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Cathay Pacific Airways (OTC:CPCAY) Stock, Option Chain

Cathay Pacific Airways

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Cathay Pacific is the largest airline group in Hong Kong. It operated a fleet of 231 aircraft and flies to over 80 destinations as of June 2024. Cathay carried more than 35 million passengers in prepandemic 2019. The group operates the full-service airline Cathay Pacific and the low-cost carrier HK Express. It also runs the cargo carrier Air Hong Kong.

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Several airlines join in inspecting Airbus A350 fleets after Cathay Pacific discovered engine issues.

Delta Air Lines Ensure &#39;High Standard Of Care For Safety&#39; As Airlines Respond To Cathay Pacific&#39;s Airbus A350 Engine Failure

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Airbus and Rolls-Royce are reportedly preparing to address airlines about the A350 engine issue that prompted Cathay Pacific to review its fleet, with regulators yet to decide on global inspection requirements.

Cathay Pacific A350 Engine Issue: Airbus And Rolls-Royce Ready To Speak Out

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Cathay Pacific Airways Ltd (OTC: CPCAF) (OTC: CPCAY) disclosed buying 6 A350F aircraft from Airbus SE (OTC: EADSY) for 

Cathay Pacific Embarks On Billion-Dollar Airbus Deal For Freighters

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Several airlines are reportedly conducting precautionary inspections of their Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) A350 fleets following an issue identified by Cathay Pacific Airways, Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CPCAY#OTC">CPCAY</a>).
The Cathay Pacific airline discovered that 15 of its A350-1000 aircraft required fuel line repairs after an in-flight engine component failure. This problem affected aircraft using Rolls-Royce Trent XWB-97 engines, reported Reuters.
Delta Air Lines, which operates 30 A350-900s, said the airline runs its global operation &#8220;with the high standard of care for safety, reliability and care,&#8221; Reuters noted.
The European Union Aviation Safety Agency (EASA) has issued a directive requiring airlines to perform visual checks and measurements on A350-1000 engines within three to 30 days.
The A350-900 model, which uses a different engine, is not affected by this directive.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40729994/cathay-pacific-a350-engine-issue-airbus-and-rolls-royce-ready-to-speak-out" rel="noreferrer noopener">Cathay Pacific A350 Engine Issue: Airbus And Rolls-Royce Ready To Speak Out</a>
Cathay Pacific, which operates 48 A350 jets, has identified 15 aircraft needing engine component replacements, with repairs scheduled to be completed by Saturday.
Japan Airlines Ltd, which has five new A350-1000s, reported no defects after initial inspections but will conduct additional checks based on a Service Bulletin from Rolls-Royce.
Qatar Airways is inspecting its 24 A350-1000s in response to EASA and Rolls-Royce directives, while Etihad Airways, which has five A350-1000s, has found no issues during its inspections so far.
Virgin Atlantic, operating 12 A350-1000s, announced on Friday that it has received an Airworthiness Directive to inspect the XWB engines. The airline is collaborating closely with Airbus and Rolls-Royce on this matter. It anticipates that the inspections will result in &#8220;minimal disruptions&#8221; to its flight schedule.
British Airways, which operates 18 A350-1000s, has not yet provided a comment on the situation.
Singapore Airlines, which has 63 A350-900 planes, is conducting inspections with no reported flight impacts. Thai Airways, managing 23 A350-900s, said it continuously reviews the situation, per the report.&nbsp;
Airlines are closely monitoring the situation to ensure safety and operational stability.
Price Action: DAL shares are trading lower by 0.36% to $42.02 at last check Friday.
Photo via Shutterstock
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<li><a href="https://www.benzinga.com/news/24/09/40701898/cathay-pacifics-a350-fleet-to-fully-resume-operations-by-sep-7" target="_blank" rel="noreferrer noopener">CathPacific&#8217;sc&#8217;s A350 Fleet To Fully Resume Operations By Sep 7</a></li>
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Delta Air Lines Ensure 'High Standard Of Care For Safety' As Airlines Respond To Cathay Pacific's Airbus A350 Engine Failure

Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSF#OTC">EADSF</a>) and Rolls Royce Holdings plc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/RLLCF#OTC">RLLCF</a>) are set to update airlines on the consequences of an engine emergency that led Cathay Pacific Airways, Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CPCAY#OTC">CPCAY</a>) to reassess its A350 fleet, amid <a target="_blank" href="https://www.benzinga.com/news/24/09/40683607/cathay-pacific-identifies-15-airbus-a350-planes-in-need-of-engine-part-replacement-report" rel="noreferrer noopener">growing demands for transparency from the aviation industry.</a>
Unless new evidence emerges from the investigation into the fuel system of a jet that was forced to return to Hong Kong on Monday, manufacturers are currently not advocating for global inspections, reported Reuters.
However, the final decision will rest with the regulators, the report added, citing people familiar with the discussions. Briefings might take place as soon as Thursday.
In response to Cathay Pacific&#8217;s situation, some airlines, including Singapore Airlines Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SINGY#OTC">SINGY</a>) and Japan Airlines Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/JAPSY#OTC">JAPSY</a>), have been performing precautionary inspections of their entire A350 fleets.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40701898/cathay-pacifics-a350-fleet-to-fully-resume-operations-by-sep-7" rel="noreferrer noopener">Cathay Pacific&#8217;s A350 Fleet To Fully Resume Operations By Sep 7</a>
While the current stance indicates that no widespread flaw has been immediately identified, it is too early to dismiss the possibility of further findings that might necessitate action from other airlines, the report noted, citing sources who spoke on condition of anonymity.
It remains unclear whether the European Union Aviation Safety Agency (EASA) will support the decision to avoid recommending fleet-wide inspections, a move that could lead to expensive downtime amid ongoing maintenance delays in the industry.
The A350-1000, the larger variant in the Airbus A350 series, and its Rolls-Royce XWB-97 engines have come under scrutiny following an incident in which a Zurich-bound flight had to return to Hong Kong due to an engine issue, later determined to be caused by a fuel leak.
Preliminary investigations have found that a flexible pipe supplying fuel to a nozzle in the XWB-97 engine was punctured, per the report.
Hong Kong investigators are now expected to determine whether the hole in the flexible pipe was the source of the fuel leak or if it was caused by another, yet-to-be-identified issue.
Cathay Pacific announced that it plans to return all Airbus A350s, including the smaller A350-900 model, to service by Saturday after completing inspections and fuel line repairs on 15 aircraft.
This follows the cancellation of numerous flights to allow for the necessary examinations.
Image via Unsplash
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Cathay Pacific Airways Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcaf#OTC">CPCAF</a>) (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) disclosed buying 6 A350F aircraft from&nbsp;Airbus SE&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/eadsy#OTC">EADSY</a>) for&nbsp;<a class="editor-rtfLink" href="https://www.cathaypacific.com/content/dam/cx/about-us/investor-relations/announcements/en/2023_cx_major_transaction_purchase_6_airbus_en.pdf" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">$2.71 billion</a>&nbsp;(equivalent to about HK$21.1 billion).
Cathay Pacific expects the Airbus Aircraft to be delivered by the end of 2029. Also, the airline secured the right to acquire 20 more A350 freighters.
The transaction will expand Cathay Pacific&#39;s fleet capacity and principally serve long-haul destinations in North America, South America, and Europe.&nbsp;
This order for state-of-the-art aircraft will be&nbsp;<a class="editor-rtfLink" href="https://news.cathaypacific.com/cathay-delivers-the-future-with-next-generation-freighter-order" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">delivered&nbsp;</a>commencing from 2027.
Cathay Cargo has a freighter fleet of 20&nbsp;Boeing Company&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) 747 freighters, including 14 B747-8Fs and six B747-400ERFs.
The selection means Cathay will replace its Boeing 747 fleet with the Airbus aircraft after several months of postponing a decision, according to a Reuters report.
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32621562/cathay-pacific-set-to-place-2b-order-for-boeing-777-8f-freighter-report" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Cathay Pacific Set To Place $2B Order For Boeing 777-8F Freighter: Report</a>
In September, Cathay said it would acquire 32 more Airbus A320neo Family aircraft for $4.66 billion. The agreement doubled the total orders&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/09/35017023/airbus-hits-jackpot-hong-kong-based-cathay-pacifics-4-66b-splurge-on-a320neo-jets" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">for the A320neo Family to 64</a>.
Price Action: CPCAY shares closed higher by 0.51% at $4.93 on Thursday.
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<a href="https://www.benzinga.com/news/23/06/32999216/aircraft-orders-overflow-undeterred-by-economic-worries-following-the-pandemic-report">In a significant move,&nbsp;</a><a href="https://www.benzinga.com/news/23/06/32999216/aircraft-orders-overflow-undeterred-by-economic-worries-following-the-pandemic-report">Airbus SE</a>&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/eadsy#OTC">EADSY</a>) (OTC: <a class="ticker" href="https://www.benzinga.com/stock/eadsf#OTC">EADSF</a>) received an&nbsp;order&nbsp;worth $4.66 billion from Hong Kong&#39;s renowned&nbsp;Cathay Pacific Airways, Ltd.(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>).
Under the <a href="http://www1.hkexnews.hk/listedco/listconews/sehk/2023/0929/2023092900932.pdf">deal</a>, Cathay will&nbsp;<a class="editor-rtfLink" href="https://www.airbus.com/en/newsroom/press-releases/2023-09-cathay-group-orders-32-a320neo-family-aircraft" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">acquire&nbsp;</a>an additional 32 Airbus A320neo Family aircraft.&nbsp;
Cathay Pacific expects the Airbus Aircraft to be delivered by the end of 2029.
Cathay Group&#39;s latest acquisition exemplifies its aggressive expansion strategy and underscores its confidence in the aviation market&#39;s recovery. The agreement doubles the Cathay Group&#39;s total orders for the A320neo Family to 64, of which 13 have already been delivered.
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/09/34237619/carbon-free-skies-airbus-easyjet-and-rolls-royce-team-up-for-uks-hydrogen-aviation-revolution" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Airbus, easyJet, And Rolls Royce Team Up For UK&#39;s Hydrogen Aviation Revolution</a>
With more than 9,700 orders from over 130 customers, the A320neo family is the world&rsquo;s most popular single-aisle aircraft.
Details of The Acquisition
The additional 32 aircraft, consisting of both A321neo and A320neo models, are slated to join the fleets of Cathay Pacific and HK Express. Primarily, these modern jets will serve routes connecting the Chinese mainland and various Asian destinations, enhancing the airline&#39;s regional connectivity and service offerings.
Christian Scherer, Airbus&#39; chief commercial officer and head of international, expressed his pride in Airbus being integral to Cathay&#39;s growth and recovery plan. &quot;Operating out of the Cathay Group&#39;s base at the heart of Asia, the A320neo family will enable it to expand its services across the region with a most efficient single aisle fleet and a positive passenger comfort differentiation. With a significant reduction in fuel consumption, the aircraft will also bring an immediate contribution to the Cathay Group&#39;s sustainability goals,&quot; Scherer remarked in a statement.
Also See:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/09/34211293/airbus-scores-double-win-germany-orders-2-h145-helicopters-to-strengthen-police" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Airbus Scores Double Win: Germany Orders 2 H145 Helicopters To Strengthen Police</a>
In related news, Airbus&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/09/34540829/airbus-delivers-first-c295-aircraft-to-india-on-schedule" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">delivered the first C295</a>&nbsp;aircraft to India on schedule, marking another milestone in its global delivery commitments. The aviation giant&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/09/34307688/airbus-delivers-52-airplanes-to-34-customers-in-august" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">had delivered 52 airplanes</a>&nbsp;to 34 customers in August, underscoring its production and delivery efficiency.
Price Action:&nbsp;CPCAY shares closed lower by 4.31% to $4.88 on Friday, while EADSY shares closed higher by 2.49% to $33.37.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Airbus Hits Jackpot: Hong Kong-based Cathay Pacific's $4.66B Splurge On A320neo Jets

