Raphael Stevens

The average incentive offered by dealers has dropped to an all-time low of $1,034, according to a joint estimate from J.D. Power and LMC Automotive.
The average per-car profit at dealerships is $5,046 — up from $2,733 a year ago — which is offsetting a slower sales pace.
A growing share of buyers are trading in their car for another preowned vehicle.

Bloomberg | Bloomberg | Getty Images

One of the best car-shopping weekends prepandemic is more of a dud these days.
Amid the auto industry’s manufacturing challenges due to persisting supply-chain issues, Memorial Day sales are generally minimal to nonexistent this year.

“It’s looking pretty bleak, to be straightforward about it,” said Ivan Drury, senior manager of insights for Edmunds. “It’s getting harder and harder for people to get a new car with the features they want at the price they’re willing to pay.” 

The average amount paid for new car is more than $45,200, up 18.7% from a year ago, according to a joint forecast from J.D. Power and LMC Automotive. Buyers are paying about $700 above sticker price on average, Drury said.
At the same time, the average incentive offered by dealers has dropped to an all-time low of $1,034, compared with $2,996 a year ago, the J.D. Power/LMC forecast shows. Generally speaking, dealers don’t need to offer much in the way of incentives to sell cars these days.
In fact, despite the pace of sales being down 23.8% from a year ago due to reduced inventory, the average per-car profit at dealerships is $5,046 up from $2,733 a year ago.

It’s getting harder and harder for people to get a new car with the features they want at the price they’re willing to pay.

Ivan Drury
senior manager of insights at Edmunds

“This elevated per-unit profit level is more than offsetting the drop in sales volume,” said Thomas King, president of J.D. Power’s data and analytics division, in the forecast.

Meanwhile, facing limited inventory for a new vehicle, a growing share of buyers are heading to used-car lots instead, Drury said.
“A lot of new cars you see on [dealer] websites that are labeled ‘coming soon’ or ‘in transit’ are already sold,” Drury said. “So unless you can preorder that vehicle and wait three or six months for it, you’re going to end up in a used car.”
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Of buyers with a trade-in, 45% are ending up with a preowned vehicle compared with 35% a year ago, Drury said.
Of course, there’s little relief in the used-car market. Average prices are up 22.7% over the last 12 months, according to the latest data from the Bureau of Labor Statistics. Transaction amounts average $29,948, Edmunds research shows.
However, this means trade-in values are higher, as well.
“For your own used vehicle, get multiple quotes,” Drury said. “Leverage that.”

Another thing to consider is the cost of financing. The average rate paid on new car loans is ticking upward. It reached 4.7% in April, up from 4.5% in March and 4.1% in December, according to Edmunds. With the Federal Reserve expected to continue raising a key interest rate that affects consumer loans, car shoppers are likely to run into higher rates in the coming months.
However, well-qualified buyers may be able to snag a decent rate, depending on the car.
“You can still get zero or maybe 1.9% financing,” Drury said.

For used cars, the average rate is 8%. However, for certified preowned vehicles — which generally have passed a rigorous inspection and come with an extended warranty — you may find special financing deals.
“It could be 1.9% or 2.9% or even cash back,” Drury said.
And while those used cars may cost more, you could pay a higher interest rate on a loan for a noncertified version.
“Even if you save money upfront with a noncertified preowned car, you might end up paying more overall,” Drury said.

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Retailers like Macy’s and Ulta reported stronger first-quarter sales and say shoppers eager to go out again are splurging on nicer clothes and makeup.
The trend is particularly pronounced among higher-income shoppers who so far appear willing to keep spending even amid sky-high inflation.
The latest round of financial results offer a more nuanced look at the economy after Walmart and Target alarmed investors with downbeat forecasts and warnings that some shoppers are becoming more price sensitive.

