Tag Archives: disruptions

Holiday travel is mostly nice, but with some naughty disruptions again on Southwest Airlines – The Associated Press

  1. Holiday travel is mostly nice, but with some naughty disruptions again on Southwest Airlines The Associated Press
  2. Southwest Airlines cancels hundreds of flights, disrupting some holiday travelers CBS News
  3. Southwest cancellations today: Chicago fog to blame for initial issues amid Midway flight cancellations, delays, airlines says WLS-TV
  4. Multiple flights canceled, temporary ground stop issued at Midway Airport FOX 32 Chicago
  5. Southwest Airlines vows operations are ‘stable’ in statement following flight cancellations at Midway NBC Chicago

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Microsoft warns of service disruptions if it can’t get enough A.I. chips for its data centers – CNBC

  1. Microsoft warns of service disruptions if it can’t get enough A.I. chips for its data centers CNBC
  2. Despite Slowing Growth, the Battle for Artificial Intelligence (AI) Domination Between Google and Microsoft Is Kicking Off in the Cloud The Motley Fool
  3. Microsoft capex jumps on data center and AI compute spend, amid Azure’s “acceleration of overall capacity” DatacenterDynamics
  4. Microsoft and Alphabet Surpass Market Expectations with AI-driven Growth gizmochina
  5. Microsoft’s Azure Slowdown Offsets Optimism About AI Growth HT Tech
  6. View Full Coverage on Google News

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Meta stock spikes despite earnings miss, as Facebook hits 2 billion users for first time and sales guidance quells fears

Meta Platforms Inc. shares soared in after-hours trading Wednesday despite an earnings miss, as the Facebook parent company guided for potentially more revenue than Wall Street expected in the new year and promised more share repurchases amid cost cuts.

Meta
META,
+2.79%
said it hauled in $32.17 billion in fourth-quarter revenue, down from $33.67 billion a year ago but stronger than expectations. Earnings were $4.65 billion, or $1.76 a share, compared with $10.3 billion, or $3.67 a share, last year.

Analysts polled by FactSet expected Meta to post fourth-quarter revenue of $31.55 billion on earnings of $2.26 a share, and the beat on sales coincided with a revenue forecast that also met or exceeded expectations. Facebook Chief Financial Officer Susan Li projected first-quarter sales of $26 billion to $28.5 billion, while analysts on average were projecting first-quarter sales of $27.2 billion.

Shares jumped more than 18% in after-hours trading immediately following the release of the results, after closing with a 2.8% gain at $153.12.

Alphabet Inc.’s
GOOGL,
+1.61%

GOOG,
+1.56%
Google and Pinterest Inc.
PINS,
+1.56%
benefited from Meta’s results, with shares for each company rising 4% in extended trading Wednesday.

“Our community continues to grow and I’m pleased with the strong engagement across our apps. Facebook just reached the milestone of 2 billion daily actives,” Meta Chief Executive Mark Zuckerberg said in a statement announcing the results. “The progress we’re making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization.”

Read more: Snap suffers worst sales growth yet in holiday quarter, stock plunges after earnings miss

Facebook’s 2 billion-user milestone was slightly better than analysts expected for user growth on Meta’s core social network. Daily active users across all of Facebook’s apps neared, but did not crest, another round number, reaching 2.96 billion, up 5% from a year ago.

Meta has been navigating choppy ad waters as it copes with increasing competition from TikTok and fallout from changes in Apple Inc.’s
AAPL,
+0.79%
ad-tracking system in 2021 that punitively harmed Meta, costing it potentially billions of dollars in advertising sales. Meta has invested heavily in artificial-intelligence tools to rev up its ad-targeting systems and making better recommendations for users of its short-video product Reels, but it laid off thousands of workers after profit and revenue shrunk in recent quarters.

The cost cuts seemed to pay off Wednesday. While Facebook missed on its earnings, it noted that the costs of its layoffs and other restructuring totaled $4.2 billion and reduced the number by roughly $1.24 a share.

Meta executives said they now expect operating expenses to be $89 billion to $95 billion this year, down from previous guidance for $94 billion to $100 billion. Capital expenditures are expected to be $30 billion to $33 billion, down from previous guidance of $34 billion to $37 billion, as Meta cancels multiple data-center projects.

In a conference call with analysts late Wednesday, Zuckerberg called 2023 the “year of efficiency.”

