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☆ Remittances to Mexico near a record but 'super peso' crimps spending power
▼ + stars: | 2023-10-18 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

A board displays the exchange rates for Mexican Peso and U.S. Dollar in Mexico City, Mexico March 13, 2023. People sending money back to Mexico this year have faced a new challenge: the "super peso." The skyrocketing peso has eroded the purchasing power of households in Mexico who rely on remittances from abroad. "What is truly important for recipients of remittances is not the amount they receive in dollars but the how much they can buy with that in Mexico," Siller Pagaza said. Siller Pagaza estimates that the spending power of remittances in Mexico will decline 9.9% this year, the first drop in a decade and the largest percentage fall in 13 years.

Persons: Lea, Gabriela Siller Pagaza, Siller Pagaza Organizations: U.S, Banco Base Locations: Mexico City, Mexico

☆ Delta walks back some changes to airport lounge access, loyalty program after customer complaints
▼ + stars: | 2023-10-18 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Delta Air Lines on Wednesday walked back some of the broad restrictions it placed on access to its popular airport lounges and trimmed thresholds to earn elite status after complaints from customers. Delta CEO Ed Bastian said in late September that the airline went "too far" with its changes. Delta has been grappling with how to handle swarms of elite frequent flyers and high-fee credit card holders that caused long lines and crowding at the clubs. Following the Covid-19 pandemic, airlines have grappled with how to best reward frequent flyers who returned in droves after spending heavily and racking up miles on rewards cards, even when they weren't traveling. "We very much believe in never causing a situation where everyone has a premier status which obviously results in no one receiving an adequate level of premier benefits," United Airlines chief commercial officer Andrew Nocella said on an earnings call Wednesday.

Persons: Ed Bastian, what's, Delta, Andrew Nocella Organizations: Delta Air Lines, Delta, Sky Clubs, American Express, United Airlines

☆ United says pricier fuel, war in Middle East will weigh on profits
▼ + stars: | 2023-10-17 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Boeing 787-10 Dreamliner, from United Airlines company, taking off from Barcelona airport, in Barcelona on 28th March 2023. United Airlines said more expensive jet fuel and a halt to the carrier's Tel Aviv flights during the Israel-Hamas war will eat into its profits in the last three months of the year. United and other U.S. and international carriers halted their flights to Israel earlier this month. United had more service to Israel than any of the U.S.-based airlines with service from Washington D.C., Newark, New Jersey and San Francisco. Its costs, excluding fuel will likely rise between 3.5% and 5% in the fourth quarter from 2022, United said.

Persons: United Organizations: Boeing, United Airlines, Washington D.C, Delta, LSEG Locations: Barcelona, Tel Aviv, Israel, Chicago, U.S, Washington, Newark , New Jersey, San Francisco, United

☆ Delta says Hollywood, auto strikes are denting business travel
▼ + stars: | 2023-10-12 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

A Delta Airlines passenger jet approaches to land at LAX during the outbreak of the coronavirus disease (COVID-19) in Los Angeles, California, U.S., April 7, 2021. Recent strikes by Hollywood talent and United Auto Workers union members are a "drag" on business travel demand, which is otherwise recovering, Delta Air Lines President Glen Hauenstein said Thursday. The strikes have had "a not insignificant change in the business travel to and from Los Angeles as well as now the UAW strike, which curtailed a significant amount of the business in Detroit," Hauenstein said on an earnings call Thursday. But Hollywood actors, represented by the Screen Actors Guild-American Federation of Television and Radio Artists, are still on strike. Delta's Hauenstein noted that demand from technology and financial services customers posted double-digit growth in the third quarter, contributing to an overall rebound for business travel.

