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☆ These stocks are cheap compared to the S&P 500 and are expected to see big earnings growth in 2023
▼ + stars: | 2023-01-22 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

Nevertheless, analyst expect certain stocks currently trading at cheap valuations to grow earnings this year. These pressures have analysts expecting the first earnings decline for the S & P 500 since the throes of the pandemic. According to FactSet, analyst see fourth-quarter S & P 500 profits declining by 4.6%, which would mark the worst earnings season since the third quarter of 2020. Still, there are some stocks trading at cheaper valuations than the S & P 500 that are also expected to see strong earnings growth in 2023. FedEx is another name that made the cut, with its earnings expected to surge by 24% in 2023.

Labor shortagesAs the pandemic swooped in, air travel was among the industries most affected, as more than 90% of flights were grounded. Today, labor shortages exist throughout the economy, but the problem drags on in the air travel sector, where more extensive employee training is usually required. Steven Senne / APOutdated technology and infrastructureThere is near-universal agreement that the infrastructure underpinning segments of America's air travel system is outdated and vulnerable. Rep. Sam Graves, R-Montana, said the incident highlighted "a huge vulnerability in our air transportation system." Air travel should be predictable and consistent, and you shouldn’t have to wonder if air traffic control is going to be working today as you head to the airport.

☆ FAA says contractor unintentionally deleted files before outage disrupted thousands of flights
▼ + stars: | 2023-01-20 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

"A preliminary FAA review of last week's outage of the Notice to Air Missions (NOTAM) system determined that contract personnel unintentionally deleted files while working to correct synchronization between the live primary database and a backup database," the FAA said. The FAA reiterated that it hasn't found evidence of a cyberattack or "malicious intent" and that it is still investigating what occurred. Lawmakers from both parties demanded answers about technology vulnerabilities in the U.S. aviation system. Airline executives complained about inadequate funding and staffing for the FAA. "Hopefully this will be the call to our political leaders in Washington that we need to do better."

☆ Brazilian lender Santander's Chairman Rial resigns
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, Jan 20 (Reuters) - Brazilian lender Santander Brasil SA said on Friday its chairman and former chief executive, Sergio Rial, is resigning from his position at the firm. The resignation comes just days after Rial quit his short-lived job as chief executive of retailer Americanas SA after finding accounting "inconsistencies" that led the company to file for bankruptcy protection. Rial was Santander Brasil's CEO for six years, as well as the bank's regional head for South America, before transitioning to board chairman in early 2022. He is also chairman of the board at fuel distributor Vibra Energia SA (VBBR3.SA), vice chair at BRF SA (BRFS3.SA) and a board member at Delta Air Lines (DAL.N). Rial will be replaced on an interim basis by his vice chair, Deborah Stern Vieitas, until the bank's next general meeting on April 28.

☆ Lufthansa Bids to Buy Stake in Alitalia’s Successor, Betting on Air Travel Recovery
▼ + stars: | 2023-01-18 | by ( Mauro Orru | Benjamin Katz | ) www.wsj.com time to read: 1 min

Lufthansa wants to expand in Italy because of its importance as one of Europe’s biggest economies and most popular vacation destinations. Germany’s Deutsche Lufthansa AG said it had submitted a bid to buy a stake in ITA Airways, the Italian carrier formerly known as Alitalia, in a bet on the continued recovery in air travel. Lufthansa said Wednesday it was seeking exclusive talks with the Italian government to initially acquire a minority stake in ITA Airways, with an option to buy the remaining shares at a later date. The move comes after a consortium including Air France-KLM Group and Delta Air Lines Inc. failed to reach a deal to buy a stake in ITA after entering talks last year.

