Latest news with #RobertIsom
Yahoo
09-05-2025
- Business
- Yahoo
What recession fears? Lyft's CEO doesn't see 'anything to worry about'
Amid a rash of disappointing earnings and pulled guidances — and broader sense of economic uncertainty — Lyft's (LYFT) CEO says he doesn't see 'anything to worry about' for his company. 'Our team is stronger than it's ever been, and the consumer demand is absolutely there,' CEO David Risher said during an interview with CNBC's (CMCSA) Squawk Box on Friday. That came soon after Lyft reported strong earnings for the first quarter. The ride-hailing company grew gross bookings by 13% year-over-year to $4.16 billion, its 16th straight period of gross-bookings growth. Its revenue for the quarter was $1.45 billion, up 14% compared to a year ago. Total rides for the quarter climbed by 16% to 218.4 million, beating FactSet's (FDS) estimate of 215.1 million. Lyft also revealed that its board authorized boosting the company's share repurchase plan to $750 million from $500 million. Lyft's shares climbed about 23% Friday morning. The news is a rare bright spot for the U.S. travel industry. Uber's (UBER) stock declined earlier this week after the company reported mixed first-quarter results. Expedia (EXPE) posted worse-than-expected first-quarter earnings on Friday and lowered its full-year outlook, citing weak U.S. demand. Shares fell by 8% on Friday morning. Airbnb (ABNB) issued a disappointing second-quarter revenue forecast last week, citing 'broader economic uncertainties' for potential travelers and noting that fewer Canadians were traveling to the U.S. Meanwhile, a number of airlines — including Delta (DAL), American, and Southwest (LUV) — have pulled their yearly forecasts amid economic volatility, tariff uncertainty, and warnings from air traffic controllers. 'There's no way to predict exactly where demand is going,' American Airlines (AAL) CEO Robert Isom said when the company reported its first-quarter earnings in late April. For the latest news, Facebook, Twitter and Instagram.
Yahoo
04-05-2025
- Business
- Yahoo
US destinations report tourism drops. Will it lead to cheap summer travel?
(NEXSTAR) – As economic anxiety and international tensions mount, some of the country's biggest hotspots are worried visitors won't turn up this year. But their loss could be your gain, travel analysts say, if demand drops so low that deals start to pop up. A Las Vegas tourism report released this week showed showed visitation and hotel occupancy were down year-over-year. California's tourism board reported steep drop-offs starting in February and March. More Local News As a result of dropping travel demand, major U.S. airlines are reducing their flight schedules and revising or withdrawing their profit outlooks for the year. 'We came off a strong fourth quarter, saw decent business in January, and really domestic leisure travel fell off considerably as we went into the February time frame,' American Airlines CEO Robert Isom told CNBC. Consumer reluctance to book vacations would correspond with a new poll that showed many people fear the U.S. is being steered into a recession and that President Donald Trump's broad and haphazardly enforced tariffs will cause prices to rise. The drop in travelers is both domestic and foreign. The U.S. Travel Association reports international visits were down 14% in March when compared to the same month a year prior. The biggest drops were in visitors from Canada and Western Europe, the group said. More: Latest News from Around the Tri-State Michael Feroli, chief U.S. economist at J.P. Morgan, said the travel drop-off could be due to growing anti-American sentiment. 'In recent weeks there have been numerous news stories about tourists canceling trips to the U.S. in protest of the perceived heavy-handedness of recent trade policies,' he wrote in a client note. 'This points to potentially another channel to consider in assessing the effects of tariffs on economic activity.' Even a relatively small drop in foreign tourism, whether it's because of boycotts or economic uncertainty, would cost the U.S. economy billions, Bloomberg reports. If demand is dropping in the travel sector, there's a chance airlines, hotel chains and others will drop prices to lure people back in. Airfare dropped in February and March, according to Bureau of Labor Statistics tracking. 'The fares aren't as strong as they were in the fourth quarter of last year and coming into January and first part of February,' Alaska Airlines CFO Shane Tackett told CNBC. 'Demand is still quite high for the industry, but it's just not at the peak that we all anticipated might continue coming out of last year.' Before drawing too many conclusions, some industry analysts urge waiting until April data is released to assess if the usually busy spring break and Easter travel seasons also showed price drops. Nonetheless, airline business writer Brian Summers told The New York Times, 'On the whole, I expect prices will fall and we will see more empty seats.' If we see the U.S. economy tip into an economic recession this year, that could also make travel — and other goods and services — cheaper. 'In fact, in the 2008 recession, you actually saw deflation for for a couple months where the overall price level was actually lower,' said Tyler Schipper, an associate professor of economics at the University of St. Thomas. 'I think of this being particularly true for things that maybe are more luxury for a lot of households, like travel. So airline travel, for instance, you can see falls in prices around most recessions. And I suspect if we went into a recession, we would still see that again.' Nexstar's Addy Bink and the Associated Press contributed to this report. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
04-05-2025
- Business
- The Hill
US destinations report tourism drops. Will it lead to cheap summer travel?