Persons: Glen Hauenstein, Hauenstein, Delta's Hauenstein Organizations: Delta Airlines, LAX, Hollywood, United Auto Workers, Delta Air Lines, Detroit Metropolitan Wayne County Airport, Los Angeles International Airport, UAW, Detroit, Screen, American Federation of Television, Radio Artists, Alliance, Television Producers, Disney, Universal, Netflix, Comcast, CNBC Locations: Los Angeles , California, U.S, Los Angeles, Detroit, NBCUniversal

☆ Delta Air Lines profit jumps almost 60% after strong summer
▼ + stars: | 2023-10-12 | by ( Leslie Josephs | ) www.cnbc.com time to read: +4 min

Delta Air Lines' profit rose nearly 60% in the third quarter as strong travel demand continued through the summer, particularly for international trips, though the carrier forecast full-year earnings toward the low end of an earlier estimate after a jump in fuel prices. Delta cut its free cash flow estimate for the year to $2 billion from the $3 billion it forecast in the summer. Delta and other airlines trimmed their third-quarter forecasts in recent weeks because of a surge in fuel prices. Delta and other global airlines have cited particularly strong demand for trips abroad, with trans-Atlantic travel a standout. Main cabin revenue came in at $6.62 billion, up 12% on the year, while premium product sales rose 17% to $5.11 billion, Delta said.

Persons: Delta, Ed Bastian, Bastian, Airfares, Weeks Organizations: Delta Air Lines, Delta, CNBC, United Airlines, American Airlines Locations: LSEG, Atlanta

☆ Major airlines suspend Israel flights after attacks
▼ + stars: | 2023-10-08 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Passengers look at a departure board at Ben Gurion Airport near Tel Aviv, Israel, on October 7, 2023, as flights are canceled because of the Hamas surprise attacks. Several airlines suspended service to Israel this weekend after surprise attacks by Hamas and Israeli retaliation left hundreds dead. United Airlines , Delta Air Lines and American Airlines each scrubbed service to Tel Aviv. United Flight 954, which departed San Francisco Friday night for Israel, turned back near Greenland, according to flight-tracker FlightAware. Lufthansa Group said all of its flights, including those on Swiss International Air Lines and Austrian Airlines, were suspended into Tel Aviv through Monday.

Persons: El Organizations: Ben, United Airlines, Delta Air Lines, American Airlines, Tel Aviv . United, Lufthansa Group, Swiss International Air Lines, Austrian Airlines, Lufthansa, El Al, Sunday Locations: Ben Gurion, Tel Aviv, Israel, San Francisco, Greenland

☆ United Airlines buys 110 additional Boeing, Airbus jets into the 2030s with delivery slots scarce
▼ + stars: | 2023-10-03 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

United Airlines is ordering 110 additional Boeing and Airbus jetliners, locking in a supply of new planes into the next decade as strong demand and supply chain challenges make new delivery slots scarce. "We would not normally order jets this far out," United's chief commercial officer, Andrew Nocella, told reporters Tuesday. "Production lines, which are now regularly plagued by supply-chain disruptions and delivery delays, are also increasingly sold out for the entire decade." United added options for 40 more Airbus A321s. The airline said it expects an average of more than 145 seats per North American departure in 2027, up 40% from 2019.

Persons: Andrew Nocella Organizations: Boeing, Airbus, United Locations: Chicago

☆ JetBlue raises flight attendant pay, union agrees to support merger with Spirit
▼ + stars: | 2023-09-29 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

JetBlue Airways said it will raise flight attendant pay next year and provide other bonuses to staff while the union representing cabin crews agreed to support the carrier's plan to acquire budget carrier Spirit Airlines . Starting in November, flight attendants will get 5% raises. Including another 2% raise, a slate of other incentives and previously negotiated raises under flight attendants' union contract, their raises in 2026 will compound to 21.5% increases, according to a company memo, which was seen by CNBC Friday. The raises come as the New York-based carrier is in the process of trying to acquire Spirit, a merger the Justice Department has sued to block. JetBlue agreed not to furlough or displace any flight attendants or close any associated bases for seven years after a potential acquisition of Spirit goes through, the memo said.

