Latest news with #MAX7
Yahoo
03-06-2025
- Business
- Yahoo
Alaska Airlines CEO expects full-year profit despite pricing struggles
By Rajesh Kumar Singh NEW DELHI (Reuters) -Alaska Airlines CEO Ben Minicucci said the company's pricing power has not recovered yet even as its bookings have stabilised following economic uncertainty that led to volatility in the first quarter. Still, Minicucci said the company expects to report a profit this year. In the current quarter, the Seattle-based carrier's earnings are shaping up along expected lines, he told Reuters on the sidelines of an IATA airline summit in New Delhi. Like most U.S. airlines, Alaska pulled its full-year financial forecast in April as President Donald Trump's trade war created the biggest uncertainty for the industry since the COVID-19 pandemic. With little clarity on how consumers would behave in the face of a potentially worsening economy, airlines said it was difficult to accurately forecast their business. Soft travel demand, meanwhile, has dampened U.S. airfares, which declined at their fastest pace in 16 months in April from a year ago, government data shows. "We're filling airplanes, just not at the yields we'd like," Minicucci said. Alaska has forecast an adjusted profit of $1.15 per share to $1.65 per share in the quarter ending June. The company's performance, thus far, is "solidly" in the forecast range, he said. The pullback in U.S. travel demand has been the sharpest among price-conscious consumers. Demand for high-end travel remains the "bright spot," Minicucci said. Alaska, which completed its acquisition of Hawaiian Airlines last year, is looking to drive up the share of premium travel in its revenue. The carrier will launch its first-ever transatlantic service next year, with a non-stop flight between Seattle and Rome. It is also adding more upscale seats on its aircraft. Premium cabins are estimated to account for 29% of its seats over the next three years, up from 25% at present, he said. The company, however, is having to deal with seat supply chain problems. Minicucci said seat manufacturers will need to expand production to keep up with strong demand. "They're oversubscribed right now," he said. IMPROVEMENTS AT BOEING Minicucci said he is encouraged by safety and quality improvements at planemaker Boeing. Alaska had to ground its fleet of MAX 9 aircraft last year after a door plug missing key bolts blew off one of the carrier's new jets at 16,000 feet. While the planemaker still has a lot of work ahead of it, he said it continues to make improvements "quarter over quarter." Boeing CEO Kelly Ortberg recently told trade publication Aviation Week that the company aimed to secure certification for the smallest and largest of its best-selling 737 MAX aircraft - the MAX 7 and MAX 10 - from the U.S. Federal Aviation Administration by the end of this year. The MAX 7 and MAX 10 have been delayed in part due to concerns with the engine de-icing system. Alaska is one of the airlines waiting for the MAX 10. Minicucci said the jet is not part of the carrier's plans until 2027. "We don't want to put pressure on Boeing," he said. "We want them to follow their own certification process."
