Boeing slides after ratings agencies turn negative on maker of grounded 737 Max

Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, WashingtonBoeing shares slid Monday after ratings agencies issued a negative outlooks for the maker of the 737 Max, as the fallout from two fatal crashes of the planes continue to pile up on the manufacturer. Fitch Ratings and Moody’s Investors Service upheld Boeing’s credit ratings but warned that the worldwide grounding is going on longer than anticipated, driving up Boeing’s costs and hurting cash


Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, WashingtonBoeing shares slid Monday after ratings agencies issued a negative outlooks for the maker of the 737 Max, as the fallout from two fatal crashes of the planes continue to pile up on the manufacturer. Fitch Ratings and Moody’s Investors Service upheld Boeing’s credit ratings but warned that the worldwide grounding is going on longer than anticipated, driving up Boeing’s costs and hurting cash
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Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: leslie josephs
Keywords: news, cnbc, companies, agencies, planes, maker, boeings, credit, worldwide, grounded, second, max, slides, grounding, 737, boeing, negative, ratings, turn


Boeing slides after ratings agencies turn negative on maker of grounded 737 Max

Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington

Boeing shares slid Monday after ratings agencies issued a negative outlooks for the maker of the 737 Max, as the fallout from two fatal crashes of the planes continue to pile up on the manufacturer.

Fitch Ratings and Moody’s Investors Service upheld Boeing’s credit ratings but warned that the worldwide grounding is going on longer than anticipated, driving up Boeing’s costs and hurting cash flow, putting its credit ratings at risk.

The planes, Boeing’s bestselling jetliner ever, have been grounded worldwide since mid-March after the second of two crashes. Together the air disasters claimed 346 lives.

Regulators haven’t said when they plan to allow the planes to fly again and are yet to approve a software fix Boeing has prepared after an anti-stall system was implicated in the crashes, one in Indonesia in October and another in Ethiopia in March.

Boeing last week told investors it would take a $4.9 billion charge in the second quarter to compensate airlines affected by the worldwide grounding, now in its fifth month. Boeing’s 737 Max customers, including Southwest, United and American, have canceled thousands of flights during the peak summer travel season and have taken the plane off their schedules until November with no clarity on when the planes will be permitted to fly again.

Moody’s warned that it could cut Boeing’s credit ratings if “it becomes apparent that the grounding will extend into 2020 and Boeing does not reduce the production rate to conserve working capital.”

Boeing paused deliveries of the Max and cut production by nearly 20% to 42 a month in the wake of the second crash. Airplane makers generally are paid once the aircraft are delivered to airlines. New orders for the planes have ground to a halt.

Fitch said it cut its outlook from “stable” to “negative” because Boeing could end up paying airlines more as the grounding wears on, and regulatory uncertainty is posing “the growing logistical challenge of returning parked planes to service and delivering stored post-production aircraft.”

“Fitch believes the 737 MAX will remain a concern throughout the aviation credit sector into 2020,” the ratings agency said in a release. “The 737 MAX situation will reduce much of the financial cushion Boeing has at the current ‘A’ rating, leaving the company more exposed to other unforeseen events or industry developments.”

It said Boeing’s debt could rise by $10 billion to more than $24 billion by the end of the year because of the Max grounding. It added that this amount would fall when deliveries of the planes resume.

Boeing’s stock lost 1% to close at $373.42 a share.

Boeing is scheduled to report second-quarter earnings Wednesday morning.


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: leslie josephs
Keywords: news, cnbc, companies, agencies, planes, maker, boeings, credit, worldwide, grounded, second, max, slides, grounding, 737, boeing, negative, ratings, turn


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Changing Boeing’s 737 Max name wouldn’t fool anyone, says Yale management guru Jeffrey Sonnenfeld

Boeing shouldn’t change the name of its 737 Max after two fatal crashes that caused the international grounding of the jet, management expert Jeffrey Sonnenfeld told CNBC on Monday. “You’re not fooling anybody, I think, by the superficial nature of changing the name,” Sonnenfeld said on “Squawk Box. ” The 737 Max, Boeing’s bestselling plane, has been grounded worldwide since March after the two crashes occurred within five months of one another, killing 346 people. When British Airways’ parent,


