Latest news with #Minicucci
Business Insider
31 minutes ago
- Business
- Business Insider
'An Improvement in Quality', Says Unlikely Source, But Boeing Stock (NYSE:BA) Slips Regardless
If there were anyone out there that it would be hard for aerospace stock Boeing (BA) to please right now, who do you think it would be? Perhaps the CEO of Alaska Airlines (ALK), Ben Minicucci? That would be one tall order, right? And yet, that is just what happened. Despite this, investors were still skeptical, and sent Boeing shares down fractionally in Friday afternoon's trading. Confident Investing Starts Here: While at the International Air Transport Association's annual meeting, Minicucci noted that the material seen out of Boeing has been improving on a regular basis. Minicucci noted, 'What we've seen quarter to quarter is an improvement in safety, an improvement in quality.' Naturally, it was not a perfect run, as Minicucci also noted, 'Are they yet there? No, there's still a lot of work.' But even there, it seemed less like a specific criticism than a simple expression of ongoing distrust. But there are signs of thawing everywhere. Tim Clark of Emirates Airlines was happy to hear 'clearer messages' coming out of Boeing's top brass, and was happy to see the 'change of style' found under Kelly Ortberg. Interestingly, Tim Clark had never met Ortberg's predecessor, Dave Calhoun, but has met Kelly Ortberg. Clark even made reference to 'cautious optimism' of the kind he had not seen 'in the last few years,' reports noted. Tough Room Naturally, not everything was so positive for Boeing. The deal finally reached with the government that allowed it to avoid prosecution did not even sort of sit well with the surviving families of those who died in the 737 Max jet crashes. In fact, one of the lawyer for the 16 families involved declared the deal 'morally repugnant.' It has also reportedly provoked 'visceral outrage' from his clients, who, reportedly, declared the $444.5 million payout to be insufficient. Further, noted lawyer Sanjiv Singh, the deal allows Boeing to '…sidestep true criminal accountability.' Singh also declared that the penalties involved are '…actually like Boeing paying $10 to escape criminal liability. It's as if they got a misdemeanour ticket or a parking ticket.' Given that Boeing made around $66.5 billion in total revenue in 2024, $1.1 billion is actually a much more substantial portion than implied. Is Boeing a Good Stock to Buy Right Now? Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 9.87% rally in its share price over the past year, the average BA price target of $218.37 per share implies 4.62% upside potential.
Yahoo
3 days ago
- 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
4 days ago
- 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
4 days ago
- 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."
Miami Herald
30-04-2025
- Business
- Miami Herald
Why Alaska Air wants Portland to be its Sea-Tac ‘relief valve'
As Alaska Airlines embarks on its mission to become a trans-Pacific carrier, connecting the West Coast to Asia, its Seattle hub will be the center of connections. Neighboring Portland, then, will be the "relief valve," CEO Ben Minicucci told financial analysts on an earnings call Thursday. As Alaska expands its international destinations, it will shuffle some connecting flights that would have routed through Seattle to stop in Portland instead. That frees up room in the Seattle airspace for local travelers and flights that would be better served by passing through the Puget Sound region, like connections to Tokyo, Japan, Ketchikan, Alaska and Bellingham. In Seattle, connecting traffic was up 15% in the first quarter this year compared to the year before. In Portland, connecting bookings are up 200% in May and June, the first two full months of Alaska's new connections structure. "Portland is a huge opportunity for us," Minicucci said on the analyst call Thursday. "You'll see us invest more in Portland and creating that connecting complex as an opportunity to offload Seattle a little bit." Minicucci was pointing to travel in Seattle and Portland at the start of the year to illustrate how Alaska's long-term intercontinental strategy was already working, even as the industry overall has seen demand slow amid President Donald Trump's trade and immigration policies. Alaska lost $166 million in the first three months of the year, according to financial results released Wednesday. The airline usually sees a dip in the first quarter, said Ryan St. John, Alaska's vice president of finance, in an interview before the earnings release, but broad economic uncertainty led to a greater loss than expected. But Alaska and its industry peers are optimistic that even if the current trajectory continues and growth slows for the year, they can still weather the turbulent days ahead. Alaska, particularly, did not deviate from its long-term strategy that envisions new trans-Pacific flights and an ambitious return for investors. "I'll say this with complete confidence: Our company is significantly undervalued relative to where we're headed and the strength we're showing in areas within our control," Minicucci said. The airline's intercontinental growth hinges on its recent merger with Hawaiian Airlines, finalized in September, which will allow it to tap into a new widebody fleet of aircraft to more easily fly across the Pacific. Seattle will be Alaska's "new global gateway," with plans to add 12 new intercontinental routes from Seattle by 2030, including flights to Tokyo-Narita, Japan, in May and Seoul, South Korea, in September. At the same time, Alaska has canceled a few routes as it reallocates capacity from some underperforming markets to another, including routes connecting San Francisco and Chicago; Los Angeles and Washington, D.C. and Austin and Honolulu. In Seattle, it canceled a flight to Dallas and Nassau, in the Bahamas. On the investor call Thursday, one analyst put the shifting flights in California terms, asking Alaska executives if new San Diego flights came at the expense of San Francisco routes. Alaska's Minicucci and Chief Commercial Officer Andrew Harrison said they didn't see it that way. "We're doing it smart, we're doing it incremental and I think overall Air Group and our guests are going to benefit from this," Harrison said. Responding to economic uncertainty Meanwhile, Alaska did not release full-year guidance with its quarterly earnings this week, following many of its industry peers in signaling that the economic uncertainty may disrupt projections. United stuck to its predictions laid out earlier this year, but the airline issued a second guidance if the economy were to dip into a recession. Southwest, American and Delta pulled their full-year guidance before their own earnings release. "With broad economic uncertainty around global trade, growth has largely stalled," Delta's CEO Ed Bastian said in a statement. "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control." Most airlines stuck to their conviction that the year could still be profitable, even in the face of an economy that threatened to lower travel demand. "The current landscape has been challenging to predict," Alaska's Minicucci said on the analyst call last week. "While we're not updating our full-year guidance today, we remain confident in our outlook." Alaska "has a proven track record, not just of weathering downturns but of emerging stronger every time," he said. "We're operating from a position of real strength." Despite all of the uncertainty, Alaska remains unwavering in its goal to reach $10 earnings per share by 2027 - so much so that executives repeatedly said Thursday it could even climb above that threshold. It's also on track to execute a $1 billion stock buyback plan over the next four years, which it authorized at the end of 2024. In the first three months this year, Alaska has repurchased 1.8 million shares, totaling $107 million. Through April 22, its stock buybacks totaled $149 million. Airlines often make the mistake of repurchasing shares when they are high and shying away from doing so when they are low, Minicucci said. Alaska won't make that mistake this time, he said. Even in the face of an economic downturn, Alaska said travelers are still paying for more legroom and other amenities. Premium bookings were up 10% in the first quarter compared to the same time period last year. And its first class cabin remained practically unaffected by the broader economic turmoil. That's partly because so many passengers are strapping in for long, domestic flights up to 5 hours on any given day, Alaska executives said Thursday. Alaska is also optimistic that the worst of the recessionary fears may be stabilizing, chief commercial officer Harrison said. Future bookings are back up, after bottoming out in March. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
