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United Airlines’ third-quarter revenue and earnings topped Wall Street estimates.
The airline said it will buy back $1.5 billion worth of shares, its first buyback since before the Covid-19 pandemic.
United’s fourth-quarter earnings estimates came in above analysts’ forecasts.

A United Airlines Boeing 737-MAX 8 aircraft departs at San Diego International Airport en route to New York on Aug. 24, 2024.
Kevin Carter | Getty Images

United Airlines said Tuesday that it is starting a $1.5 billion share buyback as the carrier reported higher-than-expected earnings for the busy summer travel season and forecast strong results for the last three months of the year.
United expects to earn an adjusted $2.50 to $3.00 a share in the fourth quarter, compared to $2.00 a share a year earlier and the $2.68 analysts polled by LSEG estimated.

Here is what United reported for the third quarter compared with what Wall Street expected, based on average estimates compiled by LSEG:

Earnings per share: $3.33 adjusted vs. $3.17 expected
Revenue: $14.84 billion vs. $14.78 billion expected

The share buyback would be United’s first since before the Covid-19 pandemic. U.S. airlines received more than $50 billion in government aid during the pandemic travel slump that prohibited share repurchases and dividends, though airlines were still fighting for financial stability.
Southwest Airlines announced a $2.5 billion share repurchase program last month.
“Like other leading airlines and companies, we are initiating a measured, strategic share repurchase program,” United CEO Scott Kirby said in a note to staff on Tuesday. “Importantly, my commitment to you is that investing in our people and our business will always be my top priority even while we institute this share repurchase program.”

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For the third quarter, United posted revenue of $14.84 billion, up 2.5% from a year earlier and above analysts’ estimates. It reported net income of $965 million, down 15% from a year ago.

United said domestic unit revenue was positive in August and September compared to last year as airlines trimmed a glut of flights that were pushing down fares. United expanded capacity by 4.1% in the third quarter. The carrier said corporate revenue rose 13% in the quarter; premium revenue, including business class tickets, rose 5%; and sales from its no-frills basic economy tickets were up 20%.
The airline last week unveiled a far-flung expansion for next year that included new flights to Mongolia, Senegal, Spain and Greenland in a chase for international travel demand.
Adjusting for one-time items, United reported earnings per share of $3.33, topping Wall Street forecasts and United’s estimate in July of $2.75 to $3.25 a share.
Airline executives will hold a call with analysts at 10:30 a.m. ET on Wednesday and will likely face questions about demand for the end of the year and into 2025, as well as production problems at Boeing, where most factories have been idled during a more than monthlong machinist strike.
United’s flight attendants’ union, which hasn’t yet reached a new labor agreement with the company slammed the airline’s decision to resume buybacks.
In a statement, Sara Nelson, president of the Association of Flight Attendants-CWA, which represents crews at United, Spirit, Alaska and other carriers, said: “That money United just promised Wall Street belongs to Flight Attendants who worked throughout the pandemic and during this taxing recovery for all of us on the frontlines.”

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A growing number of Americans with auto loans owe more than their vehicles are worth, according to a report Tuesday from Edmunds.com.
The average amount owed on upside-down loans climbed to an all-time high of $6,458 during the third quarter, according to the company.
Upside-down car loans are not necessarily dire on their own, but a growing number of consumers being underwater is another indication of pressure on American consumers.

Cars sit in a Chevrolet dealership’s lot in Chicago on June 20, 2024.
Scott Olson | Getty Images News | Getty Images

DETROIT — A growing number of Americans with auto loans owe more than their vehicles are worth, according to a report Tuesday from Edmunds.com.
The auto data and consumer research company reports the average amount owed on so-called upside-down loans climbed to an all-time high of $6,458 during the third quarter. That compares to $6,255 in the prior quarter and $5,808 a year earlier.

Arrows pointing outwards

Upside-down car loans are not necessarily dire on their own, but a growing number of consumers being underwater is another indication of pressure on American consumers.
A sign of that strain came last month, when the Federal Reserve reported delinquency rates on auto loans rose substantially above pre-Covid pandemic levels to end 2023. They had fallen to historical lows during the global health crisis.
“Consumers owing a grand or two more than their cars are worth isn’t the end of the world, but seeing such a notable share of individuals affected at the $10,000 or even $15,000 level is nothing short of alarming,” Jessica Caldwell, Edmunds’ head of insights, said in a release.
Edmunds reports more than 1 in 5 consumers with negative equity owe more than $10,000 on their auto loans. That includes 22% of vehicle owners with negative equity who owed $10,000 or more, while 7.5% have negative equity of more than $15,000.