Hong Kong and China exchanges continue to face headwinds from cash-strapped property developers even as the domestic Chinese economy goes into a traditionally bumper holiday week.
Country Garden Holdings Co Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ctryf#OTC">CTRYF</a>), the country&rsquo;s largest developer, was down 2% while embattled China Evergrande Group (OTC: <a class="ticker" href="https://www.benzinga.com/stock/egrnf#OTC">EGRNF</a>), which cancelled a creditor&rsquo;s meeting and defaulted on onshore debt earlier this week, was suspended from trading in Hong Kong after falling 18% Wednesday. China Evergrande was just relisted on August 28 after a previous 17-month suspension. Sunac China Holdings Limited, which this month <a href="https://finance.yahoo.com/m/98c3082d-9863-3a4d-b4b9-23fcde55c34f/a-chinese-property-developer.html" style="color:#0563c1">successfully</a> managed to restructure its debt amid the country&rsquo;s growing property credit crisis, bucked the trend, up 1%.
China Evergrande&rsquo;s electric vehicle and wealth management units have also been suspended from trading in China. The company&rsquo;s founder and Chairman Hui Ka Yan has been placed under residential surveillance, according to China business daily Caixin. Residential surveillance is a type of home detention that police in China have the authority to impose on individuals connected to ongoing investigations, and lasts for a period up to six months.
&ldquo;As a standalone company Evergrande is not going to bring down the Chinese economy. But Xi Jinping and his colleagues have to figure out &lsquo;am I going to bailout private companies who have overborrowed their money or am I going to let them go down?&rsquo;&rdquo; Dennis Unkovik, an international real estate and M&amp;A lawyer with a specialization in China deals, <a href="https://www.youtube.com/watch?v=akQ_proTx8A" style="color:#0563c1">told</a> CNBC this week. Unkovic added that China&rsquo;s property market made up around 30% of the domestic Chinese economy.
There are signs that some of this is getting underway. The Chinese government is reversing course on a decades-old strategy of limiting foreign capital and now pursuing measures to attract more investors. It plans to raise the current 30% foreign ownership cap on stocks in Beijing, Shanghai and Shenzhen, according to national reports. Beijing is home to mostly State-Owned Enterprise stocks and Shanghai serves as the base for major domestic listings, whereas Shenzhen is where most of China&rsquo;s tech upstarts are listed.
<h3>Golden Opportunity Week?</h3>
At the same time as it&nbsp;eases foreign investor restrictions, Chinese government officials are encouraging domestic travellers to travel within China to boost the domestic economy&#39;s strength&nbsp;for the forthcoming national holiday period and&nbsp;through the rest of the year. Measures such as lifting inter-province toll-way fares and incentivising travel operators to offer discounted group tours are being put into full effect, say local sources.
Hopes that a national holiday from October 1 until October 7 in China can provide the catalyst for consumer spending hung in the air a little Thursday among traders in Hong Kong and China, Bloomberg <a href="https://www.bloomberg.com/news/articles/2023-09-27/china-traders-seek-golden-week-rebound-in-travel-food-after-property-selloff?srnd=premium-asia" style="color:#0563c1">reported</a>. Still, consumer and travel stocks remained beaten-down by the property malaise.
Air China Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/airyy#OTC">AIRYY</a>) was 1.13% lower, extending nearly 30% year-to-date declines, while Cathay Pacific Airways Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) was down just shy of 1%. Trip.com Group Limited, one of China&rsquo;s largest online booking agents, was dropping 1.6%.
Golden Week, a week-long national holiday in China since 2000, traditionally boosts travel, accommodation bookings and consumer spending going into the latter half of the year. It is also a proxy for increased property spending as investors attend trade fairs at this time of year to snap-up new home builds, a trend that looks to be blighted by the current malaise in the sector.
The number of domestic holidaymakers has increased more than 3&mdash;fold to around a quarter of China&rsquo;s 1.5 billion population since the holidays began.
Over 21 million passengers are expected to take flights with a further 23 million already having booked train journeys, according to local reports. Hotels have also seen a bump in extended stays of 6- to 8-night stays among over a third of all travelers, according to reports.
&ldquo;Certainly the recovery is very consumer-focused,&rdquo; Jonathan Garner, Chief Asia and Emerging Markets Strategist for Morgan Stanley told Bloomberg TV recently.
&ldquo;We were not really expecting property or construction to contribute to recovery this year. But the consumer is extremely strong.&rdquo;
Despite the property mailaise and prospects of a national bailout for developers and financial institutions, investment managers in the region are attracted to deep discounts in the consumer and tech sector in China where there is more international exposure and where the Chinese government is focusing its efforts to ramp up investment.
Chinese stocks such as Alibaba, Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), Baidu, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>) and BYD Company Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddf#OTC">BYDDF</a>), with significant international focus and fairer valuations in particular are gaining attention.
Macau casino operator Galaxy Entertainment Group (OTC: <a class="ticker" href="https://www.benzinga.com/stock/gxyef#OTC">GXYEF</a>) was 4.5% lower but trading notes indicated that it might be a stock to watch if the Golden Week festivities saw an influx of gamblers come back to the island.
Other investment managers are echoing a tentatively bullish vibes for China consumer stocks going into the final quarter of the year.
China exposure appears to be &ldquo;ridiculously cheap&rdquo;, Alberta investment Management Corp CEO Evan Siddle told an industry conference this week.
&ldquo;If you can find opportunities to participate in the growth in China, without actually being in China, those are potential mispricing opportunities,&rdquo; said Siddle.

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China Investors Look For Silver Lining During National Golden Week To Boost Consumer Spending Amid Country's Property Turmoil