A Nordstrom employee fixes a floral dress on a mannequin in one of the retailer’s department stores.
Ben Nelms | Bloomberg | Getty Images

Out with sweatpants, in with blazers, lipstick and eye-popping prints on dresses.
Americans are sprucing up their wardrobes and spending more on dressier clothing, makeup and accessories as they start going out more and venturing back to offices. The trend is particularly pronounced among higher-income shoppers who are eager to splurge on such items again, even amid soaring inflation and an uncertain economy, analysts and company executives say.

“The masks are coming off,” said Macy’s Chief Executive Officer Jeff Gennette after the company boosted its profit outlook and stood by its sales guidance for the year on Thursday.
The sentiment was echoed by a string of other retailers reporting quarterly results this week, including makeup-and-beauty products chain Ulta Beauty and Anthropologie-parent company Urban Outfitters. People are paying to look their best as they leave the house again, they said.
The latest round of results offer a more nuanced look at the economy after two of the biggest retailers — Walmart and Target — sent shock waves across the market with downbeat forecasts and warnings that some shoppers are becoming more price sensitive amid decades-high inflation.
Rising prices for food and gas are pinching lower-income Americans who are pulling back on spending, executives say. But so far, even the threat of a possible recession isn’t stopping higher-income consumers from spending on items they missed during the earlier days of the pandemic.

‘Head-to-toe color suits’

At Macy’s, Gennette said shoppers are increasingly spending “hours” browsing in stores, especially in urban markets like New York. A year ago, he said people were more likely to get in and out.

“The luxury customer is back in a big way,” he said in a phone interview.
But Gennette noted that shoppers who make less than $75,000 a year are seeking out more discounts.
The split in behaviors also appears to be playing out at Urban Outfitters. The company’s Anthropologie chain, which is known for playful dresses and caters to higher-income consumers, saw sales surge 18% in the quarter. At its namesake chain, which caters to younger shoppers in their first or second jobs, sales rose just 1%.
“There is a sort of bifurcation that has happened,” said Urban Outfitters CEO Richard Hayne on conference call Tuesday evening.

But even shoppers who are trying to economize might be willing to shell out for items like shirts or purses they covet — especially if they think a store might be running low on stock, according to one retail expert.
“It’s a mindset. It’s a psychology: ‘I want to go do things and I need new stuff to wear’,” Jan Kniffen, CEO of retail consultancy J Rogers Kniffen Worldwide, said in an interview on CNBC’s “Squawk Box” this week.
Kniffen said people are more likely to try and save on groceries, where cheaper options might not be that different in quality from name brands: “Substitution is so easy in the grocery space,” he said.
Makeup chain Ulta Beauty also easily beat Wall Street’s sales expectations this week, with shoppers buying items to pamper themselves and dress up for social gatherings. The company hiked its full-year outlook after first-quarter sales jumped 18% at established locations from a year ago.
“There’s new trends that are coming into makeup that we’re excited about, definitely a push towards bold looks, bright, glam, glitter,” said Ulta CEO Dave Kimbell. “People are ready to get out in the world and that’s shown up in the looks.”
Kimbell said makeup is seen as an affordable indulgence even when people are on tighter budgets. Clothing retailer Express is also benefitting from people’s eagerness to get out and dress up again, with same-store sales up 31% in the quarter.
“One of the major fashion trends in women’s right now is head-to-toe color suits,” Express CEO Tim Baxter said in a phone interview. “We haven’t been in that kind of a fashion cycle in a long time.”