Persons: JetBlue didn't Organizations: JetBlue Airways, Spirit Airlines, CNBC, Justice Department, JetBlue, Transport Workers Union Locations: New York, Boston

☆ United Airlines pilots approve new contract with up to 40% raises
▼ + stars: | 2023-09-29 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

United Airlines pilots approved a new contract with compensation increases of as much as 40.2% over the four-year contract, making the carrier the last of the three largest U.S. airlines to seal a deal with its aviators during an industry shortage. The deal is worth about $10 billion, according to the Air Line Pilots Association, the pilots' union. ALPA said on Friday that the new contract won 82% approval from the more than 97% of United pilots that voted on it. Delta Air Lines and American Airlines pilots approved new contracts earlier this year, also with big raises. Other unions are also pushing for improved pay and benefits, calling for strikes or potential strikes when negotiations fall short of demands.

Persons: ALPA, Shawn Fain Organizations: United Airlines, U.S, Air Line Pilots Association, United, Delta Air Lines, American Airlines, United Auto Workers, General Motors, Ford Motor

☆ Delta CEO says carrier went 'too far' in SkyMiles changes, promises modifications after frequent flyer backlash
▼ + stars: | 2023-09-28 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Delta Air Lines Boeing 717-200 airplane as seen on the final approach landing at New York JFK John F. Kennedy International Airport, NYC, USA. "No question we probably went too far," Bastian said at the Rotary Club of Atlanta on Monday. The airline and rivals including American and United have been racing to build bigger airport lounges to cater to swelling numbers of big spenders. Bastian said the airline will announce the updated program changes in the coming weeks. A Delta spokesman declined to comment further on the changes.

Persons: New York JFK John F, Ed Bastian, Bastian, we've, It's, David Neeleman Organizations: Delta Air Lines Boeing, New York JFK, Kennedy International Airport, Delta Air, Rotary Club of Atlanta, Delta, American Airlines, Sky, American Express, JetBlue Airways, Medallion, Breeze Airways, JetBlue, CNBC Locations: New, NYC, USA, Delta, American, Atlanta

☆ Delta joins other airlines in cutting profit estimates on higher costs
▼ + stars: | 2023-09-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Delta Air Lines airplanes at the Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, U.S., on Tuesday, Dec. 21, 2021. Delta on Thursday joined other carriers in trimming its profit estimates as costs rise. Delta said it is paying more for fuel than previously expected this quarter, but added that maintenance costs were also more than it anticipated. American Airlines , Spirit Airlines and Frontier Airlines warned Wednesday that higher costs would cut into their profits in the summer quarter. Their lowered outlooks followed similar guidance from Southwest Airlines and Alaska Airlines .

Persons: Delta Organizations: Delta Air Lines, Hartsfield, Jackson Atlanta International, Delta, American Airlines, Spirit Airlines, Frontier Airlines, Southwest Airlines, Alaska Airlines Locations: Atlanta , Georgia, U.S

☆ More companies, especially airlines, warn higher costs will eat into profits
▼ + stars: | 2023-09-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

More companies are warning that a surge in the cost of fuel and employee pay hikes will eat into profits this quarter. Airlines, whose biggest expenses are jet fuel and labor, are getting hit particularly hard. The carrier said it is paying more for fuel than it expected but said maintenance costs were also higher than anticipated. U.S. jet fuel at major airports averaged $3.42 a gallon as of Tuesday, up 38% from two months ago, according to Airlines for America, an industry group. On Wednesday, American Airlines trimmed its earnings forecast, following revisions at Alaska Airlines and Southwest Airlines .

