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Norwegian Cruise forecasts quarterly profit below estimates, shares tumble
Norwegian Cruise Line Holdings' shares fell about 15% Tuesday after it forecasted a fourth-quarter loss below expectations due to cost pressures, a subdued appetite among travelers for sea-based holidays and a reduced appetite. The holiday season is a time of high demand, but it's been clouded by persistent inflation, uncertainty caused by tariffs, and the impact the long-term U.S. shutdown has had on port activity. Cruise operators are also under pressure from fluctuating fuel prices caused by geopolitical tensions and costs related to drydocks and ship deliveries, as well as maintenance and drydock expenses. Norwegian is expecting a current-quarter adjusted net profit per share below the estimates of 30 cents. Harry Sommer, CEO of the company, said in a call following earnings that they were strengthening their brand positioning and marketing efforts to reach a broader family market. Analysts blamed a sharp drop in the stock price on investor concerns over the company's plans to cater to families heavily, which would likely affect ticket revenues. Jamie Katz, Morningstar analyst, said that while the price for first- and second-class passengers should increase, adding children to a cabin will dilute the blended pricing. Norwegian's revenue for the third quarter rose by 4.7%, to $2.94billion. Analysts had expected $3.02billion. It was up 10.7% from the previous quarter. The company said that lower participation in its air program - which involves coordinating flights to match a cruise itinerary – affected revenue. Fuel prices increased from $699 to $744 per ton net of hedges. This is a rise from the previous year's $699. The company has raised its adjusted annual profit forecast from $2.05 per share to $2.10, an increase of $0.50. The adjusted profit per share was $1.20, which beat the $1.16 estimate for the third quarter. Peer Royal Caribbean increased its annual profit forecast, but forecast the current-quarter profits below estimates due to higher costs. Reporting by Neil J Kanatt, Bengallu; editing by Pooja Deai and Sriraj Kahluvila
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Beta Technologies shares stall in a muted NYSE debut, resulting in a $7.4 billion valuation
Beta Technologies, a maker of electric aircraft, was valued at $7.44billion after its shares were flat on their New York Stock Exchange debut Tuesday. This signaled investor caution due to a prolonged U.S. Government shutdown. The partisan gridlock of Washington is testing a comeback in first-time shares sales after tariffs imposed by U.S. president Donald Trump earlier this year scuttled IPOs. Analysts say that the Securities and Exchange Commission operates at a skeletal level, with fewer restrictions to allow listings to proceed. This can alienate some investors because of higher risks or lack of transparency. The stock of the company opened at $34 per share, which was in line with the initial offer. Beta raised $1.01 billion by selling 29.9 millions shares over its marketed range, which was $27-$33 per share. This shows that investors are eager to buy cheaper aircraft. Beta, backed by GE Aerospace, has a modest debut but still places it among the leading listed companies in the industry. Peers Archer Aviation (which went public via blank-check deals in 2021) and Joby Aviation (which went public through blank-check agreements), both command $6.72 billion and a $14.45 billion valuation respectively as of the last close. CEO Kyle Clark said that Beta has been approached by companies with a special purpose to acquire it in the past, but now they are going public because the company is producing and advancing in the long certification processes to bring planes and aircrafts to the market. Clark stated that "we have the ability forecast into a secure pipeline with deposit-based back up, and we also have a major certificate behind us." Clark said that the shutdown of the U.S. federal government has not had a material impact on his programs. Trump signed an executive directive in June to accelerate the development of eVTOL aircraft. A pilot program was launched last month to expedite the deployment of flying taxis. Clark stated that "Aircraft could be delivered to customers in certain cases, which would allow payment, before the complete regulatory process was completed." Beta designs and manufactures electric aircrafts, advanced electric propulsion, charging systems, and aircraft components. For emergency medical services and cargo, electric battery-powered aircraft are expected to be a cheaper, quieter alternative to helicopters. According to internal estimates, Beta's electric vertical lift-off and land variant (eVTOL) can reduce operating costs by 74% when compared to traditional helicopters. Reporting by Ateev Bhhandari in Bengaluru, Allison Lampert from Montreal and Alan Barona. Editing by Sahal Muhammad and Alan Barona.