Choppy environment for some

The shifting behaviors mean retailers that sell more casual clothing, such as pajamas and sweatsuits, might now be hurting more than their rivals after seeing a boost in sales when people were hunkering down at home.
Some are now saddled with inventories of pandemic-friendly clothes they stocked up on when people were seeking comfort above all else. Those items might eventually need to be heavily discounted.
American Eagle said Thursday that demand in the first quarter was “well below” its expectations and trimmed its profit forecast for the year. Inventory was up 46% from a year ago. The company’s Aerie division sells casual clothing, workout gear and lingerie to teens and younger women.
Abercrombie & Fitch also said inventory was up 45% in its fiscal first quarter from a year ago and cut its sales forecast for the year. And Gap’s first-quarter sales fell, dragged down by Old Navy.
“Last year, we won big with active and fleece, and kids and baby, which is our sweet spot for Old Navy,” Gap CEO Sonia Syngal said in a phone interview. She said the return of weddings, special occasions and office life is now pressuring those categories.
Gap’s inventory was up 34% in the period, and the company slashed its profit guidance for 2022. Only its Banana Republic chain, which caters to a higher-income customer, reported a bump in same-store sales.
At an Old Navy store Syngal recently visited where the average income in the area is about $100,000, she said shopper behavior hasn’t changed much. But at another location where the average income in the area was about $50,000, she said the financial pressures are clear.
“There’s much more focus on value for money,” she said, adding that people aren’t coming in as often either.
Stacey Widlitz, president of retail consulting firm SW Retail Advisors, said the mixed results across the industry reflect how the economy is affecting people as they emerge from the pandemic.
“It’s a shift in spending. It’s a behavior shift. And it’s hitting different companies differently,” she said.
—CNBC’s Melissa Repko contributed to this reporting.

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Unemployment for neurodivergent adults is as high as 30% to 40%, three times the rate for people with a disability.
With one in 45 adults on the autism spectrum alone, there is a lot of untapped labor market potential.
Companies including Amazon, Walgreens, and Wawa are among employers making greater efforts to hire neurodiverse talent, but start-ups such as GoBe are also leading in this job market strategy.

Walgreens has been training and employing neurodiverse workers since 2007. “What we do know, from data and research, is that this is the highest unemployed demographic in the country,” Carlos Cubia, global chief diversity officer at Walgreens Boots Alliance, said of workers with disabilities.
Justin Sullivan | Getty Images

When Cornelia Quinn, co-founder of Go-Be, which makes reusable antimicrobial airplane tray covers, needed help to pack and fulfill orders, she looked no further than her 19-year-old son, Jake, who has autism.
As someone with autism, finding employment is challenging. More than half of young adults with autism are unemployed. Unemployment for neurodivergent adults is as high as 30% to 40%, three times the rate for people with a disability — up to 85% of people on the autism spectrum are unemployed, according to a recent Deloitte report. Neurodiversity is an umbrella term that covers a wide range of conditions including autism, ADHD, dyspraxia, and dyslexia. With one in 45 adults on the autism spectrum alone, that’s a lot of untapped labor market potential.

This is a significant data point for employers amid the current labor crunch. About half of U.S. states now have unemployment rates below pre-pandemic levels — a 50-year low — while 13 states have unemployment rates below 3%, according to the Bureau of Labor Statistics. That means employers are struggling to fill open positions and are more willing to look more closely at previously overlooked segments of the population. 
“Employers are trying multiple methods of hiring and looking at resources that may not have before, said John Dooney, HR advisor at the Society for Human Resource Management.
“Everyone is struggling to find talent out there in the marketplace,” said Carlos Cubia, global chief diversity officer at Walgreens Boots Alliance. “What we do know, from data and research, is that this is the highest unemployed demographic in the country. And that’s people with disabilities. So it’s an untapped resource that businesses can hopefully turn to.”

Walgreens, Amazon lean into neurodiverse talent

One stumbling block that employers face when hiring neurodiverse individuals is accommodating conditions. Since neurodiversity encompasses such a broad variety of conditions, the accommodations needed also vary broadly. Someone with sensitivity to loud noises may need headphones to muffle the sound. Others with severe dyslexia or other conditions may benefit from signage that includes pictures or is color-coded.
Since its start in 2007, Walgreens’ Transition Work Group program has helped place 1,000 individuals at the company’s distribution centers. The 13-week training program includes both classroom and on-the-job training that teaches how to pull and pack orders from the distribution center to stores.

