DIRS.INFO The most relevant business & tech news

☆ Wall Street closes green as GDP data eases recession worries
▼ + stars: | 2023-01-26 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/2] People stand by the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2023. Fourth-quarter earnings season has hit full stride, with more than one fourth of the companies in the S&P 500 having reported. Analysts now see aggregate fourth quarter earnings falling 2.7%, worse than the 1.6% year-on-year decline seen on Jan. 1, but an improvement over the 3% annual decline as of Wednesday, per Refinitiv. Of the 11 major sectors of the S&P 500, all but consumer staples (.SPLRCS) advanced. The S&P 500 posted 23 new 52-week highs and no new lows; the Nasdaq Composite recorded 111 new highs and 32 new lows.

☆ Wall Street gains as solid GDP data offsets signs of economic weakness
▼ + stars: | 2023-01-26 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/2] People stand by the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2023. Fourth-quarter earnings season has hit full stride, with more than one fourth of the companies in the S&P 500 having reported. Analysts now see aggregate fourth quarter earnings falling 2.7%, worse than the 1.6% year-on-year decline seen on Jan. 1, but an improvement over the 3% annual decline as of Wednesday, per Refinitiv. Among the 11 major sectors of the S&P 500, energy (.SPNY) led the percentage gainers, boosted by rising crude prices due to signs of increasing demand from China. Tesla Inc (TSLA.O) provided the most upside muscle to the S&P 500 and the Nasdaq, its shares jumping 9.4% in the wake of its earnings report.

Southwest, which also reported a loss in the fourth quarter, estimates a revenue hit of between $300 million and $350 million in the first quarter. A Southwest Airlines jetliner departs from Chicago Midway International Airport in Chicago, Illinois, U.S., December 27, 2022. He said while a recessionary economic environment tends to make companies de-prioritize spending on technology, Southwest cannot afford to do that. The meltdown led to an adjusted loss of $226 million, or 38 cents a share, in the quarter through December, robbing it of the gains from booming holiday travel demand. Rival carriers United Airlines (UAL.O) and Delta Air Lines (DAL.N) American Airlines (AAL.O) have all reported higher-than-expected earnings for the quarter.

Separately, the Commerce Department said gross domestic product (GDP) increased at an annualized rate of 2.9% in the fourth quarter, above expectations of a 2.6% rise. "It's clear the economy remains relatively strong in the face of the Fed's efforts, suggesting they're succeeding." Growth stocks have been on a winning spree in January, with the S&P 500 Growth index (.IGX) recouping more than half of the losses logged last month. Keeping a lid on gains for Dow e-minis was chemical firm Dow Inc (DOW.N) that slid 3.3% after it missed Wall Street estimates for quarterly profit, hurt by higher energy costs, weaker demand and supply chain disruptions. ET, Dow e-minis were up 81 points, or 0.24%, S&P 500 e-minis were up 22.25 points, or 0.55%, and Nasdaq 100 e-minis were up 121.75 points, or 1.03%.

☆ Southwest Airlines Earnings Hit by Holiday Meltdown
▼ + stars: | 2023-01-26 | by ( Doug Cameron | ) www.wsj.com time to read: 1 min

Southwest said booking trends for March looked better and boosted its planned flying capacity expansion in 2023. Southwest Airlines Co. reported a fourth-quarter loss after a cascade of cancellations in the final week of the year threw its operation into chaos and stranded thousands of passengers. The largest carrier of U.S. domestic passengers said Thursday that it expects another loss in the first quarter as customer cancellations rose at the start of the year and bookings decelerated.

Southwest, which also reported a loss in the fourth quarter, said it expects a revenue hit of between $300 million and $350 million in the first quarter. "Thus far in January 2023, the company has experienced an increase in flight cancellations and a deceleration in bookings, primarily for January and February 2023," Southwest said. The meltdown led to an adjusted loss of $226 million, or 38 cents a share, in the quarter through December, robbing it of the gains from booming holiday travel demand. Rival carriers United Airlines (UAL.O) and Delta Air Lines (DAL.N) American Airlines (AAL.O) have all reported higher-than-expected earnings for the quarter. For 2023, Southwest has forecast "solid profits" with year-over-year margin expansion.

