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☆ From FedEx to airlines, companies are starting to lose their pricing power
▼ + stars: | 2023-12-29 | by ( Leslie Josephs | ) www.cnbc.com time to read: +5 min

Andrew Kelly | ReutersAfter years of unbridled consumer spending on everything from home improvement to dream vacations, some companies are now finding the limits of their pricing power. Nike last week lowered its annual sales growth forecast and unveiled plans to cut costs by $2 billion over the next three years. "Goods companies don't have the pricing power they did in the pandemic, and some in the hotel and travel [industries] — they don't have the pricing power they did in the immediate post-Covid," he added. Sales growth for companies in the S&P 500 is on track to average 2.7% this year, according to mid-December analyst estimates posted by FactSet. Consumer spending on apparel and groceries rose 2.4% and 2.1%, respectively, from the year-earlier period, according to the survey.

Persons: Andrew Kelly, Mills, Joe Cavaretta, David Kelly, FactSet, Kelly, isn't, airfare, John F, Bob Jordan, Jordan, Ohsung Kwon Organizations: FedEx, Reuters, Shipping, Airlines, Target, Nike, Spirit Airlines, Hasbro, Fort Lauderdale Hollywood International, South Florida Sun Sentinel, Tribune, Service, Getty, Florida Sun, Morgan Asset Management, FactSet, Mastercard, Starbucks, Airline, U.S . Department of Labor, Kennedy International, Southwest, CNBC, Detroit automakers, Toyota, Cox Automotive, Bank of America Locations: New York, speedier, Fort, South

☆ Southwest fined $140 million for last year's holiday meltdown
▼ + stars: | 2023-12-18 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

The U.S. Department of Transportation on Monday said it fined Southwest Airlines $140 million for violating consumer protection laws during last year's holiday meltdown that stranded millions of customers following severe winter weather. It includes a $35 million cash payment to the government, which Southwest said will be paid over three years. The agency ordered Southwest to set up a fund to compensate future travelers for flight disruptions in the airline's control. Southwest didn't provide enough customer assistance during the meltdown or give prompt flight change notifications, the DOT said. Speaking at an industry event in New York last week, CEO Bob Jordan vowed that last year's holiday meltdown "will never happen again," just days ahead of the busy holiday travel period.

Persons: Pete Buttigieg, Bob Jordan, Jordan Organizations: U.S . Department of Transportation, Southwest Airlines, Southwest Locations: New York

☆ Southwest CEO vows last year's Christmas meltdown ‘will never happen again’
▼ + stars: | 2023-12-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Southwest Airlines CEO Bob Jordan speaks as he is interviewed by CNBC outside the New York Stock Exchange on Dec. 9, 2021. With the peak Christmas travel season just days away, Southwest Airlines ' CEO vowed that the carrier will not have a repeat of last year's meltdown that stranded thousands of customers and cost the airline more than $1 billion. "It will never happen again," Bob Jordan said at an event Thursday at the Wings Club in New York. Last year, Southwest canceled close to 17,000 flights over the crucial Christmas and New Year's holiday period as it failed to recover from severe weather that gripped most of the country. Southwest struggled with staffing issues as storms left flight attendants and pilots out of position for their next flights, thousands of passenger bags piled up and planes were behind on de-icing.

Persons: Bob Jordan, Jordan Organizations: Southwest, CNBC, New York Stock Exchange, Southwest Airlines, Wings Club, CNBC PRO Locations: New York, Denver

☆ He wanted to be a trombone player. Instead, he ended up as CEO of one of the world's biggest airlines.
▼ + stars: | 2023-11-26 | by ( Chris Johnston | ) www.businessinsider.com time to read: +8 min

He's been CEO of European airline easyJet for the past six years. AdvertisementIn a parallel universe, Johan Lundgren would have become a professional musician and never ended up as CEO of one of the world's biggest airlines. "I like people, and I like travel," Lundgren tells Business Insider in a faint Swedish accent during an interview in central London. He spent many years at TUI, one of Europe's biggest travel companies, rising to deputy CEO by the time he left in 2015. AdvertisementIt's the UK's biggest airline and is first or second in many other markets too.

