Delta Air Lines Inc. Chief Executive Ed Bastian on Thursday sounded an optimistic note for 2017 earnings and said he expects to meet soon with the company’s newest and biggest investor, billionaire Warren Buffett. Two months ago Delta announced last year’s record-breaking performance, but noted that higher fuel prices and wage costs could weigh on margins during the March quarter before they expand again in the second half of the year.
Category: Transportation
CSX Names Harrison CEO, Warns He’ll Exit Unless Paid $84 Million
CSX Corp. appointed Hunter Harrison as chief executive officer effective immediately, entrusting the industry veteran with the task of turning around North America’s least efficient railroad. He’ll stick around as long as shareholders are willing to meet his pay demands.
CSX reaches deal with hedge fund, hires new railroad CEO
Hunter Harrison , the executive who led Canadian Pacific’s turnaround, will become the CEO at Jacksonville, Florida-based CSX immediately, replacing Michael Ward . Harrison, Paul Hilal – the founder of the Mantle Ridge hedge fund that has been pressuring CSX – and three others will also join the railroad’s 13-member board, CSX Corp. said Monday.
Is a CEO Worth $200 Million? Shareholders at Rail Giant Think So
Is superstar railroad executive Hunter Harrison worth a $200 million pay package? For that matter, is any CEO worth that? The question has arisen in a shareholder activist’s campaign to shake up CSX Corp., one of North America’s major railroads. To sway investors and board members, Paul Hilal has promised to install Harrison as the company’s chief executive officer.
CSX Could Name Former Canadian Pacific Head as New CEO This Week
CSX could name former Canadian Pacific Railway chief Hunter Harrison as its new CEO as early as this week, according to Bloomberg . Harrison would begin as soon as possible under a four year contract, just months after he left Canadian Pacific in January.
Analysts’ Actions — FedEx, GoPro, Garmin, HP and More
Akorn was downgraded to hold at Deutsche Bank. $24 price target. Earnings estimates were also cut, given lower expected ephedrine sales, Deutsche said.
CSX Said Near Deal to Name Harrison CEO as Soon as Next Week
CSX Corp. may install Hunter Harrison as chief executive officer as early as next week as the railroad and an activist shareholder move closer to ending an impasse over Harrison’s compensation, people familiar with the matter said. Harrison would start as soon as possible under a four-year contract, said the people, who asked not to be identified because the discussions are private.
Analysts’ Actions — Dr. Pepper, Expedia, GoPro, Nutanix and More
Here are Friday’s top research calls, including upgrades for Dr. Pepper Snapple and Expedia, a downgrade for Nutanix and new coverage of GoPro. Broadcom was upgraded to buy at TheStreet Ratings.
CSX Activist May Undercut Own Message With Pay Demands: Gadfly
It’s opposite day at CSX Corp., where an activist investor is fighting for — rather than against — a jumbo-sized executive pay package. Mantle Ridge, led by former Bill Ackman lieutenant Paul Hilal, has amassed a stake in the railroad and is seeking to install former Canadian Pacific Railway Ltd. CEO and storied cost cutter Hunter Harrison in the top post at CSX.
Spirit Air CEO Sees No-Frills Seats Backfiring on Largest Rivals
A surge of no-frills seats at the biggest U.S. carriers potentially will backfire as passengers discover all the perks they’re giving up, said the chief executive officer of discounter Spirit Airlines Inc. Prohibitions on changing a reservation or bringing a roll-on bag may disappoint some customers of the new fares at American Airlines Group Inc. and United Continental Holdings Inc., Spirit CEO Bob Fornaro said Wednesday. While Spirit charges for carry-ons and even soft drinks, at least customers know what they’re getting, he said.
SpiceJet Says India’s $85 Billion Plane Orders Still Not Enough
India’s airlines have ordered about 850 planes valued at about $85 billion in recent years. SpiceJet Ltd., a budget carrier, says that’s still not enough to meet demand.
UPS tests drones for regular deliveries in rural areas
United Parcel Service said Tuesday that a drone launched from a specially outfitted truck, made a delivery and returned to the truck during a test this week in Florida. UPS has tested drones for emergency deliveries such as medicine.
Caesars Says 4Q Loss Is Ten Times Bigger Than Analysts Expected
Caesars Entertainment reported a fourth quarter net loss of $3.88 a share, more than ten times greater than the 37-cents-a-share loss expected by analysts polled by FactSet. The Las Vegas-based gaming company reported fourth quarter revenue of $949 million, compared with the $2.39 billion expected by FactSet.
Boyd Gaming Reports Mixed Q4 Results
Boyd Gaming reported a 2.2% increase in fourth quarter net revenue to $554.8 million, generating earnings of 38 cents a share. Analysts polled by FactSet were expecting the company to report revenue of $561.1 million and earnings of 24 cents per share.
