Latest news with #BernsteinStrategicDecisionsConference
Business Insider
2 days ago
- Business
- Business Insider
Southwest CEO says changes like charging for seat bookings and checked bags will make it over $4 billion next year
Southwest Airlines expects to make over $4 billion from the array of changes it's introducing. That includes scrapping its signature policies of unassigned seating and the trademarked "Two bags fly free." At the Bernstein Strategic Decisions Conference on Thursday, CEO Bob Jordan said the airline expects an incremental EBIT contribution of $4.3 billion in 2026. "It's hugely impactful to the business and to our margins," he added. On Wednesday, Southwest started charging $35 for a first checked bag and $45 for a second one, although all loyalty members and credit card holders can get one for free. "Bag fees, credit exploration, [and] changes to the loyalty program" are expected to contribute $800 million, Jordan said. While changing the seating system is still "months away," it is expected to generate another $1.5 billion in 2026. Introducing assigned seating is designed to encourage passengers to pay to choose their seat and for premium options like extra legroom. "85% of the customers who won't choose us want assigned seating," Jordan said, adding it is also the biggest reason they don't fly with Southwest. The other $2 billion is split between cost-cutting measures and "base business changes," such as improving the airline's revenue management system. Budget airlines like Southwest have seen their profits tumble since the pandemic. Increased fuel and labor costs, plus domestic overcapacity, have made it harder to fill planes, while fliers are more interested in paying for premium options. As Jordan said on Thursday: "Let's answer the question of what do customers want? And they want segmentation of the cabin. They want a variety of product offerings. They want access to premium." Southwest has also faced pressure from the activist firm Elliott Investment Management. The new changes seem to be encouraging Wall Street. Southwest's share price has risen over 20% in the past month. Plus, Deutsche Bank analysts upgraded the stock from a Hold rating to a Buy on Thursday. "Southwest is in the middle of the largest transformation in company history and we are confident that its new board and management team will execute its transformation plan with considerable success," they wrote in a report.
Yahoo
2 days ago
- Automotive
- Yahoo
Stellantis CFO praises new CEO, promises progress in American market at fireside chat
Stellantis CFO Doug Ostermann spent the afternoon praising the automaker's new chief executive and promising big things for the American operations of the company in years to come. Speaking at the Bernstein Strategic Decisions Conference on May 29, an economic conference aimed at company executives and investors, Ostermann touched on an array of issues: How will Stellantis keep up with the blazing pace of Chinese automakers? How will the company address headwinds brought on by President Donald Trump's tariff policies? But to open the 50-minute discussion, Ostermann took a moment to praise Antonio Filosa, who was named the next CEO of Stellantis on May 28. "Antonio has, you know, kind of this proven track record of improving things, building things, getting at issues and being very hands-on," Ostermann said, pointing to his work in North and South America, where Jeep dominated South American markets under Filosa's guidance. "In the short time that he's been the head of North America, he fixed what was a significant inventory problem, adjusted pricing, built back the relationships with dealers," Ostermann said. "He's always been a man with a plan." Filosa, a self-described protégé of the late charismatic Fiat Chrysler leader Sergio Marchionne, is tasked with reviving a company that has lagged financially in the last several years. Under former CEO Carlos Tavares, Stellantis saw a 70% drop in net profit between 2023 and 2024. The struggles continued into 2025, as Stellantis' profits slid 14% in its first quarter of 2025. Ostermann, who has been with Stellantis-affiliated brands for eight years, says he trusts Filosa to lead the automaker out of the rough years. Stellantis names new CEO: Meet Antonio Filosa, the new CEO of Stellantis and protégé of Sergio Marchionne Fixing Model T's: Hot job? A growing field for mechanics who can fix Ford Model T's and antique cars Stellantis is an international company, managing 14 brands including Chrysler, Dodge, Jeep, Ram, Fiat and several names in the European market. American dealers and factory workers have previously scolded the company for leaving American operations behind. With the compounding influence of a new leader in Filosa, who previously told the