“These individuals, once they come through the 13-week program, they are paid at the same rate as someone without a disability, they have the same expectations in terms of job performance, and are treated just like a normal employee within the workforce. We don’t cut corners to say where you know, your productivity can be less, your expectations or less, we don’t do any of that,” Cubia said.
The company also has a similar program for its retail stores. The Retail Employees with Disabilities trains employees with disabilities to stock shelves, unload trucks, greet customers, or work as a cashier. To keep the program running, Walgreen’s HR department and distribution center leadership work with local community organizations as well as state and local social service agencies to help find and screen candidates.

Job coaching can be a crucial part of ensuring success. Wawa, which operates a chain of convenience stores and gas stations in New Jersey, Pennsylvania, Delaware and three other states, breaks up tasks for neurodiverse employees. Typical employees have a range of responsibilities from food preparation to cleaning to customer service. A job coach, employed by a coaching organization, not Wawa, will help determine the right scope of tasks for the individual, which can vary depending on their abilities and desires.
Jay Culotta, treasurer for Wawa and president of The Wawa Foundation, said that when his daughter Hannah, who has Down syndrome, started working for the company two years ago, she worked with a job coach to ensure she was performing tasks efficiently and effectively. “Over time, as Hannah became more independent, that job coach would start fading away,” Culotta said.
Wawa has worked with Eden Autism Services in New Jersey for over 40 years. The partnership started when a store manager hired Ari Shiner, who has autism, through Eden in 1981. Wawa now works with more than 200 different job coaching organizations. Shiner is still with the company and Wawa has about 30 other neurodiverse employees who have stayed on for at least 20 years.
While some neurodiverse individuals may need more accommodations, many do not.
“The accommodations that are typically needed are not enormous,” said Dan Roth, a technical recruiter for Amazon who, as someone with ADHD, is also considered neurodiverse. “If somebody is working at 50% of their capacity, but if you make two or three light accommodations, and that brings them to 85 or 95% … there, look how much more ROI you’re getting,” he said.
At Go-Be, which employs four neurodiverse individuals, Quinn breaks down tasks to best suit the individual. While her son, Jake, is especially adept with computer-related tasks, another member really enjoys rolling and folding the sleeves. “It’s almost therapeutic for him,” she said. “We set up stations for them and we really want to promote their success and give them social opportunities to collaborate with each other to accomplish their role or task,” Quinn said.

Cornelia Quinn, co-founder of Go-Be, and her son Jake, who has autism. She says of employing her son and other neurodiverse workers, the goal is to have them “feel that when they wake up in the morning, they have something to look forward to, and just feel that they’re part of society and that they’re contributing.”