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Consumers can counter upside-down car loans by holding onto the vehicles for longer periods. They also should ensure regular maintenance is done to avoid additional drops in value and costs, according to Edmunds.

“With prices and interest rates being as high as they are, it’s critical for consumers to think beyond the monthly payment and be honest with themselves about their ownership habits,” Ivan Drury, Edmunds’ director of insights, said. “A seven-year auto loan is a one-way ticket to negative equity if you know you’re not the type of person to keep a vehicle for that long.”
The current situation with upside-down loans is largely a result of consumers who purchased new vehicles in 2021 and 2022 amid a lack of inventory due to the Covid-19 pandemic and parts shortages. Many then paid full price or more, with their vehicles depreciating faster than expected as the auto industry and inventories normalized.

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For many, Microsoft Excel is the epitome of corporate drudgery. Its dreaded #VALUE! error has driven an incalculable number of users to despair. Yet among financial analysts, management consultants and even the odd business journalist, the spreadsheet program, which this month entered its 40th year, is a handy tool for everything from interrogating company financials to pricing assets. Satya Nadella, the boss of Microsoft, the software giant that created the program, has called it the “best consumer product” the company ever made. It even has its own world championship in Las Vegas, where spreadsheet wizards pivot, concatenate and VLOOKUP their way to victory. More

A futuristic 24/7 robo-parking operation unfolds across a 13-level garage and employs five car lifts, dozens of lasers and hundreds of bar codes embedded in the floors. 
Residents who pull into one of the building’s five drive-up bays save the precious time of hunting for a spot.
Automated parking is a growing trend in high-end real estate from New York to Miami. Better-utilized space for parking could mean a developer needs fewer floors devoted to vehicles — freeing up square footage for residences.

Hidden inside a 46-story luxury condominium building in Miami is a massive garage where dozens of busy robots whisk cars to and from parking spots.
The futuristic 24/7 operation unfolds across a 13-level garage and employs five car lifts, dozens of lasers and hundreds of bar codes embedded in the floors. Residents who pull into one of the building’s five drive-up bays save the precious time of hunting for a spot, instead handing their vehicles off to robo-valets who park the cars for them.

Five bays equipped with self-serve kiosks provide entry and exit to the building’s automated parking garage.
Ginger Monteleone

This all goes down inside the Brickell House, home to roughly 375 condo residences and the largest and tallest automated parking system of its kind, according to ParkPlus, the company that built it. 
Automated parking is a growing trend in high-end real estate where buildings from New York to Miami now come equipped with kiosks, car lifts and car-parking robots. A coveted spot inside some luxury Manhattan condos can start at $300,000. Meanwhile, a real estate agent representing a five-bedroom penthouse at Brickell House told CNBC the $15 million asking price includes five parking spots in the sci-fi-like structure.

One of five car lifts inside the automated parking system.
Ginger Monteleone

These modern parking amenities are part of the so-called smart parking market, which includes a wide range of solutions from automated parking to digital payment systems. According to Grand View Research, the global smart parking market was valued at $6.5 billion in 2021 and is projected to reach $30.16 billion by 2030, with a major share of that market in North America.
A representative at ParkPlus told CNBC that U.S. demand for cutting-edge automated systems, like the one at Brickell House, is mostly being driven by luxury residential projects in higher-density urban metros, while car dealerships, hospitals, hotels, parking facilities, private car collectors and private residences often opt for mechanical systems that are typically less advanced.

A view from above one of the garage’s 13-story car lifts.
Ginger Monteleone

Inside the world’s largest robo-parking system

The Brickell House garage, which is off-limits to humans, is controlled by 29 robots also known as automated guidance vehicles, or AGVs for short. 

The AGVs are essentially free roaming, self-charging, robo-parkers that use vision systems, lifts and lasers to precisely park and retrieve cars. They’re 12 feet long and 4 feet wide, with a steel platform that sits just 10 inches above the floor.
Hidden underneath each of the powerful machines, which can carry cars up to 6,000 pounds, are eight wheels, bright flashing lights and an electronic eye that can read bar codes embedded in the floors for guidance. 