Boeing shouldn’t change the name of its 737 Max after two fatal crashes that caused the international grounding of the jet, management expert Jeffrey Sonnenfeld told CNBC on Monday. “You’re not fooling anybody, I think, by the superficial nature of changing the name,” Sonnenfeld said on “Squawk Box. ” The 737 Max, Boeing’s bestselling plane, has been grounded worldwide since March after the two crashes occurred within five months of one another, killing 346 people. When British Airways’ parent,
Changing Boeing’s 737 Max name wouldn’t fool anyone, says Yale management guru Jeffrey Sonnenfeld Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: jessica bursztynsky leslie josephs, jessica bursztynsky, leslie josephs
Keywords: news, cnbc, companies, jeffrey, release, yale, sonnenfeld, boeings, change, think, management, wouldnt, max, crashes, guru, changing, fool, 737, company, boeing, airlines


Changing Boeing's 737 Max name wouldn't fool anyone, says Yale management guru Jeffrey Sonnenfeld

Boeing shouldn’t change the name of its 737 Max after two fatal crashes that caused the international grounding of the jet, management expert Jeffrey Sonnenfeld told CNBC on Monday.

“You’re not fooling anybody, I think, by the superficial nature of changing the name,” Sonnenfeld said on “Squawk Box. ” “If they did, then certainly every media outlet everywhere would tell us the new name.”

The 737 Max, Boeing’s bestselling plane, has been grounded worldwide since March after the two crashes occurred within five months of one another, killing 346 people.

The aviation giant said last month that it did not have plans to change the name of the plane. But some airlines may distance themselves from the Max name. When British Airways’ parent, International Airlines Group, announced its surprise plan to buy 200 Boeing 737 Max planes, its press release referred to the models as the 737-8 and 737-10, without using the “Max” name.

Earlier this month, Twitter user “Woodys Aeroimages” posted a photo one of Ryanair’s new 737 Max planes with “737-8200” painted along the fuselage.

A Boeing spokesman said in response to Sonnenfeld’s comments that “Our immediate focus is the safe return of the airplane to service and re-earning the trust of airlines and the traveling public. We remain open minded to all input from customers and other stakeholders, but have no plans to change the name.”

Sonnenfeld, a senior associate dean at the Yale School of Management and a CNBC contributor, remained bullish on the planemaker, saying he sees a “great buying opportunity.”

“I think this is going to be a very, very strong performing company,” he added.

Boeing is set to release second-quarter results Wednesday. Last week, the company reported it will take a $4.9 billion hit in the quarter after the fatal crashes. The move will essentially wipe out profits.

Shares of Boeing slid Monday after Fitch turned negative on the company.


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: jessica bursztynsky leslie josephs, jessica bursztynsky, leslie josephs
Keywords: news, cnbc, companies, jeffrey, release, yale, sonnenfeld, boeings, change, think, management, wouldnt, max, crashes, guru, changing, fool, 737, company, boeing, airlines


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Delta says the next big battle between airlines will take place on the ground

PhotoAlto/Thierry Foulon | Brand X Pictures | Getty ImagesThere are some aspects of the airport experience that airlines can’t do anything about. For the airlines like Delta, it does not matter that some of the terminal experience is beyond their control. Delta is collecting as much data as it can from passengers to improve the travel experience. Wall Street is watchingWall Street is focusing more on the airport experience in its analysis of airline stocks. Delta is among the airlines that have


PhotoAlto/Thierry Foulon | Brand X Pictures | Getty ImagesThere are some aspects of the airport experience that airlines can’t do anything about. For the airlines like Delta, it does not matter that some of the terminal experience is beyond their control. Delta is collecting as much data as it can from passengers to improve the travel experience. Wall Street is watchingWall Street is focusing more on the airport experience in its analysis of airline stocks. Delta is among the airlines that have
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Company: cnbc, Activity: cnbc, Date: 2019-07-21  Authors: eric rosenbaum, leslie josephs
Keywords: news, cnbc, companies, battle, ground, place, airport, experience, travel, jacobson, airports, making, delta, mayerowitz, big, airlines, airline


Delta says the next big battle between airlines will take place on the ground

The airline industry is experiencing strong financial performance — Delta Air Lines recently hit a record stock price, and United Airline Holdings grew profits in its latest earnings as the U.S. economy continues its decade-long run. In fact, airline industry conditions are so good, longtime airline-stock hater Warren Buffett of Berkshire Hathaway became one of the sector’s biggest investors in recent years after a wave of consolidation brought the fleets closer to the almost monopoly conditions he looks for in businesses. But other recent highs in air travel are not so positive: Airports all over the country are setting new records in monthly passenger levels, making the airport experience one of the worst “legs” in a traveler’s journey. As a result, major airlines flush with money for reinvestment are making the on-the-ground experience a greater focus of their efforts to out-compete rival carriers. “I think the next area of competition in air travel is in the airport,” Paul Jacobson, executive vice president and CFO of Delta said at the CNBC @Work Human Capital + Finance conference in Chicago last Tuesday. “How do you continue to streamline the on-the-ground experience. It is a big part of how passengers rate the experience.” In major metro areas the two biggest issues in airport satisfaction are access to the airport (with so many major airports far from city centers) and the terminal itself, at No. 1, according to J.D. Power. “The most common PR headline from any airport any month is ‘X airport sets new monthly passenger record,'” said Mike Taylor, J.D. Power’s travel practice leader. But that does not necessarily mean it is good PR with so many airports so dated.