“The reduced outlook reflects our updated plans for lower data-center construction spend in 2023 as we shift to a new data-center architecture that is more cost efficient and can support both AI and non-AI workloads,” Li said in her outlook commentary included in the release.

Meta expects to increase its spending on its own stock. The company’s board approved a $40 billion increase in its share-repurchase authorization; Meta spent nearly $28 billion on its own shares in 2022, and still had nearly $11 billion available for buybacks before that increase.

“Investors are cheering Meta’s plans to return more capital to shareholders despite worries over rising costs related to its metaverse spending,” said Jesse Cohen, senior analyst at Investing.com.

The results came a day after Snap Inc.
SNAP,
-10.29%
posted fourth-quarter revenue of $1.3 billion, flat from a year ago and the worst year-over-year sales growth Snap has ever reported. But they also arrived on the same day Facebook scored a major win in a California court. The company successfully fended off the Federal Trade Commission bid to win a preliminary injunction to block Meta’s planned acquisition of VR startup Within Unlimited.

Read more: Meta wins bid to buy VR startup Within Unlimited, beating U.S. FTC in court: report

Meta shares have plunged 53% over the past 12 months, while the broader S&P 500 index 
SPX,
+1.05%
has tumbled 10% the past year.

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Chevron Rides High Oil Prices to Record $35.5 Billion Annual Profit

Chevron Corp.

CVX -4.44%

banked historic profit last year as the pandemic receded and the war in Ukraine pushed oil prices to multiyear highs, with its shares climbing 53% for the year while other sectors tumbled.

The U.S. oil company in its quarterly earnings reported Friday that it collected $35.5 billion in its highest-ever annual profit in 2022, more than double the prior year and about one-third higher than its previous record in 2011. Almost $50 billion in cash streamed in from its oil-leveraged operations, another record that is underpinning plans to pay investors through a new $75 billion share-repurchase program over the next several years.

That payout, announced Wednesday, is roughly equivalent to the stock-market value of companies such as the big-box retailer

Target Corp.

, the pharmaceutical firm

Moderna Inc.

and

Airbnb Inc.

Chevron, the second-largest U.S. oil company after

Exxon Mobil Corp.

, posted revenue of $246.3 billion, up from $162.5 billion the previous year. The San Ramon, Calif., company reported a fourth-quarter profit of $6.4 billion, up from $5.1 billion in the same period the prior year.

The fourth-quarter results came short of analyst expectations, and Chevron shares closed down more than 4% Friday.

For all of its recent winnings, though, Chevron and its rival oil-and-gas producers could face a rockier year in 2023, according to investors and analysts, if an anticipated slowdown in U.S. economic growth dents demand for oil, and if China’s reopening from strict Covid-19 restrictions unfolds slowly.

U.S. oil prices have held steady this year, but are off about 36% from last year’s peak. The industry is proceeding with caution, holding capital expenditures for 2023 below prepandemic levels and saying production will grow only modestly. Chevron has said it plans to spend about $17 billion in capital expenditures this year, up more than 25% from the prior year, but $3 billion less than it planned to spend in 2020 before Covid-19 took root.

Oil companies are still outperforming other sectors such as tech and finance, which have seen widespread job cuts in recent weeks. The energy segment of the S&P 500 index has climbed 43.7% over the past year, compared with a 6.7% drop for the broader index.

Chevron Chief Executive Mike Wirth said the company is unsure of what 2023 will bring after global energy supplies were squeezed because of geopolitical events last year, particularly in Europe following Russia’s invasion of Ukraine. He said markets appeared to be stabilizing.

“We certainly have seen a very unusual and volatile year in 2022,” Mr. Wirth said, noting the European energy crisis has proven less dire than anticipated thanks to milder winter weather, growing natural gas inventories in Europe. “China’s economy has been slow throughout the year, which looks to be turning around. It’s good that markets have calmed.”

Chevron projects its output in the Permian Basin of West Texas and New Mexico to grow at a slower pace this year.



Photo:

David Goldman/Associated Press

Chevron hit a record in U.S. oil-and-gas production in 2022, increasing 4% to about 1.2 million barrels of oil equivalent a day, stemming from its increased focus on capital investments in the Western Hemisphere, particularly in the Permian Basin of West Texas and New Mexico, where it boosted output 16% last year. Worldwide, Chevron’s oil-and-gas production was down 3.2% compared with the prior year, at 2.99 million barrels of oil-equivalent a day.