(NEXSTAR) – As economic anxiety and international tensions mount, some of the country's biggest hotspots are worried visitors won't turn up this year. But their loss could be your gain, travel analysts say, if demand drops so low that deals start to pop up. Where is tourism declining? A Las Vegas tourism report released this week showed showed visitation and hotel occupancy were down year-over-year. California's tourism board reported steep drop-offs starting in February and March. As a result of dropping travel demand, major U.S. airlines are reducing their flight schedules and revising or withdrawing their profit outlooks for the year. 'We came off a strong fourth quarter, saw decent business in January, and really domestic leisure travel fell off considerably as we went into the February time frame,' American Airlines CEO Robert Isom told CNBC. Consumer reluctance to book vacations would correspond with a new poll that showed many people fear the U.S. is being steered into a recession and that President Donald Trump's broad and haphazardly enforced tariffs will cause prices to rise. Where do the DOGE stimulus checks stand? The drop in travelers is both domestic and foreign. The U.S. Travel Association reports international visits were down 14% in March when compared to the same month a year prior. The biggest drops were in visitors from Canada and Western Europe, the group said. Michael Feroli, chief U.S. economist at J.P. Morgan, said the travel drop-off could be due to growing anti-American sentiment. 'In recent weeks there have been numerous news stories about tourists canceling trips to the U.S. in protest of the perceived heavy-handedness of recent trade policies,' he wrote in a client note. 'This points to potentially another channel to consider in assessing the effects of tariffs on economic activity.' Even a relatively small drop in foreign tourism, whether it's because of boycotts or economic uncertainty, would cost the U.S. economy billions, Bloomberg reports. Will the drop in tourism result in travel deals? If demand is dropping in the travel sector, there's a chance airlines, hotel chains and others will drop prices to lure people back in. Airfare dropped in February and March, according to Bureau of Labor Statistics tracking. 'The fares aren't as strong as they were in the fourth quarter of last year and coming into January and first part of February,' Alaska Airlines CFO Shane Tackett told CNBC. 'Demand is still quite high for the industry, but it's just not at the peak that we all anticipated might continue coming out of last year.' Before drawing too many conclusions, some industry analysts urge waiting until April data is released to assess if the usually busy spring break and Easter travel seasons also showed price drops. Nonetheless, airline business writer Brian Summers told The New York Times, 'On the whole, I expect prices will fall and we will see more empty seats.' If we see the U.S. economy tip into an economic recession this year, that could also make travel — and other goods and services — cheaper. 'In fact, in the 2008 recession, you actually saw deflation for for a couple months where the overall price level was actually lower,' said Tyler Schipper, an associate professor of economics at the University of St. Thomas. 'I think of this being particularly true for things that maybe are more luxury for a lot of households, like travel. So airline travel, for instance, you can see falls in prices around most recessions. And I suspect if we went into a recession, we would still see that again.'
Forbes
29-04-2025
- Business
- Forbes
United Polaris Lounge Unveils Competitive Upgrades For Business-Class Passengers
The expanded United Airlines Polaris lounge at Chicago O'Hare International Airport offers more than 350 seats, a larger 50-seat private dining room, a second bar, and dinnerware and decor curated by Crate & Barrel. The nationwide airport lounge arms race continues to take flight. Each new U.S. lounge opening or expansion — there have been several at airports large and small in the last year alone — comes with its twist. The grand opening of the freshly expanded United Polaris Lounge at O'Hare Airport on Tuesday is no exception. The newest expanded club lounge in the United portfolio exists exclusively for international business class travelers. The updated space now offers more than 350 seats, a larger 50-seat private dining room, a second bar, and dinnerware and decor curated by Crate & Barrel — the famed decor company's first collaboration with an airline. The expanded United Airlines Polaris lounge dining area at Chicago O'Hare offers more than 350 seats, a larger 50-seat private dining room, a second bar, and dinnerware and decor curated by Crate & Barrel. The new space occupies a breathtaking 25,000 feet at the fifth-busiest airport in the United States. In a sign of the times, the lounge is taking over the space occupied by a United Club—which closed when the new United Club near gate C10 opened in 2023. The demand for international business-class seats in Chicago justified the cost and effort. United customers can fly nonstop from O'Hare to 15 destinations in Europe, as well as nonstop to Asia and South America. 'Our vast international network is one of United's unique strengths, and our United Polaris lounges help set the tone for business class travelers before or after their long-haul flights,' Aaron McMillan, United's Managing Director of Hospitality Programs, said in an announcement. 