PhotoAlto/Thierry Foulon | Brand X Pictures | Getty Images

There are some aspects of the airport experience that airlines can’t do anything about. Only 6% more airports have been built in the U.S. since 1980, despite 181% more domestic passengers. “They can’t build another four-lane highway to the airport,” Taylor said. “Most of the airports are shoehorned into areas never meant to handle this much traffic.” Those problems don’t end once at the airport, either: Many parking lots closest to terminals at some of the busiest U.S. airports are now completely full and closed on multiple days per week. This is the type of on-the-ground frustration that leads to missed flights, and missed flights lead to the blame being placed all around. “People are more stressed on the airport and airlines side of things, and they blame both,” Taylor said. For the airlines like Delta, it does not matter that some of the terminal experience is beyond their control. Taylor said that when an aircraft closes and sits on the ground because the FAA is holding them there, passengers do not complain about the FAA. “They paid the airline, and they pick up the cocktail napkin and swear at it.” For more on tech, transformation and the future of work, join CNBC at the @ Work: People + Machines Summit in San Francisco on Nov. 4. Leaders from Dropbox, Sas, McKinsey and more will teach us how to balance the needs of today with the possibilities of tomorrow, and the winning strategies to compete. Scott Mayerowitz, executive editorial director of travel information site The Points Guy, said the airport experience is unique in the travel journey as being so bad, and it is an important part of the journey that is underexamined. “Until my head hits the pillow in a hotel room, I am on the go, and it all matters,” Mayerowitz said. Delta is collecting as much data as it can from passengers to improve the travel experience. “We survey everything,” Jacobson told those attending the CNBC event in Chicago. “A lot of that comes down to the psychology of the customer and understanding what each leg in the journey makes the customer feel like.”

Wall Street is watching

Wall Street is focusing more on the airport experience in its analysis of airline stocks. Hunter Keay, a Wolfe Research analyst who covers Delta, wrote that the Delta CFO is correct in his focus on the airport as a competitive key. Keay wrote in a late 2018 research note that Delta’s major investment in “investment-starved airports” like New York City’s LaGuardia “are not so much an act of generosity but a strategic decision that we believe will further widen DAL’s competitive advantage to peers by driving up costs for marginal competitors there that lack scale, pricing power, or both. … This is literally a 20-year competitive advantage DAL is building today, arguably the hardest one yet for competitors to copy.” Delta is investing $12 billion over a five-year period investing in its airport infrastructure, primarily at New York City’s LaGuardia, Los Angeles International, Seattle-Tacoma International Airport, Salt Lake City International Airport and Hartsfield-Jackson Atlanta International Airport. “Airports have always been a challenge for airlines who haven’t been able to crack that code due to more pressing capital needs internally, fear of committing to longer-term, big dollar projects due to business cycle risk with questionable balance sheets, or the challenges of driving buy-in or consensus with the government agencies that run these airports. But it seems to us that DAL is figuring this thing out,” Keay wrote. One of the terminal chokepoints where Delta made an investment is through a stake it owns in biometric screening company Clear. Jacobson pointed to the Clear investment as part of its efforts to streamline the passenger experience through investments in technology. “We’ve made big bets in technology in the past few years thinking we can turn it around into revenue generation,” the Delta CFO said at the CNBC event. Jacobson said technology like Clear should ultimately improve the experience beyond the security checkpoint. “I think ultimately the technology around identification, whether facial recognition or fingerprints, is coming to all transactions,” Jacobson said. “Delta has recognized that security is a horrible headache for people,” Mayerowitz said. “Clear is at many more airports than before because of the Delta investment, and they’ve done saturation at their key hubs. ” Mayerowitz, who is a Clear member, added, “In two to three minutes at LGA or JFK, I can make it from the curb to the other side of security. Clear gets me to the front of the precheck line, and I just put my bag in and walk through and I’m done.”