☆ U.S. airlines sound bullish on travel demand despite recession risk
▼ + stars: | 2023-01-18 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +3 min

CHICAGO, Jan 18 (Reuters) - U.S. airlines on the back of strong financial results remain upbeat about travel demand, even as economists and analysts say the risk of an economic recession has gone up. United Airlines (UAL.O) and Delta Air Lines (DAL.N) reported higher-than-expected quarterly earnings on resilient consumer demand, while American Airlines (AAL.O) lifted its profit outlook. Carriers are enjoying the strongest travel demand since the start of the COVID-19 pandemic, boosted by reopening of closed borders, a strong U.S. dollar and rising corporate travel. While recession fears have sparked concerns about consumer spending, airline executives say travel demand is not likely to wane any time soon. United estimates domestic passenger revenue previously accounted for about 0.5% of the country's gross domestic product.

☆ 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).

☆ Airlines remain bullish on travel demand despite mounting economic worries
▼ + stars: | 2023-01-18 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +3 min

CHICAGO, Jan 18 (Reuters) - U.S. airlines posting strong financial results remain upbeat about travel demand, even as economists and analysts say the risk of an economic recession has gone up. If anything, they say, the relationship between passenger revenue and broader economy is returning to pre-pandemic trend. United estimates domestic passenger revenue used to account for about 0.5% of the country's GDP. It expects the trend to be restored this year, resulting in 15% higher revenue for the industry this year. "Demand remains strong, pricing is likely to remain favorable due to industry capacity constraints," said Cowen analyst Helane Becker.

☆ Southwest pilots' union calls vote to authorize potential strike as contract talks sour
▼ + stars: | 2023-01-18 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Southwest Airlines pilots' union plans to hold a vote that could give it the power to call a potential strike, a move that comes weeks after the carrier's holiday meltdown further strained ties with its workers' unions. Southwest and the Southwest Airlines Pilots Association have been in negotiations for a new contract for years. Union leaders have focused on better work rules and scheduling for Southwest workers. The union's president, Casey Murray, said it was the first time the union has held a strike authorization vote. "This decision is not one based on emotion, but I would be lying if I said that I wasn't angry," Murray wrote to pilots.

☆ Wall Street sees big gains ahead in these industrial stocks, even with a recession on the horizon
▼ + stars: | 2023-01-18 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Conventional wisdom says to steer clear of industrial stocks heading into a recession, in anticipation of sputtering economic growth and factory production. But even in the face of a looming downturn this year, Wall Street still expects a host of industrial companies to weather the turmoil, and sees strong gains in the months ahead. XLI YTD mountain The XLI is up more than 2% this year Industrial stocks outperformed last year and continue to fare well in 2023. Delta shares could see the greatest upside of the three, with the consensus target implying a 32% potential rally in the shares. Auxiliary power equipment maker Generac also made the list, with the average price target suggesting shares stand to gain as much as 20%.

☆ U.S. airlines do not see speedy return of China, Japan travel demand
▼ + stars: | 2023-01-17 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

The group added ticket sales for the U.S.-China market as of December remained 88% below 2019 levels, adding passenger demand for both markets remains "severely depressed." The group added that "international air travel to China remains severely depressed due to cumbersome, uncertain, and constantly evolving travel requirements and entry barriers." The group said travel to Tokyo Haneda airport remains severely depressed. "While Japan is starting to reopen to international travel and, as a result, the U.S.-Tokyo demand environment is improving, the pace of the rebound has been sluggish and forward-looking demand remains choppy," the group said. Delta Air Lines (DAL.N) said on Friday it expects to cautiously "rebuild capacity to China in line with demand starting later this year."

☆ United results top estimates as demand remains resilient despite high fares
▼ + stars: | 2023-01-17 | by ( Leslie Josephs | ) www.cnbc.com time to read: +4 min

A grounds crew member directs an United Airlines airplane to a gate at Terminal A at Newark Liberty International Airport (EWR) in Newark, New Jersey, US, on Thursday, Jan. 12, 2023. United Airlines ' fourth-quarter profit and outlook for early 2023 topped Wall Street estimates thanks to strong travel demand and high fares. Meanwhile, aircraft delivery delays and training backlogs have constrained airlines' growth, keeping fares high. United reported an $843 million profit for the last three months of 2022, a 31% increase compared with three years earlier, on revenue of $12.4 billion. Also last week, American Airlines , which reports on Jan. 26, hiked its profit and sales forecast for the fourth quarter.