Organizations: Companies, Airlines, Delta Air Lines, U.S, Airlines for America, American Airlines, Alaska Airlines, Southwest Airlines Locations: Hollywood

☆ Delta will make it harder to get into airport lounges, changes rules to earn elite status
▼ + stars: | 2023-09-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Delta Air Lines is changing how customers can earn elite frequent flyer status and is making it harder for many American Express cardholders to get into the carrier's airport lounges, the latest reality check for air travel's era of mass luxury. Starting Jan. 1, customers will earn Delta Medallion status solely based on their spending, instead of a combination of dollars spent with the carrier and flights. Next year, Delta customers will earn 1 Medallion Qualifying Dollar for every $1 they spend on Delta flights, car rentals, hotels and vacation packages booked through the airline. The ratio isn't 1:1 for dollars spent through co-branded American Express cards. Delta SkyMiles Reserve and Reserve Business American Express card members earn 1 Medallion Qualifying Dollar for every $10 spent on the card, while Delta SkyMiles Platinum and Platinum Business American Express Card Members earn 1 Medallion Qualifying Dollar for every $20 spent.

Persons: John F, Dwight James, Delta's Organizations: Kennedy International, Delta Air, American Express, Delta Medallion, American Airlines, CNBC, Delta, SkyMiles Reserve, Reserve Business American Express, Business American Express Locations: New York

☆ American Airlines, Spirit Airlines cut summer profit forecast on higher costs
▼ + stars: | 2023-09-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

An American Airlines plane sits at the gate at Ronald Reagan Washington National Airport (DCA) in Arlington, Virginia on february 23, 2023American Airlines and Spirit Airlines on Wednesday joined other carriers in warning that higher costs will hit profits during the bustling summer quarter. The carrier halved its operating margin from a forecast earlier this summer to 4% to 5%. Spirit Airlines expects negative margins of as much as 15.5% in the three months ending Sept. 30, down from an earlier estimate of -5.5% to -7.5%. Airlines have lost the pricing power they commanded last summer when capacity was more constrained coming out of the pandemic, even though demand has been strong. Southwest Airlines and Alaska Airlines cut their third-quarter forecasts earlier this month.

Persons: Ronald Reagan, Hopper Organizations: American Airlines, Ronald Reagan Washington National Airport, Airlines and Spirit Airlines, Wednesday, Spirit Airlines, Airlines, Southwest Airlines, Alaska Airlines Locations: Ronald Reagan Washington, Arlington , Virginia

☆ RTX to take $3 billion charge on Pratt & Whitney engine problem
▼ + stars: | 2023-09-11 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Model of a Pratt & Whitney GTF engine is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. RTX said Monday that an engine manufacturing flaw forcing accelerated inspections will hit its pretax results this quarter by $3 billion, sending the company's shares down more than 6% in morning trading. The problem stems from flaws with powder metal used to make some of the popular Pratt & Whitney GTF engines. But it said it expects a $1.5 billion hit to cash flow in 2025, bringing that estimate to $7.5 billion from an earlier estimate of $9 billion. Pratt & Whitney has a 51% share in the GTF PW1000 engine program and the cost will be shared with its partners including Germany's MTU.

Persons: Pratt & Whitney, RTX, Whitney Organizations: Pratt &, International Paris Air, Le, Pratt, Airbus, Raytheon Technologies Locations: Le Bourget, Paris, France

☆ Airlines warn about spike in fuel costs, Southwest narrows revenue outlook
▼ + stars: | 2023-09-06 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

A bird flies by in the foreground as a Southwest Airlines jet comes in for a landing at McCarran International Airport on May 25, 2020 in Las Vegas, Nevada. Major U.S. airlines warned about a spike in jet fuel prices, adding to costs during the busy summer travel season. The higher cost forecasts come as Southwest Airlines narrowed its unit revenue outlook for the current quarter. The Dallas-based carrier said it expected unit revenue to fall 5% to 7% from last year in the three months ending Sept. 30. Alaska Airlines said higher fuel prices will eat into its pretax margin this quarter.