The timing is right for airlines

A focus on future revenue is one of the reasons why Delta is making the investments now, before a recession hits and operating conditions weaken. Yael Taqqu, a senior partner at management consultant McKinsey, who spoke on a panel with Jacobson at CNBC’s @Work Human Capital + Finance conference, said investments like the ones Delta is making now are designed to be “revenue enhancements” out ahead of the next downturn. “In a downturn, the wedge between digital haves and have nots, which is already wide, will get wider,” said Taqqu. Taylor said the timing is right from an airline industry perspective too. “You have to have three things happen to really expand airports. The economy has to be good, the airline has to be making money, and policies have to be right. These days, we have all three of them working in the airlines favor. … When they are not making money, those things get put on hold. They would like to have everything set up for the passenger to be happy before getting on the craft.” Airlines also are running out of ways to improve and “disaggregate” — price-tier — the in-cabin experience. “Right now airlines have healthy profits and are reinvesting,” Mayerowitz said. “Delta likes to brag that they have the most inflight seatback TVs of any airline, and they’ve built a business around what they say is a superior product in the sky, and it commands a revenue premium, people willing to spend $10-$15 extra. But at the end of the day, there is only so much you can do to increase costs in the sky.” He added of Delta’s focus on the terminal, “They are right, especially as airlines cram more seats into planes and come up with hideous slim-line bathrooms just so they can get an extra row of seats in.” Delta is among the airlines that have cut down bathroom size in some cabins to add an extra back row.

Airports are just pretty bus terminals. There is only so much you can do. Scott Mayerowitz The Points Guy executive editorial director


Company: cnbc, Activity: cnbc, Date: 2019-07-21  Authors: eric rosenbaum, leslie josephs
Keywords: news, cnbc, companies, battle, ground, place, airport, experience, travel, jacobson, airports, making, delta, mayerowitz, big, airlines, airline


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Southwest Airlines yanks Boeing 737 Max from schedules through early November with no end in sight to grounding

A number of Southwest Airlines Boeing 737 MAX aircraft are parked at Southern California Logistics Airport on March 27, 2019 in Victorville, California. Southwest Airlines is waiting out a global grounding of MAX 8 and MAX 9 aircraft at the airport. Uncertainty over when regulators will allow the Boeing 737 Max to fly again following two deadly crashes prompted Southwest Airlines, the largest U.S. operator of the jets, to remove them from its schedules through early November — a month longer tha


A number of Southwest Airlines Boeing 737 MAX aircraft are parked at Southern California Logistics Airport on March 27, 2019 in Victorville, California. Southwest Airlines is waiting out a global grounding of MAX 8 and MAX 9 aircraft at the airport. Uncertainty over when regulators will allow the Boeing 737 Max to fly again following two deadly crashes prompted Southwest Airlines, the largest U.S. operator of the jets, to remove them from its schedules through early November — a month longer tha
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Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: leslie josephs
Keywords: news, cnbc, companies, schedule, yanks, boeing, month, flights, schedules, end, early, california, airlines, crashes, max, planes, sight, grounding, southwest


Southwest Airlines yanks Boeing 737 Max from schedules through early November with no end in sight to grounding

A number of Southwest Airlines Boeing 737 MAX aircraft are parked at Southern California Logistics Airport on March 27, 2019 in Victorville, California. Southwest Airlines is waiting out a global grounding of MAX 8 and MAX 9 aircraft at the airport.

Uncertainty over when regulators will allow the Boeing 737 Max to fly again following two deadly crashes prompted Southwest Airlines, the largest U.S. operator of the jets, to remove them from its schedules through early November — a month longer than it estimated in late June.

Southwest’s move follows similar schedule changes announced over the last week by American and United.

Southwest said Thursday it will cancel about 180 flights a day out of about 4,000 flights because of the schedule change. Last month, the Dallas-based airline said it was targeting October for the planes’ return, which would have meant 150 daily flight cancellations.

The planes have been grounded since mid-March after two fatal crashes within five months killed 346 people.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: leslie josephs
Keywords: news, cnbc, companies, schedule, yanks, boeing, month, flights, schedules, end, early, california, airlines, crashes, max, planes, sight, grounding, southwest


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Boeing to take $4.9 billion hit in second quarter on 737 Max grounding

Workers stand near Boeing 737 MAX airplanes as they sit parked at a Boeing facility adjacent to King County International Airport, known as Boeing Field, on May 31, 2019 in Seattle, Washington. Boeing on Thursday said it will take a $4.9 billion charge in the second quarter due to the worldwide grounding of its 737 Max planes after two fatal crashes that killed 346 people. Analysts expected the company to book a per-share profit of $1.80 for the second quarter, according to average estimates com


