list price is hundreds of dollars lower than that of Wegovy. (The manufacturers of both drugs have said that most insured patients pay far less than that.)
Zepbound’s approval is just the beginning. Unlike semaglutide, which targets only one hormone, GLP-1, to exert its effects on appetite and fullness, tirzepatide targets two. Other drugs that target two or even three hormones are in the works, as are versions that come in a more appealing pill format rather than as an injection. Generic versions of these drugs, likely beginning with liraglutide, a predecessor to semaglutide sold as Saxenda, could become available soon, Yang said. This competition will help bring down costs, but it will go only so far. Drug pricing is “a little bit screwy,” Kyle said, complicated by the wide gap between the list price and the net price created by manufactures, insurers, and intermediaries between them.
Each new competitor and new study is a step toward a future in which a substantial proportion of Americans with obesity are routinely prescribed these drugs. In a single week, obesity drugs leapt a new era—one in which they are about to become significantly more mainstream. No doubt that future is a bright one for millions of people who might benefit from treatment. Still, many questions about the drugs remain unanswered, such as their long-term safety and endless supply shortages.
But the potential for obesity drugs to truly change America has never felt closer—with all of the dizzying questions this creates about what “a slimming society” might mean for exercise, the food industry, and apparently even airline jet fuel.
United Airlines has launched a new two-day promotion for award fares to Maui, Hawaii.
Fly to Maui for as low as 30,000 miles roundtrip (plus taxes and fees starting at $11.20) when you book by November 8 and travel November 12 – December 16, with no blackout dates.
This offer is targeted to United MileagePlus Cardmembers and Premier members only. The promotion is valid for travel to Maui, Hawaii (OGG) from the contiguous 48 United States. You can see the promotion page here.
Additionally, for each roundtrip booked, United will give $10 to World Central Kitchen, a nonprofit organization providing meals in response to humanitarian, climate, and community crises, including the recent wildfires in Maui.
Offer Terms
Must be a member of United MileagePlus® to participate.
This offer is targeted to United MileagePlus Cardmembers and Premier members only. Primary Cardmember or Premier member must login using MileagePlus number to book award. No limit to the number of award tickets booked. The promotion applies for new award bookings only and not to award tickets previously booked.
Promotion valid for travel to Maui, Hawaii (OGG) from the contiguous 48 United States.
Awards shown are valid for travel Sunday through Saturday. Awards are valid in the Economy (Coach) cabin on United/United Express carriers. Some flights may be operated by the following airlines, doing business as United Express:
Fee of $5.60 per one-way trip that does not include a government defined stopover, US Customs, Immigration and APHIS User Fees of $17.48 for each international arrival in the U.S.; and non-U.S. government ticket taxes, fees and airport charges may add up to $355 per ticket as of January 1, 2023. Such taxes, fees and surcharges must be paid at the time of ticketing and are subject to change. Any valid unused award ticket may be returned to the MileagePlus Service Center, for a service charge, up to one year from the date of issue. For more information on MileagePlus award travel visit united.com/awards.
This is a roundup of news and other interesting pieces that I’ve come across over the last few days. I thought they are worth sharing so I hope you enjoy reading them.
United Launches Winter Service with 50 Additional Daily Nonstops to International Cities
United launched its international winter schedule this year with 50 additional daily flights compared to last winter, and has become the first U.S. carrier to fly direct from the continental U.S. to Manila, Philippines and will be the only carrier to fly between the U.S. and Christchurch, New Zealand, starting this December. United will also be the first U.S. airline to return to Beijing when service from San Francisco resumes on Nov. 9. In total, the airline will fly to more than 110 international destinations and grow its schedule by more than 25% versus last year, the largest winter expansion in its history. ➡️ Read more
Why Banks Are Suddenly Closing Down Customer Accounts
The reasons vary, but the scene that plays out is almost always the same. Bank customers get a letter in the mail saying their institution is closing all of their checking and savings accounts. Their debit and credit cards are shuttered, too. The explanation, if there is one, usually lacks any useful detail. Or maybe the customers don’t see the letter, or never get one at all. Instead, they discover that their accounts no longer work while they’re at the grocery store, rental car counter or A.T.M. When they call their bank, frantic, representatives show concern at first. “Oh, no, so sorry,” they say. “We’ll do whatever we can to fix this.” But then comes the telltale pause and shift in tone. “Per your account agreement, we can close your account for any reason at any time,” the script often goes. ➡️ Read more
