348.30 -1.70 (-0.49%)
Pre-Market: 9:09AM EST
|Bid||348.05 x 800|
|Ask||348.49 x 800|
|Day's Range||338.50 - 350.03|
|52 Week Range||292.47 - 446.01|
|Beta (3Y Monthly)||1.24|
|PE Ratio (TTM)||52.68|
|Earnings Date||Jan 28, 2020 - Feb 3, 2020|
|Forward Dividend & Yield||8.22 (2.35%)|
|1y Target Est||374.45|
Southwest Airlines Co said on Thursday it had reached a confidential compensation agreement with Boeing Co for a portion of the projected financial damages related to its 737 MAX aircraft grounding. The U.S. airline also said it would share the proceeds from Boeing with its employees. The world's largest 737 MAX operator expects the profit sharing accrual to be about $125 million.
Southwest Airlines Co. said Thursday it has reached a settlement with Boeing Co. over the grounding of its 737 Max fleet totaling about $125 million and that it will share the money with its employees. The sum is the projected reduction in operating profit caused by the groundings, which came after two fatal crashes involving the aircraft. Southwest is still in talks with Boeing regarding compensation for the groundings. The company is expecting to account for most of the compensation as a reduction in the cost of existing and future firm aircraft orders, lowering its depreciation expense in future years. The Boeing 737 Max fleet has been grounded since an order from the Federal Aviation Administration on March 13. Southwest shares were not active premarket, but have gained 16% in 2019, while the S&P 500 has gained 25%.
The U.S. airline also said it would share the proceeds from Boeing with its employees. The world's largest 737 MAX operator expects the profit sharing accrual to be about $125 million. Southwest said it continues to engage in talks with Boeing for further compensation related to the MAX grounding, adding that the details of the talks and the settlement were confidential.
Delta Air Lines expects to fly through the “headwinds” of US election uncertainty and the return of Boeing’s 737 Max planes to competitors’ schedules to produce revenue growth of 4 to 6 per cent in 2020, the US carrier will tell investors on Thursday. Ed Bastian, chief executive, told the Financial Times that 2019 would be “the best year in Delta’s history by almost all measures”, and predicted that momentum would continue, allowing it to report diluted earnings per share of $6.75-$7.75 next year. Delta has claimed to have seen little advantage from not having the Max in its fleet at a time when rivals including Southwest and American have had to ground many of their planes for months after two fatal crashes.
BEIJING/SYDNEY Dec 12 (Reuters) - China has raised "important concerns" with Boeing Co regarding design changes proposed to end the grounding of the Boeing 737 MAX airliner, Beijing's aviation regulator said on Thursday, declining to say when it might fly in China again. The remarks broke months of public silence from China, the first country to ground the 737 MAX in March following the second deadly crash involving the model in less than five months.
BEIJING/SYDNEY (Reuters) - China has raised "important concerns" with Boeing Co regarding design changes proposed to end the grounding of the Boeing 737 MAX airliner, Beijing's aviation regulator said on Thursday, declining to say when it might fly in China again. The remarks broke months of public silence from China, the first country to ground the 737 MAX in March following the second deadly crash involving the model in less than five months.
Southwest Airlines strikes a deal to receive compensation for financial fallout related to the grounding of Boeing's 737 MAX aircraft.