Workers stand near Boeing 737 MAX airplanes as they sit parked at a Boeing facility adjacent to King County International Airport, known as Boeing Field, on May 31, 2019 in Seattle, Washington. Boeing on Thursday said it will take a $4.9 billion charge in the second quarter due to the worldwide grounding of its 737 Max planes after two fatal crashes that killed 346 people. Analysts expected the company to book a per-share profit of $1.80 for the second quarter, according to average estimates com
Boeing to take $4.9 billion hit in second quarter on 737 Max grounding Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: leslie josephs phil lebeau, leslie josephs, phil lebeau
Keywords: news, cnbc, companies, 737, billion, second, quarter, grounding, max, charge, planes, hit, boeing, workers, 49, worldwide


Boeing to take $4.9 billion hit in second quarter on 737 Max grounding

Workers stand near Boeing 737 MAX airplanes as they sit parked at a Boeing facility adjacent to King County International Airport, known as Boeing Field, on May 31, 2019 in Seattle, Washington.

Boeing on Thursday said it will take a $4.9 billion charge in the second quarter due to the worldwide grounding of its 737 Max planes after two fatal crashes that killed 346 people.

The charge, which comes to $8.74 a share, is set to wipe out profits. Analysts expected the company to book a per-share profit of $1.80 for the second quarter, according to average estimates compiled by Refinitiv. The charge would reduce revenue and pre-tax earnings by $5.6 billion in the quarter, Boeing said.

The 737 Max jets have been grounded since mid-March and regulators have not said when they expect to allow the planes to fly again.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: leslie josephs phil lebeau, leslie josephs, phil lebeau
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‘My life has no meaning.’ Man whose family was killed in 737 Max crash slams Boeing

A man whose family was killed in the crash of a Boeing 737 Max in Ethiopia in March slammed the manufacturer and told lawmakers at a congressional hearing Wednesday to scrutinize the Federal Aviation Administration, which approved the now-grounded planes two years ago. Paul Njoroge lost his wife, three small children and his mother-in-law on Nairobi-bound Ethiopian Airlines Flight 302, a Boeing 737 Max 8 that crashed minutes after takeoff from Addis Ababa, killing all 157 people on board. It fol


A man whose family was killed in the crash of a Boeing 737 Max in Ethiopia in March slammed the manufacturer and told lawmakers at a congressional hearing Wednesday to scrutinize the Federal Aviation Administration, which approved the now-grounded planes two years ago. Paul Njoroge lost his wife, three small children and his mother-in-law on Nairobi-bound Ethiopian Airlines Flight 302, a Boeing 737 Max 8 that crashed minutes after takeoff from Addis Ababa, killing all 157 people on board. It fol
‘My life has no meaning.’ Man whose family was killed in 737 Max crash slams Boeing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: leslie josephs
Keywords: news, cnbc, companies, hearing, officials, house, crashes, aviation, man, flight, meaning, killed, slams, family, boeing, max, 737, crash, njoroge, life


'My life has no meaning.' Man whose family was killed in 737 Max crash slams Boeing

Paul Njoroge, representing the families of Ethiopian Airlines Flight 302, testifies before a House Transportation and Infrastructure Aviation Subcommittee hearing on “State of Aviation Safety” in the aftermath of two deadly Boeing 737 MAX crashes since October, in Washington D.C., July 17, 2019.

A man whose family was killed in the crash of a Boeing 737 Max in Ethiopia in March slammed the manufacturer and told lawmakers at a congressional hearing Wednesday to scrutinize the Federal Aviation Administration, which approved the now-grounded planes two years ago.

Paul Njoroge lost his wife, three small children and his mother-in-law on Nairobi-bound Ethiopian Airlines Flight 302, a Boeing 737 Max 8 that crashed minutes after takeoff from Addis Ababa, killing all 157 people on board. It followed the crash of another Boeing 737 Max, Lion Air Flight 610 in Indonesia, in October. All 189 people on that flight were killed.

The twin crashes prompted aviation officials around the world to ground the jets in mid-March. Investigators have implicated an anti-stall system in both crashes. Boeing has developed a fix for the software to make it less aggressive and give pilots greater control of the aircraft, a newer version of Boeing’s workhorse 737 that’s been flying since the 1960s. Regulators have not said when they will allow the planes to fly again.

The House aviation panel is hearing from Njoroge as well as well as union officials representing pilots, mechanics and flight attendants at its third hearing on the 737 Max crashes.

