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After court order, New York tunnel project is expecting to receive frozen US funds
After a U.S. court of appeals refused to overturn a lower court's order, the commission in charge of the $16 billion Hudson Tunnel Project in New York said it would soon receive $205 million in federal funding that had been frozen. Last week, the funding freeze caused construction to be halted and 1,000 workers were out of work. U.S. district judge Jeannette Vargas issued a preliminary order last week that ordered the federal government release funds to a project that would overhaul critical rail infrastructures in New York and New Jersey, which had been frozen since October 1 by President Donald Trump. The Second Circuit U.S. Court of Appeals announced?on Friday that it would refer the matter to a panel of judge later this month. However, the court did not issue the order requested by the government to block Vargas' decision from taking effect. Letitia James, New York Attorney general, said that the Trump administration should immediately release funds for the project. James said that the administration "never had the power to freeze these funds, and now it has no excuse for delay" after the lower court's order was upheld. The U.S. Transportation Department didn't immediately respond to an inquiry for comment. The department had warned earlier that it would release funds if there was no court order to stop Vargas' decision. The White House directed questions to the Justice Department which didn't immediately respond. The Gateway Development Commission (which is responsible for the management and construction of the Hudson Tunnel Project) said that "while it is a good step, moving forward we need consistent access to federal funding." Gateway said that it worked with contractors to "plan how to deploy these funding in the most efficient way" and to get workers to the construction sites as quickly as possible. Trump promised to 'unfreeze funds,' according to a source, in exchange for Democrats supporting his request to rename Washington Dulles Airport, and New York Penn Station, after him. Democrats strongly criticised the offer. The Hudson Tunnel Project is a plan to build a new commuter tunnel between Manhattan and New Jersey and to repair an old tunnel that's used daily by over 200,000 people and 425 trains. Vargas' ruling came hours after New York &?New Jersey announced that construction would cease due to a lack of funding. The Hudson Tunnel, which was heavily damaged by Hurricane Sandy in 2012, requires frequent emergency repairs, which disrupt travel along the country's busiest passenger rail line. Former President Joe Biden allocated $15 billion to the project. So far, nearly $2 billion has already been spent. Reporting by David Shepardson, Editing by Chris Reese & Jamie Freed
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Air Canada's core profit for 2026 is slightly higher than expected due to international demand
Air Canada's forecast for 2026 core profits was marginally higher than Wall -Street expectations on Thursday. The company attributed this to a strong demand on international routes outside of the U.S., and an increase in premium travel. International travel remains a relative bright light, even as domestic demand is showing signs of slowing down. This has cushioned carriers with large overseas networks. The Canadian carrier has been able to offset the softness on U.S. Canada routes with strong long-haul bookings, and a resilient demand for premium cabins. Analysts expect the Canadian flag carrier to achieve adjusted earnings before taxes, interest, depreciation, and amortization of C$3,35 billion ($2,46 billion),?to C$3,75 billion annually, as opposed to an average expectation of C$3.5billion. The airline anticipates that its?seat mile capacity, which is a key measure for passenger capacity, will rise between 3.5% to 5.5% by 2026. The company noted that it had a strong booking momentum for 2026, as well as opportunities from future fleet investments. Analysts at TD Cowen stated that "Inflation due to its labor agreements and delayed aircraft deliveries" will put pressure on CASMex (cost-per-available seat mile excluding the cost of fuel) by 2026. Air Canada announced plans last month to expand its winter schedule in Europe and Latin America, as the demand for these regions remains strong, despite some parts of North America losing momentum. As part of the fleet renewal, earlier this week it ordered eight widebody 'Airbus A350-1000' jets with an option for eight more. The aim was to improve its long-haul offering and fuel efficiency. The Canadian carrier reported net?income for the fourth quarter of C$296million, or C$1per share. This compares to a loss in the previous year of C$644million, or C$1.81per share. Air Canada reported total operating revenue of C$5.77billion, up from C$5.40billion a year ago. (1 Canadian dollar = 1.3616 dollars) (Reporting and editing by Sriraj Kalluvila, Krishna Chandra Eluri and Shivansh Tiwary in Bengaluru)
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As AI concerns weigh, trucking stocks fall.
