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Southwest Airlines is ceasing operations at four airports, and reducing flights from others, in an effort to cut costs after its growth plans were curtailed by fewer than expected plane deliveries from Boeing. The airline, which flies only Boeing 737 planes, said on Thursday that delays from the embattled aircraft manufacturer were behind its struggles. Southwest reported a loss of $231 million for the first quarter, worse than analysts expected, sending its share price down 10 percent in early trading. To cut costs because of its curtailed growth plans, Southwest said it would cease operations at four airports from early August: Bellingham International Airport in Washington State, Cozumel International Airport, George Bush Intercontinental Airport in Houston, and Syracuse Hancock International Airport. It would also “significantly restructure” its flights from other airports, most notably by reducing flights at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.
Persons: George Bush Organizations: Airlines, Boeing, Bellingham International Airport, Cozumel International Airport, George, George Bush Intercontinental Airport, Syracuse Hancock International, Hartsfield, Jackson Atlanta International Airport, Chicago O’Hare International, Max, Alaska Airlines Locations: Bellingham, Washington State, Cozumel, Houston
The airports losing Southwest service are:AdvertisementSyracuse Hancock International Airport in New York. Bellingham International Airport in Washington. Southwest also said it would "significantly restructure other markets," including putting capacity reductions at Hartsfield-Jackson Atlanta International Airport and Chicago O'Hare International Airport. Related stories"To improve our financial performance, we have intensified our network-optimization efforts to address underperforming markets," Southwest CEO Bob Jordan said in the earnings report, noting the impact could go into 2025. The backlash has prompted Boeing CEO Dave Calhoun to announce his resignation from the company, effective at the end of the year.
Persons: , George Bush, Boeing's Max, Max, Bob Jordan, Jordan, Dave Calhoun, Boeing's, Larry Kellner, Stan Deal, Stephanie Pope, Sam Salehpour Organizations: Service, Boeing, Max, Southwest Airlines, Business, Southwest, Syracuse Hancock International, Bellingham International Airport, Cozumel International, George Bush Intercontinental Airport, Alaska Airlines, Hartsfield, Jackson Atlanta International Airport, Chicago O'Hare International, Ryanair, United Airlines, Boeing Commercial Locations: New York, Bellingham, Washington, Cozumel, Mexico, Houston, Southwest, Alaska
“The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” said Southwest CEO Bob Jordan in the company’s first-quarter financial results statement. That incident prompted a three-week grounding of the Max 9, and will delay the certification of two new models of the plane, the 737 Max 7 and 737 Max 10, until at least next year. The cutbacks are the latest sign of the widening impact of the ongoing problems at Boeing throughout the air travel system. It announced Thursday that it has trimmed its order book to 19 of those jets, shifting to 737 Max 8 jets instead. Unlike all-Boeing Southwest, American’s fleet of mainline aircraft is split fairly evenly between those from Boeing and those from its rival Airbus.
Persons: Houston’s George, , Bob Jordan, replanning, Max, Robert Isom Organizations: New, New York CNN, Southwest Airlines, Boeing, Bellingham International Airport, Cozumel International, Syracuse Hancock International, Houston’s George Bush Intercontinental Airport, Alaska Airlines, American Airlines, Airbus, American Locations: New York, Bellingham, Washington state, Cozumel, Mexico, Syracuse, Southwest
CNN —After years of delays and a dizzying array of setbacks during test flights, Boeing’s Starliner spacecraft is finally set to make its inaugural crewed launch. “This is history in the making,” NASA Administrator Bill Nelson said of the upcoming Starliner mission during a March 22 news conference. Missteps riddled a Starliner test flight the prior year, leaving NASA and Boeing officials scrambling to figure out what went wrong. SpaceX’s Crew Dragon has been flying routine trips ever since, carrying NASA astronauts and even paying customers and tourists. On May’s inaugural crewed flight, Boeing will instead use a “perfectly acceptable mitigation” that should prevent the valves from sticking, Nappi said in March.