“I miss their laughter, their playfulness, their touch,” Njoroge said of his family in written testimony. “I am empty. I feel that I should have been on that plane with them. My life has no meaning. It is difficult for me to think of anything else but the horror they must have felt.”

Lawmakers have not yet questioned Boeing officials, engineers or whistleblowers, and Njoroge urged the House panel to do so.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: leslie josephs
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United Airlines posts higher profits and buys used Boeing 737s as Max grounding drags on

Strong travel demand pushed United Airlines Holdings second-quarter profit up more than 50% from a year ago, despite continued challenges from the grounding of the Boeing 737 Max. The Boeing 737 Max planes have been grounded worldwide since mid-March following two fatal crashes — one in Indonesia in October and another in Ethiopia in March — that killed a total of 346 people. United, which has 14 737 Max 9 jets, had expected the planes to return by Labor Day. American has 24 Boeing 737 Max jets


Strong travel demand pushed United Airlines Holdings second-quarter profit up more than 50% from a year ago, despite continued challenges from the grounding of the Boeing 737 Max. The Boeing 737 Max planes have been grounded worldwide since mid-March following two fatal crashes — one in Indonesia in October and another in Ethiopia in March — that killed a total of 346 people. United, which has 14 737 Max 9 jets, had expected the planes to return by Labor Day. American has 24 Boeing 737 Max jets
United Airlines posts higher profits and buys used Boeing 737s as Max grounding drags on Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: leslie josephs
Keywords: news, cnbc, companies, united, 737, demand, drags, planes, boeing, grounding, share, max, jets, posts, travel, profits, used, buys, higher


United Airlines posts higher profits and buys used Boeing 737s as Max grounding drags on

Strong travel demand pushed United Airlines Holdings second-quarter profit up more than 50% from a year ago, despite continued challenges from the grounding of the Boeing 737 Max.

United did not break out how the grounding, now in its fifth month, affected its bottom line but said it signed an agreement to buy 19 used Boeing 737-700 planes, older jets that it can use to meet growing demand. It expects those planes to be delivered in December.

The Boeing 737 Max planes have been grounded worldwide since mid-March following two fatal crashes — one in Indonesia in October and another in Ethiopia in March — that killed a total of 346 people. Regulators have not said when they expect to allow the planes to fly again, forcing airlines to cancel thousands of flights during the peak summer travel season and through the fall.

Airlines have scrambled to meet demand by combining flights and making other schedule tweaks.

On Friday, United removed the planes from its schedule through the start of November, with no end in sight to the grounding. United, which has 14 737 Max 9 jets, had expected the planes to return by Labor Day. American Airlines on Sunday also took the planes out of its schedules until early November, a move that would mean the cancellation of about 115 flights a day. American has 24 Boeing 737 Max jets in its fleet.

Delta Air Lines, which does not have the troubled plane in its fleet, said it has marginally benefited as rivals’ operations are hamstrung from the grounding.

In the three months ended June 30, net income rose 54% to $1.1 billion, or $4.02 a share, from $683 million, or $2.48 per share a year ago. On an adjusted basis, it earned $4.21 a share, beating analysts’ expectations of $4.09 a share.

Revenue rose close to 6% from a year ago to $11.4 billion, slightly above the $11.36 billion analysts had forecast, as demand for seats in every region where it operates climbed in the busy travel period.

The Chicago-based carrier also raised the low-end of its profit forecast for the year to $10.50 to $12 per share from an estimate of as low as $10 a share.

Executives from the second-largest U.S. carrier will hold a call with analysts on Wednesday at 10:30 a.m. ET, when they will likely face questions on how the grounding of the Boeing 737 Max could affect its operations through the end of the year.

Shares were up 0.6% in postmarket trading.

American and Southwest report second-quarter results on July 25.


Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: leslie josephs
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Scott Minerd says there have been talks about him joining the Fed

The chief investment officer of Guggenheim said on CNBC on Monday that he had been approached by the White House about possibly joining the Federal Reserve. Minerd said on “Halftime Report ” that he had not been officially asked to join the Fed, but “there have been discussions.” “It would be a great opportunity to serve the Federal Reserve,” he explained. The president said earlier this month that he would nominate Waller and Shelton, who was an economic advisor to Trump’s 2016 campaign, to tak


The chief investment officer of Guggenheim said on CNBC on Monday that he had been approached by the White House about possibly joining the Federal Reserve. Minerd said on “Halftime Report ” that he had not been officially asked to join the Fed, but “there have been discussions.” “It would be a great opportunity to serve the Federal Reserve,” he explained. The president said earlier this month that he would nominate Waller and Shelton, who was an economic advisor to Trump’s 2016 campaign, to tak
Scott Minerd says there have been talks about him joining the Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: jesse pound, leslie josephs
Keywords: news, cnbc, companies, waller, scott, white, minerd, fed, guggenheim, federal, seats, report, shelton, reserve, sort, joining, talks


Scott Minerd says there have been talks about him joining the Fed

The chief investment officer of Guggenheim said on CNBC on Monday that he had been approached by the White House about possibly joining the Federal Reserve.