While there could be some accommodation and investment needed to hire neurodiverse individuals, recruiters and companies that have gone through the process say that there is a payoff — both financial and otherwise.
“These individuals are very reliable, very good from a productivity standpoint … they’re very methodical and deliberate about how they do their job attention to detail,” Cubia said.
The attrition rate for individuals who go through Walgreen’s TWG program is 25% lower than the norm in Walgreen’s distribution centers. Retention is also higher, Cubia said. “You’ve heard the old adage that it costs less to retain an employee than it does to acquire a new one. It helps you save money from that standpoint,” he said. 
In addition, the IRS offers tax credits and incentives to companies that hire disabled individuals, which could include some neurodiverse individuals. Some of the incentives go toward offsetting the cost of accommodations.
For Wawa, the payoff is not necessarily tied to performance metrics or profit margins.
“We have some associates in this program who are just as efficient and productive as our typical associates. . . And we have some that’s just not in the cards and that’s okay. Their job scope may be very, very narrow or they may work entirely with their job coach,” said Dave Simonetti, senior director for store operations at Wawa, “but there’s other things that are brought to the table.”
Those other qualities are harder to measure by numbers, but equally important. “The associates working with them feel that the community really embraces this program. That’s a huge win with customer service, which is a huge opportunity in our industry. A lot of times this is a big positive for just customer interaction. It’s a different set of metrics,” he said.
Wawa has about 47,000 employees, 500 of whom are neurodiverse.
While companies such as SAP, Microsoft, Ford, Deloitte, IBM and others have shifted their corporate HR practices to bring on more neurodiverse individuals for coding or other technical jobs, efforts to hire neurodiverse individuals for fulfillment, distribution or retail jobs are more scattered. Part of the bias is the perception that neurodiverse individuals or people with disabilities can’t keep up in a business that watches performance metrics so closely.
Arwyn Swanger, a recruiter for Indeed.com and WilsonHCG who focuses on placing neurodiverse individuals, said opportunities for neurodiverse individuals can vary depending on the company, the store and store manager. She cited placing several individuals at Walmart and many at Lowe’s. Some store managers are very familiar with the process and any accommodations, others are wary, she said.
Walmart spokesperson Jimmy Carter said the company doesn’t have a specific program dedicated to hiring neurodiverse individuals. “We don’t inquire about specific conditions but we’re committed to engaging, hiring, and growing diverse talent from underrepresented communities, including neurodiverse individuals,” he said.
Go-Be’s Quinn hopes that, with greater awareness, more neurodiverse individuals will find employment. The current high rate of unemployment, “is an alarming number. Moving forward I want to somehow get the community involved,” she said.
“Those are all great opportunities to help them have a purpose, and that they feel that when they wake up in the morning, they have something to look forward to, and just feel that they’re part of society and that they’re contributing,” she added.   More

Ultra-high-end real estate in Boca Raton, Florida, is on a stratospheric rise, breaking record sale prices every year for five consecutive years. 
The price per square foot of the town’s top-end homes is now on par with Miami Beach pricing. 
Here’s a closer look at the three highest-priced homes for sale in Boca Raton.

The $28.5 million mansion that recently hit the market in Boca Raton, FL located at 2633 Spanish River Rd.
Danny Petroni

Ultra-high-end real estate in Boca Raton, Florida, is on a stratospheric rise, breaking record sale prices every year for five consecutive years. And the price per square foot of the town’s top-end homes is now on par with Miami Beach pricing.  
“People tend to think of Miami when the subject turns to high-end South Florida real estate,” said Douglas Elliman real estate agent Senada Adzem, “But Boca Raton is, without question, one of the region’s premier luxury residential markets.”

The all-time top sale in the town, located about 45 miles north of Miami and 28 miles south of Palm Beach, traded last year for $24.5 million, delivering a price per square foot of more than $2,800, according to public records. That’s more than four times the average $670 price per square foot for a luxury home, representing the top 10% of sales, in Boca.
The record sale also tops the average price per square foot achieved in Miami Beach, at $2,766, according to the most recent Elliman Report for Q1.
“Trophy properties have gained momentum in the South Florida market over the past three years — for tax benefits, for safety reasons, and because of the pandemic,” Adzem told CNBC.

The great room at 2633 Spanish River Rd in Boca Raton, FL.
Danny Petroni

This year’s already seen three more mega-homes hit the Boca market, each one priced to break last year’s record and push the town’s high-end even higher.
Here’s a closer look at the three highest-priced homes for sale in Boca Raton:

169 West Key Palm Road

The twilight view of 169 W Key Palm from the waterway.
Danny Petroni

The waterfront home at 169 West Key Palm Road was listed this week for $26.9 million. It’s located behind the private gates of Boca’s swanky Royal Palm Yacht & Country Club community, and the asking price is just shy of $3,000 a square foot.

Living room with marina views.
Danny Petroni

The almost-9,000-square-foot residence is being sold fully furnished. Dustin Nero at Douglas Elliman, who co-lists the home with Adzem, says high-end buyers moving from places like California and New York are wiling to pay a premium for a turnkey mansion.