☆ Southwest Airlines forecasts first-quarter loss on cancellations impact
▼ + stars: | 2023-01-26 | by ( Kannaki Deka | ) www.reuters.com time to read: +2 min

Southwest, which also reported a loss in the fourth quarter, said it expects a revenue hit of between $300 million and $350 million in the first quarter. "Thus far in January 2023, the company has experienced an increase in flight cancellations and a deceleration in bookings, primarily for January and February 2023," Southwest said. Operating revenue for the March quarter, when travel demand tends to slow, is expected to rise 20% to 24% year-over-year. On the other hand, expenses surged nearly 30% to $6.56 billion, in part due to the impact from cancellations. For 2023, Southwest has forecast "solid profits" with year-over-year margin expansion.

☆ DOT Probes Southwest Airlines Scheduling After Holiday-Travel Meltdown
▼ + stars: | 2023-01-26 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

Southwest canceled over 16,700 flights around Christmas after it struggled to recover from a severe winter storm across the country. The U.S. Transportation Department is probing Southwest Airlines Co.’s scheduling in the wake of its holiday meltdown last month, examining whether executives sold more flights than the airline could realistically operate. The DOT said it is in the initial phase of a comprehensive investigation into the late December debacle. As part of the investigation, the department said it is looking into whether Southwest engaged in an “unfair and deceptive practice” by offering an unrealistic schedule.

☆ Stocks making the biggest moves premarket: Southwest, Tesla, Las Vegas Sands and more
▼ + stars: | 2023-01-26 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Tesla — The electric-vehicle maker soared 7% after reporting record revenue and an earnings beat. Wall Street analysts cited upbeat comments about its reopening in Macao on the company earnings call for their positive outlook on the stock. Levi Strauss topped analysts' revenue estimates and beat earnings projections by 5 cents a share. Total segment revenues fell short of expectations, while distributable earnings beat estimates by 12 cents a share. American Airlines — The airline gained 1.5% after its fourth-quarter profits beat Wall Street's expectations, thanks to strong holiday demand and high fares.

☆ Southwest CEO maps out a recovery after holiday meltdown: 'We have work to do'
▼ + stars: | 2023-01-25 | by ( Leslie Josephs | ) www.cnbc.com time to read: +8 min

Tayfun Coskun | Anadolu Agency | Getty ImagesSouthwest CEO Bob Jordan's message, after a holiday meltdown derailed the travel plans of millions, is clear: "I can't say it enough. The low-cost airline is working with General Electric to improve the capabilities of software that helps Southwest work out crew reassignments. Southwest said it offered premium pay to flight attendants and $45 million in "gratitude pay" to pilots because of the meltdown. He said that a recent fare sale was successful and that many customers are redeeming the frequently flyer points for Southwest flights. "This payment constitutes full and final settlement of your claim with Southwest Airlines."

☆ Tesla, Microsoft Are Headlining First Busy Earnings Week of 2023
▼ + stars: | 2023-01-21 | by ( Sabela Ojea | ) www.wsj.com time to read: 1 min

Microsoft Corp., Tesla Inc. and Johnson & Johnson headline the first busy earnings week of 2023 as investors search for insight into the global economy in the midst of growing concern over a possible recession. Other companies set to issue their latest quarterly reports include the telecom companies AT&T Inc. and Verizon Communications Inc.; Visa Inc. and American Express Co.; and airlines including Southwest Airlines Co.

☆ Southwest Pilots to Vote on Whether to Authorize Union Leaders to Call for Strike
▼ + stars: | 2023-01-18 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

Southwest Airlines Co. pilots plan to vote later this year on whether to authorize union leaders to call for a strike should they deem it necessary, as they become increasingly frustrated with what they say are stalled contract negotiations. Casey Murray, president of the Southwest Airlines Pilots Association union, told members Wednesday that the union plans to hold the vote starting May 1, citing what he said was a lack of progress years into talks with the airline.