Benzinga
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32620942/bhp-and-microsoft-an-unlikely-duo-boosting-copper-mining-with-ai" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BHP and Microsoft: An Unlikely Duo Boosting Copper Mining with AI</a>
<ul>
<li>BHP Group Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>) is collaborating with&nbsp;Microsoft Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) to use artificial intelligence and machine learning to improve copper mining.</li>
<li>The use of new digital technology to optimize concentrator performance at BHP&rsquo;s Escondida operation in Chile is expected to improve copper recovery.</li>
<li>BHP estimates the world would need to double the amount of copper produced over the next 30 years, relative to the past 30 to meet the demand of decarbonization technologies.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/05/32619643/toyota-signs-mou-with-daimler-truck-to-merge-japanese-truck-operations" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Toyota Signs MoU With Daimler Truck To Merge Japanese Truck Operations</a>
<ul>
<li>Toyota Motor Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tm#NYSE">TM</a>) and&nbsp;Daimler Truck Holding AG&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/dtruy#OTC">DTRUY</a>) concluded a memorandum of understanding (MOU) to combine their truck operations in Japan.</li>
<li>Daimler Truck and Toyota will equally invest in the (listed) holding company of the merged MFTBC and Hino.</li>
<li>MFTBC and Hino will merge on an equal footing and collaborate in the areas of commercial vehicle development, procurement, and production.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cryptocurrency/23/05/32621598/macro-guru-raoul-pal-tips-ethereum-to-hit-3-600-by-october-close-to-a-face-ripping-rally" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Macro Guru Raoul Pal Tips Ethereum To Hit $3,600 By October: &lsquo;Close To A Face-Ripping Rally&rsquo;</a>
<ul>
<li>Former Goldman Sachs executive Raoul Pal made bullish predictions for&nbsp;Bitcoin&nbsp;BTC/USD,&nbsp;Ethereum&nbsp;ETH/USD, and Solana, anticipating a market cap of at least $10 trillion during the next bull market cycle.</li>
<li>What Happened: Pal believes that the cyclical and secular trends have converged to create a perfect opportunity in the market for ETH and BTC.</li>
<li>He notes that Ethereum&rsquo;s resurgence has led it to prevail like Bitcoin in 2014-2016, and has predicted that ETH is poised to land at $3,600 by October, while Solana&rsquo;s continued growth has made it look much like Ethereum did in 2019.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/05/32620396/unilever-looks-for-new-cfo-graeme-pitkethly-plans-to-retire-by-may-2024" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Unilever Looks For New CFO Graeme Pitkethly Plans To Retire By May-2024</a>
<ul>
<li>Unilever PLC&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ul#NYSE">UL</a>) announced the retirement of its CFO, Graeme Pitkethly, effective by the end of May 2024.</li>
<li>The company&rsquo;s Board is proceeding with a formal internal and external search for his successor.</li>
<li>Unilever&rsquo;s Chief Digital and Commercial Officer (CDCO) and member of the Unilever Leadership Executive (ULE), Conny Braams, has decided to leave the company in August 2023.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/05/32619078/nestle-picks-lseg-executive-as-its-new-cfo" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Nestle Picks LSEG Executive As Its New CFO</a>
<ul>
<li>Nestle SA&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/nsrgy#OTC">NSRGY</a>) announced the departure of its CFO and Executive Vice President, Fran&ccedil;ois-Xavier Roger.</li>
<li>The packaged food company named Anna Manz as the replacement.</li>
<li>Manz is presently working as CFO and a member of the Board at&nbsp;London Stock Exchange Group PLC&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/lnsty#OTC">LNSTY</a>) and will assume the new role as soon as she is released from her present duties.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/asia/23/05/32619162/whats-driving-tesla-shares-higher-premarket-tuesday" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">What&rsquo;s Driving Tesla Shares Higher Premarket Tuesday?</a>
<ul>
<li>Shares of electric vehicle maker&nbsp;Tesla, Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) were seen extending their gains in premarket trading on Tuesday, as the market reopens after a long weekend on account of the &ldquo;Memorial Day&rdquo; holiday.</li>
<li>In pre-market, the stock rose 2.45% to $197.92, according to Benzinga Pro data.</li>
<li>Reports that Tesla CEO Elon Musk is in China to have discussions with senior</li>
<li>government officials in the country and visit the Giga Shanghai plant, a vital cog in Tesla&rsquo;s wheels, could also be driving shares higher.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32618742/chatgpt-causes-legal-chaos-after-making-up-cases-to-ease-lawyers-workload" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ChatGPT Causes Legal Chaos After Making Up Cases To Ease Lawyer&rsquo;s Workload</a>
<ul>
<li>In a startling turn of events, a lawyer&rsquo;s use of OpenAI&rsquo;s chatGPT for legal assistance has backfired as the AI-powered chatbot fabricated nonexistent cases.</li>
<li>What Happened: In a bizarre case surrounding Mata Vs. Avianca, which involved a customer suing the airline for a knee injury caused by a serving cart, the use of chatGPT took a surprising turn.</li>
<li>Mata&rsquo;s lawyers objected to Avianca&rsquo;s attempt to dismiss the case and submitted a brief containing numerous purported court decisions generated by the AI-powered chatbot.</li>
</ul>
&nbsp;
Reuters
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32621562/cathay-pacific-set-to-place-2b-order-for-boeing-777-8f-freighter-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Cathay Pacific Set To Place $2B Order For Boeing 777-8F Freighter: Report</a>
<ul>
<li>Cathay Pacific Airways Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) reportedly plans to renew a portion of its fleet of dedicated 747 cargo jets.</li>
<li>Cathay Pacific is close to placing an order worth around $2 billion for&nbsp;Boeing Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) 777-8F freighters as it embarks on the partial renewal of a fleet of dedicated 747 cargo jets, reported Reuters, citing industry sources.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32620223/toyotas-soaring-april-sales-hybrids-and-evs-stealing-the-show" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Toyota&rsquo;s Soaring April Sales: Hybrids and EVs Stealing the Show</a>
<ul>
<li>Toyota Motor Corp&rsquo;s&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/tm#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TM</a>) April 2023 global sales and production were up year-on-year due to a rebound from the pandemic-induced semiconductor crisis.</li>
<li>The global sales rose by close to 5% in April Y/Y, thanks to robust demand for hybrids and gasoline-powered cars in Japan and China.</li>
<li>The automaker also reported better overseas sales of battery electric vehicles (EVs).</li>
<li>Toyota in April sold 800,863 vehicles globally, including its luxury Lexus brand, up by 4.9% Y/Y, Reuters reports.</li>
</ul>
&nbsp;
Business Insider
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32621301/amazon-shifts-gear-on-carbon-footprint-new-2040-deadline-for-zero-emissions" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Amazon Shifts Gear on Carbon Footprint: New 2040 Deadline for Zero Emissions</a>
<ul>
<li>Amazon.Com, Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) recently delayed its pledge to make 50% of its shipments net-zero carbon by 2030.</li>
<li>The company disclosed plans to defer its carbon emission goals across all its operations by 2040, a decade later than the 50% goal, which was called &ldquo;Shipment Zero&rdquo; at the time.</li>
<li>Reportedly, the company had immensely underestimated its carbon footprint. At the time, an Amazon spokesman reiterated the company&rsquo;s commitment to cutting emissions, including ordering a fleet of electric delivery vans and buying renewable energy for its electricity needs, Business Insider reports.</li>
</ul>
&nbsp;
Bloomberg
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32619489/softbanks-power-play-arm-charges-into-ai-arena-with-power-packed-chips" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Softbank&rsquo;s Power Play: Arm Charges into AI Arena with Power-Packed Chips</a>
<ul>
<li>Softbank Group Corp&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/sftbf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SFTBF</a>) (OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/sftby#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SFTBY</a>) is betting on the artificial intelligence momentum to pique investor curiosity ahead of its much-anticipated initial public offering.</li>
<li>Arm technology enables many AI applications and will be fundamental to building the next wave of AI innovations, Bloomberg cites CEO Rene Haas at the Computex trade show in Taiwan on Monday.</li>
<li>Arm launched two new products to boost smartphone performance, including the Arm Cortex-X4, its fourth-generation Cortex-X core, and the Arm Immortalis-G720, based on its fifth-generation GPU architecture.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/05/32619202/alibaba-stake-boosted-hedge-fund-titans-go-shopping-while-asia-peers-bow-out" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Alibaba Stake Boosted: Hedge Fund Titans Go Shopping While Asia Peers Bow Out</a>
<ul>
<li>Michael Burry&rsquo;s bullish bets on stocks, including&nbsp;Alibaba Group Holding Limited&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), followed stake boosts by other top hedge funds, including Moore Capital Management and Third Point LLC, in the first quarter.</li>
<li>Asia-based firms, including Simon Sadler&rsquo;s Segantii Capital Management Ltd. and Alpine Investment Management Ltd., accounted for nearly half of Alibaba ADRs offloaded by the quarter&rsquo;s top 10 most prominent hedge fund sellers, Bloomberg cites 13F filings.</li>
<li>The sole Asia-headquartered firm among the top 10 buyers was Hermes Li&rsquo;s Aspex Management (HK) Ltd.</li>
</ul>
Photo via Wikimedia Commons

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Amazon Delays Zero Emissions Goal, ChatGPT Makes Up Fake Legal Cases, New CFO for Unilever and Nestle: Today's Top Stories

<ul>
<li>Cathay Pacific Airways Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) reportedly plans to renew a portion of its fleet of dedicated 747 cargo jets.</li>
<li>Cathay Pacific is close to placing an order worth around $2 billion for&nbsp;Boeing Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) 777-8F freighters as it embarks on the partial renewal of a fleet of dedicated 747 cargo jets,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/business/aerospace-defense/cathay-pacific-order-boeing-777-8f-freighter-sources-2023-05-29/" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">reported Reuters</a>, citing industry sources.</li>
<li>The decision comes after a hard-fought struggle for Cathay Pacific, which was weighing the all-freight version of the future Boeing 777X jet family against a forthcoming cargo model of the existing&nbsp;Airbus SE&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/eadsy#OTC">EADSY</a>) A350, added the report.</li>
<li>Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/23/05/32574957/boeings-battle-with-200-is-the-skys-limit-on-the-horizon-or-is-there-turbulence-looming-ahead" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Boeing&#39;s Battle With 200 - Is The Sky&#39;s Limit On The Horizon Or Is There Turbulence Looming Ahead?</a></li>
<li>&quot;We continue to invest in and grow our fleet with the addition of new, state-of-the-art, and fuel-efficient aircraft,&quot; stated a Cathay spokesperson via email to Reuters.</li>
<li>&quot;At this time, we have no specific updates or announcements to make regarding the fleet,&quot; added the spokesperson.</li>
<li>Price Action:&nbsp;BA shares are trading higher by 0.19% at $204.01 premarket on Tuesday. CPCAY closed higher by 0.86% at $4.69 on Friday.</li>
</ul>

Cathay Pacific Set To Place $2B Order For Boeing 777-8F Freighter: Report

Reuters
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27758394/gatwick-airport-to-fly-lesser-number-of-flights-during-summer-season" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">London&rsquo;s Gatwick Airport To Fly Lesser Number Of Flights During Summer Season</a>
<ul>
<li>Gatwick Airport in London is reducing the number of flights during the peak summer period due to staff shortages.</li>
<li>The decision to temporarily reduce flights follows a review of its operations to help passengers &ldquo;experience a more reliable and better standard of service.&rdquo;</li>
<li>The daily flights will be cut to 825 in July and 850 in August. Reuters reported that the numbers are from around 900 flights on peak days in August.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/06/27758440/heres-how-the-us-looks-to-churn-out-quality-workers-for-ev-broadband-industry" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Here&rsquo;s How US Looks To Churn Out Quality Workers For EV, Broadband Industry</a> 
<ul>
<li>The White House aims to introduce a summer-long initiative to unite labor unions and industry.</li>
<li>They aim to help train more workers for good jobs in the electric vehicle, broadband, and construction sectors, senior administration officials.</li>
<li>The government aims to counter concerns regarding the possible recession and high inflation while highlighting employment gains by the move.</li>
<li>The &ldquo;Talent Pipeline Challenge&rdquo; will promote employers and state and local governments to use $800 million in job training funds from the $1 trillion Bipartisan Infrastructure Law.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/m-a/22/06/27758637/indian-conglomerate-reliance-plans-to-acquire-revlon-reuters" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Indian Conglomerate Reliance Eyes Bankrupt Revlon</a>
<ul>
<li>Indian conglomerate company Reliance Industries is planning to acquire cosmetics maker Revlon Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rev#NYSE">REV</a>).</li>
<li>The development comes in the wake of Revlon filing for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.</li>
<li>Revlon is facing heavy debts as it struggles to compete with brands driven by social media influencers.</li>
</ul>