Stocks in trucking and logistic companies fell on Thursday, as investors feared that AI technology would increase competition for firms that rely on software. Landstar System, C.H. Robinson fell by more than 14 percent, while Dow Jones Transportation Average dropped 4%. Investors are concerned that the steep fall in logistics shares follows a recent drop in software stocks. They fear future AI products will cause fierce competition among established businesses, eroding their profit margins. These fears contrast with the optimism that has driven Wall Street to record-breaking highs over the past few years. Jeffrey Favuzza, a trader at Jefferies, wrote in a note to clients on Thursday that the underlying theme for not only Tech but also for all corners of the market is a shoot first ask questions later approach for any market area with an AI headline. Algorhythm Holdings, a logistics company focused on AI, said that its SemiCab division increased customers' freight volume by?300%-400% without a corresponding rise in operational staff. Algorhythm Holdings' stock soared by about 30%, boosting its stock market value to $6 million. Algorhythm sold karaoke machines before. Algorhythm Holdings changed its name from The Singing Machine Company to Algorhythm Holdings in August after selling the business to Stingray Music. Last week, global markets were shook by the launch of 'plug-ins' for Claude Cowork agent by?AI developer Anthropic. This rekindled fears that AI systems are rapidly evolving and could threaten traditional software companies. Reporting by Lance Tupper, New York; and Noel Randewich, San Francisco.
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Airbnb forecasts revenue above estimates on premium rentals demand
Airbnb's first-quarter revenue forecast was higher than Wall Street's estimates on Thursday as the vacation rental company rely on premium bookings to offset a drop in demand from cost-conscious consumers. In volatile trading after the market, shares of 'the travel company' rose?about 5 percent. LSEG data shows that the company's revenue for the third quarter is expected to be between $2.59 and $2.63 Billion, compared to an average analyst estimate of $2.53 Billion. Marriott, United Airlines, and other travel companies have observed that higher-end customers are boosting results, while lower-end customers struggle with inflation and economic uncertainty. Airbnb, based in San Francisco, expects revenue to increase by "at least low-double-digits" in 2026. This is roughly in line analysts' estimates of 10,24%. However, the firm does not expect an increase in adjusted core profit margins this year, as it continues to invest in marketing, technology and product. Airbnb has launched a new segment in May 2025 that allows customers book services like a personal chef or yoga instructor. This will allow it to better compete with hotels which offer a greater selection of "frills". In the fourth quarter of 2018, half of Airbnb experiences were not booked with an accommodation. The company is also expanding its hotel offerings by partnering with boutique and independent hotels, in cities like New York and Madrid where regulations have restricted the supply of rentals. Airbnb wrote in a shareholder letter that it believes adding more hotels to the platform will increase its total market. The earnings per share for the 'fourth quarter' were 56 cents, compared with 73 cents one year ago. It reported quarterly revenue of 2,78 billion dollars, compared with expectations of $2.71 million. (Reporting by Aishwarya Jain in Bengaluru; Editing by Sriraj Kalluvila)
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Public Storage's core FFO for the full year is below expectations, and CEO Joe Russell will depart
Public Storage, an investment trust in real estate, forecast its core funds from operations for 2026 below Wall Street expectations on Thursday. This was due to a softer demand for their'self-storage' units and the departure of its CEO. The Glendale-based company is expecting core FFO for the full year to be in the range between $16.35 and $17.00 per common share. According to data compiled by LSEG, the midpoint of this forecast is lower than analysts'?average estimates of $16.91 a share. Joe Russell, the president and CEO of Self-Storage World's largest self-storage facility, will also step down on March 31, 2019. Tom Boyle will succeed him as the new top boss on April 1, replacing Joe Russell, who is currently chief financial officer. Joe Fisher is the new Chief Financial Officer, with effect from February 16. He was previously chief financial officer and investment director at UDR, an?REIT for multifamily housing. Public Storage, a company that leases storage space on a monthly basis to individuals and businesses, reported core FFO at $4.26 per share, compared to $4.21 per a share, for the?quarter ending December 31. The revenue for the fourth quarter was $1.22 billion compared to $1.18 billion the previous year. Public Storage's portfolio consisted of 3,533 self-storage facilities in 40 states. This represents approximately 258 millions net rentable square foot in the United States. (Reporting and editing by Alan Barona in Bengaluru, with Abhinav?Parmar reporting from Bengaluru)
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US Senators criticize FAA failures prior to fatal helicopter collision
