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☆ Air Canada nears 787 Dreamliners deal with Boeing -Bloomberg News
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: 1 min

May 17 (Reuters) - Air Canada (AC.TO) is closing in on the purchase of up to 20 787 Dreamliners from Boeing Co (BA.N) to renew and expand its long-haul fleet, Bloomberg News reported on Wednesday, citing people familiar with the matter. Airlines are looking to shore up their wide-body fleets amid a rebound in demand for long-haul flying ahead of a busy summer travel season. The Canadian carrier has neared an agreement to order between 15 and 20 of the twin-aisle aircraft, according to the report. An Air Canada spokesman said the airline has not made any decisions yet. Reporting by Priyamvada C in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

May 9 (Reuters) - Vacation rental booking company Airbnb Inc (ABNB.O) said on Tuesday that it expected fewer bookings and lower average daily rates in the second quarter versus a year earlier, sending shares down 11.5% in after-hours trading. Average daily rates were flat year-on-year at $168. Nicholas Cauley, an analyst at Third Bridge, said pressure on household budgets was likely to result in consumers choosing more affordable accommodation, leading to a decline in average daily rates in future quarters. "Some of the pressures that we're seeing there on overall revenue growth has frankly just been some of the elevated (average daily) rates," Airbnb Chief Financial Officer David Stephenson told investors. The company said earlier this year that average daily rates would remain pressured as vacationers returned to lower-cost urban rentals.

☆ Airbnb forecasts slower bookings in Q2, shares fall
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +2 min

May 9 (Reuters) - Airbnb Inc (ABNB.O) said on Tuesday it expects bookings growth and average daily rates to decline in the current quarter, signaling a reverse in demand trends and sending the vacation rental firm's shares down 9%. Revenue rose about 20% to $1.82 billion from a year earlier, compared with the average analyst estimate of $1.8 billion. The company said earlier this year that average daily rates (ADRs) will remain pressured as vacationers return to lower-cost urban rentals. Its first-quarter average daily rates (ADRs) remained flat at $168 compared with a year earlier. It forecast second-quarter revenue between $2.35 billion and $2.45 billion, largely in line with analysts' expectations.

☆ Booking Holdings beats profit estimates on strong travel demand
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

May 4 (Reuters) - Booking Holdings Inc (BKNG.O) reported a better-than-expected profit for the first quarter on Thursday, as the online travel agency benefited from pent-up demand that drove consumers to book flights and hotels despite worries of an imminent recession. While experts in the industry largely remain confident about demand in the near-term, high inflation and concerns around a potential slowdown, however, threaten consumer spending. Last month, U.S. hotel operator Hilton Worldwide Holdings Inc (HLT.N) signaled signs of travel demand weakening in the second half of the year after it raised its full-year profit outlook. Booking reported an adjusted profit of $11.60 per share in the quarter ended March 31, compared to analysts' estimate of $10.61 per share, as per Refinitiv data. Reporting by Priyamvada C and Aishwarya Nair in Bengaluru; Editing by Maju Samuel and Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

U.S. hotel operators who have been grappling over the past year with an uneven recovery in Chinese demand are now benefiting from pent-up-demand throughout Asia Pacific, particularly in Greater China. "While macroeconomic uncertainty persists, it has not weighed on travel demand to date. In fact, demand continued to rise across all customer segments in the quarter," Marriott CEO Anthony Capuano said on a call with investors. In the Greater China region RevPAR rebounded to 95% of pre-pandemic levels during the quarter while Mainland China RevPar fully recovered to 2019 levels. "First quarter hotel performance came in a bit better than expected and will likely be the high-water mark for the year," said CoStar Group National Director of Hospitality Analytics Jan Freitag.

☆ Ford sees $1.5 billion to $2 billion restructuring charges in 2023
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +1 min

Companies Ford Motor Co FollowMay 3 (Reuters) - Ford Motor Co (F.N) expects to take up restructuring charges between $1.5 billion and $2 billion in 2023, it said in a regulatory filing on Wednesday, as part of the U.S. automaker's move to exit unprofitable locations and cut headcount. Earlier this year, Ford said it plans to cut one in nine jobs in Europe, as part of a drive to lower costs in the region and concentrate engineering know-how in the United States. It has also been curbing operations in countries such as Brazil and India, as it pours billions into developing electric vehicles. The disclosure comes a day after the company posted robust quarterly results but issued a measured full-year outlook, weighed down by continued losses in its electric-vehicle unit. Reporting by Priyamvada C in Bengaluru; Editing by Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

☆ Factbox: Tech firms, Wall Street lead job cuts in Corporate America
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +8 min

read moreSpotify Technology SA (SPOT.N):Music streaming service Spotify is cutting 6% of its workforce, or roughly 600 roles. read moreMicrosoft Corp (MSFT.O):The U.S. tech giant said it would cut 10,000 jobs by the end of the third quarter of fiscal 2023. Workday Inc (WDAY.O):The software company will cut roughly 500 jobs, or 3% of its workforce, citing a challenging macroeconomic environment. Morgan Stanley (MS.N):The Wall Street powerhouse is planning to cut about 3,000 jobs in the second quarter, Reuters reported. MANUFACTURING SECTOR3M Co (MMM.N):The industrial conglomerate said it would cut 2,500 manufacturing jobs after reporting a lower profit.