Ethiopian Airlines’ Free Transit Hotel Program
Ethiopian Airlines has a large global route network through its Addis Ababa hub, as the airline flies to four continents from there. Given the carrier’s complex network, in some cases, passengers might find themselves with an extended layover in Addis Ababa. The good news is that if your layover is long enough, you may be entitled to a free hotel room, which can make your travel experience much more pleasant. ➡️ Read more
How you can maximize the Frontier GoWild! All-You-Can-Fly Pass
Despite the implications of its gimmicky name, this is not an all-you-can-eat buffet of flights you can just dive into once you pay a one-time fee. ➡️ Read more
Wyndham Adds to Strong Asia Pacific Footprint
Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,100 hotels spanning more than 95 countries, announced the opening of Wyndham Grand Ijin Busan. The 271-room hotel marks the debut of the esteemed Wyndham Grand brand into the beautiful country of South Korea. ➡️ Read more
SAS Secures $1.2 Billion From Consortium Led by Castlelake, Air France
Scandinavian airline SAS secured an investment agreement with a consortium for restructuring aid of 13.2 billion Swedish crowns ($1.21 billion), with a loan from Castlelake replacing its previous debtor-in-possession financing by Apollo Global Management, the carrier said on Saturday. The winning bidder consortium which also includes Air France-KLM, Lind Invest ApS and the Danish state, increased its proposed investment by $25.26 million. ➡️ Read more
Guru’s Wrap-up
Let me know if you enjoyed these articles and comment with any opinions you might have. You can also share any other interesting articles about deals, travel, credit cards and more.
Two United Airlines flight attendants brought a lawsuit against the company last week, claiming they were denied positions on a charter flight for the Los Angeles Dodgers because the MLB players preferred “white, young, thin women who are predominately blond and blue-eyed.” The Dodgers are not named as defendants in the suit.
The flight attendants, Dawn Todd, 50, who is Black, and Darby Quezada, 44, of mixed Mexican, Black, and Jewish descent, alleged that they didn’t have a “certain look,” and claimed the airline denied them roles based on racial and physical biases.
“United fosters an environment of inclusion and does not tolerate discrimination of any kind,” United Airlines said in a statement to Entrepreneur. “We believe this lawsuit is without merit and intend to defend ourselves vigorously.”
In the lawsuit filed with the Los Angeles County Superior Court, the flight attendants claim they were discriminated against after originally beingchosen for theDodgers charter flight program — but then taken off the schedule. Todd and Quezada emphasized their 15 years of combined experience with United and are seeking unspecified damages and a jury trial. The lawsuit claims the treatment they received has resulted in lost income and has negatively impacted their health, causing panic attacks, anxiety, sleep conditions, and a decline in self-esteem.
The lawsuit references a prior case; United Airlines settled an allegation in 2020 regarding the staffing of flights with attendants who were “young, white, female, and predominantly blonde and blue-eyed.” The current lawsuit draws from this settlement, noting a change in 2022 when several white flight attendants were “blatantly selected by United’s management…because of how they looked.”
The lawsuit claims that, unlike Todd and Quezada, these newly added attendants did not have to interview for their positions, whereas the plaintiffs had to undergo “extensive” interviews to secure a position.
The United States economy has achieved something most bears never expected: gross domestic product (GDP) expanded by 4.9% during the past quarter, whereas economists only expected a 4.7% jump. Even in real growth terms, considering inflation, things have improved past any point of concern.
Some analysts ask whether this growth will begin to trickle down into specific industries and consumer behavior, such as domestic travel trends. With a strong dollar, some Americans travel overseas, where budgets can significantly increase.
Regarding consumer discretionary stocks, two domestic names stand out, and analysts believe that the macro growth has a direct path to benefit them. Otherwise, a double-digit upside assigned to both would be unusual for Wall Street. Even in today’s shifting trends, you can have a chance at beating the market this quarter.
A new beginning
Starting with what has grabbed the market’s attention lately, earnings season, you will soon find out why Southwest Airlines (NYSE: LUV) and Royal Caribbean Cruises (NYSE: RCL) can bring your portfolio a feeling of summer while being smack in the middle of wintertime.
Interestingly, each stock’s performance can tell you year-to-date, especially against the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY). While Royal Caribbean has outperformed the sector by as much as 57.8%, Southwest has fallen far behind.
With an underperformance of 43.8% in the sector, it looks like flying domestically is less attractive than an exotic destination in one of Royal Caribbean’s ships. This is somewhat understandable, as the rising oil prices have caused flight prices to increase, and Airbnb’s wild-west pricing model is not enticing enough to book in the U.S.