Its overall return on capital employed came in at 20%, it said.

“There aren’t many sectors generating the type of free cash flow that energy is right now,” said

Jeff Wyll,

an analyst at investment firm Neuberger Berman, which has invested in Chevron. “The sector really can’t be ignored. Given the supply-demand balance, you have to have some things go wrong here to see a pullback in oil prices.”

Even so, institutional investors have shown limited interest so far in returning to the energy sector, after years of poor returns and heightened concerns about their environmental impact prompted large financiers to sell off their stakes in oil-and-gas companies or stop investing in drillers outright.

Pete Bowden,

global head of industrial, energy and infrastructure banking at

Jefferies Financial Group Inc.,

said energy companies in the S&P 500 index are throwing off 12% of the group’s free-cash flow, but only account for about 5% of the index’s weighting—an indication their stock prices are lagging behind.

Investors’ concerns around environmental, social and governance-related issues are a constraint on the share prices of energy companies, “yet the earnings power of these businesses is superior to the earnings power of companies in other sectors,” he said.

Chevron and others have faced criticism from the Biden administration and others that they are giving priority to shareholder returns over pumping oil and gas at a time when global supplies are tight and Americans are feeling pain at the pump. On Thursday, the White House assailed Chevron’s $75 billion buyout program, saying the payout was proof the company could boost production but was choosing to reward investors instead.

Pierre Breber,

Chevron’s finance chief, said the company expects oil prices to be volatile but within a range needed to sustain its dividend and investments. There are some optimistic signs, he added, including that the U.S. economy grew faster than expected in the fourth quarter, at 2.9%.

“Supply is tight. Oil-field services are near capacity, and we continue to have sanctions on Russian production,” Mr. Breber said. “You’re seeing international flights out of China are way up, and low unemployment in the U.S.”

Mr. Breber said Chevron’s output in the Permian this year is expected to grow at a slower pace, around 10%, because it has exhausted much of its inventory of wells that it had drilled but hadn’t brought into production.

Exxon, which has typically posted quarterly earnings on the same day as Chevron, will report Tuesday. Analysts expect it will also post record profit for 2022, according to FactSet.

Both companies expect to slow their output growth this year in the Permian, considered their growth engine. The two U.S. oil majors, which had been growing output faster in the U.S. than most independent shale producers, are beginning to step up their focus on shareholder returns and allow output growth to ease, said Neal Dingmann, an analyst at Truist Securities.

“This has all been driven by investor requirements,” Mr. Dingmann said.

Write to Collin Eaton at collin.eaton@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Airline CEO preparing travelers for more disruptions

One airline CEO is warning travelers that other carriers won’t be able to handle all the flights they plan to operate this year. 

And that will lead to more disruptions.

United Airlines chief Scott Kirby said airlines that operate as if this is still 2019, before the pandemic, are bound to struggle. 

According to Kirby, the industry has a shortage of pilots and other workers, outdated technology and strain on the Federal Aviation Administration.

NEW PILOT CONTRACTS TO DRIVE UP COSTS AT US AIRLINES

United Airlines CEO Scott Kirby and Executive Vice President John Laughter of Delta Air Lines testify before the Senate Committee hearing. (Chip Somodevilla/Pool via REUTERS / Reuters Photos)

“The system simply can’t handle the volume today, much less the anticipated growth,” Kirby said. “There are a number of airlines who cannot fly their schedules. The customers are paying the price.”

Kirby used the problems encountered by Southwest Airlines over the holidays without naming the carrier by name.

Southwest had to scrub nearly 17,000 flights in late December after a winter storm upset the schedule and overwhelmed the airline’s crew-scheduling system.

“What happened over the holidays wasn’t a one-time event caused by the weather, and it wasn’t just at one airline,” he said. Alaska, Spirit and Frontier also had double-digit percentages of canceled flights in late December.

A United Airlines passenger aircraft, Boeing 777, arriving at Chicago O’Hare International Airport. (istock / iStock)

HOLIDAY FLIGHT CANCELLATIONS: KNOW YOUR AIRLINE’S POLICIES AND BEST OPTIONS

Kirby made the remarks during the company’s fourth-quarter earnings call with analysts and reporters.