U.S. Senators criticized the Federal Aviation Administration on Thursday for a litany of failures that occurred before the collision in January 2025 between an American Airlines regional plane?and Army chopper, which killed 67 people near Reagan Washington National Airport. Senator?Maria Cantwell, the top Democrat on Commerce Committee, stated at a hearing the National Transportation Safety Board's findings about the crash revealed the "failures" of the FAA. The NTSB concluded that the FAA allowed helicopters to fly close to the airport without any safeguards to separate aircraft from helicopters. It also failed to act on data or recommendations to move helicopters away from the airport. Tammy Duckworth is the top Democrat in the aviation subcommittee. She noted that controllers asked to reduce the arrival rate of Reagan Airport, the busiest airport in the United States. Duckworth said that FAA management failed to act upon the warnings raised by a controller workforce understaffed and overworked. Duckworth said that the FAA's failure to act in the face of alarms screamed out by DCA controllers that it was a matter of "when, not if," one of DCA's near misses would turn into a fatal tragedy is emblematic of the chronic crisis that has plagued the FAA under multiple administrations. The crash was the worst aviation accident in U.S. history for more than 20 years. The FAA expressed its appreciation for the NTSB’s expertise and input, and stated that it would carefully consider all recommendations. After the incident, the agency stated that it "?immediately acted to improve safety" and took "decisive steps?to rectify past failures." The NTSB has rebuked FAA for serious communication, culture, and safety issues. The FAA responded by saying it would carefully consider the recommendations. It also said that after the collision, the agency immediately took steps to improve safety. The NTSB found issues with the FAA's handling of traffic at Reagan. It said the agency rejected the advice to include hot spots on a chart for helicopter routes. Homendy also said that the FAA did not review 'helicopter routes as required annually and had routes which were not designed to ensure proper separation. Homendy stated that Helicopter route 4 near DCA, which was closed following the collision, had been in existence since 1986. She said that not one annual review had been done. (Reporting and editing by David Shepardson)
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Airbnb forecast revenue above estimates on premium rentals demand
Airbnb's first-quarter revenue was above Wall Street expectations on Thursday, as it focuses primarily on premium bookings in order to offset a waning demand from budget-conscious customers. According to data compiled and analyzed by LSEG, the company expected a revenue between $2.59 billion - $2.63 billion for the third quarter. This compares with an average analyst estimate of $2.53billion. High-end travelers, such as Marriott and United Airlines hotel operators, are boosting results, while lower-end customers are struggling with sticky inflation and economic insecurity. Analysts had estimated 10,24%. San Francisco-based Airbnb expects revenue to grow "at least in the low double-digits" by 2026. The firm does not expect an increase in adjusted core profit margins this year, as it continues to invest in marketing, technology and product. Airbnb will launch a new segment in?May 2025 that allows guests to book services like a personal chef or a yoga instructor. This will allow it to better compete with hotels which offer a wider selection of frills. In the fourth quarter of 2018, half of Airbnb's experience bookings did not include a booking for accommodation. The company also seeks to expand its?hotels offered by partnering up with boutique and independent hotels in cities such as New York or Madrid where rental supply is limited due to regulations. Airbnb wrote in a shareholder letter that it believes bringing more hotels on the platform will increase its total market. In the fourth quarter of last year, its earnings per share were 56 cents. It reported quarterly revenue of 2,78 billion dollars, compared with expectations of $2.71 million. (Reporting by Aishwarya Jain in Bengaluru; Editing by Sriraj Kalluvila)
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FedEx's Holiday-Quarter Adjusted Profit to Top Wall Street's View
FedEx, a global delivery company, announced on Thursday that its?adjusted? earnings for the current holiday season would exceed Wall Street's median estimate. It also set growth goals through 2029. FedEx announced that its earnings for the third quarter, ending February 28, will surpass analysts' expectations. This announcement was made ahead of its annual Investor Day in Memphis, Tennessee where it is headquartered. FedEx compared the average FactSet estimate of $4.01 for each share. FedEx announced in December that its 'third-quarter adjusted earning per share will fall below the reported $4.82 for the second quarter. The third quarter's earnings, which are typically the highest due to holiday deliveries, include $150 million of unexpected peak-season expenses related to finding trucks and planes to transport goods that would normally have flown aboard its fleet of MD-11 cargo aircraft that was grounded after the deadly UPS crash on November 20, 2025. FedEx has begun a multi-year restructuring which includes cutting billions in costs, merging its Ground and Express delivery options and automating certain operations. It will also spin off its Freight business in June. Raj Subramaniam, CEO, told investors that the transformation would translate into profitable growth, increased margins, stronger cash generation, and higher returns. FedEx Freight has not been included in the growth targets set for 2029. On the basis of?its fiscal 2026 estimates, it anticipates a 2029 consolidated revenue of $98 billion. This represents a 4% annual compound growth rate. It expects to achieve an operating income of $8 Billion in 2029, representing a 14% CAGR. It sees a 2029 adjusted operating profit margin of 8%. This is up about 200 basis points. John Dietrich said that the company is "religiously focused on costs" and would be better able to handle unexpected challenges. FedEx's fiscal 2025 report shows revenue of $87.9 Billion, an adjusted operating profit of $6.12 Billion, and a 7% adjusted operating margin. On Thursday, shares of FedEx rose 0.2% to $367.83.