Free Press the United States is "the biggest priority" for Stellantis, and tariff policies seeking to reward automotive production in the United States, Ostermann said that he anticipates the company putting more focus on American production and jobs. Ostermann noted that several new models will be rolling out this year, including a midsize truck under the Ram banner and a retooled Jeep Cherokee on a hybrid powertrain, set to be released in the back half of 2025. The new Cherokee comes two years after the model was canceled in 2023, and Ostermann said it will be Stellantis' first vehicle with a full hybrid powertrain. Along with the new Cherokee, Ostermann mentioned Ram's upcoming foray into the midsize truck market — a segment in which Stellantis does not currently offer a vehicle. Plans for the new truck and other manufacturing, Ostermann said, are being made with tariffs in mind. "Clearly, we're going to be more biased toward the U.S. manufacturing going forward," Ostermann said, when asked how the brand is adjusting to proposed tariffs. "When we look at the opportunities that we have to get into, say, the midsize truck segment ... we have a natural space there with the Ram brand." He followed up, indicating plans are moving forward to build the truck in America. "I'm sure we will industrialize (the midsize truck) in the United States," Ostermann said. "Our intent, you know, going forward, and always, for the most part, has been to produce where we sell." The new CEO, Filosa, officially assumes control of the company on June 23, when he will be tasked with maintaining his record of improving things for the struggling automaker. Liam Rappleye covers Stellantis and the UAW for the Detroit Free Press. Contact Liam Rappleye: LRappleye@ This article originally appeared on Detroit Free Press: Stellantis CFO says tariffs will bring more focus from company to U.S. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
2 days ago
- Business
- Yahoo
RTX Corporation (RTX) Says Pratt & Whitney Strike Will Constrain Q2 Cash Flow
The three-week-long strike by Pratt & Whitney engine workers is likely to weigh on RTX Corporation (NYSE:RTX)'s cash flow during the second quarter, CEO Chris Calio told the Bernstein Strategic Decisions Conference on Wednesday. A person wearing a hardhat and safety glasses in a factory installing a LED high bay fixture. On Tuesday, about 3,000 machinists approved a new four-year contract, marking the end of the first strike at the engine-maker's Connecticut sites since 2001, where the workers' top priority was securing a commitment from RTX Corporation (NYSE:RTX) subsidiary Pratt & Whitney to maintain work on the F-35 fighters in the state. According to Calio, the strike hampered the company's ability to ship jet engines because of which he expects break-even to negative cash flow during Q2. However, the RTX Corporation (NYSE:RTX) CEO was confident about the company's ability to recover from the impact in the quarters ahead. RTX Corporation (NYSE:RTX)'s shares were down 1% as of 2 PM EDT on Wednesday. Despite the dip, the company has had impressive year-to-date returns of nearly 15% on the back of notable high-value contract awards. During the conference, Calio described President Trump's proposed Golden Dome missile defense shield as a unique opportunity. He also added that RTX Corporation (NYSE:RTX) continues to expect strong weapons demand from Europe despite ongoing trade tensions. While we acknowledge the potential of RTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RTX and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Lockheed eyes better stealth, unmanned option for F-35
Advanced stealth capabilities, new weapons and possibly even an unmanned piloting option could be in the works for Lockheed Martin's F-35 as the company seeks to boost the jet with sixth-generation technology. In a webcast of a Wednesday discussion at the Bernstein Strategic Decisions Conference in New York, Lockheed CEO Jim Taiclet expressed confidence the company could have a 'meaningful increase' of capabilities for the F-35 ready in two or three years. Lockheed originally developed these technologies as part of its pitch to the Air Force for a Next-Generation Air Dominance, or NGAD, fighter. But the Air Force ended up going with Boeing's proposal, and President Donald Trump in March announced NGAD would be called the F-47. Lockheed hopes to salvage its NGAD loss by making the F-35 more capable and attractive. Taiclet has claimed porting its NGAD technology into a 'supercharged' F-35 will allow the company to deliver 80% of the capability of an NGAD fighter at half the cost. In an April earnings call with investors, Taiclet said Lockheed would 'take the [F-35's] chassis and turn it into a Ferrari.' That could include upgrading the F-35's stealth coatings to help it evade infrared and radar signals and tweaking the fighter's outer body shape, particularly its engine inlets and outlets, to make it stealthier, Taiclet said. A fifth-generation-plus F-35 could also have better electronic warfare capabilities, networking and autonomy, which could be used to make the jet 'pilot-optional,' Taiclet said. Some weapons designed for a sixth-generation aircraft could also be folded into the F-35's arsenal, he said. Some of these capabilities could be ready for a first flight and integration into the F-35 in two or three years, Taiclet said, but he cautioned the technology development has to be rolled out in stages. 