Caesars, Boyd to Release Fourth-Quarter Results on Valentine’s Day
Both Caesars Entertainment and Boyd Gaming are expected to report top- and bottom-line results ahead of last year’s totals. Valentine’s Day will mark the release of fourth quarter earnings for fellow gaming companies Caesars Entertainment and Boyd Gaming after the closing bell.
The Most Important Retirement Chart You’ll Ever See
Saving for retirement can feel like being forced to run a marathon when all we’ve ever trained for was a 40-yard dash. The entire idea of retirement is brand-new to the human race; it is only within the last 50 years that the idea of living longer than you can work even surfaced.
CSX Said to Hit Roadblock in CEO Negotiations With Harrison
CSX Corp. and Hunter Harrison have discussed a three-year contract for the railroad veteran to take over as chief executive officer, but the deal has bogged down over details on how to support his plan to turn around the company, according to a person familiar with the situation. CSX on Friday extended the deadline to nominate directors as it negotiates with activist investor Paul Hilal, who is working with Harrison and seeking six seats on the company’s board, the person said.
CSX extends director deadline as activist seeks CEO ouster
CSX Corp has extended the director nomination deadline for its board of directors, giving the U.S. railroad company more time to reach an agreement with an activist investor and industry veteran Hunter Harrison. CSX said the deadline would be extended to Feb. 24 from Friday, in a sign that the two sides remain in talks but have details to hammer out.
Ryanair Seeks European Domination — With the Help of Its Rivals
Ryanair Holdings Plc is closing in on a series of agreements that could see the discount giant take control of an even bigger swathe of European short-haul travel. The Dublin-based company is seeking deals with carriers including Norwegian Air Shuttle ASA, Aer Lingus, Alitalia SpA and Deutsche Lufthansa AG under which its flights would help feed passengers onto their long-haul services.
Boeing Wins $13.8B Singapore Airlines Order
Singapore Airlines announced a $13.8 billion order to buy 39 Boeing wide-body aircraft as it pursues expansion opportunities, a setback for the U.S. planemaker’s rival Airbus Group in the fight for long-term orders. Airbus Group has flagged its intention to build a bigger version of its A350, although these plans have been placed on hold amid uncertainty over demand for wide-body jets.
Singapore Air Extends Jet Fuel Hedging as OPEC Cuts Sway Oil
Singapore Airlines Ltd., Southeast Asia’s biggest carrier, extended some of its fuel-hedging contracts to as long as five years, betting on an upswing in crude oil prices amid OPEC production cuts and renewed tensions between the U.S. and Iran. The marquee airline, which reported a 36 percent drop in profit for the three months through December, said Tuesday that it has entered into longer-dated Brent hedges with maturity extending to 2022.
Brazil Airline Azul Files for U.S. Initial Public Offering
Azul SA, the Brazilian airline led by JetBlue Airways Corp. founder David Neeleman, filed for an initial public offering in the U.S., following at least two previous delays because of slumping Brazilian stocks. The Sao Paulo-based airline filed Monday for a $100 million IPO, a placeholder amount used to calculate fees that may change.
Berkshire’s Airline Bet Said to Stem From Faith in Parker’s Call
Warren Buffett once quipped that a “farsighted capitalist” should have shot down Orville Wright at Kitty Hawk to spare investors all the losses they would suffer on airlines in the decades after the birth of flight. That’s why it was a surprise when, in November, the billionaire’s Berkshire Hathaway Inc. disclosed investments in the four largest U.S. carriers: American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co.
Your In-Flight Movie Screen Is Going Extinct
Book a domestic flight on any of the Big Three U.S. airlines, and you won’t be sure whether the seat in front of you has a screen. Some do, while most don’t.
Airline CEOs Seek Tillerson Meeting on Feud With Gulf Carriers
The three biggest U.S. airlines asked for a meeting with new Secretary of State Rex Tillerson to discuss their long-held contention that billions of government subsidies enable the Persian Gulf carriers to compete unfairly for passengers.
UPS Tumbles as Currency Drag Delivers Blow to Profit Forecast
United Parcel Service Inc. plunged as its profit forecast for this year missed analysts’ estimates on “headwinds” from currency effects. Adjusted earnings will absorb a $400 million pretax hit from foreign exchange effects, the world’s largest package-delivery company said in a statement Tuesday.
As Delta Gets Called Out by Politicians, Analyst Senses an Airline Industry Correction
A top airline industry analyst senses a share price correction after various carriers suffer problems, including a decline for Delta after it gets drawn into politics. Monday was a bad day for the big three airlines, bad enough that by midday JPMorgan analyst Jamie Baker had raised the question: “Could this be the start of a correction?” During the day Delta , which suffered an IT systems outage Sunday night, got drawn into politics.