American Airlines unions increase pressure on the board due to lagging profits
American Airlines has been lagging behind Delta Air Lines and United Airlines in terms of profitability for years. The unions of American Airlines are now turning this gap into an issue of governance, pressing directors to be accountable at the top.
The tensions have escalated in recent days. The pilots' association has urged the board of American Airlines to take "decisive actions" and requested a board meeting. Meanwhile, the flight attendants union issued a vote of no confidence in Robert Isom, the Chief Executive Officer, and demanded a leadership change.
Labor groups making public calls for a change in leadership outside of formal contract negotiations is unusual. The unions' demands are framed as an attempt to directly involve the board, by linking strategy and execution to reliability and financial performance.
The Association of Professional Flight Attendants, which represents American Airlines' flight attendants said that on Monday their board voted unanimously against the CEO of American Airlines.
The union claimed that the airline had fallen "dangerously" behind its competitors, and demanded "accountability and improved operational support as well as a change in leadership." The union plans to protest on Thursday outside American's headquarters, in Fort Worth, Texas.
Julie Hedrick, APFA president, said: "At the very end, we feel that our management team has failed us." "We do not want to be left with a business that is not competitive."
American refused to comment on the union votes, and in response'questions pointed out Isom's recent remarks to employees and investors outlining the turnaround strategies and emphasising accountability. Isom stated that American's turnaround plan should begin to show results by 2026 on the last quarterly earnings call. Last week, he reiterated the message during an internal leadership meeting. He said, "It begins with us." "2026 cannot just feel different. It must be different. American is trying to convince investors, through the unions, that investing in high-quality products, operational reliability and efforts to win corporate clients back and drive loyalty revenue will help it narrow its profit gap.
Delta's stock has gained 14% and United's about 12% over the past year.
PROFIT GAP FUELS PRESSURE
According to the company's results, American generated 352 million dollars in 2025 on a pretax adjusted basis, compared to Delta, which generated $5 billion, and United, who generated $4.6 billion.
American Airlines has attributed the?underperformance to exposure to a soft domestic market, wider economic uncertainty, and a federal shutdown that weighed heavily on bookings.
Union officials have linked worker frustration with the gap and lower profit-sharing payouts. APFA reported that some crew members only received $150 in profit sharing for 2025.
Isom said to employees in a town hall meeting last month that the profit-sharing was "meager", but that "if you break even that's what you get," according an audio recording.
Analysts at JPMorgan said that American's share of pretax profits for American, Delta, and United was just under 4% in 2025. However, the analysts expect this to increase to around 12% by 2026. Melius Research stated that the airline can "recapture earnings" in 2026 following a difficult 2025.
American also stated that it expected to reduce its debt to less than $35 billion by 2026. This is an year earlier than the previous target.
PILOTS PUSH BOARD ENGAGEMENT
The vote of no confidence was prompted by a letter sent last week by the board of the pilots' union urging the board at American to take "decisive actions" and warning the carrier that it remains on a "underperformance path" due to "persistent cultural, operational and strategic deficiencies." The union requested that Nick Silva be given the opportunity to present his concerns to the entire board. Isom promised to meet with the union as soon as he could and that the board would have discussed the request.
The union claimed that it has not received a response from directors, and Isom's reply "wasn't responsive" to their request for a meeting at the board level. The union said that, after several meetings with Isom's?executive staff over the last year, engaging with the entire board was the "necessary" next step.
EXECUTION UNDER STRAIN The latest flare-up comes after a winter storm in late January that caused?widespread cancellations of flights and tested American's system for recovery.
OAG, an aviation analytics company, found that American Airlines' reliability was below its key competitors in January. Southwest, Alaska Airlines and United Airlines were all ahead of American in terms of on-time performance. It also had the highest cancellation rates among these airlines.
The unions have described the disruption as "evidence" of deeper weaknesses in planning and execution. This framing is consistent with a larger?aviation pattern. The major operational failures have at times drawn attention beyond the day-to-day management. From Southwest Airlines' 2022 holiday disruption that prompted congressional hearings to airline CEOs requesting meetings with Boeing directors following Alaska Airlines' door plug incident in January of 2024.
Charles Elson is a retired University of Delaware Professor and Corporate Governance Specialist. He said that public calls for the removal of a CEO do not guarantee a leadership change. However, employee unrest could become a problem for an organization with a large customer base, and can be a warning to its board.
Elson stated, "When you have unhappy employees and your business is in contact with customers, you have a problem." (Reporting and editing by Matthew Lewis in Chicago, Rajesh Kumar Singh)
(source: Reuters)