New York Times
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27758082/spacex-sacks-employees-revolting-against-elon-musk-in-a-swift-move-calls-their-action-as-overreachin" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SpaceX Fires Employees Critical Of Elon Musk, Dubs Their Action&rsquo; Overreaching Activism</a>
<ul>
<li>Elon Musk-led SpaceX on Thursday afternoon fired a number of its employees who wrote an open letter criticizing what they see as the entrepreneur&rsquo;s egregious behavior.</li>
<li>The news of the firing was shared in a letter to employees by SpaceX president Gwynne Shotwell.</li>
<li>&ldquo;That is, the letter, solicitations and general process made employees feel uncomfortable, intimidated and bullied, and/or angry,&rdquo; the executive said. She attributed the reaction to the pressure the employees were under to sign something that did not reflect their views.</li>
</ul>

Wall Street Journal
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27758638/tampon-manufactures-step-up-output-to-avoid-any-major-supply-crunch-wsj" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Tampon Manufactures Step Up Output To Avoid Any Major Supply Crunch</a>
<ul>
<li>Some of the largest U.S. tampon makers are beefing up production to boost supplies as consumers in some parts say they cannot find their preferred products.</li>
<li>The most prominent player with 60% of the market, Procter &amp; Gamble Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pg#NYSE">PG</a>), said it is running plants non-stop to ensure stores have an adequate supply.</li>
<li>Edgewell Personal Care Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/epc#NYSE">EPC</a>) also reported production problems in the past year.</li>
<li>Kimberly Clark Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kmb#NYSE">KMB</a>), the third-largest tampon maker, said it had not experienced a product or supply shortage.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27759045/anheuser-busch-cfo-says-price-increase-on-cards-to-catch-up-with-inflation-wsj" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Inflation Hits Anheuser-Busch, CFO Says Price Increase On Cards</a>
<ul>
<li>Anheuser-Busch InBev SA/NV (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bud#NYSE">BUD</a>) mulls raising prices for some of its beverages in an effort to manage inflation.</li>
<li>As per Wall Street Journal, the company said that despite regular updates to its pricing, it is lagging on cost increases in markets, including the U.S. and Brazil.</li>
<li>&ldquo;Overall, I feel inflation is slightly higher than our view,&rdquo; AB InBev CFO Fernando Tennenbaum said.</li>
</ul>

Bloomberg
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27759314/large-number-of-pilots-resigning-from-cathay-pacific-bloomberg" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Pilot Crunch Hits Cathay Pacific As Pilots Resign In Large Numbers</a>
<ul>
<li>Cathay Pacific Airways Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) is facing a continuously high rate of pilot resignations.</li>
<li>Bloomberg reported that the airline says it may improve allowances and benefits to lure the crew who took deep pay cuts to the carrier during the COVID-19 crisis.</li>
<li>&ldquo;We still have resignation rates at much higher levels than we&rsquo;ve historically had,&rdquo; Chief Operations and Service Delivery Officer Greg Hughes said at a town hall meeting for Cathay staff watched online by Bloomberg News.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/06/27758969/volkswagen-looks-to-settle-porsche-buyers-complaints-for-bypassing-emission-norms" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Volkswagen Looks To Settle Porsche Buyers&rsquo; Complaints For Bypassing Emission Norms</a> 
<ul>
<li>Volkswagen AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/vlkpf#OTC">VLKPF</a>) agreed to settle Porsche buyers&rsquo; complaints by paying a minimum of $80 million, Bloomberg reports.</li>
<li>The buyers alleged improperly skewed emissions and fuel economy test results.</li>
<li>Tests proved that fuel economy was one to two miles per gallon lower than the company advertised.</li>
</ul>

Financial Times
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27759523/heres-how-this-gm-owned-startup-is-giving-google-tesla-a-run-for-their-money" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">GM Backed Cruise Is Giving Google, Tesla A Run For Their Money</a> 
<ul>
<li>General Motors Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>) backed Cruise offered tough competition to Alphabet Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) Google in the race to secure the first robotaxi permit for San Francisco.</li>
<li>Cruise beat Google by offering free rides in its fully autonomous vehicles in February. Cruise also bagged approval for monetizing the rides in early June.</li>
<li>Cruise chief Kyle Vogt said, &ldquo;If this can operate in a major U.S. city, like San Francisco, where there&rsquo;s a high willingness to pay, high population density, high demand, high complexity, then it can operate in many places.&rdquo;</li>
</ul>

Benzinga
<a class="editor-rtfLink" href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/22/06/27756645/advantage-amd-as-tech-analyst-flags-delay-in-intels-sapphire-rapid-server-chip-ship" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Advantage AMD: Analyst Flags Delay In Intel Server Chip Shipment</a>
<ul>
<li>Intel Corp&rsquo;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intc#NASDAQ">INTC</a>) product misstep woes are likely to return to haunt the company, casting more clouds over its turnaround efforts.</li>
<li>The highly-anticipated Intel server chips, codenamed &ldquo;Sapphire Rapids,&rdquo; may not ship until the second quarter of 2023, as opposed to a consensus expectation for a launch in the second half of 2022, noted tech analyst Ming-Chi Kuo said on Thursday.</li>
<li>Premised on a second-half launch, Morgan Stanley analyst Joseph Moore said in a December 2021 note that he expects the chip to help Intel narrow its server market share gap with rival Advanced Micro Devices, Inc.&rsquo;s (NASDAQ: <a class="editor-rtfLink" href="https://www.benzinga.com/stock/amd#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AMD</a>) Milan server processor.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27756914/snap-testing-paid-snapchat-subscription-service" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Snapchat Bringing Paid Subscription Service? Here&rsquo;s What We Know</a>
<ul>
<li>Snap Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/snap#NYSE">SNAP</a>), which heavily relies on advertising revenue, is reportedly testing out a paid subscription service with many user perks for its instant messaging app and service.</li>
<li>Snap is internally testing &ldquo;Snapchat Plus,&rdquo; a paid subscription that will give users early access to new features and other abilities, the Verge reported, citing a statement from a company spokesperson.</li>
<li>The company is also testing other features for the subscription service, as per the report, which cited screenshots and information shared by app researcher Alessandro Paluzzi. </li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27759035/banco-santander-appoints-h-ctor-grisi-as-ceo" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Banco Santander Appoints H&eacute;ctor Grisi As CEO</a>
<ul>
<li>Spanish multinational financial services provider Banco Santander SA (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/san#NYSE">SAN</a>) has appointed H&eacute;ctor Grisi as the Chief executive Officer, effective January 1, 2023.</li>
<li>He will succeed Jose Antonio Alvarez who will remain on the board and serve as non-executive vice chair.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27756696/tesla-sends-untrained-employees-to-service-centers-as-reinforcement-to-address-lag-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Is Tesla Sending Untrained Workers To Service Centers?</a>
<ul>
<li>Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is sending untrained employees to service centers to address issues as its customer fleet grows much faster than the service infrastructure, Electrek.com reported, citing sources.</li>
<li>Austin, Texas-based Tesla is dispatching employees who do not have service center experience to fix vehicles.</li>
<li>Some of these employees include salespeople, entry-level workers, or managers who have no training in servicing cars and are finding themselves in service centers working on vehicle.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27756999/this-twitter-backed-publisher-has-raised-255-million-in-funding-from-google-and-times-group" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Twitter-Backed Social Media Platform Also Gets Google Backing In $255M Funding Round</a>
<ul>
<li>Indian social media app ShareChat, which counts Twitter Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/twtr#NYSE">TWTR</a>) and Snap Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/snap#NYSE">SNAP</a>) among its investors, recently raised $520 million in a multi-tranche funding round.</li>
<li>ShareChat, in a statement, said that after the recent funding round, the company exceeded $5 billion in valuation.</li>
<li>In the first part of the funding round, the company raised $266 million from Alkeon Capital, Temasek, HarbourVest, Moore Strategic Ventures, and India Quotient in December.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/asia/22/06/27756853/alibaba-and-meituan-could-suffer-fallout-from-jd-coms-possible-foray-in-food-delivery-service" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Alibaba Could Suffer Fallout As Top Rival Plans Foray In Food Delivery Service</a>
<ul>
<li>Beijing-headquartered e-commerce giant JD.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) is mulling a possible foray into the food delivery business, posing an intense competition for its Chinese peers Meituan (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mpngf#OTC">MPNGF</a>) and Alibaba Group Holding Ltd (NYSE: <a class="editor-rtfLink" href="https://www.benzinga.com/stock/baba#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BABA</a>).</li>
<li>JD Retail CEO Xin Lijun, in an interview with Bloomberg TV, said the company has &ldquo;considered and explored&rdquo; launching an on-demand food delivery service.</li>
<li>&ldquo;As for when we will start doing it, it will depend on our capacity and when we can build up a talent team,&rdquo; Lijun added.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27756449/elon-musk-mulls-spacex-like-compensation-mechanism-for-twitter-employees" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Elon Musk Mulls SpaceX-Like Pay Structure For Twitter Staff</a>
<ul>
<li>Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) CEO Elon Musk clarified how Twitter Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/twtr#NYSE">TWTR</a>) employees would receive compensation and benefits after his takeover of the social media platform.</li>
<li>Musk interacted with Twitter employees on Thursday. He was asked how he compensates employees at privately held SpaceX and what approach he plans to take at Twitter after he closes his deal, according to a transcript of the interaction published by Vox.</li>
<li>Musk said that SpaceX &ldquo;operates in the best of both worlds,&rdquo; where stock and options are issued to everyone.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27756611/volkswagen-executive-warns-us-could-face-key-mining-labor-supply-chain-challenges-to-ramp-up-ev-batt" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Volkswagen Says US Could Face Many Challenges To Ramp Up EV Battery Output</a>
<ul>
<li>Volkswagen Group&rsquo;s (OTC: <a class="ticker" href="https://www.benzinga.com/stock/vwagy#OTC">VWAGY</a>) U.S. CEO Scott Keogh has warned America could face key challenges to ramp up battery production plans to meet the demand for electric vehicles, Reuters reported, citing the executive.</li>
<li>Keogh said the U.S. could face issues linked to attracting skilled workers, mining for key metals, and supply chain and that the switch to EVs is the single biggest &ldquo;industrial transformation in America.&rdquo;</li>
<li>Keogh said the U.S. could potentially employ hundreds of thousands of people by 2030 for battery production and needs to be &ldquo;making 8.5 million batteries&rdquo; annually compared with 150,000-200,000 a year now.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cryptocurrency/22/06/27739433/stock-vs-crypto-correlation-trends-in-the-bear-market" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Crypto Vs Stocks: Correlation Trends In The Bear Market</a>
<ul>
<li>Bitcoin&rsquo;s BTC/USD all-time high (ATH) and growing popularity have changed its lack of correlation with equity markets. Amid the heavy debate, analysts have suggested an increasing connection between tech stocks and cryptocurrency prices.</li>
<li>This slowly nourished relationship has been developing strongly over the past year. In May, Cathie Wood-led Ark Investment Management projected Bitcoin&rsquo;s correlation with the S&amp;P 500 to reach an ATH of 80%, saying that this &ldquo;continues to suggest that market participants view Bitcoin as a risk-on asset&rdquo;.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27756382/audi-sues-nio-over-ev-model-names" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Nio Said To Get Sued By Audi: Here&rsquo;s What It&rsquo;s All About</a>
<ul>
<li>Volkswagen Group&rsquo;s (OTC: <a class="ticker" href="https://www.benzinga.com/stock/vwagy#OTC">VWAGY</a>) Audi has sued Nio Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nio#NYSE">NIO</a>), alleging the Chinese EV maker&rsquo;s ES6 and ES8 model names infringe the trademark rights of two of its models, the S6 and S8, CnEVpost reported on Thursday, citing German media outlet Handelsblatt.</li>
<li>Audi has alleged in a lawsuit filed in a Munich court that some of Nio&rsquo;s models offered for the first time in Europe would infringe Audi&rsquo;s trademark rights.</li>
<li>Audi has been selling the S6 and S8 sedans for several years, while Nio launched the ES6 electric SUV in 2019 and the ES8 SUV in September.</li>
</ul>
Photo via Wikimedia Commons