☆ Delta CEO called last week's FAA outage 'unacceptable' and said the agency needs more funding
▼ + stars: | 2023-01-17 | by ( Taylor Rains | ) www.businessinsider.com time to read: +3 min

Air traffic was temporarily halted last week after an FAA system, known as Notice to Air Missions, crashed. Over 10,000 flights were delayed, but Delta Air Lines CEO Ed Bastian said he doesn't blame the agency. Senate Majority Leader Chuck Schumer is pushing to confirm President Joe Biden's pick for FAA Administrator. In a separate interview, American Airlines CEO Rob Isom told CNBC that there needs to be more investment in FAA technology. "With recent events, including airline troubles and last week's tech problem, this agency needs a leader confirmed by the Senate immediately."

☆ U.S. fines Virgin Atlantic $1.05 million for flying over Iraq
▼ + stars: | 2023-01-17 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, Jan 17 (Reuters) - The U.S. Transportation Department (USDOT) said Tuesday it had fined Virgin Atlantic $1.05 million for flying in restricted airspace over Iraq on numerous occasions. Virgin Atlantic said Tuesday that "as soon as we were made aware of this compliance issue by the DOT, our code share flight routings were immediately corrected." At the time, other foreign governments permitted flying over Iraqi airspace at high altitudes, with numerous flights over Iraq daily. Virgin Atlantic must pay $525,000 in three installments while the remaining $525,000 is payable only if Virgin Atlantic violates the order’s cease and desist or payment provisions. USDOT said Virgin Atlantic had told the agency the "prohibited overflights were inadvertent, caused by operational disruptions and loss of personnel due to the COVID-19 pandemic."

☆ United Airlines expects to quadruple profit in 2023
▼ + stars: | 2023-01-17 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, Jan 17 (Reuters) - United Airlines Holdings (UAL.O) on Tuesday forecast at least a four-fold jump in full-year profit for this year and reported fourth-quarter earnings that topped Wall Street estimates on robust travel demand, sending its shares higher. The Chicago-based carrier sees an adjusted profit of $10 to $12 per share for 2023, up from $2.52 per share last year. U.S. carriers are enjoying the strongest travel demand since the start of the COVID pandemic, boosted by reopening of closed borders, a strong U.S. dollar and rising corporate travel. While recession fears have sparked concerns about consumer spending, airlines say travel demand remains strong and exceeds the pace of flight capacity growth, keeping ticket prices high. It posted a fourth-quarter profit of $2.46 per share exceeded analysts' expectations for $2.10, according to Refinitiv data.

☆ Federal agencies are investigating the near-collision of American and Delta jets in New York
▼ + stars: | 2023-01-17 | by ( Taylor Rains | ) www.businessinsider.com time to read: +3 min

Two commercial jets operated by Delta Air Lines and American Airlines nearly collided on Friday. The Federal Aviation Administration and the National Transportation Safety Board are investigating. "The safety of our customers and team members is our top priority," American told Insider. "We are conducting a full internal review and cooperating with the National Transportation Safety Board in their investigation." "The safety of our customers and crew is always Delta's number-one priority," the airline told Insider.

NTSB spokeswoman Sarah Sulick told CNN interviews related to the investigation are ongoing, a detail that has not yet been reported elsewhere. Investigators will be able to listen to the radio transmissions, which have already been recorded and preserved. Those recordings would also reveal if the American pilots heard the instructions completely from the air traffic controllers and if so, how they apparently became confused. If the voice records inside the American cockpit are preserved, they may depict a detailed conversation about the aircraft’s on-the-ground movements. In this incident, radio recordings show controllers instructed the American pilots to place a phone call to officials at the tower to address the “possible pilot deviation” from the assigned route.