Kirby made a note of the investment his airline has made in technology, has more employees per flight than before the pandemic, keeps more spare planes and isn’t pushing the schedule too hard. 
 

United Airlines planes are parked at gates at Newark Liberty International Airport in Newark, N.J. ((AP Photo/Seth Wenig, File) / AP Newsroom)

UNITED AIRLINES PLACES MASSIVE BOEING DREAMLINER ORDER

However, those steps have raised United’s cost to fly one mile, not counting fuel, about 15% above 2019’s level.

After the stock market closed Tuesday, Chicago-based United reported a profit of $843 million for the fourth quarter and predicted that 2023 earnings would easily top Wall Street forecasts. 

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Ticker Security Last Change Change %
UAL UNITED AIRLINES HOLDINGS INC. 48.86 -2.34 -4.57%

Shares of United Airlines Holdings Group Inc. lost 4.6% on Wednesday and another 1% in extended trading.

The Associated Press contributed to this report.

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Airlines cancel 17,000 flights due to severe winter weather but disruptions ease

Aircraft are deiced at General Mitchell International Airport in Milwaukee

Reuters

Flight cancellations eased further on Monday but disruptions from severe winter weather across the U.S. lingered at the tail end of Christmas weekend.

Airlines have canceled more than 17,000 U.S. flights since Wednesday, according to FlightAware, as storms brought snow, ice, high winds and bitter cold around the country, derailing air travel from coast to coast. Those conditions slowed down ground crews as they faced severe conditions at airports.

Carriers are likely to detail the costs of the disruptions when they report results next month, if not earlier.

Southwest Airlines was especially hit hard by the winter storms over the holiday travel period, along with other issues including unexpected fog in San Diego and staffing shortages at a fuel vendor in Denver, the carrier’s chief operating officer told staff.

Southwest had been canceling many flights proactively in an effort to stabilize its operation, COO Andrew Watterson said. From Wednesday through Saturday, about a quarter of Southwest’s flights were canceled, and two-thirds were delayed, according to FlightAware data.

The airline apologized to employees for the chaos, which left many struggling to get a hold of crew scheduling services, making it harder to get reassignments or make other changes, or get hotel rooms. Southwest also offered flight attendants working over the holiday extra pay.

“Part of what we’re suffering is a lack of tools,” Southwest CEO Bob Jordan said in a message to staff on Sunday. “We’ve talked an awful lot about modernizing the operation, and the need to do that. And Crew Scheduling is one of the places that we need to invest in. We need to be able to produce solutions faster.”

Airlines often cancel flights proactively during bad weather to avoid having planes, crews and customers out of place, problems that can make recovery from a storm more difficult.

Carriers also planned smaller schedules for Christmas Eve and Christmas Day compared with the days leading up to the holidays, making it harder for them to rebook travelers on other flights, and bookings had spiked.

Passengers check in at the Delta counter at Detroit Metro Airport in Romulus, Michigan, on December 22, 2022. 

Jeff Kowalsky | AFP | Getty Images

On Monday, more than 1,700 flights were canceled and 2,200 more were delayed, down from nearly 3,200 canceled flights and 7,700 delayed U.S. flights on Sunday.

Delta Air Lines, American Airlines, United Airlines, JetBlue Airways and Alaska Airlines were among the other carriers affected by the weather.

An American Airlines spokeswoman said the “vast majority of our customers affected by cancellations were able to be reaccommodated.”

Delta is “seeing steady recovery in our operations, and expect the improvements to continue over the next several hours,” a spokesman said Monday.

Passengers also faced delayed luggage, however.

Bill Weaver, 41, said he, his wife and five children drove from Wichita, Kansas to Dallas Fort Worth International Airport for a Friday flight to Cancun after their connecting flight into the American Airlines hub was canceled. The American Airlines flight to Cancun arrived on time but their luggage didn’t get to in Cancun until Monday, and hadn’t made it to their hotel by mid-morning, so they had to spend hundreds of dollars to buy clothing and other essentials at their hotel.

Weaver, who works in software sales, said he used to travel frequently.

“I’m used to missing bags and things happen but this is by far the worst I’ve ever seen,” he said.

Extreme cold and high winds slowed ground operations at dozens of airports. More than half of U.S.-based airlines’ flights arrived late from Thursday through Saturday, with delays averaging 81 minutes, according to FlightAware.