Organizations: Southwest Airlines, McCarran International Airport, Major U.S, Jet, Los Angeles and New York, Labor, Airlines for America, Southwest, Alaska Airlines, United Airlines, Airlines Locations: Las Vegas , Nevada, Major, Chicago, Houston, Los Angeles and New, Dallas, Southwest

A United Airlines plane takes off as the Air Force One planeâs wing is seen at San Francisco International Airport (SFO) in San Francisco, California, United States on June 21, 2023. A brief nationwide ground stop for United Airlines flights was lifted Tuesday after the carrier experienced technology issues, the Federal Aviation Administration said. Ground stops halt flights at their origin of departure, not at their arrival destination. We're working with impacted customers to help them reach their destinations as soon as possible," United said in a statement. United's stock price was down about 3% on the heels of the ground stop announcement.

Organizations: United Airlines, Air Force, San Francisco International Airport, Federal Aviation Administration Locations: San Francisco , California, United States

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy airplane boarding is inefficient — and likely to remain soWe all know airplane boarding isn't the most exciting part of a trip. But have you ever questioned why the process isn't faster? There are different boarding methods: front-to-back; back-to-front; random; unassigned seating; and window, middle, aisle (WILMA). CNBC got a behind-the-scenes look in Atlanta where Southwest Airlines is prototyping new solutions to speed up the process. Will we soon see a faster boarding method?

Persons: WILMA Organizations: CNBC, Southwest Airlines Locations: Atlanta

"Boarding is one of the most difficult parts of air travel and frustrating to a lot of passengers," said Leslie Josephs, CNBC's airline reporter. In the 1970s, Southwest Airlines' average turn time, from the moment a plane arrives at the gate to the time it leaves, was only 10 minutes. Flight delays cost airlines and passengers about $33 billion each year, according to government data. But experts say speeding up the boarding process is not really a priority for airlines — they've monetized everything about it. "The different boarding groups that we see today have emerged because people value their priority in boarding," said Kerry Philipovitch, former senior vice president of customer service at American Airlines.

Persons: Leslie Josephs, Chris Parks, Josephs, Kerry Philipovitch, Kerry Organizations: Southwest Airlines, American Airlines

Members of the United Auto Workers union hold a rally and practice picket near a Stellantis plant in Detroit, Aug. 23, 2023. Gallup reports 71% of Americans approved of labor unions in 2022 — the highest since 1965. United Airlines struck a preliminary agreement with its pilots union last month for up to 40% raises over four years. Casey Murray, president of the Southwest Airlines Pilots Association, said frequent reassignments can wear pilots down, just as they would passengers. "They need that predictability," he said, adding that the company has made some progress in talks with the pilots' union in recent weeks.

Persons: Michael Wayland, Robert Bruno, Mario Tama, Daniel, Chris, Wells, Shawn Fain, CNBC It's, Melissa Atkins, hadn't, Johnnie Kallas, Cornell's, Casey Murray, UIUC's Bruno, it's Organizations: United Auto Workers, CNBC, UPS, Workers, Boeing, Spirit, Guild of America, Labor, University of Illinois, Striking, Paramount Studios, Getty, Cornell University School of Industrial and Labor Relations, Screen, – American Federation of Television, Radio Artists, Writers Guild of America, U.S . Bureau of Labor Statistics, Gallup, General Motors, Ford Motor, UAW, Deere, CNH, Detroit, Teamsters Union, Delta Air Lines, American Airlines, United Airlines, Netflix, Warner Bros ., WGA, SAG, Hollywood, Southwest Airlines, Southwest Airlines Pilots Association, U.S, Teamsters Locations: Detroit, Amazon, University of Illinois Urbana, Champaign, Los Angeles, Hollywood

☆ Boeing says a new 737 Max flaw will slow airplane deliveries
▼ + stars: | 2023-08-23 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

A person with an umbrella walks by a Boeing 737 Max fuselage parked outside the company's production facility in Renton, Washington, January 10, 2020. Boeing said a new manufacturing flaw on its best-selling 737 Max will delay deliveries of its best-selling aircraft, the latest setback as the company tries to hand over more planes. The company said it found fastener holes on the aft pressure bulkhead on some 737 planes were improperly drilled. "This issue will impact near-term 737 deliveries as we conduct inspections to determine the number of airplanes affected, and complete required rework on those airplanes," Boeing said. Boeing didn't say whether the new issue would change its forecast to deliver between 400 and 450 Max jets this year.