Voce’s Plants Eyes Stockholder Value, Director Battle At Air Methods
Activist investor Dan Plants of Voce Capital Management LLC on Monday issued a letter to the board of Air Methods Corp. taking issue with the company’s share price and suggesting that he is “prepared” to nominate dissident director candidates soon at the emergency medical air transportation company, in what is the activist’s latest escalation in a multi-year insurgency. Specifically, Plants argued in a letter to Air Methods board that the company continues to destroy stockholder value, is deeply undervalued, has an over-tenured board and has some “serious operational issues.”
Voce’s Plants Eyes Stockholder Value, Director Battle At Air Methods
Activist investor Dan Plants of Voce Capital Management LLC on Monday issued a letter to the board of Air Methods Corp. taking issue with the company’s share price and suggesting that he is “prepared” to nominate dissident director candidates soon at the emergency medical air transportation company, in what is the activist’s latest escalation in a multi-year insurgency. Specifically, Plants argued in a letter to Air Methods board that the company continues to destroy stockholder value, is deeply undervalued, has an over-tenured board and has some “serious operational issues.”
Shares of Shipping Stocks Move Big Today on Industry Consolidation, Analyst Downgrades
Shares of Frontline are up less than a percent on the news. Also, shares of container-ship vessel owner Costamare are down 9.8% after last week’s earnings resulted in an analyst downgrade.
Shares of Shipping Stocks Move Big Today on Industry Consolidation, Analyst Downgrades
Shares of Frontline are up less than a percent on the news. Also, shares of container-ship vessel owner Costamare are down 9.8% after last week’s earnings resulted in an analyst downgrade.
Delta’s U.S. Grounding Is Lifted After Latest Computer Glitch
Delta Air Lines Inc. started resuming U.S. domestic flights after a 2 1/2-hour computer breakdown grounded about 150 flights and left passengers stranded across the country. “I want to apologize to all of our customers who have been impacted by this frustrating situation,” Delta Chief Executive Officer Ed Bastian said in the statement.
5 Airlines Are Competing to Grow in Mexico City
Late last year, Delta Air Lines and Aeromexico agreed to divest up to 24 slot pairs at Mexico City’s highly congested airport as a condition of forming a joint venture in the U.S.-Mexico market. The U.S. Department of Transportation will allocate 14 of these Mexico City slot pairs to low-fare airlines this year.
5 Airlines Are Competing to Grow in Mexico City
Late last year, Delta Air Lines and Aeromexico agreed to divest up to 24 slot pairs at Mexico City’s highly congested airport as a condition of forming a joint venture in the U.S.-Mexico market. The U.S. Department of Transportation will allocate 14 of these Mexico City slot pairs to low-fare airlines this year.
Southwest Airlines Soars Past High Expectations — Hawaiian Airlines, Not So Much
Between late June 2016 and mid-January, shares of Hawaiian Holdings climbed 50%. Southwest Airlines stock was close behind, with a gain of more than 35% over that period.
United Airlines Said to Plan Los Angeles Push in Comeback Effort
United Continental Holdings Inc. is targeting a major expansion at Los Angeles International Airport in an effort to reverse a slide that’s left the airline languishing behind its biggest rivals at the busiest West Coast hub, said people familiar with the plans. President Scott Kirby told United pilots this month that the company needs more space and is studying plans to claim most or all of a future terminal, said the people, who asked not to be identified because the information is private.
Price of weekly, 30-day NYC subway passes to inch up
The base fare for New York City subways and buses will hold steady at $2.75, but the cost of a seven-day or 30-day unlimited MetroCard will rise slightly in March. The Metropolitan Transportation Authority board voted Wednesday to keep the $2.75 base fare but to raise the price of unlimited transit passes.
American Express: Signs of Life Amidst the Costco Rubble
In January 2015, the stock traded as high as $94. Two years later and the stock price cannot sniff $80, much less its former highs.True, it is well off its lows from last year, but it might be quite a while before it regains its former heights.
Here’s Why CSX Is the Railway to Watch in 2017
CP Rail CEO Hunter Harrison looks set to move to the Florida-based carrier, and based on recent history, he is likely to improve efficiency. The ground shifted beneath the railroad sector last week, when Canadian Pacific Railway announced that CEO Hunter Harrison would step down from the top job, effective Jan. 31. But the 72-year-old railroader, who was chief executive at CP’s main rival, Canadian National Railway , before taking over at CP in June 2012, doesn’t look like he’ll be retiring just yet.
First legal Cuban cargo in more than 50 years arrives in US
The Miami Herald reports that two containers of artisanal charcoal arrived Tuesday morning at Port Everglades in Fort Lauderdale aboard a Crowley Maritime ship called the K-Storm. The special charcoal is made from Cuban marabu by private, worker-owned cooperatives.