Persons: Johan Lundgren, He's, Lundgren, —, Swede, easyJet, Charles de Gaulle, Charles de, It's, I've, didn't, Bob Jordan, EasyJet, Stelios Stelios Haji, he's, that's, Michael O'Leary, Filipo Monteforte, Ryanair's Michael O'Leary, O'Leary Organizations: easyJet, Service, Royal College of Music, Soviet Union, SAS, Southwest Airlines, Ryanair, British Airways, London Gatwick, Southwest, UK's, Airbus, Getty Locations: Britain, London, Stockholm, Leningrad, Russia, Soviet Union, Soviet, TUI, Majorca, Europe, Charles, Paris, Charles de Gaulle, easyJet, Ukraine, Sweden, Canada, Toronto, AFP

☆ $29 flights are back as airlines race to fill seats in the off-season
▼ + stars: | 2023-11-11 | by ( Leslie Josephs | ) www.cnbc.com time to read: +6 min

A Frontier Airlines airplane taxis past a Spirit Airlines aircraft at Indianapolis International Airport in Indianapolis, Indiana. Southwest Airlines , for example, last month offered one-way fares of $29 for flights early in the morning or at night, just one example of airline discounting for off-peak periods. Airlines have scheduled a record 259.8 million seats for domestic flights in the fourth quarter, up nearly 8% from last year, on 1.86 million flights, up 6% from 2022, according to aviation-data firm Cirium. United Airlines said it expects to fly 5.9 million passengers from Nov. 17 to Nov. 29, up 13% from last year and 5% more than 2019. That means they could increase their inventory of cheaper basic economy fares during weaker demand periods, or raise fares when demand is high for premium seats.

Persons: Luke Sharrett, Ryan Green, Scott Keyes, airfare, Bob Jordan, Jordan, Barry Biffle, we're, Hopper, that's, Biffle, Henry Harteveldt Organizations: Frontier, Spirit Airlines, Indianapolis International Airport, Bloomberg, Getty, Texas — Airlines, Southwest Airlines, Skift Aviation, Airlines, JetBlue Airways, Budget, JetBlue, Frontier Airlines, . Frontier Airlines, CNBC, Delta Air Lines, United Airlines, American Airlines, Southwest, Atmosphere Research Locations: Indianapolis , Indiana, Texas, Miramar , Florida, Orlando, Vegas

☆ Southwest Airlines profit falls, expects higher deliveries from Boeing in 2023
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Mike Blake/File Photo Acquire Licensing RightsOct 26 (Reuters) - Southwest Airlines (LUV.N) reported a third-quarter profit on Thursday that fell about 30% on soaring labor and fuel costs and the budget carrier said it expects higher aircraft deliveries from Boeing (BA.N) in 2023. Last month, Southwest Airlines raised concerns about rising fuel costs and weaker leisure bookings in August, citing seasonality trends. Southwest expects fourth-quarter operating revenue per available seat mile, a proxy for pricing power, to decrease by 9% to 11% compared with last year. Southwest Airlines also forecast capacity to increase by 15% in the current quarter, once adjusted for the operational disruption faced by Southwest in December last year. Southwest Airlines reported a profit of $193 million, or $0.31 per share, in the third quarter, from $277 million, or $0.44 per share, a year earlier.

Persons: Mike Blake, workgroups, Bob Jordan, Shivansh, Shounak Dasgupta Organizations: REUTERS, Southwest Airlines, Boeing, U.S, Southwest, Boeing's, Thomson Locations: Kahului, Maui, Hawaii, U.S, Bengaluru

☆ Southwest Airlines CEO Bob Jordan: We're taking action to pull back capacity 'prudently' in 2024
▼ + stars: | 2023-10-26 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSouthwest Airlines CEO Bob Jordan: We're taking action to pull back capacity 'prudently' in 2024CNBC’s Phil LeBeau and Southwest Airlines CEO Bob Jordan joins 'Squawk Box' to discuss the company's quarterly earnings results, travel demand outlook, capacity concerns, cost pressures, and more.

Persons: Bob Jordan, We're, Phil LeBeau Organizations: Southwest, Southwest Airlines

☆ Southwest slows 2024 growth as demand moderates
▼ + stars: | 2023-10-26 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

Southwest Airlines said Thursday it plans to slow its capacity growth next year, citing moderating travel demand as booking patterns shift back to pre-pandemic norms. Southwest will expand its flying between 10% and 12% in the first quarter of 2024 from a year earlier, down from a previous forecast of as much as 16% growth, Southwest said in an earnings release. Adjusting for the impact of labor contract adjustments and other one-time items, the company earned 38 cents per share. The company forecast negative margins in the last three months of the year, citing weaker demand even for year-end holidays. Southwest and Spirit shares were each down more than 4% in premarket trading, while Frontier was off 1%.