Sunset view from infinity pool and dock.
Danny Petroni

“It overlooks the Royal Palm marina. You don’t look at a house — it’s a very premium view,” said Nero, who believes the home’s unique view will help it break the town’s sale price record.

Owner’s suite overlooking waterway and marina.
Danny Petroni

The six-bedroom home sits on 104 feet of waterfront with deep water dockage on the Fishtail Palm Waterway and includes five full baths and two half-baths.

One of two walk-in closets in the home’s primary suite.
Danny Pettroni

Nero, who represents clients in both Miami and Boca, believes a trophy home in Boca is still a relative bargain compared to the very top-end in Miami.
“This home in Miami would list at $4,000 or $4,500 a square foot,” he said.

The pool and hot tub situated above the home’s dock and overlook the community’s marina.
Danny Pettroni

Another selling point for Boca: Buyers can land their private jets here. The private airport in Boca recently added its own customs office, Nero said, the ultimate convenience for local residents traveling internationally by private jet.

2633 Spanish River Road

The view of 2633 Spanish River from over the Intracoastal Waterway.
Danny Petroni

This almost-10,000-square-foot home located on the Intracoastal Waterway in the Estate Section of Boca was listed this month for $28.5 million. That puts the price per square foot just under $2,900.

The home’s entryway is flanked by a water feature that spans the entire walkway on one side and lush vegetation on the other.
Danny Petroni

“It’s like a work of residential art that manages to walk the line between artful splendor and resort-style comfort,” said Adzem, who is a co-listing agent on the property with Nero.

The view from the cantilevered primary suite.
Danny Pettroni

The contemporary home, which is also being sold fully furnished, unfolds over two floors with six bedrooms, eight baths and one half-bath. The owner’s bedroom is cantilevered over the deck, so when you’re laying in bed the room appears to float over the water.

Owner’s suite terrace overlooking pool and waterway.
Danny Pettroni

The home’s great room has a double-height wall-of-windows that deliver panoramic views and drench the room in sunlight.

Great room
Danny Pettroni

The ground-level glass panels slide away blurring the lines between indoor and outdoor space.
The room also includes a 12-foot double-sided fireplace clad in grey and black porcelain.

A retractable glass wall opens the great room to the outdoor lounge and pool.
Danny Petroni

Adzem told CNBC the home also includes an ultra-high-end, hospital-grade air filtration system that’s tied into the central air system.
“It’s designed specifically for a Covid-free home environment, with separate zones of HVAC for every room,” she said.

 298 West Key Palm Road

The night view of 298 W Key Palm from the pool area.
Living Proof

The highest priced home for sale in town is a $35 million mansion spanning almost 11,500 square feet, built by developer SRD Building Corp.
“We’ve been setting new highs consistently,” said SRD’s president, Scott Dingle.
The newly constructed modern residence, also located on West Key Palm Road at the Royal Palm Yacht & Country Club community, is situated on the Butterfly Palm Waterway. It includes a private dock and more than 166 feet of waterfront.  

The waterfront home’s private dock.
Living Proof

The view into the garage from the home office.
Living Proof

The home’s five-car garage doubles as a supercar showcase that’s visible through a floor-to-ceiling glass wall from a desk in the home office.
Roberts, who sold $545 million worth of homes in the community just last year, said the spec builder’s record-breaking strategy is simple.
“They buy premium [lots], and they put premium on it,” he said.

The pool deck and lanai areas.
Living Proof

The home’s $3,050-per-square-foot asking price is a high bar for Boca Raton, which has yet to see a sale breach $3,000 a square foot. But Dingle, who said he’s built 160 homes in the community over the past 28 years, is confident it can happen.
The spec builder told CNBC he has another home in the community under contract for $26.5 million, scheduled to close later this year at a record-breaking $3,200 per square foot.
“This year you are going to see some new records set,” he said.