Guggenheim’s Scott Minerd said that discussions took place over the past couple of months before President Donald Trump announced his intention to nominate former advisor Judy Shelton and St. Louis Fed official Christopher Waller to fill vacant seats on the Federal Reserve Board of Governors.

Minerd said on “Halftime Report ” that he had not been officially asked to join the Fed, but “there have been discussions.”

The White House was not immediately available to respond to CNBC’s request for comment.

Meanwhile, Minerd said he would not necessarily accept the job if it were offered. “It would be a great opportunity to serve the Federal Reserve,” he explained. “Obviously, if that were ever to be presented to me I’ve got other things to weigh.”

“I am one of the largest shareholders of Guggenheim Partners,” he continued. “The importance of our continued growth is going to weigh in that decision.” Guggenheim has $265 billion worth of assets under management.

The president said earlier this month that he would nominate Waller and Shelton, who was an economic advisor to Trump’s 2016 campaign, to take the Fed open seats. Economics writer Stephen Moore and businessman Herman Cain were floated as potential nominees earlier this year, but they were met with widespread criticism and bowed out of consideration.

Minerd said the Fed has “kind of hit the panic button” and cautioned against aggressively cutting rates. “I would be very slow to embrace the sort of whole-hearted jump to sort of locking us in to a rate cut path. Perhaps one rate reduction would be appropriate as an insurance policy to make sure we keep the expansion going, but I think the rhetoric is stronger than that.”

— CNBC’s Tom Franck and Fred Imbert contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: jesse pound, leslie josephs
Keywords: news, cnbc, companies, waller, scott, white, minerd, fed, guggenheim, federal, seats, report, shelton, reserve, sort, joining, talks


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Marriott accused of deceptive ‘drip pricing’ by Washington, D.C.

Hotel chain Marriott International was sued by the District of Columbia on Tuesday over allegedly deceptive “drip pricing” practices that tacked on hidden fees to hotel bills. According the complaint, Marriott has failed for a decade or more to disclose certain fees when it advertises prices for hotel rooms. These hidden fees, which could add up to $95 per day, allegedly applied to listings on Marriott’s own website and travel websites such as Expedia. “Marriott reaped hundreds of millions of do


Hotel chain Marriott International was sued by the District of Columbia on Tuesday over allegedly deceptive “drip pricing” practices that tacked on hidden fees to hotel bills. According the complaint, Marriott has failed for a decade or more to disclose certain fees when it advertises prices for hotel rooms. These hidden fees, which could add up to $95 per day, allegedly applied to listings on Marriott’s own website and travel websites such as Expedia. “Marriott reaped hundreds of millions of do
Marriott accused of deceptive ‘drip pricing’ by Washington, D.C. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: jesse pound, leslie josephs
Keywords: news, cnbc, companies, drip, booking, accused, pricing, fees, rooms, marriott, dc, travel, pay, racine, washington, hotel, price, deceptive, costs


Marriott accused of deceptive 'drip pricing' by Washington, D.C.

Hotel chain Marriott International was sued by the District of Columbia on Tuesday over allegedly deceptive “drip pricing” practices that tacked on hidden fees to hotel bills.

According the complaint, Marriott has failed for a decade or more to disclose certain fees when it advertises prices for hotel rooms. These hidden fees, which could add up to $95 per day, allegedly applied to listings on Marriott’s own website and travel websites such as Expedia.

“Marriott reaped hundreds of millions of dollars in profit by deceiving consumers about the true price of its hotel rooms,” D.C. Attorney General Karl Racine said in a news release.

The fees for the hotel room were sometimes grouped as “taxes and fees” and not presented until after customers had already entered their credit card information, the complaint alleges. In other cases, the fees were advertised as covering amenities, such as parking, that were either complimentary or that guests had to pay for when they got to the hotel even after paying a resort fee, according to the complaint.

Marriott said it does not comment on pending litigation.