“Temperatures have fallen so low that our equipment and infrastructure have been impacted, from frozen lav systems and fuel hoses to broken tow bars,” said United Airlines message to pilots on Saturday. “Pilots have encountered frozen locks when trying to re-enter the jet bridge after conducting walk arounds.”

The FAA said it had to evacuate its tower at United hub Newark Liberty International Airport in New Jersey because of a leak on Saturday.

JetBlue, meantime, offered flight attendants triple pay to pick up trips on Christmas Eve due to staffing shortages.

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Dow falls nearly 500 points after strong data, bearish comments by David Tepper

U.S. stocks traded lower on Thursday, erasing most of their gains from their biggest rally in three weeks after a round of upbeat economic data and a warning from hedge-fund titan David Tepper that he was “leaning short” against both stocks and bonds on expectations the Federal Reserve and other central banks will continue tightening into 2023.

Positive economic news can be a negative for stocks by underlining expectations that monetary policy makers will remain aggressive in their efforts to quash inflation.

What’s happening
  • The Dow Jones Industrial Average
    DJIA,
    -1.51%
    fell 472 points, or 1.4%, to 32,903.
  • The S&P 500
    SPX,
    -1.99%
    shed 71 points, or 1.8%, to 3,807.
  • The Nasdaq Composite
    COMP,
    -2.84%
    fell 272 points, or 2.5%, to 10,437.

A day earlier, all three major indexes recorded their best gain in three weeks as the Dow advanced 526.74 points.

What’s driving markets

Investors saw another raft of strong economic data Thursday morning, including a revised reading on third-quarter gross domestic product which showed the U.S. economy expanded more quickly than previously believed. Growth was revised up to 3.2%, up from 2.9% from the previous revision released last month.

See: Economy grew at 3.2% rate in third quarter thanks to strong consumer spending

The number of Americans who applied for unemployment benefits in the week before Christmas rose slightly to 216,000, but new filings remained low and signaled the labor market is still quite strong. Economists polled by The Wall Street Journal had forecast new claims would total 220,000 in the seven days ending Dec 17.

“Jobless claims ticking slightly up but coming in below expectations could be a sign that the Fed’s wish of a slowing labor market will have to wait until 2023. While weekly jobless claims aren’t the best indicator of the overall labor market, they have remained in a robust range these last two months suggesting the labor market remains strong and has withstood the Fed’s tightening, at least for the time being,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office, in emailed comments.

“While weekly jobless claims aren’t the best indicator of the overall labor market, they have remained in a robust range these last two months suggesting the labor market remains strong and has withstood the Fed’s tightening, at least for the time being,” he wrote. “It’s no surprise to see the market take a breather today after yesterday’s rally as investors parse through earnings data, and despite some beats this week, expectations that earnings will remain as resilient in 2023 may be overblown.”

Stocks were feeling pressure after Appaloosa Management’s Tepper shared a cautious outlook for markets based on the expectation that central bankers around the world will continue hiking interest rates.

“I would probably say I’m leaning short on the equity markets right now because the upside-downside doesn’t make sense to me when I have so many people, so many central banks, telling me what they are going to do, what they want to do, what they expect to do,” Tepper said in a CNBC interview.

Key Words: Billionaire investor David Tepper would ‘lean short’ on stock market because central banks are saying ‘what they’re going to do’

A day earlier, the Conference Board’s consumer confidence survey came in at an eight-month high, which helped stoke a rally in stocks initially spurred by strong earnings from Nike Inc. and FedEx Corp. released Tuesday evening. This optimistic outlook helped stocks clinch their best daily performance in three weeks.

Volumes are starting to dry up as the year winds down, making markets more susceptible to bigger moves. According to Dow Jones Market Data, Wednesday saw the least combined volume on major exchanges since Nov. 29.

Read: Is the stock market open on Monday after Christmas Day?

In other economic data news, the U.S. leading index fell a sharp 1% in November, suggesting that the U.S. economy is heading toward a downturn.

Many market strategists are positioned defensively as they expect stocks could tumble to fresh lows in the new year.

See: Wall Street’s stock-market forecasts for 2022 were off by the widest margin since 2008: Will next year be any different?

Katie Stockton, a technical strategist at Fairlead Strategies, warned clients in a Thursday note that they should brace for more downside ahead.