'You cannot introduce too much new equipment or too much new software at once, necessarily, without interrupting the production flow,' Taiclet said. Lockheed Martin is also looking for ways the F-35 can better interface with other aircraft, including sixth-generation planes, drones such as collaborative combat aircraft and other technologies as part of the Air Force's 'family of systems' concept. 'This is the way to look at the air superiority program of the future,' Taiclet said. 'It's not just plane-to-plane, what's faster, what turns tighter, what's got the longest duration of flight, but how it interacts and can interact with a wider ecosystem to create air superiority.' Taiclet also provided an update on the F-35's Technology Refresh 3 upgrades and the effort to get the newest Joint Strike Fighters ready to fly in combat. The upgrades, also known as TR3, include an improved core processor for the F-35, better memory and a more sophisticated display for pilots. The development of that hardware is done, Taiclet said, and it's being produced at scale by L3Harris. He said the TR3 software integration to tie the new pieces of equipment into the jet is also done. F-35s are now moving through production lines, primarily at Lockheed's Fort Worth, Texas, facility, and are having TR3 hardware and software installed, he said. Those new F-35s are also receiving a new distributed aperture system, which is six antennas positioned around the jet to boost its sensing capability. The distributed aperture system is the first piece of hardware needed for a more significant upgrade known as Block 4. However, integrating that new sensor set and its own software with TR3 has presented a new challenge, and is now 'a little bit behind schedule,' Taiclet said. 'Once that catches up, we think by the end of this year, then all those aircraft that have been delivered will be combat capable, and allowable to be at the front-line base for the services and for our allies,' Taiclet said.
Yahoo
3 days ago
- Business
- Yahoo
Boeing Stock Rises as CEO Says Plane Deliveries to China Will Resume Next Month
Boeing CEO Kelly Ortberg said plane deliveries to China will resume next month. China recently reversed a ruling barring its airlines from taking Boeing planes. Boeing plans to ramp production of its 737 Max jets, which will require authorization from the FAA after safety concerns led the agency to impose production of Boeing (BA) jumped Thursday after CEO Kelly Ortberg said that aircraft deliveries to China will start again next month. Airlines in China "have indicated they're going to take deliveries,' Ortberg said during remarks at the Bernstein Strategic Decisions Conference, according to a transcript made available by AlphaSense. 'The first deliveries will be next month.' This comes after China earlier this month reportedly reversed a ruling barring its airlines from taking deliveries of Boeing planes. Ortberg said Boeing has been paying tariffs on parts imported from Italy and Japan to manufacture certain aircraft but that those costs can be recouped when the planes are re-exported. As a major U.S. exporter, Boeing could be a long-term winner of U.S. trade negotiations with China if the current 90-day tariff reduction leads to a broader deal, airline industry analyst Visual Approach Analytics said earlier this month. The Trump administration wants its trade partners to buy more American-made goods, and China has a need for more airplane supply, making Boeing a strong candidate to help offset a trade imbalance in large chunks. On that front, Ortberg said Boeing plans to increase production of its 737 Max jets to 42 per month in the near-term and 47 per month by the end of the year. That will require authorization from the Federal Aviation Administration, after the agency capped Boeing's production at 38 Max jets per month in response to an incident in which a door plug detached from an airplane mid-flight. Boeing shares climbed over 3% in recent trading Thursday. The stock is up 17% in 2025 so far. Read the original article on Investopedia Sign in to access your portfolio
