Latest news with #activistinvestors
CBS News
27-05-2025
- Business
- CBS News
As their policies shift, see how much U.S. airlines are making in checked bag fees
What to know about Southwest Airlines new fare options Checked bags are a big business for U.S. airlines, bringing in more than $7 billion in revenue last year, according to data from the Bureau of Transportation Statistics. The fees have brought more revenue to the airlines than it ever had prior to the pandemic, the data shows. Airlines began shifting their checked bag policy in recent years to keep up with what they say are rising operational costs, including higher prices for fuel and increased wages. Most recently, Southwest Airlines announced it will start charging $35 for the first checked bag — after more than 50 years of only charging for a third bag. Changes at Southwest came amid mounting pressure from activist investors to improve its financial performance. The airline in September predicted that new fees would lead to $1.5 billion a year in revenue. Last year, JetBlue brought Uber-style surge pricing to bag-check fees, making it more costly to check luggage during peak travel periods. American Airlines also increased its fees in 2024 from $30 to $35 for the first checked bag. Breaking down the revenue from checked bags for U.S. airlines Checked bags brought in about $7.27 billion in revenue last year for Alaska Airlines, Allegiant Air, American, Breeze Airways, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue, Silver Airways, Southwest, Spirit Airlines, Sun Country and United Airlines, according to the government's data that was last updated on May 6. That is up from $7.07 billion in 2023, Bureau of Transportation Statistics' data shows. In 2022, U.S. airlines made over $6.7 billion in bag fees, another major jump from the $5.3 billion made in 2021. American, Delta and United — the three largest U.S. airlines — made over $1 billion each last year on checked bags — and their revenue from it has been climbing since the COVID-19 pandemic halted air travel in 2020. When the pandemic hit, total checked bag revenue plummeted to $2.84 billion in 2020, down from $5.76 billion in 2019. Kiki Intarasuwan Kiki Intarasuwan is a news editor for CBS News & Stations. contributed to this report.
Entrepreneur
20-05-2025
- Automotive
- Entrepreneur
Elon Musk Is Committing to Five More Years as Tesla CEO
Tesla's CEO said there is "no doubt" that he is staying at the electric vehicle maker. Elon Musk's new five-year plan has him staying at Tesla. In an interview at Bloomberg's Qatar Economic Forum on Tuesday, Tesla's CEO said that he is committed to staying at the electric vehicle maker for years to come. Related: A Tesla Executive Received a Record Pay Package, and It's Not Elon Musk When asked if he will still be leading the company in five years, he said: "Yes, no doubt about that at all." CNBC reports that Musk wants to keep his position as Tesla's CEO to maintain "sufficient voting control" over the company to avoid activist investors. "It's not a money thing," Musk said. "It's a reasonable control thing over the future of the company." Related: With Tesla Down 71% in Net Income, Elon Musk Says He'll Spend Less Time at DOGE Tesla's sales have dropped 13% in the first three months of this year, marking the largest quarterly drop in Tesla's history. Net profits have plunged by 71%. The EV maker's revenue also fell 9% year-over-year. Musk is currently the richest person in the world, with a net worth of $376 billion at press time, per the Bloomberg Billionaire Index.
Reuters
13-05-2025
- Business
- Reuters
Elliott wins ISS support in proxy battle at Phillips 66
NEW YORK, May 12 (Reuters) - Elliott Investment Management scored a victory on Monday in its board fight at Phillips 66 (PSX.N), opens new tab when prominent proxy advisory firm Institutional Shareholder Services (ISS) recommended that investors elect all four of the activist's director nominees. Elliott, which owns a roughly $2.5 billion stake in Phillips, has been pushing the oil refiner, valued at $48 billion, for changes that include spinning off or selling its midstream business and wants investors to refresh the board in order to achieve these goals. Now with ISS's backing, on the heels of a similarly favorable recommendation from the firm's smaller rival Glass Lewis, the hedge fund may have won significant support, analysts and investors said. Glass Lewis urged investors to elect three of Elliott's four nominees at the May 21 meeting. Investors often take recommendations from proxy advisory firms into consideration when casting votes on hot-button issues like who sits on boards. "Although the board has been reshaped since the pandemic, important industry perspectives have been overlooked, and there is strong evidence that the board is not willing to exercise independent oversight of management," the ISS report said. "The dissident has assembled a strong slate, which has the experience and independence that PSX requires." The fight between Elliott and Phillips 66 is one of the year's most bitter proxy fights with each side piling time and money into trying to persuade shareholders they have the better candidates. Neither Phillips 66 nor Elliott had an immediate comment on the report. Investors will cast votes for four directors who sit on the 14-member board.