(Bloomberg Opinion) -- This week, a core function of the World Trade Organization — founded in 1995 to govern the rules of trade between 164 countries — ground to a halt.The reason for that was U.S. President Donald Trump, who has never really had much time for multilateral institutions. The WTO has been on his hit-list for some time as an entity that he says has taken advantage of the U.S. and favored China, and now he has successfully moved to paralyze one of its most critical mechanisms: Dispute settlement. After repeatedly blocking new appointments to the seven-member body that decides on appeals at the WTO, the Trump administration has rendered it basically unworkable. Without an effective appeals process, why file a complaint at all?You could forgive the average person on the street for shrugging their shoulders at the thought of a dysfunctional WTO, which over the past two decades has had its fair share of messy moments. Negotiations in 2001 to lower trade tariffs around the world, called the Doha round, went nowhere. China’s entry into the club has neither opened up its economy, nor created a level playing field when it comes to potentially market-distorting subsidies. And as for the appeals process, the WTO’s most famous recent case — Airbus versus Boeing — has lasted 15 years without a clear winner. In 2016, Airbus’s boss at the time said the spat had only really benefited “the armies of lawyers” paid to fight it.All that said, there is a real and serious significance to the gridlock. Whatever the WTO’s flaws, and the obvious need for reform, Trump’s campaign has moved beyond constructive criticism and into assault. His weapon of choice is the punitive tariff and his target of choice is China, creating precisely the kind of bilateral trade war that the WTO works to avoid. Indeed, for all of the WTO’s failures to rein in China or deliver tariff agreements, its chief success has been convincing members to stick to a common legal framework rather than fight trade wars. Ralph Ossa, a professor at the University of Zurich, estimated in 2015 that this success was worth $340 billion annually to the world economy.Couple this with the impending departure of the U.K. from the European Union, which would create new potential barriers between Britain and its biggest trading partner, and this is a true milestone in the backlash against the post-Cold War order. That reaction may be justified in some areas, considering globalization’s legacy on workers’ rights and fair trade, but promising voters a better “deal” by wielding trade policy like a weapon can easily backfire. Trump’s lofty promises to fight trade cheats and currency manipulators have also resulted in a shrinking U.S. manufacturing sector. And across the Atlantic, the Conservatives’ promise to “get Brexit done” has saddled the U.K. with divorce papers that give it barely a year to negotiate a new trade deal with an EU eager to defend its market and economic interests. As world trade shifts from organization to disorganization, what is key is the response from actors like the EU and countries in Asia. It’s vital that Europe builds and improves on multilateral institutions. It’s likely the EU will keep finding itself in Trump’s cross-hairs, and the bloc is not in a position to engage in a prolonged trade war with the U.S. without serious internal disunity. Academics in France, Japan and Canada have proposed a “Euro Pacific Partnership” covering 40% of world trade that would defend multilateral dispute settlement at the WTO while also taking a tough line on enforcing intellectual property, government subsidy, human rights and data-transfer rules. Trump’s actions have made initiatives like this more likely: An EU backup plan that would create a way to keep on settling international trade disputes without the U.S. has gained support from Canada, Norway and now China.The alternative is, as plenty of trade officials have noted, the law of the jungle. That might suit Trump — a self-styled “tariff man” — just fine. But everyone else should worry.To contact the author of this story: Lionel Laurent at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
After the first crash of a Boeing 737 Max last year, federal safety officials estimated that there could be 15 more fatal crashes of the Max over the next few decades if Boeing didn’t fix a critical automated flight-control system.
(AMZN) CEO Jeff Bezos’s privately held space company, Blue Origin, just completed another successful launch. The trip brings the rocket company closer to its goal of carrying tourists into space—a journey that would be fun, but expensive. “This mission was another step toward verifying New Shepard for human spaceflight as we continue to mature the safety and reliability of the vehicle,” reads the company’s Wednesday news release.
FAA chief Stephen Dickson said the Boeing 737 Max won't be cleared to resume flying before the end of the year and hinted more enforcement action may be on the way.
The low-fare behemoth is betting the Boeing MAX will be back in service by the time the peak summer travel season begins.
The U.S. Federal Aviation Administration (FAA) has no timetable for recertifying the troubled Boeing 737 MAX jetliner for flight as it carefully studies Boeing Co.'s (NYSE: BA) fixes to the plane's flight control software and new pilot training procedures, Administrator Stephen Dickson told a House panel Wednesday.
The expansion comes after the carrier cut back service this summer due to issues with the Boeing 737 Max aircraft.
The stock market put in a mixed performance Tuesday, as the Fed left interest rates unchanged after its final meeting of the year, as expected.