Persons: Bob Jordan, Ted Christie Organizations: Southwest Airlines, Airlines, Southwest, Spirit Airlines, JetBlue Airways, Department, Frontier Airlines, Frontier Locations: LSEG

☆ Sluggish return of business travelers forces US airlines to rejig their networks
▼ + stars: | 2023-08-03 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +5 min

Before the pandemic hit in 2020, corporate travel was the travel industry's cash cow. Investors in travel companies are concerned that the spending from vacationers cannot make up the shortfall. For months, Alaska Air's (ALK.N) business bookings have been 25% below pre-pandemic levels. JetBlue Airways (JBLU.O) said on Tuesday it will redeploy capacity away from New York to high-margin leisure destinations with business travel demand 20% below pre-pandemic levels. Recent passenger screening and fare data shows U.S. travel demand has peaked, hurting the carriers' pricing power.

Persons: Ronald Reagan, Kevin Lamarque, Shane Tackett, Bob Jordan, Kevin Kopelman, Luis Gallego, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Rajesh Kumar Singh, Doyinsola Oladipo, Sarah Young, Joanna Plucinska, David Gaffen, Matthew Lewis Organizations: Ronald Reagan Washington National Airport, REUTERS, U.S, Investors, Airlines for America, Reuters, JetBlue Airways, Southwest Airlines, Marriott, MasterCard, Delta Air Lines, American Airlines, NYSE, Cowen, British Airways, IAG, Google, JPMorgan, Thomson Locations: Ronald Reagan Washington, Arlington , Virginia, U.S, Alaska, Seattle, Mexico, Costa Rica, California, New York, Asia, Pacific, Europe, Chicago, London

☆ Southwest Airlines CEO Bob Jordan: We predict record revenues again in Q3
▼ + stars: | 2023-07-27 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSouthwest Airlines CEO Bob Jordan: We predict record revenues again in Q3CNBC’s Phil LeBeau and Southwest Airlines CEO Bob Jordan join 'Squawk Box' to discuss the airline's quarterly earnings results, Q3 outlook, record travel demand, pilot negotiations, and more.

Persons: Bob Jordan, Phil LeBeau Organizations: Southwest, Southwest Airlines

☆ Southwest Airlines shares slide as costs rise, unit revenues slip
▼ + stars: | 2023-07-27 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Southwest Airlines Boeing 737-700 aircraft as seen landing at dusk time at Ronald Reagan Washington National Airport DCA in Arlington County, Virginia over the Potomac River in the United States of America flying over water and buildings. Southwest Airlines shares slid more than 6% in premarket trading Thursday after the airline reported lower unit revenue and higher costs during the second quarter — and said the trends are likely to continue this quarter. The Dallas-based airline's second-quarter unit revenue dropped 8.3% from a year earlier, Southwest said, citing a policy change last summer that removed expiration dates from pandemic travel credits. The carrier said it expects unit revenue to fall as much as 7% during the third quarter on capacity up 12% from a year earlier. Airlines have enjoyed record revenue in recent months, but airfare in the U.S. has dropped from 2022, according to the latest inflation read.

Persons: Ronald Reagan, it's, Bob Jordan, they're Organizations: Southwest Airlines Boeing, Ronald Reagan Washington National Airport DCA, Southwest Airlines, Airlines, Southwest, Revenue Locations: Ronald Reagan Washington, Arlington County , Virginia, United States, America, Dallas, U.S

July 26 (Reuters) - Boeing's (BA.N) first delivery of the 737 MAX 7 has been delayed to 2024, the company said in an SEC filing on Wednesday. Boeing still expects the Federal Aviation Administration to certify the MAX 7 and begin FAA certification flight testing for the MAX 10 in 2023, the company said. MAX 10 is currently slated for first delivery in 2024. Both the MAX 7 and MAX 10 are seen as critical for Boeing to compete against Airbus (AIR.PA) for orders at the top and bottom of the narrowbody markets. Boeing must first win approval from the Federal Aviation Administration for its smaller MAX 7 before it can get approval for the MAX 10.

