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☆ FedEx to fold operating divisions into one organization in cost-cutting push
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +2 min

FedEx had come under criticism from investors last year for its subpar performance compared to UPS, which has a unionized workforce. In response, FedEx outlined extensive plans to cut costs, including parking planes and reducing headcount. The phased transition announced Wednesday will ultimately bring FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies into Federal Express Corporation and will be headed by present Chief Executive Officer Raj Subramaniam, the company said. John Smith will become president and CEO of U.S. and Canada Ground Operations at FedEx Express and assume leadership of surface operations across the FedEx Express, FedEx Ground and FedEx Freight businesses, effective April 16. FedEx Freight will continue to provide freight transportation services as a stand-alone company under the Federal Express Corp banner, the company added.

REUTERS/Dado Ruvic/IllustrationMarch 31 (Reuters) - General Electric Co (GE.N) has settled all its outstanding wind turbine technology patent disputes in the United States and Europe with Siemens Gamesa Renewable Energy S.A (GAM.HA), the companies said on Friday. Siemens Gamesa had sued GE for patent infringement in 2020 over the latter's Haliade-X turbines. Last year, a Boston federal judge barred GE from making and selling its Haliade-X wind turbines in the United States, after a jury found they infringed a patent owned by Siemens Gamesa. But GE was allowed to continue making and operating the turbines for existing projects off the coasts of Massachusetts and New Jersey with royalty payments to Siemens Gamesa. In February, the same judge ruled GE must double its patent royalty payments to Siemens Gamesa for the turbines it uses in a renewable energy project off the New Jersey coast.

March 24 (Reuters) - Financial sector headwinds are creating fresh openings for private equity investments in aerospace, as suppliers' need for capital to meet soaring demand for planes and parts risks further turbulence, executives said. He said he would not oppose a private equity investment, as long as he maintains control and the combination makes sense by lowering costs. Global private equity deals among companies with aerospace portfolios rose to 216 in 2022, more than double 2019's figure and the highest in over a decade, according to Refinitiv data. Permanent Equity wants to invest in repair stations and suppliers with large inventories of aerospace parts. In Canada, while bank loans remain accessible for small suppliers, rising rates have flattened real estate pricing.

REUTERS/Dado Ruvic/Illustration/File PhotoMONTREAL, March 23 (Reuters) - Business jet maker Bombardier Inc (BBDb.TO) on Thursday raised 2025 revenue and free cash flow targets at its investor day, and said it would produce more corporate planes, sending shares up 4.9% in morning trade. Corporate jet makers have reported swelling order backlogs on persistent strong demand for private flying in the U.S. He said Bombardier expects to produce about 150 business jets by 2025, and is targeting more than $9 billion in annual revenue, up from an earlier goal of $7.5 billion. With no announced 2025 capex target and the entry into service of its flagship Global 7500 in 2018, investors and analysts are expected to raise questions over plans for a new jet. Desjardins analyst Benoit Poirier said Bombardier's free cash, revenue and deliveries targets were stronger than expected and deemed the lack of a capex commitment less risky.

CHICAGO, March 14 (Reuters) - U.S. airlines on Tuesday tried to reassure investors about the strength of travel demand, a day after United Airlines (UAL.O) stoked worries about the industry's pricing power. Even as executives in other sectors of the economy have warned of recession risks, airline chief executives until now have remained upbeat as consumer travel demand stayed strong. Delta reaffirmed its first-quarter outlook, saying travel demand is strong and getting stronger. American Airlines (AAL.O) CEO Robert Isom said the Texas-based carrier was enjoying "tremendous" demand. Airline ticket prices have gone up due to persistent capacity constraints and an unending thirst for travel after pandemic-related restrictions ended.

A jump in air travel demand has driven up sales at its aerospace division, which makes and services engines for Boeing Co (BA.N) and Airbus SE (AIR.PA) jets. GE also reiterated its profit outlook for 2023 as booming demand in its aerospace business is expected to make up for the challenges in its renewable energy business. It expects adjusted earnings of $1.60 to $2.00 per share in 2023, with revenue growth percentage in high single digits. GE estimated that the aerospace business would generate double-digit revenue growth this year, translating into an operating profit of $5.3 billion-$5.7 billion. However, supply and labor shortages have hurt jet engine output, with CEO Culp saying it was a daily battle to meet jet engine demand.