☆ Southwest Airlines pilot union calls for strike authorization vote
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +2 min

Jan 18 (Reuters) - Southwest Airlines Co's (LUV.N) pilot union has called for a strike authorization vote, weeks after a tech meltdown at the carrier left tens of thousands of passengers stranded across the United States. Casey Murray, president of Southwest Airlines Pilot Association (SWAPA), said in a statement. The strike authorization vote will take place beginning May 1 and will be counted at the end of that month, said SWAPA, which represents more than 10,000 pilots. Southwest pilots have been locked in talks over a new contract with the airline for nearly three years. Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber and Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

A reading from the Commerce Department showed retail sales fell 1.1% in December, compared with expectations of a 0.8% drop. Another report showed U.S. producer prices rose less than expected year-on-year in December, adding to evidence of a moderation in inflation. Earnings from big U.S. banks were a mixed bag, with many stockpiling rainy-day funds preparing for a looming recession. Shares of other major carriers including American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and Southwest Airlines Co (LUV.N) rose between 1.6% and 2.2%. IBM Corp (IBM.N) slipped 1.5% after Morgan Stanley downgraded the company's shares to "equal weight" from "overweight", citing slowing revenue growth.

REUTERS/Kamil Krzaczynski/File PhotoJan 18 (Reuters) - New York excavation contractor Brian Dietz does not view higher air fares as a deal-breaker for flying and airlines are seeing more small and medium size companies like his feeding a 2023 rebound in business travel. Although business travelers often book economy seats, corporate travel is critical for airlines because it means more frequent flyers and appetite for higher-margin premium fares. SME executives were some of the first business travelers back on planes after the pandemic-induced slump. They have since emerged as the fastest-growing segment within corporate travel according to Amex GBT. Spending on business travel globally is expected to recover to 80% of 2019 levels in 2023, up from 65% in 2022, according to the Global Business Travel Association (GBTA).

☆ Startups Want to Help Airlines Prevent Tech Meltdowns
▼ + stars: | 2023-01-14 | by ( Belle Lin | ) www.wsj.com time to read: +7 min

Airlines should take advantage of new cloud-based tools, industry consultants said, to help prevent the recent snafus brought on by the use of antiquated and siloed technology at Southwest Airlines Co. and the Federal Aviation Administration. Photo: JIM VONDRUSKA/REUTERSSanta Clara, Calif.-based Couchbase Inc., founded in 2011, said it helped United Airlines Holdings Inc. modernize its operations by providing a cloud-based database for its crew-scheduling software. United declined to comment on its operations technology. Airlines generate a massive amount of data every year from their aircraft, passengers, suppliers and internal operations. Gurobi Optimization LLC, a company that develops mathematical-optimization software for industries including aviation, said it provides optimization technology for airlines such as Air France-KLM.

☆ Southwest Airlines to Revamp Crew Scheduling System
▼ + stars: | 2023-01-13 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

Southwest Airlines Co. has hired an outside consulting firm and is working to strengthen a crew scheduling system after a meltdown roiled its operations during the holidays, Chief Executive Bob Jordan said in an interview. The airline canceled more than 16,700 flights from Dec. 21 through Dec. 31 after it struggled to recover from a severe winter storm long after rival airlines had resumed normal operations. Southwest has said the disruption will reduce its pretax earnings by $725 million to $825 million.

☆ Shareholders sue Southwest Airlines over flight meltdown
▼ + stars: | 2023-01-13 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

REUTERS/Shelby Tauber//File PhotoJan 12 (Reuters) - Shareholders filed a lawsuit against Southwest Airlines Co (LUV.N) on Thursday, accusing the carrier of fraudulently concealing problems that led last month to an operational meltdown and more than 15,000 flight cancellations. Flight operations at Dallas-based Southwest buckled shortly before Christmas as a fierce winter storm swept across the United States. The carrier largely restored normal operations by Dec. 30, several days after other airlines had recovered. In an interview on Thursday, Jordan said Southwest was looking at all operations to avoid a repeat of the meltdown. The case is Teroganesian v Southwest Airlines Co, U.S. District Court, Southern District of Texas, No.

☆ Exclusive: Southwest eyes operational changes after airline's meltdown -CEO
▼ + stars: | 2023-01-13 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, Jan 12 (Reuters) - Southwest Airlines Co (LUV.N) Chief Executive Bob Jordan said on Thursday the company is looking at all options to ensure the operational meltdown it suffered last month is not repeated. The Dallas-based carrier has been dealing with customer outrage and regulatory scrutiny after a systems meltdown last month left thousands of passengers stranded. Southwest has hired consultancy Oliver Wyman to investigate the disruption, Jordan told Reuters in an interview. Southwest's board has set up a new Operations Review Committee to oversee management following last month's systems collapse, Jordan said. With the exception of 1% of bags, the airline has delivered all the luggage which went missing back to customers.