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US extends inspection deadline after fires at Pennsylvania Transit Agency
The administration of President Donald Trump, which had threatened to remove aging railcars in Pennsylvania from service, announced on Tuesday that it would extend the deadline for an inspection by a state transit agency. The Federal Railroad Administration issued a special order on October 1 requiring that the Southeastern Pennsylvania Transportation Authority address the fire risk from its 225 Silverliner IV Railcars within 30 days. The order was issued in response to a safety recommendation made by the National Transportation Safety Board after five fires. FRA gave the agency until November 14 to finish inspections, and until early in December to install fire-protection circuits. Transportation Secretary Sean Duffy reported a successful meeting with Pennsylvania Governor Josh Shapiro and the two senators of the state, as well as other officials. He also pledged the U.S. Department of Transportation will work collaboratively in order to address fire risks. Duffy said, "We have chosen to work together in order to find a solution for the riders of Philadelphia." "We could've shut down the system. We didn't want to shut down the system. "Too many people depend on SEPTA for getting into and out of the City." SEPTA is ranked as the sixth largest public transit system in America. SEPTA provides service in five counties of the Greater Philadelphia Area and connects with transit systems in Delaware, New Jersey and other states. It serves nearly 200 million passengers annually. SEPTA's regional rail fleet consists of 225 Silverliner IV railcars, which are about 50 years old. They represent around two-thirds but due to financial reasons they must continue using them. SEPTA stated that a complete shutdown of the cars could cost the authority $2 billion and require a 2/3 reduction in service. The authority is currently in financial crisis. The vehicles are among the oldest in the nation and the agency has created a set of forty mitigation measures including notifications to staff, safety checks and audible alerts for malfunction lights. (Reporting and editing by David Shepardson)
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American Airlines reduces some management and support roles
American Airlines announced on Tuesday that it would be eliminating a small number of management and staff positions in order to adjust its workforce. The airline stated that the layoffs primarily occurred at the Fort Worth headquarters, which will allow it to become more efficient throughout the organization. The carrier had previously stated that it planned to save more than 750 million dollars in costs by the end this year. This is thanks to its efforts to reengineer the business. In North America, airlines have reduced corporate roles in order to control costs and protect margins after the post-pandemic travel surge. Air Canada, a Canadian carrier, cut 400 management jobs, or about 1% of their workforce, last month. Southwest Airlines announced earlier this year that it would be cutting 15% of corporate jobs. This is the first time in 54 years that Southwest Airlines has made such a cut. American Airlines has not specified the number of positions it is eliminating.
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Royal Air Maroc CEO: First aircraft to be delivered in 2028
Abdelhamid Addou, CEO of Royal Air Maroc, said that the Moroccan national carrier Royal Air Maroc expects to start receiving aircraft in 2028 from a major tender for fleet expansion. Addou stated that the tender, launched in April of 2024, is for 200 aircraft up to 2037. The company is currently evaluating Boeing, Airbus, and Embraer's offers. Addou, a reporter at the Arab Air Carriers' Organization General Assembly held in Rabat, said that the tender was currently being finalised. Addou did not disclose the exact value of the tender, but said that about 25% of the order would be wide-body aircraft. The remainder will be narrow-body jets. RAM is expecting to receive 15 new aircraft per year on average starting in 2028. Addou said that the airline would introduce up to thirteen aircraft each year in the interim. RAM has a strategy that includes expanding its fleet to become a regional hub carrier connecting Africa, Europe and North America via its Casablanca-based base. According to the ONDA, Morocco also launched a bid for a new terminal at its airport that will allow it to increase passenger capacity from 10.5 million to 35 millions by 2029. (Reporting and editing by David Goodman.)