Persons: Dave Calhoun, Mike Fleming, Boeing's, Bob Jordan, Ben Minicucci, Valerie Insinna, David Shepardson, Chris Reese, Nick Zieminski Organizations: SEC, Boeing, Federal Aviation Administration, FAA, Airbus, Southwest Airlines, Wall, Reuters, Airbus ’, Southwest, Alaska Airlines, Thomson Locations: Washington

☆ Southwest says Boeing's aircraft delays will force the airline to scale back hiring plans
▼ + stars: | 2023-04-27 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Southwest Airlines is reducing its hiring targets for this year because of delays in new aircraft from Boeing , the carrier's CEO Bob Jordan said Thursday. The Dallas-based airline expects to receive just 70 new 737 Max planes from Boeing this year, down from a previous forecast of 90, which will reduce its capacity growth plans by one percentage point, Southwest said in quarterly filing. Southwest is one of Boeing's best customers and operates a fleet of all 737s. It has orders for 564 Boeing 737 Max planes through the end of the decade, according to the quarterly report. The company didn't respond to a request to elaborate on how much it will need to reduce its hiring plans.

☆ Southwest Airlines CEO Bob Jordan: We expect a strong profit for the entire year
▼ + stars: | 2023-04-27 | 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 EmailSouthwest Airlines CEO Bob Jordan: We expect a strong profit for the entire yearSouthwest Airlines CEO Bob Jordan joins CNBC's Phil LeBeau and 'Squawk on the Street' crew to discuss the airline's Q1 earnings results, rebuilding brand image in light of recent travel snafus, and more.

☆ Southwest sees 'solid' Q2 profit, flags 20 fewer jet deliveries from Boeing
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +2 min

April 27 (Reuters) - Southwest Airlines Co (LUV.N) said on Thursday it expects "solid profits" in the current quarter on strong summer bookings, and flagged 20 fewer deliveries of the MAX jets this year from Boeing Co (BA.N). Delay in MAX deliveries is expected to increase operating costs for airlines and limit their ability to meet travel demand, hitting revenue. The company expects "solid profits" in the second quarter as well as the full year, but did not provide specific numbers. Analysts polled by Refinitiv expect an adjusted profit per share of $1.05 for the second quarter and $2.73 for 2023. "Travel demand and revenue trends in March were strong and resulted in solid profitability for the month," Jordan added.

☆ Watch CNBC's full interview with Southwest Airlines CEO Bob Jordan
▼ + stars: | 2023-04-27 | 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 EmailWatch CNBC's full interview with Southwest Airlines CEO Bob JordanSouthwest Airlines CEO Bob Jordan joins CNBC's Phil LeBeau and 'Squawk on the Street' crew to discuss the airline's Q1 earnings results, rebuilding brand image in light of recent travel snafus, and more.

☆ Boeing's 737 Max problem is the latest headache for airlines hungry for new planes
▼ + stars: | 2023-04-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

An aerial view of the engines and fuselage of an unpainted Boeing 737 MAX airplane parked in storage at King County International Airport-Boeing Field in Seattle, Washington, June 1, 2022. The problem is related to two of several brackets in the aft fuselage of some 737 Max planes, including the most popular model, the Max 8. Boeing has a backlog of 4,196 Max planes, according to a tally on its website. "Boeing contacted us regarding an issue with a supplier's manufacturing process that will affect the delivery of Boeing 737 MAX planes to Southwest," the company said in a statement Thursday. A worldwide grounding and production pause of the 737 Max followed two fatal crashes of the Max.

☆ Southwest Airlines CEO receives higher bonus despite holiday meltdown
▼ + stars: | 2023-04-06 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +1 min

In February, the company said executive bonuses would be cut as a result of the meltdown. Jordan received $195,720 in bonus payout, up 89% from a year ago, according to a regulatory filing. The Dallas-based carrier also paid a higher bonus to Chief Operating Officer Andrew Watterson. Jordan served as executive vice president until Feb 1, 2022, when he became the company's CEO. Watterson served as chief commercial officer through last September.

☆ In hard times, Corporate America looks out for its CEOs
▼ + stars: | 2023-04-06 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

See here: Recent filings illustrate the way CEOs are still lavishly compensated even when massive screw-ups happen on their watch. A Southwest representative told CNN that the December cancellations did factor into the bonuses paid out to employees. The boards that make decisions on CEO pay are usually stacked with executives or former executives from other companies who benefit from the system. Often, CEOs of distressed companies — rather than seeing pay cut — receive so-called retention bonuses to encourage leaders not to flee the sinking ship. “When all the numbers are crunched, 2022 is going to be a flat year for CEO pay,” said Reda.