The modern interiors at 298 W Key Palm include a mix of stone & wood finishes with a dramatic floating staircase.
Living Proof

Dingle says 95% of the homes he’s built are in this one community and, after almost three decades, he continues to bet on Boca breaking records.
“With a country club, marina, championship golf course, direct access to the beach, it’s a special spot,” Roberts said. “We have all our cards and chips in.”

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Airbus says the Zero Emission Development Centre in Filton, Bristol, has already begun working on technology development.
The ZEDC in the U.K. will join other similar sites in Spain, Germany and France.
The environmental footprint of aviation is significant, with the World Wildlife Fund describing it as “one of the fastest-growing sources of the greenhouse gas emissions driving global climate change.”

A model of one of Airbus’ ZEROe concept planes, photographed in November 2021. The firm has said it wants to develop “zero-emission commercial aircraft” by the year 2035.
Giuseppe Cacace | Afp | Getty Images

Airbus is launching a U.K.-based facility focused on hydrogen technologies, a move which represents the firm’s latest attempt to support the design of its next generation of aircraft.
In a statement Wednesday, Airbus said the Zero Emission Development Centre in Filton, Bristol, had already begun working on the development of the tech.

One of the site’s main goals will center around work on what Airbus called a “cost-competitive cryogenic fuel system” that its ZEROe aircraft will need.
Details of three zero-emission, “hybrid-hydrogen” concept planes under the ZEROe moniker were released back in Sept. 2020. Airbus has said it wants to develop “zero-emission commercial aircraft” by the year 2035.

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The ZEDC in the U.K. will join other similar sites in Spain, Germany and France. “All Airbus ZEDCs are expected to be fully operational and ready for ground testing with the first fully functional cryogenic hydrogen tank during 2023, and with flight testing starting in 2026,” the company said.
The environmental footprint of aviation is significant, with the World Wildlife Fund describing it as “one of the fastest-growing sources of the greenhouse gas emissions driving global climate change.” The WWF also says air travel is “currently the most carbon intensive activity an individual can make.”
Just this week, environmental groups launched legal action against KLM, saying the Dutch aviation giant was misleading the public over the sustainability of flying.

KLM was notified of the lawsuit on the same day as the firm’s annual general meeting. A spokesperson confirmed the group had received the letter and said it would study its contents.
Hopes for hydrogen
In an interview with CNBC earlier this year, Airbus CEO Guillaume Faury said aviation would “potentially face significant hurdles if we don’t manage to decarbonize at the right pace.”
Faury, who was speaking to CNBC’s Rosanna Lockwood, laid out a number of areas his firm was focusing on. These included ensuring planes burned less fuel and emitted less carbon dioxide.
In addition, the aircraft the company was delivering now had a certified capacity for 50% sustainable aviation fuel in their tanks.

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“We need to see the SAF industry moving forwards, being developed, being grown to serve airlines and to be able to use that capacity of 50% of SAF,” he said. “We’ll go to 100% by the end of the decade.”
The above represented a “very important part of what we’re doing” Faury explained. “The next one is looking at the mid-term and long-term future to bring to the market the hydrogen plane because this is really the ultimate solution,” he said, noting that a lot of engineering, research and capital commitments would be required.

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Described by the International Energy Agency as a “versatile energy carrier,” hydrogen has a diverse range of applications and can be deployed in a wide range of industries.
It can be produced in a number of ways. One method includes using electrolysis, with an electric current splitting water into oxygen and hydrogen.
If the electricity used in this process comes from a renewable source such as wind or solar then some call it green or renewable hydrogen. The vast majority of hydrogen generation is currently based on fossil fuels.
Airbus is not the only company looking at using hydrogen in aviation. Last October, plans to operate commercial hydrogen-electric flights between London and Rotterdam were announced, with those behind the project hoping it will take to the skies in 2024.
At the time, aviation firm ZeroAvia said it was developing a 19-seater aircraft that would “fly entirely on hydrogen.” In September 2020, a six-seater hydrogen fuel cell plane from the company completed its maiden flight.
—CNBC’s Sam Meredith contributed to this report More