One of the systems 29 robo-parkers aka automated guidance vehicles (AGV).
Ginger Monteleone

The nimble robots slide under a vehicle and appear to effortlessly carry it across floors and in and out of car lifts. They abide by a calculated division of labor: Some AGVs only move cars on and off the lifts, others are tasked with shuffling cars across floors and into spots. A vehicle that enters or exits the system might be handled by as many as three AGVs passing the car from one robo-colleague to another. 
And since there is no human that has to get in or out of the vehicle the parking can be very precise, squeezing vehicles into spots with just 2 inches between them.

An AGV prepares to park a Ferrari inside the Brickell House’s automated parking system.
Ginger Monteleone

During CNBC’s visit to the ParkPlus system, our team rigged a Ferrari 488 Spider with cameras and recorded the automated retrieval process. It traveled from the ninth level of the garage to a ground-floor bay in under four minutes.
According to ParkPlus, critical to the system’s operation and risk mitigation is rigorous testing: The robots have demonstrated they can move 15 vehicles in and out of the garage in rapid succession for 40 hours straight without a single hiccup.

The ROI of robo-parking 

The cost of an automated system like the one at Brickell House varies widely depending on the building, but Peter Manis, president of ParkPlus Florida, said the range is generally $20,000 to $80,000 per spot.
That cost is on top of what a developer has already spent to construct the building’s garage levels. Manis declined to reveal the exact price of the system installed at Brickell House, but a parking capacity of the garage’s size at Manis’ estimated cost range puts the pricing anywhere from $8 million and $32 million.

An automated guidance vehicle or AGV carries a Ferrari through the PARKPLUS parking system.
Ginger Monteleone

One of the main motivations for a building developer to pump millions into the automation of its parking garage is the system’s ability to maximize precious square footage. Manis told CNBC that in some cases an automated system can optimize square footage by up to three times better than an old-school garage.  
“You don’t have driving ramps, you don’t have turning, you don’t have two different lanes and you can squeeze them right next to each other,” said Manis.
Better-utilized space for parking could mean a developer needs fewer floors devoted to vehicles — freeing up square footage for residences and potentially boosting apartment sales.

Two of the system’s AGVs work together to retrieve a Mercedes from the automated parking system and deliver it to a car lift.
Ginger Monteleone

High-tech parking and multimillon-dollar headaches

With any new technology, there are naturally some early-stage pain points.
Billionaire Palmer Luckey, who founded the virtual reality company Oculus VR and military weapons maker Anduril Industries, filed a lawsuit earlier this year saying he got stuck inside his private garage elevator. 
Luckey bought and converted a Newport Beach, California, mansion into a multi-level garage equipped with an elevator and scissor lifts for his car collection. In the suit filed against Luckey’s builder and subcontractor, the billionaire said the elevator “repeatedly stopped its vertical motion without warning and trapped its occupants inside.”
According to the filing, the mansion-turned-garage is now unusable and Luckey incurred “millions of dollars in damages, with a precise amount that will be proven at trial.” 

Palmer Luckey billionaire founder of Oculus VR and Anduril Industries

In response, the builder’s attorney told CNBC his client has filed a cross complaint arguing the elevator and lifts were the responsibility of the specialized subcontractor, who Palmer personally approved to build the lifts. Meanwhile, the subcontractor filed a motion to strike the lawsuits claims and did not respond to CNBC’s request for comment.
Back in Miami, Brickell House has had its own headline-making parking nightmare. In 2016, long before the new AGV system was installed, the condo association filed a complaint against the building’s developer over a parking system it claimed never functioned properly. Residents’ cars were reportedly trapped in the system, which had been installed by a now-bankrupt parking company, and the garage was eventually shut down, leaving the building with no on-site parking for years, according to the lawsuit. 
“The failure of the [previous] system was the Achilles heel of our industry,” said Paul Bates, ParkPlus group president.
A jury awarded the condo association more than $40 million in damages, according to court documents. It remains one of the largest construction defect verdicts in Florida history.
The condominium association, which declined to discuss past litigation with CNBC, also reportedly received a $32 million insurance settlement over the system.
For Bates, the new ParkPlus system at Brickell House, installed beginning in 2022, helped close a dark chapter in automated parking.
“Brickell House, and these familiar concerns, have pushed the industry to innovate, improve system reliability, and focus on risk mitigation,” Bates said. More

Walgreens reported fiscal fourth-quarter sales and profit that beat Wall Street’s expectations, reflecting the company’s efforts to slash costs.
The retail drugstore chain also said it plans to close roughly 1,200 stores over the next three years, which includes 500 closures in fiscal 2025 alone.
The results cap a rocky fiscal 2024 for Walgreens, which is grappling with pharmacy reimbursement pressure, softer consumer spending and challenges related to its push into primary care.