Persons: CNN —, Suni Williams, Butch Wilmore, , Mark Nappi, , we’ve, Ken Bowersox, SpaceX’s, Bill Nelson, “ We’re, Boeing’s Starliner, Bob Behnken, Doug Hurley, Steve Stich, we’re, ” Nappi, Stich, Nappi, — Williams, Wilmore, , ” Wilmore, Williams Organizations: CNN, NASA, International, Boeing, SpaceX, International Space, Alaska Airlines Locations: Florida, , Starliner’s
Boeing losses, problems continue to mount
  + stars: | 2024-04-24 | by ( Chris Isidore | ) edition.cnn.com   time to read: +5 min
Boeing reported a core operating loss of $388 million, or $1.13 a share, from the $440 million it lost on that basis a year earlier. Plastic covers the exterior of the fuselage plug area of Alaska Airlines Boeing 737 Max 9 where a door plug on the plane blew off on a January 5 flight. The incident has sparked new focus on problems with the safety and quality controls at Boeing. Boeing has had a string of losses and problems with its planes’ quality dating back at least five years. It also announced plans to increase production of the 737 Max throughout 2024 in order to return to sustained profitability.
Persons: , , Dave Calhoun, Max Organizations: New, New York CNN, Boeing, Revenue, Alaska Airlines, Alaska Airlines Boeing, Max, NTSB, Getty, Alaska Air, United Airlines, National Transportation Safety Board, Federal Aviation Administration, Justice Department Locations: New York, Alaska, Tuesday’s
The airline topped the American Customer Satisfaction Index, despite its infamous panel blowout in January. Overall, US air travel customers were happier than last year with their experiences. The airline comfortably topped the annual American Customer Satisfaction Index with a score of 82, a one-point improvement compared to 2023. Allegiant registered a four-point rise in overall customer satisfaction, making it one of the fastest climbers this year. By collating this information, the American Customer Satisfaction Index says it provides a "definitive measure of passenger satisfaction."
Persons: , Allegiant, Max, Kyle Rinker, Jonathan W Organizations: Alaska Airlines, Service, American Airlines, Allegiant Air, Delta, United Airlines, Boeing, Portland International, Johnson, International Air Transport Association Locations: Alaska
The first rule requires airlines to be more transparent about extra fees. The second rule requires airlines to issue cash refunds automatically, rather than in response to customer requests. It will require that airlines list and explain all extra fees "clearly, conspicuously, and accurately" on their web platforms or when they provide fare prices offline. The new airline rules are the latest action in President Joe Biden's broader battle against what the White House calls "corporate rip-offs." "There are tens of billions of dollars in other junk fees across the economy, and I've directed my administration to reduce or eliminate them," Biden said in 2022.
Persons: Biden, Pete Buttigieg, Buttigieg, Joe Biden's, I've Organizations: Department of Transportation, Boeing, Alaska Airlines, United, White House Locations: Southwest
An aerial photo shows Boeing 737 Max airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, on March 21, 2019. Here is what Wall Street expects for Boeing for the period that ended March 31, according to estimates from LSEG:Loss per share: $1.76 adjusted$1.76 adjusted Revenue: $16.23 billionBoeing has been hamstrung in ramping up production, especially of its best-selling 737 Max planes. After the door plug blew out on the Alaska Airlines Max 9 on Jan. 5, the Federal Aviation Administration has barred Boeing from increasing output. Questions abound for Boeing's lame duck CEO Dave Calhoun, who announced in March that he would step down by year-end. Among those questions: When will Boeing stabilize its production line and increase production of the 737 Max and other planes?
Persons: Dave Calhoun, Max Organizations: Boeing, Max, Boeing Factory, Alaska Airlines Max, Federal Aviation Administration, FAA Locations: Renton , Washington
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Alaska Airlines CEO Ben MinicucciAlaska Airlines CEO Ben Minicucci joins 'The Exchange' to discuss their latest quarter, what's next for the airlines, and more.
Persons: Ben, Ben Minicucci, what's Organizations: Alaska Airlines
Both Alaska and United Airlines reported quarterly losses this week. But the airlines' bosses said they would've turned profits if it weren't for Boeing's door plug fiasco. AdvertisementThe Boeing door blowout in January tanked Alaska Airlines' first quarter earnings — and it's not the only airline to have been hurt by the incident. Alaska said Thursday its results were "significantly impacted" by the door plug blowout and subsequent grounding of its fleet of 737-9 MAX planes. This story is available exclusively to Business Insider subscribers.
Persons: , it's Organizations: United Airlines, Boeing, Service, Alaska Airlines, Business Locations: Alaska
Skytrax released its annual ranking of the world's best airports, with Doha, Qatar at the top. AdvertisementSkytrax has released its annual ranking of the world's best airports — and if you're a frequent flyer it may come as little surprise that none in the US made the top 20. The US can't even claim to have North America's best airport, given that Vancouver is in 17th place. Seattle-Tacoma was rated the best airport in the US for the third year running. This story is available exclusively to Business Insider subscribers.