A 2017 report from the Federal Trade Commission found that separating rental costs from extra fees without first showing customers the total price was “likely to harm consumers by increasing the search costs and cognitive costs of finding and choosing hotel accommodations.” The practice is known as “drip pricing.”

The lawsuit comes after an investigation into the hotel industry by all 50 states and D.C. Racine is seeking a court order to force Marriott to advertise the full price of a stay as well as pay financial penalties and restitution to affected guests.

The fees charged by hotels has been a source of frustration for online booking companies. Booking Holdings, which owns travel sites Booking.com, Priceline.com and Kayak.com, has begun charging commission on these fees, while Expedia said its goal is to make sure that, among hotels that are otherwise equal, listings without mandatory fees have higher visibility than those that do. Booking and Expedia declined to comment on the Marriott lawsuit.


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: jesse pound, leslie josephs
Keywords: news, cnbc, companies, drip, booking, accused, pricing, fees, rooms, marriott, dc, travel, pay, racine, washington, hotel, price, deceptive, costs


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Boeing again reports no new orders for 737 Max as planes stay grounded after crashes

Boeing 737 MAX airplanes are stored in an area adjacent to Boeing Field, on June 27, 2019 in Seattle, Washington. After a pair of crashes, the 737 MAX has been grounded by the FAA and other aviation agencies since March, 13, 2019. The FAA has reportedly found a new potential flaw in the Boeing 737 Max software update that was designed to improve safety. The dearth of Max orders in June marked the third straight month without any new orders for the planes. The Boeing 737 Max planes have been grou


Boeing 737 MAX airplanes are stored in an area adjacent to Boeing Field, on June 27, 2019 in Seattle, Washington. After a pair of crashes, the 737 MAX has been grounded by the FAA and other aviation agencies since March, 13, 2019. The FAA has reportedly found a new potential flaw in the Boeing 737 Max software update that was designed to improve safety. The dearth of Max orders in June marked the third straight month without any new orders for the planes. The Boeing 737 Max planes have been grou
Boeing again reports no new orders for 737 Max as planes stay grounded after crashes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: leslie josephs
Keywords: news, cnbc, companies, max, deliveries, month, planes, reported, grounded, orders, manufacturer, reports, stay, crashes, 737, boeing


Boeing again reports no new orders for 737 Max as planes stay grounded after crashes

Boeing 737 MAX airplanes are stored in an area adjacent to Boeing Field, on June 27, 2019 in Seattle, Washington. After a pair of crashes, the 737 MAX has been grounded by the FAA and other aviation agencies since March, 13, 2019. The FAA has reportedly found a new potential flaw in the Boeing 737 Max software update that was designed to improve safety.

Boeing on Tuesday again reported no new orders for its 737 Max, as the worldwide grounding of its best-selling plane is about to enter its fifth month, dragging down aircraft deliveries.

Boeing delivered 239 commercial airplanes in the first half of the year, down 37% from the first six months of 2018. Deliveries are key for the company since that is generally when the manufacturer is paid for the aircraft.

The dearth of Max orders in June marked the third straight month without any new orders for the planes. The issues could give European manufacturer Airbus, which reported 389 commercial plane deliveries in the first six months of the year, the crown as the world’s biggest airplane maker. Airbus’ popular A320 planes compete with Boeing’s 737s in the single-aisle segment, which comprise most aircraft orders.

The Boeing 737 Max planes have been grounded since mid-March after two fatal crashes that claimed a total of 346 lives. Investigators found similarities between the two crashes and implicated an anti-stall system in both deadly incidents. Boeing has prepared software fixes for the planes but regulators have not said when they will permit the planes to fly again, prompting carriers to cancel thousands of flights. Both airlines and Boeing have been force to park the grounded jets.

Boeing cut production of the 737 Max by about a fifth to 42 jetliners a month in April. It had originally expected to ramp up production to 57 a month. The Chicago-based company has a backlog of about 4,600 737 jets.

Last month, Boeing won a vote of confidence in the troubled 737 Max when British Airways’ parent International Consolidated Airlines Group, said it plans to buy 200 of the jets. Boeing didn’t include the orders in its monthly tally because the order isn’t finalized. Over the weekend, flyadeal, a budget airline based in Saudi Arabia, canceled a provisional order for 30 Boeing 737 Max planes, and said it would take delivery of A320 jets from Airbus instead.

Boeing’s shares initially fell after the manufacturer reported its quarterly orders and deliveries, but closed up 0.6% at $353.09.


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: leslie josephs
Keywords: news, cnbc, companies, max, deliveries, month, planes, reported, grounded, orders, manufacturer, reports, stay, crashes, 737, boeing


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