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As the longest federal government shutdown in U.S. history drags on, federal workers are left in financial limboand the airline industry is feeling the strain as flight delays and cancellations mount at the nation’s busiest airports. In the midst of this upheaval, American Airlines has announced small reductions in management and support roles at its Texas headquarters, raising the stakes at a particularly challenging moment. According to the Associated Press, the move is described as a way to align staffing with current operational needs and boost organizational efficiency. A company statement emphasized that investments will continue in other areas supporting long-term strategic goals. While American Airlines hasnt disclosed exact numbers, Bloomberg reports that the cuts could affect hundreds of corporate jobs, mainly mid-level management and non-union support staff across IT, communications, and finance. Fast Company reached out to American Airlines for a comment. Industry and economic pressures The staffing cuts follow a quarterly net loss of $114 million for American Airlines. The company’s shares (Nasdaq: AAL) were down roughly 21% year to date as of Wednesday’s close. Meanwhile, broader economic concerns are weighing on consumers, dampening potential demand for leisure travel. A recent AP-NORC poll reveals that many Americans fear a recession, and rising tariffs under the Trump administration could further drive up costs. A growing number of companies across industries have announced corporate job cuts in recent weeks, including Starbucks, Nestlé, UPS, Amazon, and others. According to a report Thursday from Challenger, Gray & Christmas, layoff announcements in October were up 175% compared to the same period last year. Prolonged shutdown raises adds weight The government shutdown has exacerbated operational challenges. Some 50,000 TSA officers and 13,000 air traffic controllers have been working without pay, contributing to flight delays and cancellations. Bryan Bedford, administrator of the Federal Aviation Administration (FAA), told Fox Business that 20 to 40% of controllers at the 30 largest airports have failed to show up for work. On Wednesday, the FAA said it now plans to reduce flight capacity by 10% at dozens of airports beginning later this week. Looking ahead Transportation Secretary Sean Duffy warned that if the shutdown continues another week, the FAA may be forced to close parts of the national airspace, potentially causing mass chaos. The remarks immediately rattled investors, sending shares of American Airlines, Southwest, Delta, and United downward. Experts note that because the air traffic control system is highly interconnected, partial airspace restrictions could have far-reaching effects nationwide. Sheldon Jacobson, a University of Illinois professor, explained in an interview with Reuters, You cant simply close one sector without it affecting the rest of the country. American Airlines and other major carriers are particularly worried about the upcoming holiday season, traditionally a peak travel period. In a statement late Wednesday, American Airlines again urged Congress to reach a resolution and end the shutdown.
Category:
E-Commerce
Qatar Airways will sell its stake in Hong Kong-based Cathay Pacific Airways in a share buyback valued at $896 million, the companies announced, ending the Qatari carrier’s eight-year involvement with the airline.The announcement came late Wednesday in a stock market filing by Cathay Pacific, which saw its shares gain 4.2% on the Hong Kong Stock Exchange on Thursday.Under the agreement, Qatar Airways will sell all of its holdings, which represent 9.57% of Cathay Pacific stock. The airline’s other major shareholders are Swire Pacific and Air China. The plan is subject to shareholder approval.“The buy-back reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub,” Cathay Group chairman Patrick Healy said in a statement announcing the sale.Qatar Airways, a state-owned airline flying out of the sprawling Hamad International Airport in Doha, did not acknowledge the sale itself. However, the Cathay Pacific statement included a comment from its CEO Badr Mohammed al-Meer saying the move represented the airline’s “disciplined approach to portfolio management and our commitment to delivering sustainable value for our shareholders.”“Following a period of record profitability and strong performance, this decision is part of a proactive strategy to optimize our investments and position the group for long-term growth,” al-Meer said. Qatar Airways did not respond to questions from The Associated Press on Thursday.Qatar Airways’ decision to divest likely had to do in part with its “limited strategic influence afforded by (its) minority stake,” DBS Bank analysts Tabitha Foo and Jason Sum said in an email.The latest transaction also “further consolidates ownership among (Cathay’s) key shareholders, Swire Pacific and Air China”, they added, helping strengthen the firms’ strategic control of the airline.Qatar Airways bought its stake in Cathay Pacific in 2017 in a deal valued at the time around $662 million. Back then, Cathay Pacific faced financial losses and layoffs amid increasing competition from other airlines. The Hong Kong carrier posted a $1.2 billion profit in the last fiscal year.Qatar Airways, along with Abu Dhabi-based Emirates and Dubai’s Emirates, are long-haul carriers that link East-West travel. Their location on the Arabian Peninsula between Europe and Asia have made them a key link in global transit. Qatar Airways also got a boost when the small, energy-rich nation hosted soccer’s 2022 FIFA World Cup.Qatar Airways had struggled during a yearslong boycott by four Arab nations and the coronavirus pandemic. However, it soared to a $2.15 billion profit in its last fiscal year. Qatar Airways also has holdings in International Airlines Group, LATAM Airlines Group, China Southern Airlines, Virgin Australia and South Africa’s Airlink. Associated Press business writer Chan Ho-him in Hong Kong contributed to this report. Jon Gambrell, Associated Press
Category:
E-Commerce
There was a moment when Snapchat looked like it was destined to be a relic in social media history, losing users and missing its own revenue forecasts. Not today. Snap, the apps parent company, announced $1.51 billion in revenue as part of its third-quarter earnings on Wednesday, November 5. That figure was a 10% jump year-over-year (YOY) and beat Wall Streets prediction of $1.49 billion, according to consensus estimates cited by CNBC. Snapchat beat Wall Streets expected global daily active users (477 million versus 476 million) and global average revenue per user ($3.16 versus $3.13). Both figures were also an improvement YOY. Snap also announced a stock repurchase program for up to $500 million. Alluding to its reported $93.4 million free cash flow, Snap explained, The goal of the program is to utilize the companys strong balance sheet to opportunistically offset a portion of the dilution related to the issuance of restricted stock units to employees as part of the overall compensation program designed to foster an ownership culture. Snap partners with Perplexity AI All of these figures certainly play a part in Snaps shares (NYSE: SNAP) spiking more than 20% after-hours and into premarket trading on Thursday. But another announcement likely factored in. Alongside its quarterly earnings report, Snap shared that Perplexity AI will pay it $400 million in cash and equity as part of a coming partnership. Starting in early 2026, Perplexity will appear in our chat interface for Snapchatters around the world, Evan Spiegel, Snap cofounder and CEO, said in an earnings call. Through this integration, Perplexitys AI-powered answer Engine will let Snapchatters ask questions and get clear conversational answers drawn from verifiable sources, all within Snapchat. Spiegel added that Snap wont sell advertising against the responses but that Perplexity could help drive additional subscribers. Notably, Spiegel also shared that Perplexity’s focus on trusted and verifiable sources really aligns with our values and makes them a good fit for our community. News organizations such as Dow Jones and the New York Post have sued Perplexity for alleged copyright infringement, while Reddit sued the company last month for allegedly illegally scraping millions of users comments for commercial gain. In a lengthy statement posted to Reddit last month, Perplexity has disputed claims of misconduct. Last week, the company signed a multi-year licensing deal with Getty Images, allowing the former to display Gettys content across its AI tools.
Category:
E-Commerce
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