☆ Marriott raises full-year profit forecast on strong travel demand
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +1 min

May 2 (Reuters) - Marriott International Inc raised its full-year adjusted profit forecast on Tuesday, as the U.S. hotel operator benefits from pent-up demand for leisure and business travel. Flexible work arrangements have fueled travel demand and helped hotel operators to improve their margins after they took a beating during the pandemic. The travel industry has also benefited in the last few quarters from a strong U.S. dollar. The company expects full-year adjusted profit between $7.97 and $8.42 per share, compared with its prior forecast of $7.23 to $7.91. Reporting by Priyamvada C in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

☆ American Airlines pilots vote to authorize strike
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +2 min

May 1 (Reuters) - A union representing American Airlines Group Inc (AAL.O) pilots said on Monday its members had approved a strike mandate ahead of the busy summer travel season, although the chances of an actual labor disruption remain slim. The Allied Pilots Association (APA), which represents 15,000 American Airlines pilots, held a strike authorization vote in April to put pressure on the Texas-based carrier for higher salary and better working conditions, even as the two sides closed in on an agreement in principle. More than 96% of the APA membership participated in the vote and over 99% voted in favor of authorizing a strike, the union said in a statement. The finish line is in sight," American Airlines said in a statement. The airline's pilots received their last pay increase in 2019.

Executives still remained confident about the momentum in demand continuing in the near-term, including in international travel, led by U.S. travelers and China's reopening. Hilton now expects full-year adjusted profit per share between $5.68 and $5.88, compared with a prior forecast of $5.42 to $5.68. The company's net unit growth - which reflects room additions - fell 32% to 5,300 rooms in the first quarter. "We predicted this air pocket (fall in net unit growth), and expect it to be short-term... but this will play to key investor concern on financing risk," Bernstein analyst Richard Clarke said, adding that investor focus was more on unit growth than demand. Hilton reported an adjusted profit of $1.24 per share, compared with analysts' average estimates of $1.13, according to Refinitiv data.

☆ Transport Canada says Hyundai Auto Canada guilty of safety violation
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: +1 min

April 18 (Reuters) - Transport Canada said on Tuesday Hyundai Auto Canada Corp pleaded guilty to six different counts of criminal charges for violating the Motor Vehicle Safety Act. Hyundai Auto Canada failed to send out notices of safety defect within the prescribed time period of 60 days, the statement said, and the company will pay a fine of $360,000. "It is alarming that Hyundai failed to notify vehicle owners of a recall in a timely manner on six different occasions," Transport Minister Omar Alghabra said. Some of these recalls were safety risks related to possible vehicle fires, reduced braking performance and sudden loss of engine power. "Hyundai Canada recognized that during the COVID pandemic, it was not meeting the precise timing requirements identified in the applicable regulations in a limited number of instances.

April 6 (Reuters) - Shares of Airbnb Inc (ABNB.O) fell as much as 6% on Thursday after an online independent publication released a report that probed unpleasant experiences that customers had during stays booked through the short-term rental platform. The company's shares were last down 5% in afternoon trading. Nights and experiences booked rose 20% from a year earlier but missed analysts' estimates. Last month, a fire broke out in a building in Montreal being used by long-term residents and short-term guests who booked lodgings through Airbnb. Some of the company's top professional hosts have cut out Airbnb and built their own booking platforms and are offering cheaper deals.

☆ Ousted Marvel Entertainment Chairman Ike Perlmutter to retain Disney shares
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +1 min

April 5 (Reuters) - Marvel Entertainment's former chairman Ike Perlmutter on Wednesday said he will hold on to his Disney (DIS.N) shares, a week after reports of his termination from the role. Reuters reported last Wednesday that Disney had laid off Perlmutter, 80, as part of a cost-cutting campaign. News of Perlmutter's termination had come after he supported activist shareholder Nelson Peltz's unsuccessful bid to obtain a seat on Disney's corporate board. "Trian CEO Nelson Peltz has a long history of improving shareholder returns at many leading consumer businesses," Perlmutter said in a public statement on Wednesday. According to the WSJ report from earlier in the day, he owns about 30 million shares of Disney, worth about $3 billion.