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Benzinga Before The Bell: SpaceX Fires Staff Critical Of Musk, Snapchat Tests Subscriptions And Other Top Financial Stories Friday, June 17

<ul>
<li>Cathay Pacific Airways Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) is facing a continuously high rate of pilot resignations.</li>
<li><a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2022-06-17/cathay-pacific-can-t-stop-pilot-exodus-as-it-tries-to-hire-more?srnd=premium-asia#xj4y7vzkg&amp;sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bloomberg reported</a>&nbsp;that the airline says it may improve allowances and benefits to lure the crew who took deep pay cuts to the carrier during the COVID-19 crisis.</li>
<li>&quot;We still have resignation rates at much higher levels than we&#39;ve historically had,&quot; Chief Operations and Service Delivery Officer Greg Hughes said at a town hall meeting for Cathay staff watched online by Bloomberg News.&nbsp;</li>
<li>Related:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/06/27758394/gatwick-airport-to-fly-lesser-number-of-flights-during-summer-season" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">London&#39;s Gatwick Airport To Fly Lesser Number Of Flights During Summer Season</a></li>
<li>&quot;It would also be an incorrect statement for me to make that COS18 is not one of the reasons.&quot;</li>
<li>COS18 referred to contracts introduced in 2018 for new employees and expanded to all existing crew in October 2020, cutting pilots&#39; pay by about 40% and reducing housing and retirement benefits.&nbsp;</li>
<li>Cathay&#39;s workforce was reduced to almost 40% during the pandemic.</li>
<li>In November, there was an increase in resignations after about 150 Cathay staff and their families were sent to a government-run COVID isolation camp when three crew members became infected while overseas.&nbsp;</li>
<li>As per the Bloomberg report, Cathay plans to hire 4,000 people by the end of next year, including 700 pilots, Tang said.&nbsp;</li>
<li>The airline plans to recruit and train 800 new junior pilots by 2025.</li>
<li>Airlines globally are seeing staffing crunches, with travel catching up as the pandemic restrictions are lifted in most places.</li>
<li>Photo via Wikimedia Commons</li>
</ul>

Pilot Crunch Hits Cathay Pacific As Pilots Resign In Large Numbers

CNBC
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26731952/ford-motor-unveils-ev-concept-to-launch-four-vehicle-by-2026" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Ford Unveils Lincoln Star Electric SUV Concept</a>
<ul>
<li>Ford Motor Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>) plans to launch four new electric vehicles in its Lincoln lineup by 2026, CNBC reports.</li>
<li>The company unveiled its first concept for an electric vehicle, the Lincoln Star Concept, in an attempt to catch up with its rivals.</li>
<li>Lincoln expects electric vehicles to make up more than half of its global volume by mid-decade and 90% of its North American sales by 2030.</li>
</ul>
Reuters
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26732014/tourism-industry-growth-rate-to-surpass-global-gdp-growth-reuters" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Tourism Industry Growth Rate To Surpass Global GDP Growth</a>
<ul>
<li>According to World Travel and Tourism Council (WTTC), the global travel and tourism sectors are projected to return to pre-pandemic levels in 2023, and the growth rate will outpace global gross domestic product (GDP) growth.</li>
<li>The industry is expected to grow at around 5.8% annually from 2022 to 2032 versus the 2.7% increase in global GDP and create 126 million new jobs, WTTC said in a report released during the industry group&rsquo;s conference in Manila.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26732130/boeing-787-deliveries-to-resume-in-the-second-half-of-2022-reuters" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Boeing 787 Deliveries To Resume In 2H22</a>
<ul>
<li>Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) has informed key airlines and parts suppliers that 787 Dreamliner deliveries will begin in the second half of 2022, Reuters reported, citing three people familiar with the matter.</li>
<li>Boeing&rsquo;s large 787 inventory, accumulated since deliveries were halted nearly a year ago due to structural issues, has locked up desperately needed cash and reduced airline capacity.</li>
</ul>

WSJ
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26732103/this-digital-freight-operator-fundraising-values-it-at-3-8b-valuation-positioning-it-for-potential-i" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">This Digital Freight Operator Raises Funds At $3.8B Valuation, Positioning It For Potential IPO</a>
<ul>
<li>Digital freight operator Convoy Inc raised $160 million in new funding that values the load-matching business at $3.8 billion positioning it for a potential IPO.</li>
<li>Convoy also bagged a $150 million line of credit from JPMorgan Chase &amp; Co and a $100 million loan from a specialty finance company Hercules Capital Inc.</li>
<li>It will also help to bolster a &ldquo;drop and hook&rdquo; service as it looks to expand its fleet of trailers for the service, called Convoy Go, by 35% to 40% by the end of 2022. </li>
</ul>

Bloomberg
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26732118/cathay-pacific-plans-to-lure-pilots-with-special-allowances-bloomberg" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Cathay Pacific Plans To Lure Pilots With Special Allowances</a>
<ul>
<li>Cathay Pacific Airways Ltd (OTC: <a class="editor-rtfLink" href="https://www.benzinga.com/stock/cpcay#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">CPCAY</a>) (OTC: <a class="editor-rtfLink" href="https://www.benzinga.com/stock/cpcaf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">CPCAF</a>) has come up with a slew of allowances for pilots to curb mass resignations, Bloomberg reported.</li>
<li>The pilots operating in Hong Kong are seemingly upset about the effect of the country&rsquo;s stringent COVID-19 policies on travel.</li>
<li>The report noted that starting in 2023, senior captains will get a monthly allowance of HK$36,000 ($4,590), amounting to HK$432,000 annually.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26730939/obamas-look-to-move-beyond-spotify-to-amazon-iheartmedia" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Obamas Look To Move Beyond Spotify To Amazon, iHeartMedia</a>
<ul>
<li>Barack and Michelle Obama look to end their association with Swedish streaming giant Spotify Technology SA (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spot#NYSE">SPOT</a>).</li>
<li>Obamas&rsquo; production company, Higher Ground, discussed a deal worth tens of millions of dollars with other distributors, including Amazon.com Inc&rsquo;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) Audible and iHeartMedia Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ihrt#NASDAQ">IHRT</a>).</li>
<li>Higher Ground saw that being tied to one service limited the audience for its shows.</li>
<li>Spotify wanted more shows featuring two of the most famous people globally, while Higher Ground aimed to provide a platform for a range of voices.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cryptocurrency/22/04/26732425/russian-operations-of-crypto-miner-bitriver-sanctioned-by-the-united-states-bloomberg" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Crypto Miner BitRiver Sanctioned By US Over Russian Operations: Bloomberg</a>
<ul>
<li>The U.S. Treasury Department sanctioned crypto mining firm BitRiver, targeting one of the industry&rsquo;s top data-center service providers over its operations in Russia, Bloomberg reported.</li>
<li>The Swiss-based company BitRiver provides Bitcoin miners worldwide with energy sources, mining facilities, and large-scale management solutions, including those in Eastern Europe and Russia.</li>
<li>Treasury announced restrictions on BitRiver, including 10 of its Russia-based subsidiaries, as the war in Ukraine enters the third month.</li>
</ul>