☆ Southwest Airlines’ CEO got 75% pay hike ahead of service meltdown
▼ + stars: | 2023-04-06 | by ( Chris Isidore | ) edition.cnn.com time to read: +2 min

New York CNN —Bob Jordan, who took over as CEO of Southwest Airlines in February 2022, just 10 months before the airline’s epic holiday travel service meltdown, got a 75% pay hike last year. When he took over as CEO, Jordan was moving up from an executive vice president position, and the pay hike was part of his promotion. His predecessor as CEO, Gary Kelly, received $5.1 million in 2022, serving as CEO in January and executive chairman the rest of the year. That’s down from the $5.8 million Kelly received in 2021 and $9.8 million he received in 2020. Jordan is not the only new CEO getting a big raise with his promotion ahead of a costly problem for their company.

☆ Southwest Airlines Outlines Plan to Handle Severe Weather Problems
▼ + stars: | 2023-03-14 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

A Southwest plane in Salt Lake City underwent deicing last month during a storm that affected much of the northern U.S.Southwest Airlines Co. said it has identified several solutions to manage the kind of severe winter-weather disruptions that caught it off guard late last year, resulting in thousands of flight cancellations. Chief Executive Bob Jordan said the company understood what caused the holiday disruption. “We expect to mitigate the risk of an event of this magnitude ever happening again,” he said Tuesday.

☆ Southwest to upgrade crew-scheduling software, hire more staff during winter
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - Southwest Airlines Co (LUV.N) said on Tuesday it would upgrade its crew scheduling software and hire more staff in the winter, as the airline attempts to address problems that had led to large-scale cancellations during the holiday season. The Dallas-based carrier has come under fire ever since bad weather during the Christmas holidays left staff stranded across the country, which overwhelmed its crew scheduling software, disrupting travel plans for two million customers. The three-part plan was developed by the airline with inputs from aviation consultancy Oliver Wyman, which was hired to investigate the disruption. The plan looks at bolstering operations during the winter season, when chances of weather-related disruptions to travel-related services are high. "Work is well underway in implementing action items to prepare for next winter - with some items already completed," Jordan said.

☆ Southwest Airlines vows to increase winter staffing and improve tech after holiday mess
▼ + stars: | 2023-03-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Travelers check in at a Southwest Airlines ticket counter during the busy Christmas holiday season at Orlando International Airport on December 28, 2022 in Orlando, Florida. Southwest Airlines ' CEO said the company will increase winter staffing and equipment to help avoid a repeat of mass cancelations over the year-end holidays that cost the company millions of dollars and stranded tens of thousands of travelers. Bitter temperatures during Winter Storm Elliott limited how much time crews were able to spend outside, Southwest said. "We understand the root causes that led to the holiday disruption, and we're validating our internal review with the third-party assessment. "Work is well underway implementing action items to prepare for next winter—with some items already completed."

☆ Biden administration wants Congress to bar airlines from charging family seating fees
▼ + stars: | 2023-03-13 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

REUTERS/Carlos BarriaWASHINGTON, March 13 (Reuters) - The Biden administration on Monday asked U.S. lawmakers to approve legislation to bar airlines from charging family seating fees if adjacent seats are available during booking. The bill would direct airlines to offer refunds or seats on another flight if adjacent seats were unavailable under certain conditions. Last week, American Airlines(AAL.O), Alaska Airlines(ALK.N) and Frontier Airlines(ULCC.O) agreed to guarantee in customer service plans not to charge family seating fees if specific conditions are met. Southwest Airlines (LUV.N) Chief Executive Bob Jordan said last week the airline is in discussions with USDOT about the family seating dashboard. USDOT has begun drafting regulations to end all family seating fees but that could take years to finalize.

It's about six months between when it's certified and we can put it into service," Jordan told reporters at an Aero Club event in Washington. Jordan said his "best guess" is it will be in service by Southwest in early 2024. Boeing said it continues to work with the FAA to meet the requirements for MAX 7 and MAX 10 certification. Boeing has unfilled orders of 388 737 MAXs for Southwest and 271 of those are for MAX 7s. Jordan added that, if MAX 7 entry into service is delayed, Boeing will deliver additional MAX 8s to Southwest this year in lieu of MAX 7s.

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