Persons: Skytrax, Organizations: London, Service, Tacoma, Alaska Airlines, Business Locations: Doha, Qatar, Seattle, Tacoma, London Heathrow, Vancouver
Alaska Airlines CEO Ben Minicucci on strong 2024 forecast
  + stars: | 2024-04-18 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAlaska Airlines CEO Ben Minicucci on strong 2024 forecastAlaska Airlines CEO Ben Minicucci joins 'The Exchange' to discuss their latest quarter, what's next for the airlines, and more.
Persons: Ben Minicucci, what's Organizations: Alaska
Alaska received $162 million from Boeing for the Jan. 5 accident, which caused the Federal Aviation Administration to briefly ground the planes. The accident has added additional regulator scrutiny on Boeing and slowed its deliveries of new Max planes, of which Alaska is a major customer. "Alaska [Airlines] needs Boeing, our industry needs Boeing and our country needs Boeing to be a leader in airplane manufacturing," he said. Alaska forecast adjusted earnings per share of between $2.20 and $2.40, above the $2.12 analysts polled by LSEG expected. Adjusting for one-time items, Alaska posted a net loss of 62 cents a share in the second quarter, less than the $1.05 per-share loss analysts were expecting, according to LSEG.
Persons: Ben Minicucci, Minicucci, CNBC's, Dave Calhoun, LSEG Organizations: Alaska Airlines, Boeing, Federal Aviation Administration, Airlines, Airline Locations: Alaska, Seattle, Delta
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Private equity finds its next bet: college admissions
  + stars: | 2024-04-17 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +10 min
Now, private equity firms are swooping in to help while taking majority stakes in exchange. Last week, the company announced that it would partner with California-based private equity firm Nexus Capital Management and move its test into a for-profit company. A company owned by private equity can obfuscate what the company actually does to the public and potentially to regulators. Private equity firms “come into industries that are already suffering from a lack of funding,” said Creeks. They’ve had a lack of funding and support and so sometimes private equity is the only viable option.
Persons: New York CNN — It’s, Janet Godwin, , ” Goodwin, , we’ve, Charlie Eaton, Goodwin, Critics, Constantine Yannelis, Rebecca Winthrop, They’ve, ” Powell, Jerome Powell, Powell, Bryan Mena, Chris Isidore, United, Max Organizations: CNN Business, Bell, New York CNN, ACT Inc, U.S ., ACT, Nexus Capital Management, , CNN, Nexus, Higher, University of California, ” Nonprofit, Nexus Capital, Savvas Learning Company, Private Equity, Project, University of Chicago Booth School of Business, Center for Universal Education, Brookings Institution, P Global Market Intelligence, College Board, Veritas Capital, , Bank of Canada, Wilson, Fed, United, United Airlines, Boeing, Alaska Airlines, Federal Aviation Administration Locations: New York, Iowa, California, Merced, Canada
Read previewA veteran Boeing engineer told a panel of lawmakers that he received verbal and physical threats for voicing safety concerns to the company. In a Senate hearing on Wednesday, Sam Salehpour, a veteran Boeing employee turned whistleblower, said the company repeatedly ignored his reports of safety lapses during the production of at least 1,400 widebody airplanes. Salehpour said a Boeing quality manager told him not to document concerns or notify experts of the gaps he said exist on the fuselage of hundreds of Boeing 787 Dreamliners. Salehpour — who said he still has his job thanks to whistleblower-protection laws — told lawmakers that has has also received threats against his physical safety. He told lawmakers that although he has "no proof" of where or who the nail came from, he believes it happened at work.
Persons: , Sam Salehpour, Salehpour, Salehpour —, Sen, Richard Blumenthal, Drew Angerer, Taylor Rains Organizations: Service, Boeing, Business, Getty, BI, Alaska Airlines, FAA Locations: AFP, Boeing's Washington
Boeing's corporate planes collectively flew about 4,500 hours across some 1,800 flights last year, according to data from the aviation-tracking website JetSpy. Jet Edge InternationalThe fleet's top airports include Chicago International Airport, Washington Dulles International Airport, and Boeing Field King County International Airport — all located near Boeing's corporate offices and factories. AdvertisementThe locations of Boeing's corporate fleet on April 12, according to JetSpy data. For instance, JetSpy data shows aerospace company Lockheed Martin collectively flew its five private jets for about 2,700 hours in 2023. AdvertisementBoeing wrote in the filing that its CEO "is required to use company aircraft for all business and personal travel for security reasons."