Financial Times
<a class="editor-rtfLink" href="https://www.benzinga.com/fintech/22/04/26731916/goldman-sachs-reports-morgan-stanley-bulk-share-sales-to-hong-kong-regulator-ft" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Goldman Sachs Reported Morgan Stanley Bulk Share Sales To Hong Kong Regulator</a>
<ul>
<li>Goldman Sachs Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>) reported bank Morgan Stanley (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ms#NYSE">MS</a>) to Hong Kong&rsquo;s financial regulator over a series of block trades, Financial Times reported citing people familiar with the matter.</li>
<li>As part of an &ldquo;informal&rdquo; discussion, Goldman alerted the territory&rsquo;s Securities and Futures Commission three years ago about share price drops in a few Hong Kong-listed companies.</li>
<li>According to Bloomberg data, Morgan Stanley executed nine block trade transactions for WuXi between 2020 and 2021.</li>
<li>There is no suggestion of wrongdoing by WuXi.</li>
</ul>

Benzinga
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26731892/amazon-fires-up-rivalry-with-fedex-ups-with-latest-launch" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Amazon Fires Up Rivalry With FedEx, UPS With Latest Launch</a>
<ul>
<li>Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) launched Buy with Prime, allowing third-party merchants to use Amazon&rsquo;s vast shipping and logistics network to fulfill orders on their sites while appealing to Amazon&rsquo;s Prime customers.</li>
<li>Buy with Prime pricing will depend on payment processing, fulfillment, storage, and other fees.</li>
<li>Experts see the move firing up rivalry with United Parcel Service Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ups#NYSE">UPS</a>), FedEx Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fdx#NYSE">FDX</a>), and the U.S. Postal Service to be the fastest in the online delivery race.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26731007/largest-u-s-state-pension-fund-to-vote-for-removing-warren-buffett-as-berkshires-chairman-what-you-n" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Largest US State Pension Fund To Vote For Removing Warren Buffett As Berkshire Chairman</a>
<ul>
<li>The largest state public pension fund in the U.S. has sided with a minority shareholder, which has sponsored a proposal to remove Warren Buffett from the post of chairman of the board of Berkshire Hathaway, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-a#NYSE">BRK-A</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-b#NYSE">BRK-B</a>).</li>
<li>The California Public Employees&rsquo; Retirement System, aka CalPERS, would vote in favor of a proposal brought by the National Legal and Policy Center that calls for amending the bylaws to make an independent member the chair of the board.</li>
<li>NLPC, which owns Berkshire shares with a value in excess of $2,000, argues that the roles of CEO and chairman are separate and come with different responsibilities that are critical to the success of a company. When held by a single person, these roles are greatly diminished, it said.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26730523/tesla-ceo-elon-musk-said-not-to-be-under-gag-order-related-to-2018-tweet" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Elon Musk Will Not Face &lsquo;Gag Order&rsquo; Over 2018 Tweet, Judge Rules</a>
<ul>
<li>A federal judge has ruled that Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) CEO Elon Musk will not be subjected to a &ldquo;gag order&rdquo; that stops him from discussing a lawsuit claiming he defrauded shareholders with his 2018 tweet about taking the electric vehicle firm private, Reuters reported on Thursday.</li>
<li>U.S. District Judge Edward Chen in San Francisco called the proposed temporary restraining order overbroad as it prevented Musk from speaking to &ldquo;anyone&rdquo; about the case.</li>
<li>Tesla shareholders sued Musk and the company in 2018 over a controversial tweet that led to a massive share sell-off.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26730808/elon-musk-recommends-this-company-for-jobseekers-as-its-valuation-touches-5-7b" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Elon Musk Says Come Work At Boring Company As It Fetches $5.7B Valuation In Fresh Funding Round</a>
<ul>
<li>Fresh off his earnings call exploits, Tesla, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) CEO Elon Musk canvassed for jobs at the Boring Company.</li>
<li>Musk sent out a plea for people to join his boring company, substantiating his recommendation by suggesting the company&rsquo;s business has huge potential.</li>
<li>&ldquo;Our goal is to solve traffic, which plagues every major city on earth,&rdquo; Musk tweeted, quoting an earlier tweet by Boring Company that said it has raised $675 million at a $5.67 billion valuation from A-list investors, led by Vy Capital and Sequoia Capital.</li>
<li>The company said the proceeds would go toward recruiting people, scaling up boring machine production and building thousands of miles of tunnels.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26730230/apple-toppled-as-smartphone-market-leader-in-q1-heres-what-hurt-cupertinos-performance" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Apple Toppled As Smartphone Market Leader In Q1: Here&rsquo;s What Hurt Cupertino&rsquo;s Performance</a>
<ul>
<li>Apple Inc&rsquo;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) short stint as the market&rsquo;s smartphone leader ended in the first quarter, reflecting seasonal softness and the sluggish performance of the overall market amid inclement economic conditions.</li>
<li>Apple held 18% of the overall global smartphone market in the first quarter, according to data released by market research firm Canalys. That represented a decline from a 22% share in the fourth quarter but an improvement from 15% a year earlier.</li>
<li>Apple&rsquo;s loss was Samsung&rsquo;s gain, with the South Korean electronics giant reclaiming the top spot that the former held in the fourth quarter.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/04/26729702/bill-ackman-exits-netflix-stock-after-400m-loss" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bill Ackman Exits Netflix Stock After $400M Loss</a>
<ul>
<li>Bill Ackman&rsquo;s Pershing Square Capital Management exited its position in Netflix (NASDAQ: <a class="editor-rtfLink" href="https://www.benzinga.com/stock/nflx#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">NFLX</a>) on Wednesday, the billionaire hedge fund manager told shareholders in a letter.</li>
<li>The Loss: Pershing Square built the Netflix stake three months ago, buying 3.1 million shares at an average price of about $354 per share.</li>
<li>Netflix shares plunged by over 35% on Wednesday to $226.19 as the streaming video on demand platform clocked a subscriber loss after a decade and gave downbeat guidance for the current quarter.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/cannabis/22/04/26729216/exclusive-irwin-simon-ceo-tilray-will-own-canada-and-it-will-get-bigger" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">EXCLUSIVE: Irwin Simon, CEO, &lsquo;Tilray Will Own Canada, And It Will Get Bigger&rsquo;</a>
<ul>
<li>&ldquo;Almost 4:20 on 4/20, pretty exciting,&rdquo; said CNBC reporter Frank Holland as he welcomed the crowd at Benzinga&rsquo;s Cannabis Capital Conference before interviewing Irwin Simon, CEO of Tilray inc. (NASDAQ: <a class="editor-rtfLink" href="https://www.benzinga.com/stock/tlry#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TLRY</a>), the leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia and Latin America.</li>
<li>&ldquo;This industry reminds me so much of the natural organic food industry, the natural organic food industry in the U.S. today is well over $100 billion dollars in size and this industry will actually surpass that,&rdquo; Simon said and then advanced his vision for Tilray.</li>
</ul>
Photo via Wikimedia Commons

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Morning Brief: Top Financial Stories Dominating on Thursday, April 21

<ul>
<li>Cathay Pacific Airways Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcaf#OTC">CPCAF</a>) has come up with a slew of allowances for pilots to curb mass resignations,&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2022-04-21/cathay-offers-pilots-up-to-93-000-allowances-to-stem-exodus?srnd=premium-asia&amp;sref=TBDibEcD" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Bloomberg reported</a>.</li>
<li>The pilots operating in Hong Kong are seemingly upset about the effect of the country&rsquo;s stringent COVID-19 policies on travel.</li>
<li>The report noted that starting in 2023, senior captains will get a monthly allowance of HK$36,000 ($4,590), amounting to HK$432,000 annually.</li>
<li>The airline has also allotted school fee allowances totaling HK$100,000 per child for up to three children.</li>
<li>At the end of 2021, Cathay employed 16,721 people, the least since 2005.</li>
<li>Price Action:&nbsp;CPCAY shares closed lower by 1.48% at $4.67 on Wednesday.</li>
</ul>