☆ Boeing 767 freighter, KC-46 tanker face delivery snags due to fuel tank problem
▼ + stars: | 2023-03-07 | by ( Valerie Insinna | ) www.reuters.com time to read: +2 min

WASHINGTON, March 7 (Reuters) - A new supplier problem has stymied deliveries of Boeing's (BA.N) 767 freighter and KC-46 tanker, the company confirmed on Tuesday. On Monday, Leeham News reported a software problem had delayed some 737 MAX deliveries by up to a year. A Boeing spokesperson told Reuters the issue "does not affect the timing of Boeing airplane deliveries and has no impact to our delivery outlook." Boeing characterized the problem as a documentation issue that will not require rewriting software, and which mostly impacts aircraft that have already been delivered. Boeing has not changed its delivery target of 70 to 80 Dreamliners this year.

☆ Boeing shares fall after new Dreamliner delivery halt
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +2 min

Feb 24 (Reuters) - Boeing Co (BA.N) shares fell 3.2% in premarket trading on Friday after the U.S. planemaker temporarily halted deliveries of its 787 Dreamliner jets over a documentation issue related to a fuselage component. Some analysts said the latest hiccup in 787 deliveries should not result in any design changes and jets in service should continue to fly. Seifman said the brokerage believes this should not result in additional rework and that Boeing can produce the required documentation fairly quickly. Since the resumption of deliveries, production of the 787 has experienced some disruptions as the planemaker battles supply and labor shortages. Earlier this month, Spirit said the process of retrofitting stored fuselages for the 787 jets was taking longer than expected.

☆ Raytheon says can support mid-50 Airbus A320 output, backs Boeing target
▼ + stars: | 2023-02-22 | by ( Abhijith Ganapavaram | ) www.reuters.com time to read: +2 min

Feb 22 (Reuters) - Aerospace giant Raytheon Technologies Corp (RTX.N) can support a monthly production rate in the mid-50s range for Airbus SE's (AIR.PA) A320 aircraft this year, a target that appears slightly below the planemaker's planned output hike. Speaking at a Barclays conference on Wednesday, Raytheon Chief Executive Officer Greg Hayes backed Airbus rival Boeing Co's (BA.N) planned 737 MAX jet production hike. Boeing aims to raise the production of its bestselling 737 MAX jetliner from about 31 jets a month. Production targets of the planemakers are under the scanner by investors - albeit for different reasons. Raytheon-owned Pratt & Whitney's engines power all Airbus A220 jets and about half of A320neo aircraft.

☆ Struggling aerospace suppliers may not be able to support jet output hikes - survey
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +2 min

Feb 16 (Reuters) - Meeting Boeing Co (BA.N) and Airbus SE's (AIR.PA) planned jet output hikes this year will not be a "slam dunk" for the aerospace supply chain, a Morgan Stanley survey of 80 suppliers showed on Thursday. "This comes as a surprise as we would have expected for sentiment to improve considering the industry focus on labor, inflation and supply chain," Morgan Stanley analyst Kristine Liwag said in a note. Boeing and Airbus have struggled to raise jet production amid parts and labor shortages. About 63% of those who responded to the Morgan Stanley survey, conducted at the Pacific Northwest Aerospace Alliance Annual Conference outside of Seattle, were smaller suppliers with less than $100 million in annual revenue. Reporting by Abhijith Ganapavaram in Bengaluru and Valerie Insinna in Washington; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

☆ Bombardier jet deliveries to rise in 2023 on private flying boost
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +2 min

[1/2] An attendee exits the Bombardier Global 6500 business jet at the National Business Aviation Association (NBAA) exhibition in Las Vegas, Nevada, U.S. October 21, 2019. REUTERS/David Becker/File PhotoFeb 9 (Reuters) - Canada's Bombardier Inc (BBDb.TO) on Thursday forecast higher business jet deliveries for 2023, after strong demand for private flying drove its quarterly results above expectations despite persistent supply-chain snags. Cessna jet maker Textron Inc (TXT.N) had also offered a strong 2023 forecast last month. It forecast 2023 revenue of more than $7.6 billion, compared with estimates of $7.69 billion, according to Refinitiv data. Free cash flow is expected to be over $250 million, compared with last year's $735 million.

☆ Spirit Aero experiencing disruptions in supplying parts for 787, A350 programs
▼ + stars: | 2023-02-07 | by ( Abhijith Ganapavaram | ) www.reuters.com time to read: +3 min

Feb 7 (Reuters) - Spirit AeroSystems Holdings Inc (SPR.N) said on Tuesday it was experiencing disruptions in supplying parts for the industry's top-selling wide-body jets, the Boeing 787 and Airbus A350, due in part to labor shortages. Spirit said it found the new process for the 787 required more labor per unit. On Airbus' A350 program, Spirit said disruptions continue to drive cost pressures. Spirit has targeted producing shipsets between 40 and 45 this year for the 787 program and about 60 units for the A350. Spirit reported a quarterly cash burn of $66 million, compared with analysts' estimates of $42.64 million, according to Refinitiv data.