☆ KB Home expects Q2 net orders to fall amid tough year-ago comparisons
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +1 min

March 22 (Reuters) - U.S. homebuilder KB Home (KBH.N) said on Wednesday net orders in the first two-and-a-half weeks of the ongoing second quarter fell 24% from last year, issuing a rare mid-quarter update due to the ongoing market volatility fueled by a banking crisis. The California-based company expects net orders for the second quarter, which began in March, between 3,000 and 3,700, a 14% decline when compared with the midpoint of the range from a year earlier, when steady employment and wage growth were fueling housing demand. "The banking crisis could lead to a little bit of injection of life into the housing market by lowering mortgage rates," said Lisa Sturtevant, chief economist at Bright MLS. KB Home reported better-than-expected first-quarter revenue, sending its shares up by 3% after the bell. Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Delta to launch flight academy to train more pilots
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +1 min

March 21 (Reuters) - Delta Air Lines Inc (DAL.N) said on Tuesday it would launch a flight academy to train pilots for the airline as the industry struggles with a shortage of aviators. The carrier said the academy, operated in partnership with training provider Skyborne Airline, would start training its first batch of students in June. The Delta Propel Pilot Academy will be based in a 12,000-square-foot facility situated within Skyborne's Florida campus, the statement said. Atlanta-based Delta joins United Airlines Holdings Inc (UAL.O), which agreed to purchase a flight training academy in Phoenix in 2020, in an effort to bolster its roster of pilots. Reporting by Priyamvada C in Bengaluru; Editing by Shweta AgarwalOur Standards: The Thomson Reuters Trust Principles.

☆ WeWork reaches deals to cut debt, extend maturities
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

Under the deals announced Friday, key investor SoftBank Group Corp's (9984.T) $1.0 billion unsecured notes would be converted to equity. The Japanese company held a stake of about 46% in WeWork before the restructuring was announced, as per Refinitiv data. About $1.9 billion of pro-forma debt will now mature in 2027, WeWork said, adding that it would have less than $2.0 billion in net debt once the deal closes. WeWork, which went public in 2021 after a two-year struggle, is yet to post a quarterly profit. PJT Partners LP advised WeWork on the debt restructuring, while Houlihan Lokey advised SoftBank.

☆ SVB Financial files for bankruptcy protection after swift implosion
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: 1 min

[1/2] Destroyed SVB (Silicon Valley Bank) logo is seen in this illustration taken March 13, 2023. REUTERS/Dado Ruvic/Illustration/File PhotoMarch 17 (Reuters) - SVB Financial Group (SIVB.O) on Friday sought protection under Chapter 11 of the U.S. bankruptcy code, days after its former unit Silicon Valley Bank was taken over by U.S. regulators. Bank stocks globally have seen billions of dollars wiped away from their market valuation in the aftermath of the collapse, which also shook the startup community the Santa Clara, California-based bank was mainly lending to. Below is a timeline of key events leading up to the Chapter 11 filing:Reporting by Mehnaz Yasmin and Priyamvada C in Bengaluru; Editing by Maju Samuel and Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

☆ WeWork reaches deal to convert $1 billion of SoftBank's debt to equity
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

March 17 (Reuters) - WeWork Inc (WE.N) said on Friday it had reached a deal to convert about $1 billion of key investor SoftBank Group Corp's (9984.T) unsecured notes into equity, in an effort to restructure its finances. Shares of the company rose 2.2% to $1 before the bell. Last month, WeWork forecast weak current-quarter revenue in a sign that its business was feeling the heat of mass layoffs, as companies reduce their real estate footprint. In January, the New York-based company also planned to eliminate about 300 roles across countries after announcing last year that it would exit about 40 underperforming U.S. locations due to high expenses and a strong U.S. dollar. Reporting by Kannaki Deka and Priyamvada C in Bengaluru; Editing by Maju Samuel and Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ First Citizens agrees to buy collapsed Silicon Valley Bank
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

[1/2] Destroyed SVB (Silicon Valley Bank) logo is seen in this illustration taken March 13, 2023. REUTERS/Dado Ruvic/Illustration/File PhotoMarch 27 (Reuters) - First-Citizens Bank & Trust Co, a unit of First Citizens BancShares Inc (FCNCA.O), said it will acquire $110 billion in assets, $56 billion in deposits and $72 billion in loans of failed lender Silicon Valley Bank (SIVB.O). SVB was the largest bank, since the 2008 financial crisis, to collapse when California regulators closed the bank on March 10, sparking massive market disruption and heightened stress across the banking sector globally. Santa Clara, California-based SVB was the sixteenth biggest U.S. lender at the end of last year, with about $209 billion in assets, while First Citizens has around $109 billion. Below is a timeline of key events leading to the acquisition:Reporting by Mehnaz Yasmin in Bengaluru; Additional reporting by Priyamvada C; Editing by Maju Samuel, Saumyadeb Chakrabarty, Sriraj Kalluvila and Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ Homebuilder Lennar beats profit estimates on strong property prices
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - Homebuilder Lennar Corp (LEN.N) on Tuesday reported a better-than-expected quarterly profit as high property prices helped offset supply shortages caused by rising material costs and a labor crunch. However, the industry is now staring at a slowdown as high interest rates have made borrowing more difficult for potential buyers. "Our sales volume and pricing have clearly been impacted by rising interest rates, but there remains a significant national shortage of housing, especially workforce housing, and there is still demand," Lennar Executive Chairman Stuart Miller said in a statement. Lennar reported net earnings per diluted share, excluding items, of $2.12 per share, above analysts' average estimate of $1.55 per share, according to Refinitiv data. Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Ford halts F-150 EV production for another week after battery fire
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