Persons: Max, Aerosystems Organizations: Boeing, Max, Airbus, The Air, Federal Aviation Administration Locations: Renton , Washington

☆ UPS workers approve massive new labor deal with big raises
▼ + stars: | 2023-08-22 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

UPS workers ratified a massive five-year labor deal that includes big wage increases and other improvements to work rules and schedules, the International Brotherhood of Teamsters said Tuesday. The deal passed with 86.3% of votes, the highest contract vote in the history of Teamsters at UPS, according to the union. The parties had until July 31, when the previous labor contract was set to expire, to reach a deal and avoid a work stoppage. Current workers will get $2.75 more an hour this year and $7.50 an hour more over the five-year contract. FedEx pilots turned down a tentative agreement for a new labor contract earlier this summer.

Persons: Sean O'Brien, Carol Tomé Organizations: International Brotherhood of Teamsters, Teamsters, UPS, Amazon, U.S . Chamber of Commerce, Workers, American Airlines, United Airlines, Delta Air Lines, Southwest Airlines, FedEx Locations: U.S

☆ American Airlines pilots approve sweetened labor deal with big raises
▼ + stars: | 2023-08-21 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

An American Airlines plane takes off from the Miami International Airport on May 02, 2023 in Miami, Florida. American Airlines pilots approved a sweetened labor deal, making the carrier the second major U.S. airline to seal a new contract with its highest-paid work group. An earlier deal between American and the union fell apart after rival United Airlines and that carrier's union reached a richer, preliminary deal. American's pilots voted more than 72% in favor of the new contract, and there was a 95% turnout, according to the Allied Pilots Association. Delta Air Lines pilots ratified a new agreement earlier this year.

Persons: American's, Robert Isom Organizations: American Airlines, Miami International Airport, Miami , Florida . American Airlines, American, United Airlines, Allied Pilots Association, Delta Air Lines Locations: Miami , Florida, U.S

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy airlines are investing millions on bigger and fancier seatsAirlines have been spending big to add more space and comfort to seats on board planes. According to AeroDynamic advisory, airplane seats were a $2.6 billion dollar market globally in 2022, almost half of $6.2 aircraft interiors market. U.S. airlines like American, Delta and United have been adding more premium seats to their fleets. CNBC got an inside look at how seats are made, and to find out why they are becoming an increasingly important part of an airline's business.

Organizations: CNBC Locations: U.S, Delta

Economy seats account for 79.3% of seats between the U.S. and Europe, down from nearly 81.9% in 2018, before the pandemic, according to aviation data firm Cirium. Business-class seats' share of seats sold has grown slightly, from 12.9% to 13.5% though premium economy's share has increased even more, making up 6.4% of seats sold, up from 4.2% five years ago, while first class seats' share fell. Delta, JetBlue Airways , United Airlines , American Airlines , Finnair and Lufthansa are among the carriers that have recently announced upgraded first-class seats, suites with sliding doors or premium economy cabins. On rival United Airlines , a similar itinerary was nearly $1,850 in premium economy and $912 in standard coach. Business class easily tops $5,000 for that route.

Persons: DAL, Natalie Rasmussen, I'm, Rasmussen, Leslie Josephs, Edward Dryden, Delta Organizations: Airline, Delta Air Lines, Virgin Atlantic's, Virgin, U.S, JetBlue Airways, United Airlines, American Airlines, Finnair, Lufthansa, Singapore Airlines, CNBC, Collins Aerospace, Delta, Suites Locations: Europe, San Jose , California, London, Germany, Czech Republic, Delta, Emirates, New York, Paris

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