Persons: , Dave Calhoun, Calhoun, Brian West, Lockheed Martin, Taylor Swift, Elon Musk, Max, messier Organizations: Service, Business, Boeing Business Jets, Canadian, Bombardier, Challenger, Jet Edge, Chicago International Airport, Washington, International Airport, Boeing Field King County International, Airport, Lebanon Municipal Airport, Wall Street Journal, Boeing, Lockheed, PepsiCo, Costco, Alaska Airlines, Calhoun . Locations: Westchester, New York, Lebanon, New Hampshire, South Carolina, New Canaan , Connecticut, American
Boeing 's safety and quality were under fire again in two Senate hearings on Wednesday as the manufacturer faces mounting scrutiny after a midair door blowout and near catastrophe on one of its planes in January. A Boeing engineer-turned-whistleblower testified before a Senate panel, reiterating his allegations that the planemaker cut corners to move wide-body planes through the production line, despite flaws. "I believe that Boeing can do better and that the public's trust in Boeing can be restored," he said in prepared remarks to the Senate Homeland Security committee ahead of the hearing "Examining Boeing's Broken Safety Culture: Firsthand Accounts." New plane deliveries from Boeing have slowed as the Federal Aviation Administration ramps up its scrutiny on the company's production lines. A separate hearing, before the Senate Commerce Committee on Wednesday, addressed Boeing's safety culture after a report issued earlier this year from an expert panel ordered by Congress found a "disconnect" between Boeing's senior management and other members of the organization on safety culture.
Persons: Richard Blumenthal, Sam Salehpour, shim, Scott Kirby, CNBC's, Dave Calhoun Organizations: Boeing, Senate Homeland Security, Governmental, Investigations, Senate Homeland, United Airlines, Max, Alaska Airlines, Federal Aviation Administration, Senate, Congress Locations: Washington ,
The information for the following product(s) has been collected independently by Business Insider: Hilton Honors American Express Aspire Card. Here's how I combined rewards credit card points, benefits, and a free night certificate to take a $7,000 trip for less than $350 per person. Both my husband and I have the Hilton Honors American Express Aspire Card from American Express, and we had each gotten a free night certificate with that card. I transferred some American Express Membership Rewards points to British Airways to complete the transaction. The main reason was that our Aspire card came with up to $400 in resort credits a year, meaning our Waldorf charges were ultimately reimbursed.
Persons: you've, that's, Hilton, PlusPoints Organizations: Business, Hilton, Hyatt, Chase, Waldorf, Hilton Honors, American Express, Alaska Airlines, British Airways, Aspire Locations: Maui, Portland , Oregon, Hawaii, Portland, Alaska, West Coast, San Francisco
Washington DC CNN —Boeing’s already battered reputation took another hit at two Senate committee hearings Wednesday on Capitol Hill, with witnesses questioning how the company builds airplanes and the safety of those planes. Boeing did not have any witnesses at either hearing Wednesday, but at a briefing earlier this week it defended the standards used to build planes. Boeing recently said it has searched for records but believes its employees did not document the work. Bill Clark/CQ Roll Call/SipaHe said that since the hearing was announced, his committee has heard from other whistleblowers inside of Boeing. “What I don’t want this committee to do is to scare the you-know-what out of the American public,” he said.
Persons: Washington DC CNN — Boeing’s, Sam Salehpour, he’s, , Salehpour, , don’t, , Ed Pierson, Max, Democratic Sen, Richard Blumenthal, Bill Clark, ” Blumenthal, Republican Sen, Ron Johnson Organizations: Washington DC CNN, Capitol, Boeing, The Foundation for Aviation Safety, National Transportation Safety, Alaska Airlines, Alaska Air, Democratic, Richard Blumenthal of Connecticut, Senate Homeland Security, Governmental, Republican Locations: Richard Blumenthal of, Dirksen, nonunion South Carolina, Alaska, Wisconsin
Boeing’s problems just cost United $200 million
  + stars: | 2024-04-16 | by ( Chris Isidore | ) edition.cnn.com   time to read: +3 min
The company took a $200 million hit in the first quarter after the Boeing 737 Max 9 was grounded following the door plug incident aboard an Alaska Airlines flight. Boeing’s publicity woes and the grounding of the jets weren’t the only way that the airplane manufacturer hurt United. United now says it no longer expects the Boeing 737 Max 10, the latest and longest version of the Boeing 737, to be delivered this year. With questions about the quality and safety of Boeing jets, the certification has likely been pushed back to at least 2025. Of more concern to Boeing, United also said Tuesday that it has reached agreements with two lessors to lease 35 new Airbus A321neos, a 737 Max competitor.