Jan 26 (Reuters) - U.S. airlines expect strong travel demand that drove record fourth-quarter revenues to continue into 2023, but economic uncertainty and burgeoning labor and operations costs could cloud their rosy outlooks. On Thursday, American Airlines (AAL.O), JetBlue Airways Corp (JBLU.O) and Alaska Air Group (ALK.N) forecast better-than-expected full-year earnings. JetBlue forecast expenses excluding fuel to rise 1.5% to 4.5% in 2023. China's recent reopening may also boost international travel, but demand remains uncertain and U.S. airlines face challenges toward cashing in. American Airlines forecast an adjusted profit of $2.50 to $3.50 per share for 2023, handily beating analyst expectations of $1.77, according to Refinitiv data.

Jan 26 (Reuters) - U.S. carriers on Thursday gave strong earnings forecasts for the year despite economic worries after buoyant demand for air travel during the crucial holiday season helped lift quarterly results. On Thursday, American Airlines (AAL.O), JetBlue Airways Corp (JBLU.O) and Alaska Air Group (ALK.N) all forecast better-than-expected earnings for the full year. The company's Northeast Alliance partner American Airlines forecast an adjusted profit of $2.50 to $3.50 per share for 2023, handily beating analyst expectations of $1.77, according to Refinitiv data. "As we turn our attention to 2023, we will continue to prioritize reliability, profitability and debt reduction," American Airlines Chief Executive Robert Isom said. read moreBoth American Airlines and JetBlue posted fourth-quarter earnings that beat estimates on Thursday.

CHICAGO, Jan 24 (Reuters) - General Electric Co (GE.N) on Tuesday reported better-than-expected quarterly earnings on robust demand for its jet engines and power equipment, but offered a disappointing profit forecast for this year as it struggles with persistent problems at its renewable energy business. It, however, forecast an operating loss between $200 million and $600 million for its energy business GE Vernova in 2023. The company's renewable energy business has been facing challenges due to inflation and supply chain pressures. Culp said high inflation is also posing a challenge for offshore wind business as it is making customers review economics of their projects. He expects inflation to be a "test" for the company even as it adjusts its prices to offset higher costs.

☆ GE's 2023 profit forecast weighed down by renewable business
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +1 min

Jan 24 (Reuters) - General Electric Co (GE.N) forecast a lower-than-expected 2023 adjusted profit on Tuesday, as the industrial major struggles with persistent problems at its money-losing renewable energy business. Shares in GE were down 2% at $78.29 in premarket trade after the company forecast an operating loss between $200 million and $600 million for its energy business GE Vernova in 2023. The company's renewable energy business has been facing challenges due to inflation and supply chain pressures. GE Aerospace's operating profit is expected to come in between $5.3 billion and $5.7 billion for 2023. GE's adjusted profit for the fourth quarter was $1.24 per share, beating analysts' average estimate of $1.13 per share.

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).

WASHINGTON/CHICAGO, Jan 12 (Reuters) - U.S. airline operations returned to normal on Thursday even as the Federal Aviation Administration (FAA) continues to investigate pinpoint the cause of a computer outage that grounded flights nationally and to prevent it from happening again. "FAA operations are back to normal, and we are seeing no unusual delays or cancellations this morning," the FAA said in a tweet. More than 11,300 flights were delayed or canceled on Wednesday in the first national grounding of domestic traffic in about two decades. As of noon Thursday, 1,400 U.S. flights were delayed and 117 were canceled, according to FlightAware, a typical aviation day given current weather issues. Major carriers Delta Air Lines (DAL.N), United Airlines (UAL.O), American Airlines Group Inc (AAL.O) and Southwest Airlines (LUV.N) all were reporting normal operations on Thursday.

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."

☆ Explainer: Why U.S. flights were grounded by a FAA system outage
▼ + stars: | 2023-01-11 | by ( ) www.reuters.com time to read: +4 min

Over 4,000 flights were delayed and more than 600 canceled because of the outage as of early Wednesday morning. The FAA system that is meant to distribute notices to pilots on hazards failed at about 2 a.m. Eastern Time, officials said. [1/3] Passengers wait for the resumption of flights at O'Hare International Airport after the Federal Aviation Administration (FAA) had ordered airlines to pause all domestic departures due to a system outage, in Chicago, Illinois, U.S., January 11, 2023. REUTERS/Jim Vondruska 1 2 3The NOTAMs sent by the U.S. Federal Aviation Administration are part of a global safety system managed through the United Nations' aviation agency. The incident, and the information overload that pilots complain the system encourages, prompted the effort to change the way the system operates.