Major carriers such as United Airlines Holdings Inc (UAL.O), American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and Southwest Airlines Co (LUV.N) have rushed to add staff after a faster-than-expected rebound in the U.S. travel market. "Margins are set to take a hit in 2023 as airlines ratify new contracts with labor groups," Cowen analyst Helane Becker said last month. "Delta's recent tentative pilot agreement, assuming it is ratified, could drive incremental unit costs higher by ~2%, and 2%-3% higher for American, Southwest and United," Barclays analyst Brandon Oglenski said on Wednesday. American Airlines on Thursday forecast a higher fourth-quarter profit as the Texas-based carrier benefited from strong demand for travel during the key holiday season. Shares of American Airlines, Delta Air Lines, United Airlines and Southwest Airlines fell between 14% and 30% in 2022 on mass cancellations and economic worries.

☆ U.S. Congress to investigate FAA computer outage that snarled flights
▼ + stars: | 2023-01-11 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

The public needs a resilient air transportation system." House Transportation Committee Chair Sam Graves, a Republican, said the ground stop "highlights a huge vulnerability in our air transportation system." The administration needs to explain to Congress what happened, and Congress should enact reforms in this year’s FAA reauthorization legislation." Senate Majority Leader Chuck Schumer said "the FAA needs to get to root causes so this doesn’t happen again." The FAA authorization is due to expire on Sept. 30 and the outage may put pressure on Congress to complete action.

FAA officials said a preliminary review traced the outage to a damaged database file, but added there was no evidence of a cyberattack and the investigation was continuing. FAA officials said they were working to "further pinpoint the causes" so the problem can be avoided in the future. One issue airlines are facing is trying to get planes in and out of crowded gates, which is causing further delays. He described confusion as airline employees and many passengers were initially unaware of the FAA's moves and flight delays. The U.S. Travel Association, which represents the travel industry including airlines, called the FAA system failure "catastrophic."

☆ Southwest launches one-way fares starting $49 for some routes
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +1 min

Jan 10 (Reuters) - Southwest Airlines Co (LUV.N) on Tuesday launched a limited fare sale for select one-way routes, days after the carrier's massive flight disruptions in December. The airline said it will offer the fares starting at $49 for certain one-way routes, with travelers required to make the purchase 21 days in advance. Southwest faced operational chaos during the peak holiday season due to a tech meltdown, forcing the carrier to cancel more than 16,000 flights that stranded passengers and invited scrutiny from the U.S. government. BofA Global Research on Tuesday cut the price target on the company's shares by $3 to $42 after the wave of cancellations. Reporting by Aishwarya Nair in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ S&P downgrades Southwest Airlines outlook, expects weaker FFO
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +2 min

Jan 9 (Reuters) - Global ratings agency S&P Global lowered Southwest Airlines Co's (LUV.N) outlook to stable from positive, saying it expects the airline to generate weaker funds from operations (FFO) through 2023 amid the recent operational meltdown. Lingering effects from the operational issues and a possible decline in travel demand due to inflation could limit Southwest's ability to raise its fares to cover higher costs, S&P said. Moody's believes the impact on Southwest's passenger volumes and finances will barely be noticeable by this spring and beyond. Last week, Southwest forecast a pre-tax hit of $725 million to $825 million to quarterly earnings due to the cancellations. Reporting by Shivansh Tiwary and Aishwarya Nair in Bengaluru; Editing by Krishna Chandra Eluri and Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ New York state comptroller asks Southwest Air about plans to avoid future meltdowns
▼ + stars: | 2023-01-09 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, Jan 9 (Reuters) - New York State's comptroller has written to Southwest Airlines Co (LUV.N), asking the carrier to explain how it plans to prevent an operational collapse like the one at the end of last year which stranded thousands of passengers. The comptroller's office oversees the state's pension system, which held 1.35 million shares of the Dallas-based company at the end of March 2022. DiNapoli asked the company to share its plan to "correct these failures - not just in the immediate term, but for the coming years." A Southwest spokesperson told Reuters earlier that the airline is focusing on improving its technology for scheduling crews. Reporting by Rajesh Kumar Singh in Chicago Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

Search resuls for: "Southwest Airlines Co"

25 mentions found