Persons: Max, Scott Kirby, United Organizations: New, New York CNN — United Airlines, Boeing, Alaska Airlines, Federal Aviation Administration, FAA, United, Airbus, Revenue Locations: New York, United
CNN —The union representing pilots at American Airlines says it is seeing a “significant spike” in safety issues on flights. There were roughly a dozen incidents on United Airlines flights last month alone, according to a CNN analysis, which prompted CEO Scott Kirby to send a safety message to customers. “While United Airlines is currently under public and government scrutiny, it could just as easily be American Airlines,” said the message from the union’s safety committee, urging members to report problems and to resist being rushed or intimidated. “As the last link in the safety chain, our passengers and crew depend on us to be the strongest link in that chain,” the message said. American Airlines insisted in a statement that safety is its top priority, saying that “our robust safety program is guided by our industry-leading safety management system.”“It includes a multitude of collaborative programs — and regular touchpoints — with the FAA and all our unions, including APA, to further bolster our strong safety record and enhance our ever-evolving safety culture,” the company added.
Persons: Scott Kirby, Organizations: CNN, American Airlines, Allied Pilots Association, Alaska Airlines Boeing, United Airlines, FAA, APA
United Airlines on Tuesday cut its aircraft-delivery expectations for the year as it grapples with delays from Boeing , the latest airline to face growth challenges because of the plane-maker's safety crisis. "We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver," CEO Scott Kirby said in an earnings release. In January, United said it was taking Boeing's not-yet-certified Max 10 out of its fleet plan. The airline said it has converted some Max 10 planes for Max 9s. United is also facing a Federal Aviation Administration safety review, which has prevented some of its planned growth.
Persons: Scott Kirby, United, Boeing's, Max, Max 9s Organizations: Airlines, Boeing, Airbus A321neos, Max, Federal Aviation Administration, CNBC, FAA, Alaska Airlines, United, Revenue Locations: U.S, Newark , New Jersey, Faro, Portugal, Tokyo, Cebu, Philippines, Southwest
Those what-ifs could further roil gas and oil prices. But if there’s further conflict, he said, “you’d see a much higher premium for oil prices. If there’s a de-escalation of tensions between Israel and Iran, they said, oil prices should come down over the next few weeks. But if there’s an escalation in conflict, they expect that oil prices could jump to more than $100 per barrel, they wrote in a note Monday. Retail sales rose 0.7% in March from the prior month, a slower pace than February’s upwardly revised 0.9% gain, the Commerce Department reported Monday.
Persons: New York CNN —, JPMorgan Chase, Jamie Dimon, ” Dimon, Jerome Powell, We’ll, Christine Lagarde, Andrew Bailey, Dave Sekera, Israel doesn’t, , , Moody’s, there’s, Chris Isidore, Pete Muntean, Sam Salehpour, Read, Bryan Mena, Claire Tassin Organizations: CNN Business, Bell, New York CNN, Dow, JPMorgan, International Monetary Fund, IMF, Bank, Bank of Canada, Seven, European Central Bank, Bank of England, Morningstar, Nvidia, AMD, Wall Street Journal, Federal Reserve Bank of New, Boeing, Federal Aviation Administration, Alaska Airlines, Commerce Department, Morning, Amazon Locations: New York, Russia, Ukraine, China, United States, Washington ,, Iran, Israel, Federal Reserve Bank of New York
Boeing sought on Monday to reassure the public of the safety of its 787 Dreamliner plane days before a whistle-blower is scheduled to testify before Congress about his concerns regarding the jet’s structural integrity. The presentation came just under a week after The New York Times reported the allegations by the whistle-blower, Sam Salehpour, who works as a quality engineer at Boeing and is set to testify before a Senate panel on Wednesday. Mr. Salehpour said that sections of the fuselage of the Dreamliner, a wide-body plane that makes extensive use of composite materials, were not properly fastened together and that the plane could suffer structural failure over time as a result. The Federal Aviation Administration is investigating his allegations. Mr. Salehpour’s claims instantly created another public-relations problem for Boeing, which has been facing intense scrutiny over its manufacturing practices after a panel came off a 737 Max during an Alaska Airlines flight in January.
Persons: Sam Salehpour, Salehpour, Salehpour’s Organizations: Boeing, New York Times, Federal Aviation Administration, Alaska Airlines Locations: North Charleston, S.C
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