'Customers are going to love our new Chicago lounge because it gives them more of all of the things they want most—more space, more amenities, and more dining options—and we'll carry this new elevated design into future lounge openings and renovations across our United Polaris lounge portfolio.' The renovated Polaris lounge reflects the Chicago area by celebrating the city's rich architectural history. The lounge showcase artwork from nine Chicago-based artists on a range of pieces, including print photography, paintings and collages that highlight the region. Travel executives projected 2x growth in the luxury segment from 2022-28. The multi-million dollar investments have followed suit, cutting across the entire airline industry. Like United, American Airlines focused on upgrading its premium offerings to international travelers. CEO Robert Isom reportedly said on the company's recent first-quarter earnings call that the carrier's Flagship Lounge in Philadelphia, not far from where many of its European flights depart, is expected to open sometime in May. Delta has been particularly aggressive in its lounge expansion while promising a quarterly rotation of local chefs in its Sky Club locations. 'Watching [Delta] succeed, I became convinced that the product mattered and service mattered, and we have done that at United now,' United CEO Scott Kirby said (via NBC) at a JPMorgan industry event last year. For international travelers arriving at the United Polaris Lounge at O'Hare, a local flavor awaits. Its new, second bar is a speakeasy-style space with a selection of premium wine and champagne options (Laurent-Perrier La Cuvée Brut) and Chicago-inspired cocktails including the Second City Sour, featuring Rittenhouse Rye, Malort, Lemon, Egg White and Lingua Franca Pinot Noir. The new speakeasy-style bar at the Polaris lounge at Chicago O'Hare offers a selection of premium wine and champagnes (Laurent-Perrier La Cuvée Brut) and Chicago-inspired cocktails including the Second City Sour, featuring Rittenhouse Rye, Malort, Lemon, Egg White and Lingua Franca Pinot Noir. The renovated lounge also features a larger dining area with more than 50 seats – nearly tripling the amount of dining seats – where travelers can order à la carte meals with curated premium food and beverages, including Prosciutto Parmigiano Crostini, Shrimp, Scallop, Spring Vegetable Risotto and Aperol Spritz cake. The renovated lounge also reflects the Chicago area by celebrating the city's rich architectural history. United worked with Johalla Projects, an art curatorial collective in Chicago, to showcase artwork from nine Chicago-based artists on a range of pieces, including print photography, paintings, collages and more that highlight the region. Crate & Barrel, founded in Chicago and headquartered in nearby Northbrook, collaborated with United to bring products such as its Marin dinnerware and new Tuscan Marble collection. It all adds up to a nice reward for long-haul fliers who paid a premium for their upgraded seats on board. Whether at the beginning or end of a lengthy trip, a little pampering goes a long way.
NBC News
28-04-2025
- Business
- NBC News
Plane tickets are getting cheaper as domestic travel demand weakens
Is a recession brewing in row 33? Airline CEOs this month warned Wall Street that passengers' appetite for domestic trips is coming in lighter than they had hoped when they set forecasts high at the start of 2025. On a series of earnings calls, they said the reasons range from President Donald Trump 's whipsawing tariff policies to volatile markets and, most notably, economic uncertainty. 'Nobody really relishes uncertainty when they're talking about what they could do on a vacation and spend hard-earned dollars,' American Airlines CEO Robert Isom said on a quarterly earnings call on Thursday. That means airlines have too many seats on their hands — again. Delta Air Lines, Southwest Airlines and United Airlines said they will cut back their capacity growth plans after what they still hope to be a strong summer travel season. Delta, Southwest, Alaska Airlines and American Airlines pulled their 2025 financial outlooks this month, saying the U.S. economy is too tough to predict right now. United Airlines provided two outlooks, one if if the U.S. falls into a recession and said it expects to be profitable in either scenario. That is leading to cheaper plane tickets. Airfare fell 5.3% in March from last year, according to the Bureau of Labor Statistics' latest data. Easter, a peak travel period that coincides with many school vacations, fell in March of last year, though fares also dropped 4% in February this year. Adding to pressure, executives said, is slower-than-expected growth from corporate travel, which is facing the same challenges many households are. Government travel plunged, too, amid the Trump administration's cost cuts and mass layoffs this year. 'If uncertainty pops up, the first thing that goes away is corporate travel,' said Conor Cunningham a travel and transportation analyst at Melius Research . Delta CEO Ed Bastian said on April 9 that corporate travel was trending up 10% year on year at the start of 2025, but that growth has since flattened. Business travel is key to major carriers because those customers are less price-sensitive and often book last minute when tickets are likely to be more expensive. The overhang of seats in the domestic skies is forcing airlines to cut prices to fill their planes. Alaska Airlines warned Wednesday that weaker-than-expected demand will likely eat into second-quarter earnings. Chief Financial Officer Shane Tackett told CNBC that demand has not plunged, but the carrier has lowered some fares to fill seats. 'The fares aren't as strong as they were in the fourth quarter of last year and coming into January and first part of February,' Tackett said in an interview Wednesday. 'Demand is still quite high for the industry, but it's just not at the peak that we all anticipated might continue coming out of last year.' At the front of the plane, executives say demand is holding up far better, while U.S.-based customers are still flying overseas in droves. But lingering concerns are still weighing on the industry. 'Certainty will restore the economy, and I think it will restore it pretty quickly,' Isom said.