Despite the difference in performance, the underlying opportunity remains the same. With both of these stocks reaching fresh 52-week lows, the opening for a gap rebound is what you should be looking for, despite what bears may warn you about.
MarketBeat has an excellent stock screening tool you can use to filter out for low price-to-earnings stocks, where names like Southwest and Royal Caribbean will appear as tremendously attractive, ones that analysts are reasonably bullish about.
The market has voted
Contrary to widespread value investment practice, you want to look for stocks valued above a sector average multiple, such as the forward P/E, where markets attempt to place a value on the next 12 months of earnings expectations.
In the case of airline stocks, you can see how and why Southwest is a clear winning outlier.
Where the sector carries an average forward P/E of 5.5x, Southwest stock comes in with an 8.5x valuation, and there’s good reason for it. Your job is to reverse-engineer some reasons why the market may be willing to pay a premium above names like United Airlines (NASDAQ: UAL) and American Airlines (AAL).
United and American analysts expect earnings to decline by 2.5% and 5% for the next twelve months, respectively. This is way below the industry average of 12.3%, so they are trading at valuations below the industry, 3.2x and 4.1x for each.
Southwest projects a 49.4% jump in EPS for next year, above the industry average and more than enough justification for markets to pay a premium for this stock today. Analysts have placed a price target of $34.2 a share, implying a net upside of 46.2% from today’s prices.
What about Royal Caribbean? While the universe of cruise line stocks is smaller, this stock is still a perceived winner.
With an average forward P/E of 8.2x, Royal Caribbean comes out ahead with its 10.0x valuation. The driver behind the preference? Analysts are pushing for EPS to advance by as much as 35.9% in the next 12 months, ahead of the industry’s expected 15.5%.
These assumptions have allowed analysts to land on a consensus price target of $111.6 a share for this stock, calling for a tremendous 34.2% rally to meet these predictions.
Growing GDP can only mean a wave of confidence and spending sure to come. The markets have already picked their dream team lineup for domestic leisure.
United sent out an email that TravelBank credit can now be gifted to family and friends.
You can now gift TravelBank cash to friends and family. we’re making it easy to give the gift of travel this holiday season. Our newest feature allows you to gift TravelBank cash to friends or family — all you need is their MileagePlus® number and last name.
Useful for gifting travel to a friend. This can also be useful for churners bartering their various airline credits: some travel credits or incidental credits are triggered with United TravelBank credit purchases, and it’s now easier for one person to load the account of another.
United Airlines said Tuesday that it has resumed flights after briefly grounding all aircraft in the U.S. at their point of departure due to a “systemwide technology issue.”
“We have identified a fix for the technology issue and flights have resumed. We’re working with impacted customers to help them reach their destinations as soon as possible,” United said on X, the service previously known as Twitter.
Earlier, the carrier said planes that are already airborne “are continuing to their destination as planned.” It didn’t disclose the cause of the technology glitch or offer additional details.
The Federal Aviation Administration said United asked the agency to pause all its departures nationwide, according to a statement sent to CBS News. It referred further questions to United.
United had scrapped only seven flights by midafternoon Tuesday, less than an average of about 16 per day over the Labor Day weekend, according to figures from tracking service FlightAware. But more than 300 United flights were delayed — 12% of the carrier’s schedule and far more than rival airlines including American, Delta and Southwest.
Transportation Secretary Pete Buttigieg, who has criticized airlines for flight problems and other issues over the past year, posted that the FAA was “receiving more information about the cause and scope of the issue, and DOT will make sure UA meets its obligations to affected passengers.”
The Associated Press contributed to this report.
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United Airlines flights resumed Tuesday afternoon after a computer glitch caused a nationwide ground stop and halted all the carrier’s flights across the U.S. and Canada. Errol Barnett reports.
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United Airlines is paying $30 million to the family of a quadriplegic man who was left comatose following an incident as he was being wheeled off a plane.
The family of Nathaniel Foster Jr. alleged in a lawsuit that United “failed to abide by the standard of care owed to disabled passengers” after an agent “aggressively” pushed his wheelchair while helping him deplane in 2019. That caused Foster to sustain “significant” and permanent brain damage, according to the complaint.
As a result of the incident, Foster was left unable to speak or eat solid foods, and his life expectancy has fallen from 39 to 31.5 years, the suit alleged.
United settled the lawsuit on Tuesday following a one-day trial in San Francisco federal court. Of the $30 million settlement, roughly $12 million will cover legal fees, and $3 million will cover other costs, Reuters reported. The carrier did not immediately respond to a request for comment.