A sign sits in front of a Walgreens store on November 10, 2023 in Wheeling, Illinois. 
Scott Olson | Getty Images

Walgreens on Tuesday reported fiscal fourth-quarter sales and adjusted profit that beat Wall Street’s expectations, as the company slashes costs in an attempt to steer itself out of a rough spot.
The retail drugstore chain also said it plans to close roughly 1,200 stores over the next three years, which includes 500 in fiscal 2025 alone. The company said those closures will be “immediately accretive” to its adjusted earnings and free cash flow.

Walgreens has around 8,700 locations in the U.S., a quarter of which it says are unprofitable. 
Those closures will give Walgreens a “healthier store base” and “will enable us to respond to shifts in consumer behavior and buying preferences,” the company’s CEO Tim Wentworth said during an earnings call on Tuesday. He added that Walgreens aims to employ the majority of the workforce affected by the closures, though it is unclear how many employees stand to lose their jobs.
The company’s shares jumped about 3% in premarket trading.
The results cap a rocky fiscal 2024 for Walgreens, which is grappling with pharmacy reimbursement pressure, softer consumer spending and challenges related to its push into primary care, among other issues. The company on Tuesday said it surpassed its target of cutting $1 billion in costs during fiscal 2024, which included shuttering underperforming stores, laying off employees and using artificial intelligence to make its supply chain more efficient, among other efforts. 
Most of the benefits of the cost cuts came in the company’s U.S. retail pharmacy segment, Walgreens CFO Manmohan Mahajan said during the call.

In June, Walgreens said it intends to close a “significant” number of its underperforming stores by 2027. Tuesday’s announcement appears to be the company’s first exact estimate of how many locations it will shutter.
Here’s what Walgreens reported for the three-month period ended Aug. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: 39 cents adjusted vs. 36 cents expected
Revenue: $37.55 billion vs. $35.76 billion expected

Walgreens booked sales of $37.55 billion for the quarter, up 6% from the same period a year ago. 
The company reported a net loss of $3 billion, or $3.48 per share, for the fiscal fourth quarter. That reflects a so-called valuation allowance meant to reduce the company’s deferred tax assets mainly related to opioid settlements. 
It compares with a net loss of $180 million, or 21 cents per share, for the year-earlier period.

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Excluding certain items, adjusted earnings were 39 cents per share for the quarter. 
The fourth-quarter and full fiscal-year results “reflected our disciplined execution on cost management, working capital initiatives and capex reduction,” Wentworth, who stepped into the role nearly a year ago, said in a release.
The company’s guidance for fiscal 2025 was in line with analysts’ expectations. Walgreens expects growth in its U.S. health-care and international segments, which will be offset by a decline in its retail pharmacy segment. 
The company is engaged in a “multi-year process of reframing our relationship” with pharmacy benefit managers, which negotiate drug rebates on behalf of health plans and reimburse pharmacies for prescription drugs, Wentworth said during the call. Walgreens hopes that will help improve margins in its pharmacy business. 
Walgreens anticipates adjusted earnings per share of $1.40 to $1.80 in the coming fiscal year. Analysts project an adjusted profit of $1.75 per share, according to LSEG. 
The company also sees revenue for the year at $147 billion to $151 billion. Wall Street analysts estimate sales of $147.3 billion. 