Cathay Pacific Plans To Lure Pilots With Special Allowances: Bloomberg

<ul>
<li>Amid Russia&#39;s invasion of Ukraine, the oil price has surged to its highest level since 2008. This oil price increase comes as many carriers are forced to fly longer routings to avoid Russian and Ukrainian airspace,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/business/aerospace-defense/airlines-use-hedging-fuel-surcharges-offset-some-pain-oil-surges-2022-03-07/" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">reported Reuters</a>.</li>
<li>The price surge is another addition to airline costs when the carriers have already struggled to recover from a pandemic-related dip in demand.</li>
<li>On Saturday, Malaysia&#39;s AirAsia,&nbsp;Capital A Berhad&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/aiabf#OTC">AIABF</a>), introduced fuel surcharges on tickets for the first time since 2015.</li>
<li>Chinese airlines also raised fuel surcharges on domestic routes, its aviation regulator said, while Emirates,&nbsp;Japan Airlines&nbsp;Co Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/japsy#OTC">JAPSY</a>), and&nbsp;ANA Holdings Inc&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/alnpy#OTC">ALNPY</a>) raised their surcharges recently, the report added.&nbsp;</li>
<li>Some carriers are fully unhedged, like&nbsp;Wizz Air&nbsp;Holdings PLC&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/wzzaf#OTC">WZZAF</a>)) and U.S. majors&nbsp;United Airlines Holdings Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ual#NASDAQ">UAL</a>),&nbsp;American Airlines Group Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aal#NASDAQ">AAL</a>), and&nbsp;Delta Air Lines Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dal#NYSE">DAL</a>), though the latter owns an oil refinery, the report noted.</li>
<li>Others have oil hedges that will help offset portions of the price increase, like&nbsp;Air France-KLM&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/afraf#OTC">AFRAF</a>), which has hedged 72% of oil consumption for the first quarter and 63% for the second quarter at $90 a barrel.</li>
<li>Air New Zealand&nbsp;Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/anzff#OTC">ANZFF</a>) has hedged 1.34 million barrels of oil in the current half ending June 30 and 707,500 barrels in the following half-year period. The carrier also raised international fares by about 5%, citing rising oil prices and general cost inflation.</li>
<li>Cathay Pacific Airways&nbsp;Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) hedged more than 60% of its expected first-quarter consumption and about half of its second-quarter consumption.</li>
<li>EasyJet PLC&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/esyjy#OTC">ESYJY</a>) airline 60% hedged for fuel in the financial year ending on September 30 at around $504 per metric tonne.</li>
<li>Deutsche Lufthansa AG&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/dlaky#OTC">DLAKY</a>) is 63% hedged in 2022 at a break-even price of $74 a barrel.</li>
<li>Qantas Airways&nbsp;Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/qabsy#OTC">QABSY</a>) has more than 90% of its fuel hedged in the current half and has a lower level of hedges in place for the following half-year period.</li>
<li>Ryanair Holdings plc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ryaay#NASDAQ">RYAAY</a>) is 80% hedged on fuel out to 2023. However, rising prices will still cost the airline group around 50 million euros ($54.22 million) over the next 12 months, the reported quoted CEO Michael O&#39;Leary.</li>
<li>Singapore Airlines&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/singy#OTC">SINGY</a>) has hedged 30% of its oil needs at an average Brent price of $57 a barrel for the six months ending March 31. It had also hedged 40% of its needs at an average price of $60 for the following five quarters.</li>
<li>Price Action:&nbsp;UAL shares are trading lower by 3.54% at $35.41, AAL lower by 3.08% at $14.14, DAL lower by 3.22% at $33.41, and RYAAY lower by 3.96% at $83.32 during the premarket session on Monday.</li>
</ul>

AFRAF

AIABF

ALNPY

ANZFF

DLAKY

ESYJY

QABSY

RYAAY

WZZAF

Airlines Depend On Hedging, Fuel Surcharges As Oil Surges: Report

AT&amp;T (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>) and Verizon Communications (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>) have begun to roll out their C-Band 5G services across the country as several international air carriers have cancelled flights into the U.S. out of concerns&nbsp;the new services will interfere with flight communications.
What Happened: According to an <a href="https://www.yahoo.com/now/att-verizon-c-band-5g-rollout-182958225.html">Endgadget</a> report, AT&amp;T&rsquo;s C-Band 5G services are now live in &ldquo;limited parts&rdquo; of eight markets &mdash;&nbsp;Austin, Chicago, Dallas-Fort Worth, Detroit, Jacksonville, Orlando and South Florida. Verizon stated it planned to have its 5G Ultra Wideband network in more than 1,700 cities by the end of this month.
AT&amp;T and Verizon won the C-Band spectrum in an $80-billion government auction and <a href="https://www.benzinga.com/news/22/01/24873345/at-t-and-verizon-agree-to-2-week-delay-on-5g-rollout">planned</a> to use it to boost their 5G speed and coverage. But the initial rollout date of Jan. 5 was delayed for two weeks at the request of Transportation Secretary Pete Buttigieg and Federal Aviation Administration Chief Steve Dickson&nbsp;based on safety concerns that the signal would interfere with cockpit safety systems in airplanes.
Related Link: <a href="https://www.benzinga.com/news/22/01/25038179/elon-musks-spacex-to-launch-three-south-african-made-nanosatellites-why-this-is-historically-importa">Elon Musk&#39;s SpaceX To Launch Three South African-Made Nanosatellites: Why This Is Historically Important</a>
What Happened Next: The companies said they would create buffer zones around 50 airports to address the safety concern, although they also noted 40 countries are now using C-Band 5G without any aircraft interference.
That reassurance failed to mollify several international carriers.&nbsp;Air India, All Nippon Airways (OTC: <a class="ticker" href="https://www.benzinga.com/stock/alnpy#OTC">ALNPY</a>), Austrian Airlines, British Airways, Cathay Pacific Airways (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>), Emirates, Japan Airlines (OTC: <a class="ticker" href="https://www.benzinga.com/stock/japsy#OTC">JAPSY</a>), Korean Airlines, Lufthansa (OTC: <a class="ticker" href="https://www.benzinga.com/stock/dlaky#OTC">DLAKY</a>) and Singapore Airlines (OTC: <a class="ticker" href="https://www.benzinga.com/stock/singy#OTC">SINGY</a>) announced changes to their flights that either involved cancellation or switching aircraft to a plane that would not face interference from the C-Band spectrum.
Delta Airlines (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dal#NYSE">DAL</a>) announced that it was preparing for the possibility of weather-related cancellations caused by the deployment of new 5G service near dozens of U.S. airports. The company praised AT&amp;T and Verizon&#39;s limiting of the scope of the rollout near airports and pledged to work for a solution to the issue.
&ldquo;We believe industries can grow, innovate and co-exist for the benefit of consumers,&rdquo; said Executive Vice President and Chief of Operations John Laughter. &ldquo;That&rsquo;s why we&rsquo;re continuing to work with the FAA, the FCC and the telecom industry to find a practical solution that will allow for the rollout of 5G technology while preserving safety and avoiding flight disruptions.&rdquo;
Photo: Mohamed Hassan/Pixabay.

Government

Nationwide C-Band 5G Service Launches As Carriers Change Plans Out Of Flight Disruption Concerns

Major U.S indices advanced on Tuesday as House Speaker Nancy Pelosi continued to negotiate with the White House on a $2 trillion stimulus deal. The Dow closed 0.40% higher, the S&amp;P 500 gained 0.47%, and the Nasdaq advanced 0.33%.&nbsp;
Most Asian markets are trading higher on Wednesday, following Tuesday&#39;s gains on Wall Street and the uptick in U.S. futures. The Dow futures are trading 0.57% higher on Wednesday, and the S&amp;P500 futures are up 0.66% on the last check.&nbsp;
Japan&#39;s Nikkei 225 benchmark has gained 0.41% at press time, led by gains in bank, transport, and energy shares. Investors will be watching the net foreign bonds buying data in Japan, scheduled to release late Wednesday.
China&#39;s Shanghai Composite benchmark is the only major Asian index trading lower. The index is down by 0.35% late noon in Shanghai, dragged down by energy, technology, and industrial stocks. The drag is&nbsp;partially offset by marginal gains in bank stocks. There are no major economic events scheduled for Wednesday in China.
Hong Kong&#39;s Hang Seng Index is trading higher by 0.60% at publication time, led by gains in technology and industrial stocks. Even as Hong Kong&#39;s unemployment rate inched higher, the markets are cheering the government&#39;s move to relax partial lockdown restrictions as coronavirus cases dip in the region. Cathay Pacific Airways Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#OTC">CPCAY</a>) shares jumped more than 4% in Hong Kong&nbsp;as the airlines announced a major restructuring plan to lower costs and shut its regional airline Cathay Dragon. Major airline stocks across Japan and China are trading higher on pin action.
Australia&#39;s S&amp;P/ASX 200 is trading higher by 0.13% towards the end of the trading day, driven by gains in energy and financial shares that are partially offset by losses in technology and healthcare stocks. Investors will be watching Reserve Bank of Australia Assistant Governor Guy Debelle&#39;s speech on Wednesday.
India&#39;s Nifty 50 is extending gains for&nbsp;a fourth straight day, up 0.86% in Wednesday&#39;s early trade. All sectors except FMCG are trading higher. Banks and realty stocks are trading higher after&nbsp;Brookfield Asset Management Inc&#39;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bam#NYSE">BAM</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/20/10/17968904/brookfield-shuffles-real-estate-portfolio-with-multiple-deals" style="color: rgb(14, 16, 26); background: transparent; margin-top:0pt; margin-bottom:0pt;; color: #4a6ee0;" target="_blank">$2 billion deal</a>. There are no major economic events scheduled on Wednesday.
South Korea&#39;s KOSPI is trading higher by 0.35% after the Producer Price Index ticked up&nbsp;0.1% month-over-month in September.
<a class="editor-rtfLink" href="http://www.benzinga.com/money/how-to-trade-forex" style="color: rgb(14, 16, 26); background: transparent; margin-top:0pt; margin-bottom:0pt;; color: #4a6ee0;" target="_blank">Forex Trading</a>: U.S. Dollar Index futures are trading 0.19% lower to 92.870 at press time. The dollar has weakened 0.18% against the Japanese Yen to 105.30 and 0.41% against the Chinese Yuan to 6.6479.
Emerging Markets ETFs To Watch:&nbsp;Vanguard FTSE Emerging Markets ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vwo#NYSE">VWO</a>) and&nbsp;SPDR Portfolio Emerging Markets ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spem#NYSE">SPEM</a>).&nbsp;

Emerging Markets

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SPEM

How Are Asian Markets Doing Today?

<img alt="A white British Airways jet with cargo pallets waiting to be loaded on a sunny day. British Airways contributed heavily to IAG Cargo's strong Q2 cargo results." src="https://s29755.pcdn.co/wp-content/uploads/2020/08/Airlines-score-Q2-cargo-gains-against-odds_1.jpeg" />

Add Air Canada (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/acdvf#OTCQX">ACDVF</a>) and IAG Group (LSE: IAG), parent of British Airways, to the list of passenger airlines that significantly increased cargo revenues in the second quarter even as the coronavirus crisis otherwise destroyed the industry's finances. 