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FAA stops traffic at Washington DC Airport after threat against plane reported
The Federal Aviation Administration halted Tuesday traffic at Reagan Washington National Airport following a report of a threat made against a United Airlines flight. The FAA reported that operations had been halted due to a reported issue with security. Passengers have already left the plane and the aircraft has moved away from the terminal for the investigation. According to a person who was briefed in the matter, a threat against the plane had been made and the plane is being checked out of an abundance caution. United directed questions to the FBI. The FBI did respond immediately to a comment request. Reagan Airport is only 5 miles away from the White House, and the FAA has imposed special security restrictions in the airspace. FlightRadar24 - a flight tracker - said that the issue was caused by an unconfirmed terrorist threat made against a United Flight arriving from Houston. The airport is preparing to open just before 1 pm. ET. FlightAware reports that more than 160 flights were delayed at Reagan. Reporting by David Shepardson, Washington; additional reporting from Rajesh Kumar Singh, Chicago Editing by Franklin Paul & Chizu Nomiyama
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A man accused of 'throwing things' at a federal agent after he threw a sandwich is on trial in Washington
A federal prosecutor told a jury on Tuesday that "You can't just go around throwing things." Sean Dunn faces a misdemeanor charge of assault in a case which has gained widespread attention since video of the incident went viral. Dunn was a Justice Department international case worker who became an unlikely symbol for resistance to Trump's law-enforcement surge in Washington, D.C., and was scorned Trump administration officials. Dunn has not pleaded guilty. John Parron, the prosecutor, said in his opening remarks that "you can't just throw things at people because you're angry." Dunn was captured on video on August 10 throwing a sub sandwich and shouting at a U.S. Customs and Border Protection agent who was on a crime prevention patrol in a Washington neighborhood. Trump had ordered an increase in federal law enforcement in Washington to combat what he described as an out of control crime problem, even though police statistics showed a decrease in violent crimes following an earlier rise. Julia Gatto was the lawyer representing Dunn. She told the jury that Dunn had done it. He threw it." Gatto, however, argued that it was impossible for the sandwich to harm or interfere with law enforcement. He called it a harmless gesture. "Mr. Gatto stated in her opening remarks that Dunn is very passionate about the policies which brought these officers to this place. He believes that recent immigration enforcement is racist. He believes that the militarization of federal law enforcement and the takeover by the government is fascism. Federal prosecutors initially sought a felony against Dunn but reduced the charge to a misdemeanor when a grand jury refused to approve the indictment. Gregory Lairmore testified, a 23 year veteran of U.S. Customs and Border Protection, that Dunn shouted at officers before throwing the sandwich. Lairmore testified to the jury that the sandwich exploded all over his uniform, smelling of "onions and mustard." He said he felt the impact from his ballistic vest.
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Officials see'massive chaos' as a result of the shutdown, which may force US to shut down some airspace next week.
Transportation Secretary Sean Duffy warned on Tuesday that if federal government shutdown continued another week, it could cause "mass confusion" and force him to shut down some national airspace for air traffic. This drastic measure could disrupt American aviation. "If you take us back to a week's time, Democrats, there will be mass chaos and mass flight delays." Duffy told a Tuesday press conference that you'll likely see a lot of cancellations and we may even close some parts of the airspace because we can't manage it. U.S. Aviation has already experienced tens and thousands of delays in the last month. These comments were the most dire warnings from the Trump administration about impending effects of rising air traffic control absences. The Federal Aviation Administration (FAA) delayed flights again on Tuesday as the shutdown entered its third week. Airlines reported that 3.2 million passengers were affected by flight delays or cancellations this week due to an increase in air traffic controller absenteeism. FAA Administrator Bryan Bedford said on Fox Business' "Varney & Co." that in the 30 largest airports of the FAA, "anywhere between 20 and 40% of our controllers don't come to work." Democrats accuse Republicans of not negotiating to reopen government with them. The shutdown has worsened the staffing shortages. 13,000 air traffic control officers and 50,000 Transportation Security Administration agents have been forced to work without pay. In 2019, disruptions to air travel forced lawmakers to end a 35-day shutdown of the government during Donald Trump's inaugural term. Duffy said he would shut down the U.S. Aviation System if the shutdown made it too dangerous to travel. The FAA reported that on Friday, nearly half of America's busiest airports were facing shortages of air traffic control in the worst single day since the shutdown started. The agency reported that 80% of the air traffic controllers in New York were absent on Friday. David Shepardson, David Gregorio and David Shepardson contributed to the report.