(Bloomberg Opinion) -- As another deadline for the return of Boeing Co.’s troubled 737 Max slips out of reach, the aerospace company doesn’t appear to have any better handle on its messaging now than it did when this crisis started more than a year ago.Federal Aviation Administration Administrator Stephen Dickson told CNBC on Wednesday that the agency won’t complete the necessary approvals for the Max’s return until 2020. The plane has been grounded since March following the second of two fatal crashes linked to a flight-control software system. That’s a notable contrast to Boeing’s last official timing update, which called for the FAA to give it the green light to start shipping stockpiled jets by December. Regulators weren’t expected to certify new pilot-training requirements until several weeks later and airlines wouldn’t be able to fly the Max until they did, but beginning the process of clearing out the glut of undelivered jets would help Boeing manage its cash crunch and avoid further production cuts.At the time, I wondered why the FAA would be willing to bifurcate the certification process in order to throw Boeing a bone like this. It would appear from Dickson’s comments that he isn’t on board with this timeline. “Boeing’s plan is not the FAA’s plan,” Dickson said on CNBC. That puts Boeing in the awkward position of once again being on the wrong side of conservatism. The company has repeatedly moved the goal posts for the Max’s return. Boeing initially said it was on track to have the final paperwork on planned software fixes in to the FAA by late March and hosted a junket just weeks after the second crash to sell the fixes to customers and the media. Setbacks ensued, but Boeing told customers it was targeting FAA approval of the software fix as early as the third week of May and an ungrounding around mid-July, according to a Reuters report in April. More setbacks ensued, so Boeing said in July that it expected to have all recertification materials in to the FAA by September with the goal of having the grounding lifted in October – even as the Wall Street Journal reported that regulators and pilot union leaders at the time believed 2020 was more likely. Airline executives have cast their own doubts on Boeing’s timetables, with Gary Kelly, CEO of Southwest Airlines Co. — the largest Max customer — saying last month that he wasn’t “highly confident about a mid-December ungrounding date.”Clearly, no one has had a crystal ball when it comes to the Max crisis, but the past year has taught us the conservative approach is the prudent one, particularly as regulators contend with the damage done to their own reputations and the overall perception of safety in the aviation industry. And it is telling that after all this time, Boeing is still finding itself the one with the most aggressive assumptions.It’s a natural instinct to want to motivate your employees and soothe your shareholders. But amid persistent accusations that Boeing prioritized profits over safety in the development of the Max and rushed the initial rollout, it’s stunning that the company remains blind to the optics of deadlines that repeatedly prove overly optimistic or give the impression of special treatment from the FAA. Boeing has made changes to insulate its engineers from the company’s financial concerns and offered frequent sweeping commitments to safety. That said, CEO Dennis Muilenburg wasn’t willing or wasn’t able to detail specific changes to the company’s relationship with the FAA that he would support when he testified before Congress in October. I remain unconvinced that the right incentives are in place to ensure Boeing makes the kind of deep-rooted changes that are necessary, but the FAA’s unwillingness to be corralled into following the company’s timelines is a positive start.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The Dow Jones Industrial Average erased its losses after the Fed left rates unchanged, as expected, and signaled it may hold rates steady through 2020.
Airlines face significant problems if the return to service of the Boeing 737 MAX drags on for months longer, the head of the International Air Transport Association said on Wednesday. IATA Director General Alexandre de Juniac told Reuters many airlines could cope with the latest delay in the plane's return announced earlier on Wednesday, but were nearing the end of their ability to manage the shutdown smoothly. The head of IATA, whose 290 airlines represent 82% of global traffic, was speaking shortly after the U.S. Federal Aviation Administration said the jet would not return to service in 2019.
The S&P 500 and the Nasdaq indexes held on to gains on Wednesday as traders awaited the Federal Reserve's December policy statement for clues on the domestic economy's strength, while the Dow Jones index was pressured by losses in Boeing and Home Depot. The U.S. central bank is widely expected to keep borrowing costs steady in its policy announcement, due at 2:00 p.m. ET (1900 GMT).
Yahoo Finance’s Adam Shapiro, Julie, Scott Gamm and Akiko Fujita discuss the most recent developments in the Boeing 737 Max scandal on On The Move.
Boeing stock trading lower and dragging on the Dow as the FAA announced that recertification of the 737 Max jet will not happen before the end of the year. Yahoo Finance's Adam Shapiro, Julie Hyman, Scott Gamm, Akiko Fujita and Ines Ferre discuss.
Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, said in his opening remarks that the FAA's own internal analysis, done after the fatal crash of a Lion Air 737 MAX flight in October of 2018, showed that a design flaw in the plane's software could result in "as many as 15 future fatal crashes." The software, known as the Maneuvering Characteristics Augmentation System, or MCAS, is an anti-stall system. A second 737 MAX, belonging to Ethiopian Airlines, crashed months later. DeFazio and other U.S. lawmakers questioned three top FAA officials on why the government agency didn't take more aggressive action to prevent the second crash. FAA Administrator Stephen Dickson told the committee, “We are humbled when our best efforts fail.” But, he added, “The system is not broken.”