Air France-KLM (CXE: AF) and Aeromexico also came out ahead on cargo in last week's earnings results, something many competitors, such as Cathay Pacific (Pink: <a class="ticker" href="https://www.benzinga.com/stock/cpcay#Pink">CPCAY</a>) and Delta Air Lines, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dal#NYSE">DAL</a>), were unable to do.

In each case, cargo revenues notably grew even though shipment amounts were much less and represented an inordinate share of total revenues, completely reversing the typical balance. The results underscore <a href="https://www.freightwaves.com/news/airline-1h-cargo-revenues-grew-despite-drop-in-volume">recent market research by World ACD that airlines collectively achieved a 21% increase in cargo revenue despite an 18% drop in volume</a> from the same period last year. 

Cargo revenue at Air Canada grew 52% year-over-year to CA$269 million (US$200.5 million), representing a stunning 51% of total revenue after only contributing 3.7% of revenue during the same period in 2019. The airline's cargo sales went up 18% during the first half of the year, according to <a href="https://www.aircanada.com/content/dam/aircanada/portal/documents/PDF/en/quarterly-result/2020/2020_FSN_q2.pdf">last week's earnings report</a>.

IAG Cargo posted a 33% jump in cargo revenue to 369 million euros ($434.5 million) during the quarter and a 10.6% increase for the six months through June. It contributed half of the group's revenue compared to 4.2% a year ago. 

They joined <a href="https://www.freightwaves.com/news/united-airlines-goes-on-cargo-tear">United Airlines in producing outsized revenue gains for cargo</a> while many direct competitors suffered revenue and volume declines.

"For the first time ever, our cargo revenues exceeded passenger revenues in the quarter," Air Canada CEO Calin Rovinescu said Tuesday in a news release. "Over the course of the pandemic and through the second quarter we've continued our focus on airfreight to meet immediate and exceptional demand for medical equipment, critical goods and the regular movement of time sensitive air cargo."

When passenger demand dried up, Air Canada, IAG and Air France-KLM quickly adopted the passenger-freighter concept — putting idle planes into dedicated cargo service for freight forwarders and other shippers desperate to find air transport. 

Air Canada was one of the first airlines to remove seats from some twin-aisle aircraft – four 777-300s and three Airbus A330s – to increase available capacity for personal protective equipment and other light loads. IAG, which includes Iberia and Aer Lingus, and Air France-KLM also removed seats and placed cartons in seats and overhead bins of some aircraft. Strapping cargo to seats and putting it in luggage compartments adds about 40% extra capacity, or the equivalent of about six large pallets in the lower hold, according to airline industry officials.

Since March, Air Canada has operated more than 2,000 scheduled and ad hoc cargo-only flights around the world, including to New Zealand and Australia. The quasi-freighters represented 38% of all widebody flights and more than 40% of total cargo revenue, the airline said.

For each airline, pricing, not volume, drove higher revenues.

Cargo rates skyrocketed in the spring, with some trade lanes, such as China to the U.S. and Europe, five times above the normal peak season level. Rates have since fallen considerably but are still higher than normal for this time of year because of ongoing shortages. Airlines are slowly adding flights, but about 30% of normal air cargo capacity is still on the sidelines because they are operating very truncated passenger networks, based on <a href="https://www.freightwaves.com/news/iata-outlook-for-airline-industry-recovery-slides-to-2024">recent industry data</a>.

IAG Cargo, which flew 1,875 cargo-only flights during the quarter, said cargo yields soared 225% above the equivalent 2019 period as tonnage fell 51.2%. Cargo activity also involved 615 charter flights for specific customers, including 416 missions to supply hospitals under contract with the British, Irish and Spanish governments. All told, the airline group transported more than 11,000 tons of personal protective equipment and medical supplies on charters, not including shipments transported on scheduled routes. 

"We rapidly developed one of the most comprehensive networks of scheduled cargo-only flights available; a network of over 340 scheduled flights per week built around our customers' needs and tailored to the most important cargo flows," said IAG Cargo CEO Lynn Embleton in a statement. "We have reconfigured aircraft to maximize cargo capacity, removing seats and using overhead lockers. These were important capacity solutions, albeit ones that brought additional operational complexity and cost."

In 2019, IAG Cargo had commercial revenue of $1.3 billion. It is ahead of last year's pace at $724 million through the first six months of 2020.

Air Canada doesn't release figures for cargo volume.

Another passenger-dominant carrier that had a solid quarter in cargo was Air France-KLM. It posted a 5.2% gain in currency-adjusted cargo revenue to 566 million euros ($665 million) even with tonnage plunging 46.4%. Again, cargo was the dominant business line, representing 60% of total revenues. 

Air France-KLM's cargo load factor, which was influenced by a 56.3% drop in available capacity, shot up 16%, to 74.7% versus a year ago. 

Aeromexico, which lost $1.2 billion in the second quarter, said cargo revenue increased 35.5% to $61.7 million, reflecting demand to move personal protective equipment and other COVID supplies.

Earnings lowlights

Excluding cargo, the earnings picture was gloomy for Air France, IAG and Air France KLM.

Air Canada's second-quarter revenue plummeted 89% to US$393 million, nearly mirroring a 96% decline in passenger traffic and resulting in a $1.1 billion operating loss. A year ago, sales topped $3.5 billion and the airline produced a $314.7 million operating profit.

The Canadian carrier has raised $4.1 billion in capital since March and said it has $6.7 billion in liquid assets. 

It plans to operate at about 20% of normal capacity in the third quarter, up from 8% in the second quarter. 

CEO Rovinescu continued to express frustration with the federal and provincial governments for maintaining severe travel and border restrictions and quarantines, "effectively shutting down most commercial aviation in our country." He told analysts that without government or relief from travel restrictions Air Canada will look at other opportunities to reduce costs, including more route suspensions and possible cancellations of Boeing and Airbus aircraft on order.

Canada has closed its border to foreigners through Aug. 31 despite slowing case counts. Canadians who enter the country must stay at home for two weeks. Analysts say the lack of government aid has put Air Canada at a disadvantage relative to international competitors receiving bailouts.

Steps taken to stem cash outflows include reducing the workforce by 20,000, or more than 50%; slashing fixed costs and capital investments; retiring 79 aircraft — about 30% of the combined fleet for Air Canada and low-cost subsidiary Air Canada Rouge; and reducing network capacity. 

Air Canada projects lowering its daily cash burn from $14.2 million to between $11.2 million and $12.7 million in the third quarter.

European carriers

In the second quarter,IAG Group suffered a record $1.6 billion operating loss, with revenue down 89%, to $870 million. It wants to raise $3.2 billion from shareholders, with backing from Qatar Airways — its largest shareholder — to increase liquidity and stay in business. British Airways is only flying about 15% of its normal schedule and has said it needs to cut 12,000 jobs and rewrite contracts for 30,000 more personnel. 

The holding company said it expects to increase capacity to 26% of last year's level in the third quarter and 54% in the fourth quarter, but plans could change if governments close borders and order more quarantines. Officials said they expect to reach cash-flow breakeven during the fourth quarter through rigorous reductions in operating and capital expenses. Deliveries of 68 new aircraft due between 2020 and 2022 have been deferred, while <a href="https://www.freightwaves.com/news/will-shippers-miss-british-airways-747">32 Boeing 747s and 15 Airbus A340-600s are being retired early</a>.

"We continue to expect that it will take until at least 2023 for passenger demand to recover to 2019 levels," IAG CEO Willie Walsh said. "Each airline has taken actions to adjust their business and reduce their cost base to reflect forecast demand in their markets not just to get through this crisis but to ensure they remain competitive in a structurally changed industry."

Meanwhile, Air France-KLM Group reported a $1.8 billion operating loss in the quarter driven by only 4% of the prior year's passenger traffic, which caused revenue to crash 84%. A big factor behind the $3 billion net loss were large impairment charges for Airbus A380 and A340 aircraft. The company decided to <a href="https://www.freightwaves.com/news/air-france-klm-bids-adieu-to-a380-jumbo-jet">discontinue flying the A380</a> early this year.

Air France-KLM said it expects to operate at 45% of normal capacity in the third quarter and at 65% in the fourth quarter, with minimal long-haul flights due to declining customer interest.

On Friday,KLM said it will eliminate 4,500 to 5,000 positions that are no longer needed to operate as a smaller airline during the next two years, part of its <a href="https://www.freightwaves.com/news/klm-gets-eu-blessing-for-dutch-emergency-aid">restructuring deal with the Dutch government for financial support</a>. About 1,500 positions, including 500 ground staff, are tapped for involuntary layoffs. The rest of the reductions come from not renewing contracts for 1,500 temporary workers, offering 2,000 employees voluntary separation packages, and not filling 500 posts when workers retire. KLM didn't rule out further cuts if business doesn't improve.

Air France's restructuring plan calls for dropping 6,500 positions, or 16% of its workforce, by the end of 2022. The full plan will be unveiled in October. 

<a href="https://www.freightwaves.com/news/author/erickulisch">Click here for more FreightWaves/American Shipper stories by Eric Kulisch.</a>

RECOMMENDED READING:

<a href="https://www.freightwaves.com/news/air-canada-raises-750-billion-to-boost-liquidity">Air Canada raises $750 million to boost liquidity</a>

<a href="https://www.freightwaves.com/news/virus-slows-airlines-from-adding-capacity-increasing-airfreight-volatility">Virus slows airlines from adding capacity, airfreight volatility increases</a>

<a href="https://www.freightwaves.com/news/iata-outlook-for-airline-industry-recovery-slides-to-2024">IATA outlook for airline industry recovery slides to 2024</a>

ACDVF

Role Reversal: Passenger Airlines Make More From Cargo Sales In Q2

Goldman Sachs analyst Ben Hartwright downgrades Cathay Pacific Airways (OTC:<a class="ticker" href="/stock/CPCAY#OTC">CPCAY</a>) from Buy to Neutral.

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