US Government shutdown sets record as Congress inaction has a toll
The U.S. shutdown entered its 35th consecutive day on Tuesday, matching the record for longest government shutdown in history set by President Donald Trump during his first term. Republicans and Democrats continue to blame one another for the standoff.
The cost is increasing every day. The first time food assistance was stopped for the poor, federal employees from airports, law enforcement and military go unpaid and economy is blinded by limited government reporting.
Senate votes against stopgap measure of funding passed by House of Representatives more than 12 times, and lawmakers have not changed their positions. Trump's Republicans have a majority of 53-47 in the Senate, but they need at least seven Democrats' votes to reach the 60-vote threshold. Democrats withhold their votes in order to get an extension of certain healthcare insurance subsidies.
John Thune, the Republican Senate majority leader, said Monday that "the victims of Democrats' shutdown have started to pile up." The question is, how long will Democrats continue to do this? Another month? Two? Three?"
Chuck Schumer, his Democratic counterpart, pointed out on Monday that Trump's focus has shifted elsewhere.
"While Donald Trump brags about remodeling bathrooms at White House, Americans panic about how they'll afford healthcare next year," Schumer stated, referring to the remodeling Trump revealed on Friday.
There was a rumor that spread through the Senate on Monday about the possibility of progress in the closed-door discussions between the two sides.
A SHUTDOWN LIKE ITS PREDECESCESSORS
The 15th shut down since 1981 is notable not only for its duration. The shutdown has reversed the usual partisan dynamic where shutdowns are often triggered by Republicans.
The latest shutdown has also been met with little effort. Trump has frequently left Washington and the House has not been in session since September 19.
The political climate, as well as the tensions between the parties, were very high at the start of the shutdown. Even though the bipartisan talks continued, they are still at this stage just the same," said Rachel Snyderman. She is the managing director for economic policy at Bipartisan Policy Centre.
The SNAP program, which provides food assistance to 42 million Americans, expired on Saturday. Food stamps, which average $180 per family per month, are no longer available to many families.
The Trump administration announced on Monday that it will partially fund the November food assistance but warned it could take several weeks or even months to distribute it.
As of November 1, new funding for Head Start programs for low-income families was not available.
The federal workers, such as law enforcement, military personnel, airport security screeners, and air traffic control, are not receiving their paychecks. This has led to staffing issues and travel delays. An airline group reported on Monday that more than 3.2 millions U.S. passengers have experienced delays or cancellations as a result of the shutdown.
According to the Congressional Budget Office, the shutdown will cost the U.S. $11 billion if the shutdown continues for another week. The U.S. Federal Reserve has limited data to use in determining jobs and economic trends as it steers its policy.
The American Federation of Government Employees (AFGE), the largest federal union, has pushed for a funding stopgap measure, which the Democrats voted against.
TRUMP ADMINISTRATION TESTS SHUTDOWN BORDERS
During the shutdown Trump focused on foreign affairs, from Gaza to Russia and Asia. Recently, he has gotten more aggressive and called for Republicans to eliminate the Senate's filibuster limit of 60 votes.
When asked if he would be willing to broker a deal with the Democrats, Trump said on CBS' "60 Minutes", "I won't do it by being forced by Democrats who are lost."
He urged Senate Republicans again on Tuesday to act, or risk losing the midterm elections next year.
"Elections including the Midterms will be brutally harsh. "If we terminate the Filibuster we will get everything approved... If we don't, they are more likely to do very well in the next Elections," wrote he in a post on social media.
Thune has repeatedly rejected the idea.
According to a recent /Ipsos survey, Americans blame both the Republicans and the Democrats for the shutdown. 50% of respondents blamed the Republicans while 43% blamed the Democrats.
Three moderate Democratic Senators voted along with Republicans to reopen the government. They argued that the immediate damage of the shutdown far outweighed any long-term benefits. Some Democrats claim they are waiting for Republican concessions to assert congressional funding power in response to Trump's executive overreach.
In a hallway conversation, Senator Andy Kim of New Jersey, a Democrat who voted against stopgap bills, stated that "the trust deficit has existed for a very long time due to how Trump has acted." "This is a major challenge we face right now, any deal that we get, how can we be sure that a contract is going to work?"
(source: Reuters)