“We expect the major indices to remain firm next week, helped by oversold conditions, but would brace for more downside in January given the recent downturn,” Stockton said.

Others said the latest data and comments from Tepper have simply refocused investors on the fact that the Fed, European Central Bank and now the Bank of Japan are preparing to continue tightening monetary policy.

“Yesterday was the short covering rally, but the bottom line is the trend is still short and we’re still fighting the Fed,” said Eric Diton, president and managing director of the Wealth Alliance.

Single-stock movers
  • AMC Entertainment Holdings 
    AMC,
    -14.91%
    was down sharply after the movie theater operator announced a $110 million equity capital raise.
  • Tesla Inc. 
    TSLA,
    -8.18%
    shares continued to tumble as the company has been one of the worst performers on the S&P 500 this year.
  • Shares of Verizon Communications Inc. 
    VZ,
    -0.53%
    were down again on Thursday as the company heads for its worst year on record.
  • Shares of CarMax Inc. 
    KMX,
    -6.60%
    tumbled after the used vehicle seller reported fiscal third-quarter profit and sales that dropped well below expectations.
  • Chipmakers and suppliers of equipment and materials, including Nvidia Corp.
    NVDA,
    -8.60%,
    Advanced Micro Devices 
    AMD,
    -7.17%
    and Applied Materials Inc.
    AMAT,
    -8.54%,
    were lower on Thursday.

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Powerful winter storm could cause holiday travel disruptions across U.S.

Concerns about illness or inflation aren’t stopping Americans from hitting the roads and airports this holiday season. But a massive winter storm might.

Forecasters predict an onslaught of heavy snow, ice, flooding and powerful winds from Thursday to Saturday in a broad swath of the country, from the Plains and Midwest to the East Coast. A surge of Arctic air will follow. The Christmas weekend could be the coldest in decades.

The National Weather Service said Wednesday the storm was so large and encompassing that around 190 million people are currently under some type of winter weather advisory. 

In Cheyenne, Wyoming, a new record was set when the temperature dropped 40 degrees in just 30 minutes, according to the weather service. 

Cities in Minnesota, including Minneapolis and St. Paul, have declared snow emergencies. On the East Coast, an NHL game between the Buffalo Sabres and Tampa Bay Lightning that was scheduled for the upstate New York team’s Keybank Center on Dec. 23 was postponed. 

Wright-Patterson Air Force Base near Dayton, Ohio, announced it would close at 6 p.m. Thursday due to the incoming storm, and remain closed through at least Friday.

Oklahoma Gov. Kevin Stitt announced Wednesday a state of emergency for 77 counties ahead of the storm, tweeting that Oklahomans should “stay inside, check on your neighbors and stay safe.”

Texas Gov. Greg Abbott held a news conference Wednesday to address how the state planned to handle the bitter cold. In February of 2021, a winter storm knocked out power to hundreds of thousands of Texans for days. That power outage was subsequently blamed for more than 200 deaths.  

Missouri Gov. Mike Parson Tuesday also signed an executive order in preparation for the storm.  

According to CBS Colorado, the city of Denver was developing a plan to ensure that the more than 1,300 migrants who have arrived in the city since Dec. 9 will have a safe haven from the cold. CBS Colorado reported that many came from warm climates like Venezuela and Nicaragua and did not have warm clothing.  

Southwest Airlines said it has canceled 500 of its 4,000 scheduled flights on Thursday and Friday. The company said it wanted to maintain safe operations for both passengers and crew.

At least 145 flights into or out of Denver International Airport were canceled Wednesday as the city was hit with snow, gusty winds and freezing temperatures, according to FlightAware, a flight tracking company. At least 219 flights into or out of Denver were expected to be canceled Thursday. 

FlightAware was also expecting at least 364 flights to be canceled Thursday at O’Hare and Midway airports in Chicago. Earlier this week, those two airports said they had 350 pieces of snow removal equipment and 400,000 gallons of pavement de-icing fluid on hand for the storm.

Delta, American, United, Frontier, Alaska, Southwest and other airlines were waiving change fees and offering travelers the option of choosing new flights to avoid the bad weather.

Worker next to Alaska Airlines planes during a snow storm at Seattle-Tacoma International Airport in Seattle, Washington on Dec. 20, 2022.  