Foster, who used a wheelchair, ventilator and tracheal tube at the time of the incident, “jerked forward and back” and slouched in his chair after it was “forcefully” pushed while he disembarked, the family’s lawyers said in a legal filing.
According to the complaint, Foster looked “fearful” and whispered “I can’t breathe” during the incident, but a gate agent “giggled” and said “we got this” to a doctor who offered to help the man. Foster then suffered a heart attack, and a doctor at the scene found he had no pulse.
Foster’s mother said she received assurances that her son would be properly assisted getting on and off the plane when she called United’s accessibility desk ahead of their trip, according to the complaint. However, only one flight attendant was initially present to help Foster disembark the plane when they arrived in Louisiana, the suit claimed. Foster typically required the assistance of four to six people to exit a plane, according to the complaint.
Lawyers for Foster’s family did not immediately respond to CBS MoneyWatch’s request for comment.
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On Monday, American Airlinesreached a deal with its pilot union, giving roughly 15,000 pilots an immediate pay increase of 21%, with further raises over the next four years. By the end of the contract period in 2027, pilot compensation at the airline will increase by 46%.
The deal comes after years of pilots across the country advocating for better pay and benefits since the pandemic, when shortages impacted pilots’ schedules and well-being.
In the last four months, United and Delta pilots also reached agreements with their airlines, getting pay increases of 40% over four years, and 34% within three years, respectively.
Although it’s good news for workers, experts are warning thatthe increase could mean higher ticket prices for travelers.
The American and United contracts come at a cost of nearly $10 billion each, while Delta’s is priced at $7.2 billion, according to TheStreet, and some of those expenses may trickle down to consumers.
“I think it is somewhat naïve to think corporations will not try to put all of this through to price,” Doug Kass, hedge fund manager and writer for Real Money Pro, told the outlet. “A lot of industries are very consolidated. Most executives have their comp highly weighted to their stock price. Even worse, in the case of flying, ticket prices will go way up, and the airports will still be a disaster.”
The other alternative, for airlines to simply absorb the costs, could lead to less profitability and dissatisfy shareholders.
For now, the cost of airfare has been steadily decreasing since 2022 highs. According to NerdWallet’s Travel Price Index, the cost of flights was down 18.6% year-over-year in July.
A United Airlines traveler had quite the turbulent trip when his excitement over receiving a first-class meal while in Economy Plus quickly turned sour. The incident turned into a confrontation with the cabin manager, who hinted at the possibility of adding the passenger to a no-fly list, Business Insider reported.
The passenger, who was identified as Sam for privacy reasons, shared with Insider that his August 3 journey commenced in Madison, Wisconsin and ended in Seattle, with a layover in Denver.
As a devoted United Airlines customer and a Premier 1K member of the MileagePlus frequent-flyer program, Sam was pleasantly surprised to be upgraded to first class for the initial leg of his voyage. However, first-class passengers on his flight to Denver weren’t given a meal due to a catering oversight. Still, the flight took off seamlessly, and Sam began to chat with one of the flight attendants.
For the next leg of his journey to Seattle, Sam was seated in the Economy Plus section on the same plane with the same cabin crew. On a whim, he playfully asked the flight attendant he had previously interacted with to save him a manicotti meal for the upcoming leg, if available.
“At no point did I actually think she was going to do it. And if she did do it, great,” Sam told Insider. “I shot my shot.”
Sam boarded the plane following a brief layover, and upon spotting the same flight attendant, he reminded her of his request. However, the cabin manager overheard their conversation and “very rudely” confronted Sam, he told the outlet, telling him that he could not receive a first-class meal in an economy seat, citing United’s policy.
However, the flight attendant discreetly brought him the manicotti and a fork after the first-class meal service concluded.
“It was very discreet. She dropped it down, winked at me, and I said, ‘Oh my gosh, thank you so much,’” Sam told Insider. “And that was it.”
Nonetheless, the enjoyment was short-lived as the cabin manager confronted him once more.
In a tone that was “condescending” and “unprofessional,” the cabin manager proceeded to “verbally berate” Sam, adding that she was writing him up, which could lead to being put on a no-fly list.
But the manicotti fiasco continued: The cabin manager informed the captain of the situation. Following the flight, Sam took the initiative to approach the captain to explain. The captain extended an apology for the unsettling episode.
Sam shared his experience on Reddit, garnering more than 450 comments with responses ranging from shock at the cabin manager’s behavior — with some calling it “ridiculous” and “disappointing” — to others questioning Sam’s perceived breach of airline rules.