Yahoo
03-06-2025
- Business
- Yahoo
Alaska Airlines CEO expects full-year profit despite pricing struggles
By Rajesh Kumar Singh NEW DELHI (Reuters) -Alaska Airlines CEO Ben Minicucci said the company's pricing power has not recovered yet even as its bookings have stabilised following economic uncertainty that led to volatility in the first quarter. Still, Minicucci said the company expects to report a profit this year. In the current quarter, the Seattle-based carrier's earnings are shaping up along expected lines, he told Reuters on the sidelines of an IATA airline summit in New Delhi. Like most U.S. airlines, Alaska pulled its full-year financial forecast in April as President Donald Trump's trade war created the biggest uncertainty for the industry since the COVID-19 pandemic. With little clarity on how consumers would behave in the face of a potentially worsening economy, airlines said it was difficult to accurately forecast their business. Soft travel demand, meanwhile, has dampened U.S. airfares, which declined at their fastest pace in 16 months in April from a year ago, government data shows. "We're filling airplanes, just not at the yields we'd like," Minicucci said. Alaska has forecast an adjusted profit of $1.15 per share to $1.65 per share in the quarter ending June. The company's performance, thus far, is "solidly" in the forecast range, he said. The pullback in U.S. travel demand has been the sharpest among price-conscious consumers. Demand for high-end travel remains the "bright spot," Minicucci said. Alaska, which completed its acquisition of Hawaiian Airlines last year, is looking to drive up the share of premium travel in its revenue. The carrier will launch its first-ever transatlantic service next year, with a non-stop flight between Seattle and Rome. It is also adding more upscale seats on its aircraft. Premium cabins are estimated to account for 29% of its seats over the next three years, up from 25% at present, he said. The company, however, is having to deal with seat supply chain problems. Minicucci said seat manufacturers will need to expand production to keep up with strong demand. "They're oversubscribed right now," he said. IMPROVEMENTS AT BOEING Minicucci said he is encouraged by safety and quality improvements at planemaker Boeing. Alaska had to ground its fleet of MAX 9 aircraft last year after a door plug missing key bolts blew off one of the carrier's new jets at 16,000 feet. While the planemaker still has a lot of work ahead of it, he said it continues to make improvements "quarter over quarter." Boeing CEO Kelly Ortberg recently told trade publication Aviation Week that the company aimed to secure certification for the smallest and largest of its best-selling 737 MAX aircraft - the MAX 7 and MAX 10 - from the U.S. Federal Aviation Administration by the end of this year. The MAX 7 and MAX 10 have been delayed in part due to concerns with the engine de-icing system. Alaska is one of the airlines waiting for the MAX 10. Minicucci said the jet is not part of the carrier's plans until 2027. "We don't want to put pressure on Boeing," he said. "We want them to follow their own certification process."
Reuters
03-06-2025
- Business
- Reuters
Alaska Airlines CEO expects full-year profit despite pricing struggles
NEW DELHI, June 3 (Reuters) - Alaska Airlines (ALK.N), opens new tab CEO Ben Minicucci said the company's pricing power has not recovered yet even as its bookings have stabilised following economic uncertainty that led to volatility in the first quarter. Still, Minicucci said the company expects to report a profit this year. In the current quarter, the Seattle-based carrier's earnings are shaping up along expected lines, he told Reuters on the sidelines of an IATA airline summit in New Delhi. Like most U.S. airlines, Alaska pulled its full-year financial forecast in April as President Donald Trump's trade war created the biggest uncertainty for the industry since the COVID-19 pandemic. With little clarity on how consumers would behave in the face of a potentially worsening economy, airlines said it was difficult to accurately forecast their business. Soft travel demand, meanwhile, has dampened U.S. airfares, which declined at their fastest pace in 16 months in April from a year ago, government data shows. "We're filling airplanes, just not at the yields we'd like," Minicucci said. Alaska has forecast an adjusted profit of $1.15 per share to $1.65 per share in the quarter ending June. The company's performance, thus far, is "solidly" in the forecast range, he said. The pullback in U.S. travel demand has been the sharpest among price-conscious consumers. Demand for high-end travel remains the "bright spot," Minicucci said. Alaska, which completed its acquisition of Hawaiian Airlines last year, is looking to drive up the share of premium travel in its revenue. The carrier will launch its first-ever transatlantic service next year, with a non-stop flight between Seattle and Rome. It is also adding more upscale seats on its aircraft. Premium cabins are estimated to account for 29% of its seats over the next three years, up from 25% at present, he said. The company, however, is having to deal with seat supply chain problems. Minicucci said seat manufacturers will need to expand production to keep up with strong demand. "They're oversubscribed right now," he said. Minicucci said he is encouraged by safety and quality improvements at planemaker Boeing (BA.N), opens new tab. Alaska had to ground its fleet of MAX 9 aircraft last year after a door plug missing key bolts blew off one of the carrier's new jets at 16,000 feet. While the planemaker still has a lot of work ahead of it, he said it continues to make improvements "quarter over quarter." Boeing CEO Kelly Ortberg recently told trade publication Aviation Week that the company aimed to secure certification for the smallest and largest of its best-selling 737 MAX aircraft - the MAX 7 and MAX 10 - from the U.S. Federal Aviation Administration by the end of this year. The MAX 7 and MAX 10 have been delayed in part due to concerns with the engine de-icing system. Alaska is one of the airlines waiting for the MAX 10. Minicucci said the jet is not part of the carrier's plans until 2027. "We don't want to put pressure on Boeing," he said. "We want them to follow their own certification process."