Feb 24 (Reuters) - Ford Motor Co (F.N) will halt production of its electric F-150 Lightning pickup for another week following a battery issue that caused an EV truck to catch fire earlier this month, the U.S. automaker said on Friday. SK On, a South Korean EV battery maker and supplier to Ford, has again started building battery cells at a plant in Georgia. "It will take SK time to ensure they are back to building high-quality cells and to deliver them to the Lightning production line," Ford said in a statement. Last week, the automaker said it will continue to hold already-produced vehicles while it worked through engineering and process updates. The fire incident involving Ford's EV truck happened on Feb. 4, during a pre-delivery quality inspection at its Dearborn, Michigan plant, causing the company to halt production the next day.

☆ GM to idle Indiana truck plant for two weeks as demand plateaus
▼ + stars: | 2023-02-23 | by ( Priyamvada C | ) www.reuters.com time to read: +2 min

Feb 23 (Reuters) - General Motors (GM.N) said on Thursday it will halt production at its Fort Wayne Assembly truck plant in Indiana for two weeks from March 27 as inventory starts to outweigh demand with the easing of supply-chain snags. Shares of the U.S. automaker fell 3% in early trade, while rival Ford Motor Co (F.N) was about 1% lower. Analysts have warned that rising interest rates and high vehicle prices could begin to depress demand, even as inventories of new vehicles have been rising over recent weeks. GM said in a statement that its production was up over the past month while demand remained "fairly consistent", leading to an increase in inventory. Last year, GM's truck plant was idled for two weeks over semiconductor chip shortages.

☆ Ford cuts Rivian stake to about 1% amid production woes at EV maker
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +1 min

[1/2] Employees works on an assembly line at startup Rivian Automotive's electric vehicle factory in Normal, Illinois, U.S. April 11, 2022. REUTERS/Kamil KrzaczynskiFeb 10 (Reuters) - Ford Motor Co (F.N) has cut its stake in struggling EV maker Rivian Automotive Inc (RIVN.O) to 1.15%, a week after the Detroit automaker reported a fall in profit and predicted a tough year ahead. Ford, which wrote down the value of its Rivian investment by $7.4 billion in 2022, has been paring down its stake amid production struggles at the Irvine, California-based company. Ford held a 11.4% stake in Rivian at the end of 2021. Rivian shares also had a bleak 2022, losing about 82% of their value.

☆ Hilton misses 2022 room growth view on China COVID curbs; Q4 profit jumps
▼ + stars: | 2023-02-09 | by ( Priyamvada C | ) www.reuters.com time to read: +2 min

Hilton, which owns brands including Waldorf Astoria Hotels & Resorts, reported a net unit growth of 4.7% in 2022, below its earlier forecast of about 5% growth. China's strict COVID-19 curbs, which have now been lifted, had halted construction of some luxury properties and impeded travel to a key global tourism markets. "They probably for the first time in quite a while missed on unit growth blaming on China so that obviously one of the reasons that their unit growth has been a bit softer," Bernstein analyst Richard Clarke said. Hilton expects annual net unit growth between 5.0% and 5.5%. Capital returns are projected to be between $1.7 billion and $2.1 billion, compared with $1.7 billion last year.

☆ Hilton profit, revenue beat on high room tariff, travel demand
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +1 min

[1/2] People enter a Hilton hotel in Manhattan, New York City, U.S., March 23, 2022. REUTERS/Andrew Kelly/File PhotoFeb 9 (Reuters) - Hilton Worldwide Holdings Inc (HLT.N) reported better-than-expected quarterly profit and revenue on Thursday, as the hotel operator sold rooms at higher prices benefiting from strong travel demand. Hilton, which owns brands including Waldorf Astoria Hotels & Resorts, expects to post an adjusted profit per share between $5.42 and $5.68 per share for this year. For the fourth quarter, Hilton said revenue per available room, or RevPAR - a key metric for investors - rose 24.8% on a currency neutral basis from a year earlier. Excluding items, Hilton earned $1.59 per share for the quarter ended Dec. 31, beating analyst expectations of $1.22 per share.

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