David Ryder/Bloomberg via Getty Images


Jean-Paul Blancq got to Boston’s Logan Airport a day early for his Thursday flight home to New Orleans. Blancq had to take a bus to Logan from his seasonal job in New Hampshire and was unsure of the storm’s path.

“I hope that my flight doesn’t get canceled because I don’t know what I’ll do,” Blancq said.

Bianca Thrasher-Starobin, a consultant and lobbyist in Atlanta, flew into New York Wednesday morning for an event and planned to fly out the same night.

“I’m trying to get out of this weather. I would have stayed longer but I just can’t take that chance,” she said as she raced through LaGuardia Airport.

Bus and train travelers were also bracing for cancellations and delays.


Flash freeze after rain, snow expected to impact travel

00:55

As of late Wednesday, Amtrak had canceled train service on around 30 routes, some through Dec. 25. Greyhound canceled bus service on 25 routes for Wednesday and Thursday, including service from Las Vegas to Denver, Denver to St. Louis and Chicago to Minneapolis, Memphis and Nashville.

The weather added uncertainty to what was expected to be a busy travel season. Earlier this month, AAA estimated that nearly 113 million people would travel 50 miles from home or more between Dec. 23 and Jan. 2. That’s 4% higher than last year, although still short of the record 119 million in 2019.

Most planned to travel by car. About 6% will travel by air, AAA said. Either way, many travelers found themselves hastily changing their itineraries.

Joel Lustre originally planned to drive from Bloomington, Indiana, to McGregor, Iowa, on Thursday. But he shifted his work schedule, and his wife canceled an appointment so they could leave Wednesday and beat the storm.

In Montana, several ski areas announced closures Wednesday and Thursday due to the extremely cold temperatures and sustained winds. Others scaled back offerings. Schools were also closed due to the cold.

Authorities across the country are worried about the potential for power outages and warned people to take precautions to protect the elderly, the homeless and livestock — and, if possible, to postpone travel.

“If you don’t have to be out driving, especially on Friday, we ask that you don’t be out there,” said Ron Brundidge, Detroit’s public works director. Brundidge said 50 trucks will be out salting major roads on around-the-clock shifts once expected rain turns to snow on Friday.

Kelli Larkin arrived Wednesday from Florida for a holiday trip to New York. She plans to fly back Saturday night but said she’ll watch the forecast and change her return flight if she has to.

“It’s a little concerning,” she said. “We’ve got to play it by ear.”

Kurt Ebenhoch, a consumer travel advocate and former airline executive, said fee waivers give airline passengers valuable time ahead of a storm to figure out alternate days and routes. But consumers should read the fine print carefully. Airlines might charge the difference in fares if passengers book beyond a certain window, for example.

Ebenhoch stressed that passengers have the right to ask the airline to book them on a different airline’s flight if there are no options that meet their needs. And if the airline cancels the flight, consumers have the right to a full refund, not just credits for future travel.

The urge to travel and visit family and friends over the holidays appeared to outweigh concerns about illness. The Centers for Disease Control and Prevention said coronavirus cases and deaths have increased in recent weeks, and the trio of COVID-19, seasonal flu and respiratory syncytial virus, known as RSV, continues to stress the health care system.

Inflation also didn’t seem to be cutting into holiday travel demand. The average round-trip airfare rose 22% to $397 in the second quarter of this year — the most recent period available — according to U.S. government data. That was higher than overall U.S. price inflation, which peaked at 9% in June.

Lindsey Roeschke, a travel and hospitality analyst with Morning Consult, a market research company, said travelers appear to be cutting back in other ways.

In a recent survey, Morning Consult found that 28% of U.S. travelers were planning a one-day trip for the holidays, up from 14% last year. There was also an uptick in the number of people planning to stay with friends or family instead of at hotels. Roeschke thinks higher prices were a factor.



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Opinion: Tesla investors have been the biggest losers in Elon Musk’s Twitter deal, and those losses continue

Twitter users have complained a lot about Elon Musk’s early moves after taking control of the social network, but their complaints seem tiny compared with what Tesla Inc. investors have had to suffer.

As the U.S. focused on election returns Tuesday evening, Tesla
TSLA,
-7.17%
Chief Executive Musk tried to slip through disclosure of his long-awaited stock sales, revealing that he had sold nearly $4 billion of Tesla stock in the previous three trading sessions. Musk did not publicly address the stock sales nor his intentions to sell more within 24 hours of the disclosure, even while tweeting roughly 20 times in that period.