Yahoo
29-05-2025
- Business
- Yahoo
Boeing CEO says he wants to crank up 737 MAX production rate through rest of year
By Dan Catchpole (Reuters) -Boeing aims to increase production of its best-selling 737 MAX jets to 42 aircraft per month in the next few months and to boost output to 47 a month in early 2026, Chief Executive Kelly Ortberg said on Thursday. The U.S. planemaker's share price jumped 5% after Ortberg said at the Bernstein Strategic Decisions conference that he hoped to have production at 47 a month by the end of 2025. A few minutes later, he corrected his comments, saying that he expects the company to be getting ready to increase production to that level by the end of the year, not reach that level. Boeing is trying to stabilize production at 38/month, where it was capped by the U.S. Federal Aviation Administration in 2024 after a midair accident put the planemaker's safety and production quality program under new scrutiny. Production defects on the 737 program are down by 30%, he said. "Virtually every one of our customers is reporting a higher quality of airplane at delivery." Increasing production is critical to getting Boeing back to being cash positive, which Ortberg has previously said he expects to achieve in the second half of the year. It burned through $2.3 billion in cash during the first quarter. "I think the financial performance will follow the production performance of the company, and I think we need to think about it that way," Ortberg said. The company is making progress on certifying the smallest and largest MAX variants with the U.S. Federal Aviation Administration, he said. The MAX 7 and MAX 10 have been delayed in part due to concerns with the engine de-icing system. The company should finish critical testing of its fix by July, allowing time to certify the aircraft by the end of the year, he said. Boeing's backlog includes nearly 1,200 orders for the 737 MAX 10 and 332 orders for the MAX 7. Ortberg also said that Chinese airlines are set to resume taking deliveries of Boeing aircraft in June. China had stopped taking deliveries in April in retaliation to tariffs imposed by President Donald Trump. Boeing expects the impacts of the tariffs to be less than $500 million, he said. 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
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Business Standard
29-05-2025
- Automotive
- Business Standard
Boeing targets year-end certification for 737 MAX 7 and MAX 10 jets: CEO
Boeing expects to finish certification of its best-selling 737 MAX family by the end of the year, CEO Kelly Ortberg said in an interview with trade publication Aviation Week published on Wednesday. The company has been trying for several years to gain certification for the smallest and largest MAX variants from the U.S. Federal Aviation Administration. The MAX 7 and MAX 10 have been delayed in part due to concerns with the engine de-icing system. Ortberg told Aviation Week that the U.S. planemaker hopes to finish certification this year, clearing the way to start deliveries of the MAX 7 and MAX 10, "two airplanes that are very, very important to our customers and our backlog.� Boeing's backlog includes nearly 1,200 orders for the 737 MAX 10 and 332 orders for the MAX 7. United Airlines Chief Commercial Officer Andrew Nocella this month told reporters that the company does not expect to take delivery of MAX 10s until 2027 at the earliest. Alaska Airlines officials have said they do not expect to receive the variant until at least mid-2026. Ortberg also said in the Aviation Week interview that Boeing was making progress on certifying the 777-9, the company's largest jetliner in production. When the program was announced in 2013, Boeing planned to start deliveries in 2020. However, it is still in flight testing. Ortberg has previously said publicly that he expects deliveries to start next year.