“You wanted special treatment in economy and thought it would be ok to eat a first-class meal in front of other people who are not allowed to or am I missing something?” one user wrote.
Sam sent a three-page email detailing the series of events to United Airlines, and the airline’s response was an apology and an assurance of an internal investigation involving the in-flight leadership and corporate security team. Despite the incident, Sam was hesitant to completely distance himself from United.
“You don’t get divorced over one bad day,” he told Insider.
Entrepreneur has reached out to United for comment.
United Airlines announced Thursday it will add Braille to the interiors of its planes, becoming first U.S. carrier to implement the signage.
The airline said it has about a dozen aircraft with Braille markings for individual rows, seat numbers and inside and outside lavatories. United said it expects to equip its entire mainline fleet with Braille by the end of 2026.
More than 27 million people with disabilities traveled by air in 2019, according to the Department of Transportation. Linda Jojo, executive vice president and chief customer officer for United, acknowledged the difficulties experienced by customers who are blind or have visual disabilities.
“Finding your seat on a plane or getting to the restroom is something most of us take for granted, but for millions of our customers, it can be a challenge to do independently,” she said in a statement. “By adding more tactile signage throughout our interiors, we’re making the flying experience more inclusive and accessible, and that’s good for everyone.”
Image of Braille markings for an individual row on an aircraft.
Hand-out
United said it was working with the National Federation of the Blind (NFB), the American Council of the Blind (ACB) and other disability advocacy groups to implement other tactile navigational aids, including raised letters, numbers and arrows.
In a statement, NFP President Mark Riccobono commended United for making its aircraft “more accessible to blind passengers.”
“The flight experience is often frustrating for a number of reasons, one of which is the amount of information that is available exclusively through printed signs and other visual indicators,” Riccobono said. “We hope to continue working with United to explore additional ways to make flying more accessible and less stressful for blind passengers.”
Last month, a “first-of-its-kind” design was unveiled that would make airplanes more accessible for travelers who rely on electric-powered wheelchairs.
A loud boom from outside a Chicago home Monday turned out to be from a United Airlines jetliner’s emergency slide hitting the side of the house after falling from the aircraft.
United isn’t providing answers about how it happened – an investigation is underway.
But the family that found the big plane part is just glad no one was hurt.
“It hit … the downspout and came straight down,” said Patrick Devitt, pointing to his house.
An emergency evacuation slide fell off of a plane and into a Northwest Side neighborhood on Monday. Chopper 2 was over the scene in the 4700 block of North Chester Avenue, but by the time it arrived, the chute was gone. But one resident described what happened.
Laura Devitt
It landed in a garden and “smashed” lots of plants, “stuff like that,” Devitt said.
United officials said the slide fell from a Boeing 767 as it was flying into O’Hare International Airport from Switzerland.
Devitt’s house is under a flight path, right near O’Hare. But he said this incident was a first.
“A couple of inches, you know, further to the east, and it would have landed right on the house,” Devitt said. “So we’re very lucky.”
They were especially lucky considering Devitt’s 2-year-old son was inside eating lunch with his grandfather.
Devitt said he and his father-in-law dragged the 6-foot-by-6-foot crumpled slide into the front yard and called police and other authorities.
“The lady that we spoke to at the Department of Aviation had said to us, ‘Well how do you know it’s from an airplane?’” Devitt recalled. “‘Well, because there’s a giant slide in our backyard that’s bigger than a car, ma’am. Of course it’s from an airplane.’”
United said there were 155 passengers and 10 crewmembers on board, adding that the crew didn’t realize the slide was missing until the plane landed. Maintenance workers at O’Hare also noticed it.
Police came to the house and confirmed the slide had indeed fallen from a plane.
“I think we’re seeing here there could be a pattern,” said transportation expert Joe Schwieterman, of DePaul University.
The same thing happened in Boston in 2019. An investigation found an improperly closed door caused an emergency slide to fall from a Delta 767-300 into the Boston suburb of Milton.
“Given there have been some past concerns about this device, I think we’re going to have a full investigation,” Schwieterman said.
That’s what United Airlines and the Federal Aviation Administration say will happen.
Devitt says he plans to keep in touch with United.
“We’ll be in contact with them for sure,” he remarked.
Dana Kozlov is an Emmy Award-winning political investigative reporter for CBS2 Chicago. Prior to joining the station in 2003, she worked at WGN, CNN Chicago and WEEK-TV in Peoria, where she began her journalism career in 1992.