[MarketWatch asked him on Twitter to address the sales twice, and did not receive a reply; Tesla disbanded its media-relations department years ago.]

The sales fueled a further downturn in shares of the electric-vehicle maker on Wednesday, when the stock fell 7.2% to $177.59, its lowest closing price since November 2020. Tesla is currently down 49.6% on the year, which would be far and away the worst year yet for the stock — the previous record annual decline was 2016, when it fell 11%.

The problems for Tesla investors go far beyond Musk selling its stock so that he could overpay for a company with limited growth prospects and a host of other problems, but the poor optics certainly start there.

“He sold caviar to buy a $2 slice of pizza,” said Dan Ives, a Wedbush Securities analyst.

Ives was one of several on Wall Street to predict Musk would need to sell more shares to either close a gap in his financing of the $44 billion deal to buy the social-media company, or provide additional operating funds. In a telephone conversation Wednesday, he said the Twitter move is “a nightmare that just won’t end for Tesla investors.”

One reason it isn’t ending is that Musk’s need for cash in relation to Twitter is not done with the recent sales, portending more in the future. Musk said in a tweet late last week that Twitter had a “massive drop in revenue” due to activists pressuring advertisers to pull their ads, and he will have to continue paying the employees he did not lay off while servicing a debt load that analysts have estimated will cost him $1 billion a year, much more than Twitter has cleared in profit in the past two years. Twitter reported a net loss of $221 million in 2021, and a net loss of $1.13 billion for 2020.

Read more about Elon Musk potentially pumping Tesla stock ahead of a sale

“The first two weeks of ownership have been a ‘Friday the 13th‘ horror show,” Ives said, adding that the verification plan and mass layoffs of 50% of employees — and then trying to rehire some of the engineers, developers and cybersecurity experts — was “really stupid.” And, according to CNBC, Musk has also pulled more than 50 Tesla engineers, many from the Autopilot team, to work at Twitter.

“But it’s consistent with how this thing has been handled,” Ives said, adding that Musk is “way over his skis” with the Twitter acquisition.

Amid all the chaos of his first two weeks running Twitter, how much time has Musk had to run his other companies? Musk was already splitting his Tesla time with SpaceX, The Boring Company, Neuralink and many other endeavors, and now he has taken on the gargantuan task of turning a social-media company that has never been highly profitable, nor valuable, into something worth the $44 billion he paid.

The effort, Ives said, has “tarnished his brand,” which in turn has a big risk of hurting Tesla. Many investors have bought into the Tesla story because they believe Musk is a genius and they back his vision of electrifying the automotive industry. Twitter does not meld into that vision, except as a platform to spout his opinions, vitriol and promote more wacky concepts.

Since Musk began his quest to buy the company, he has endured more criticism than ever before, with even some fans starting to throw shade or question his decisions. Investor Gary Black, managing partner of the Future Fund LLC, for example, pointed out that Tesla’s top engineers should not be running Twitter, where the news was getting worse.

Tesla is not a company that can just run itself at this point. Musk has claimed he did not want to be chief executive but that there was no one else to take over the car company, which is why he has served as CEO for years. It’s not clear, though, how much effort he actually has made at trying to recruit someone. Now, as Tesla faces its usual multitude of issues, he is off spending his time trying to turn Twitter into a payments company, or maybe a subscription company, or maybe an “everything app,” or whatever he comes up with tomorrow.

“Musk needs to look in the mirror and end this constant merry-go-round of Twitter overhang on the Tesla story, with his focus back on the golden child Tesla, which needs his time more than ever given the soft macro, production/delivery issues in China, and EV competition increasing from all corners of the globe,” Ives wrote in a note Wednesday, in which he reiterated an outperform rating on Tesla stock.

For Twitter to reach anywhere close to the valuation Musk paid for it, it’s going to need a ton of attention from a focused leader, but how can Musk be that leader and give Tesla the attention it deserves? The answer is he cannot, and is very likely to give the attention that Tesla needs to Twitter instead after committing $44 billion (not all of it his) to that endeavor. Tesla investors will be left staring at the sea of red that this year has wrought, and wondering if its leader is about to sell more shares to fund his other effort.



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