☆ Southwest Airlines expects to post loss after mass cancellations
▼ + stars: | 2023-01-06 | by ( ) www.reuters.com time to read: +1 min

Jan 6 (Reuters) - Southwest Airlines Co (LUV.N) on Friday revised its fourth quarter forecast to net loss from "strong profit" after a technological meltdown forced it to cancel thousands of flights around Christmas and New Year's Eve. Southwest Airlines led flight cancellations across carriers during the last two weeks of December, as a massive winter storm swept across the eastern part of the United States. The net loss will largely be due to an estimated pre-tax negative impact of $725 million to $825 million, the company said in a regulatory filing. Shares of the company fell about 1% in premarket trade. Reporting by Kannaki Deka and Abhijith Ganapavaram in Bengaluru; Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Southwest flight upheaval a 'system failure,' U.S. says
▼ + stars: | 2022-12-28 | by ( Kanishka Singh | ) www.reuters.com time to read: +3 min

WASHINGTON, Dec 28 (Reuters) - U.S. Transportation Secretary Pete Buttigieg said that large-scale flight schedule disruptions at Southwest Airlines (LUV.N) were no longer a weather-driven issue and represented a system failure within the company. The rest of the aviation system and other airlines seemed to be back from the weather disruptions, Buttigieg said. More than 2,500 Southwest Airlines flights were canceled as of Wednesday morning, according to the flight tracking website FlightAware. REUTERS/Michael A. McCoy 1 2 3Delta Air Lines (DAL.N) said in an email it had capped fares in all markets where Southwest operates, including domestic and international markets. Southwest told Reuters that it would reimburse customers for travel-related costs and that it had already processed thousands of requests by Tuesday.

☆ Southwest cancels thousands more U.S. flights
▼ + stars: | 2022-12-27 | by ( ) www.reuters.com time to read: +2 min

Dec 27 (Reuters) - Southwest Airlines Co (LUV.N) led U.S. airline cancellations on Tuesday as the low-cost carrier struggled to recover from harsh winter weather that has wrecked holiday plans for many. An arctic blast and a massive winter storm dubbed Elliott swept over much of the United States in the lead-up to the Christmas holiday weekend, forcing Southwest to scrap more than 12,000 flights since Friday. "The other airlines likely had manageable cancellations and delays, and actually appear to have recovered (in time to get everyone home)." Southwest said on Monday it had decided to continue operating a reduced schedule by flying roughly one third of its schedule "for the next several days." In total, U.S. airlines have canceled more than 5,000 flights for Tuesday and Wednesday, as of Tuesday morning.

☆ Boeing slows final 787 assembly rate in South Carolina over parts delay
▼ + stars: | 2022-12-23 | by ( ) www.reuters.com time to read: +1 min

[1/2] The Boeing logo is displayed on a screen, at the New York Stock Exchange (NYSE) in New York, U.S., August 7, 2019. REUTERS/Brendan McDermidWASHINGTON, Dec 23 (Reuters) - Boeing Co (BA.N) on Friday said it slowed production of its 787 Dreamliner in South Carolina after a parts delay, but said previously its delivery and production outlook is unchangedBoeing in October said it was continuing to produce 787s at a low rate, and "will gradually return to five airplanes per month over time." Boeing in August delivered its first 787 since May 2021 after facing production problems. The Federal Aviation Administration cleared the way for deliveries to resume after approving Boeing's inspection and retrofit plan needed to meet certification standards in July. Reporting by David Shepardson and Abhijith Ganapavaram; Editing by Mark PorterOur Standards: The Thomson Reuters Trust Principles.

☆ Aerospace suppliers flag cash flow warning as jet production hits turbulence
▼ + stars: | 2022-11-18 | by ( Abhijith Ganapavaram | ) www.reuters.com time to read: +2 min

Nov 18 (Reuters) - Aerospace suppliers are staring at the prospect of dwindling cash flow as they struggle with excess inventory due to production challenges at top planemakers Boeing Co (BA.N) and Airbus SE (AIR.PA). Boeing-supplier Spirit AeroSystems Holdings Inc (SPR.N) said earlier this month a "challenging environment" is "putting a lot of pressure on our ability to generate cash". "We've got to carry extra inventory buffers because of supply chain," Spirit's finance chief, Mark Suchinski, had said. An inventory build opens up the possibility that companies may struggle in the event of a downturn but aerospace executives maintain demand is strong. "Our analysis indicates healthy growth in aircraft deliveries even through a severe recession," CFRA Research senior equity analyst Colin Scarola said.

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