Airfares from China are now 160% higher than before the pandemic, data from travel firm ForwardKeys shows, due to limited supply. Since Jan. 4, Air China (601111.SS), Hainan Airlines (600221.SS) and China Southern Airlines (600029.SS) have filed schedules with the U.S. Department of Transportation proposing to increase flights to as much as daily on some routes. Foreign carriers seeking to add flights to China require approvals from the Civil Aviation Administration of China, which did not respond to a request for comment. However, other flights were paused as it assessed market demand and government regulations. Many Western airlines parked large planes when international traffic plunged and production of new twin-aisle jets has been limited.

☆ Agencies investigate averted plane crash at New York's JFK airport
▼ + stars: | 2023-01-16 | by ( The Associated Press | ) www.nbcnews.com time to read: +3 min

Brian Heale, a passenger on the Delta flight, said at first he thought the abrupt stop was a mechanical issue. “There was this abrupt jerk of the plane, and everyone was sort of thrust forward from the waist,” he recalled. The Delta plane stopped about 1,000 feet (about 0.3 kilometers) from where the American Airlines plane had crossed from an adjacent taxiway, according to the FAA statement. The plane returned to the gate, where the 145 passengers deplaned and were provided overnight accommodations, a Delta spokesperson said. We apologize to our customers for the inconvenience and delay of their travels,” a Delta spokesperson said in a statement.

☆ Near Collision at JFK Airport Between Delta, American Planes Under Investigation
▼ + stars: | 2023-01-16 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

U.S. aviation-safety officials are investigating how two planes came close to a collision on a runway at John F. Kennedy International Airport on Friday night. Delta Air Lines Inc. Flight 1943 was headed down the runway for takeoff when air-traffic controllers noticed another plane crossing in the departing jetliner’s path, a spokesman for the Federal Aviation Administration said Saturday. Delta’s Boeing Co. 737 came to a stop about 1,000 feet before reaching the point where a Boeing 777 operated by American Airlines Group Inc. was crossing, according to the FAA’s preliminary analysis.

☆ FAA launches investigation after two planes nearly collide at JFK airport
▼ + stars: | 2023-01-15 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

Grounded Delta Airlines planes are parked at gates at John F. Kennedy International Airport on January 11, 2023, in New York. The FAA said a Boeing 737 operated by Delta Air Lines stopped its takeoff around 8:45 p.m. when air traffic controllers noticed another American Airlines aircraft crossing the runway. The Delta flight "stopped its takeoff roll approximately 1,000 feet" from the point where the American Airlines Boeing 777 had crossed, according to the FAA's preliminary analysis. Flight watcher @xJonNYC noticed the near miss and shared audio of the tense air traffic control exchange on Twitter Saturday. A spokesperson for American Airlines said the company will defer to the FAA for comment.

☆ U.S. lawmakers call FAA outage 'unacceptable,' demand a fix
▼ + stars: | 2023-01-14 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

REUTERS/Jim Vondruska/File PhotoWASHINGTON, Jan 13 (Reuters) - A group of more than 120 U.S. lawmakers told the Federal Aviation Administration's (FAA) its computer outage on Wednesday that disrupted 11,000 flights was "completely unacceptable" and demanded the agency explain how it will avoid future incidents. On Thursday, the FAA said its preliminary analysis showed the computer outage was caused by a procedural error related to a corrupted data file. The Senate committee email also said it appears the groundstop actually lasted from 7:21 a.m. Buttigieg tweeted at approximately 8:50am that the groundstop had been lifted, was the NOTAM system full operational at that point?" The Senate email asked "what additional resources does FAA need to expeditiously update the NOTAM system?"

☆ Earnings stars: Stocks expected to post the biggest profit growth of 2023
▼ + stars: | 2023-01-14 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

Nevertheless, several stocks are poised to see rapid earnings growth this year. CNBC Pro gathered the names of 20 companies that are poised to grow earnings at least 20% in 2023, with some set to post to more than 90% earnings growth, using data from FactSet. Nevertheless, it had the biggest earnings growth potential in the group we screened: 92% in 2023. Delta Air Lines and Alaska Air also turned up, with earnings growth expectations of almost 70% and 26%, respectively. Elsewhere in the travel group, Expedia is looking at 31% earnings growth.

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