Growth across all three business units

Walgreens reported growth across its three business divisions in the fiscal fourth quarter. 
Sales from the company’s U.S. health-care unit jumped to $2.11 billion, up 7.1% compared with the same period a year ago. 
Analysts had expected sales of $2.10 billion, according to estimates compiled by StreetAccount.
That partly reflects growth in primary-care provider VillageMD and specialty pharmacy company Shields Health Solutions. Shields sales jumped 27.8% during the period, which the company attributed to growth within existing partnerships.
Specialty pharmacies are designed to deliver medications with unique handling, storage and distribution requirements, often for patients with complex conditions such as cancer and rheumatoid arthritis.
Notably, Walgreens posted a steep net loss in the fiscal second quarter as it recorded a hefty nearly $6 billion charge related to the decline in value of its investment in VillageMD. In August, the company said in a securities filing it is considering a sale of the provider.

A sign advertises Covid vaccine shots at a Walgreens Pharmacy in Somerville, Massachusetts, on Aug. 14, 2023.
Brian Snyder | Reuters

Walgreens’ U.S. retail pharmacy segment generated $29.47 billion in sales in the fiscal fourth quarter, an increase of 6.5% from the same period last year. Analysts had expected sales of $28.09 billion, according to estimates compiled by StreetAccount.
That segment operates the company’s drugstores, which sell prescription and nonprescription drugs as well as health and wellness, beauty, personal care, and food products.  
Walgreens said pharmacy sales for the quarter rose 9.6% and comparable pharmacy sales increased 11.7% compared with the year-earlier period due to price inflation in brand medications, among other factors. 
Total prescriptions filled in the quarter including vaccines came to 302 million, a 1.7% increase from the same period a year ago. Notably, falling reimbursement rates for prescription drugs cut into pharmacy margins, the company said. 
Retail sales fell 3.5% from the prior-year quarter, and comparable retail sales declined 1.7%. The company cited a “challenging” retail environment, among other factors. 
Walgreens’ international unit, which operates more than 3,000 retail stores abroad, posted $5.97 billion in sales in the fiscal fourth quarter. That’s an increase of 3.2% from the year-ago period.
Analysts expected revenue of $5.81 billion for the period, according to StreetAccount. 
The company said sales from its U.K.-based drugstore chain, Boots, increased 2.3%. 

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Boeing said it could raise as much as $25 billion to shore up its balance sheet.
The company said in a separate filing that it has reached a $10 billion credit agreement with banks.
Boeing faces warnings from credit ratings agencies that it could lose its investment grade rating.

Striking Boeing workers and their supporters picket outside the Boeing Co. manufacturing facility in Renton, Washington, on Sept. 16, 2024.
Yehyun Kim | AFP | Getty Images

Boeing said Tuesday that it could raise as much as $25 billion in shares or debt over three years, a move to increase liquidity as the troubled manufacturer faces a more than monthlong machinist strike and problems throughout its aircraft programs.
“This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company’s balance sheet over a three year period,” Boeing said in a statement.

Earlier, Boeing separately said in a filing that it has an agreement with a consortium of banks for a $10 billion credit agreement.
“The credit facility provides additional short term access to liquidity as we navigate through a challenging environment,” the company said in a statement. “The company has not drawn on this facility or its existing credit revolver.”
Boeing shares are down nearly 43% this year through Monday’s close.
Boeing is trying to shore up its balance sheet as it faces warnings from credit ratings agencies that it could lose its investment grade rating.
S&P Global Ratings, one of the agencies that warned about a downgrade, last week estimated that the machinist strike is costing Boeing more than $1 billion a month. The two sides have been at an impasse.

On Friday, Boeing’s new CEO Kelly Ortberg warned that the company plans to lay off about 17,000 employees, or 10% of its global workforce to cut costs.
“We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery,” he said, adding that Boeing needs to focus resources on “areas that are core to who we are.”
The announcement came alongside preliminary financial results, showing mounting losses and $5 billion in charges in Boeing’s defense and commercial airplane units.
On Oct. 23, Ortberg will hold his first quarterly investor call since becoming Boeing’s CEO in August. More

Boeing’s CEO, Kelly Ortberg, was already taking the top job during a difficult year for the company.
Now, he said the company plans to cut 10% of its workforce in “the coming months.”
The announcement came as a factory strike crossed the one-month mark, but Ortberg said Boeing overall needs to align with a “more focused set of priorities.”
Ortberg will face investors for the first time as Boeing’s CEO on Oct. 23.

Boeing Machinists union members picket outside a Boeing factory on September 13, 2024 in Renton, Washington. 
Stephen Brashear | Getty Images

It’s been just over a month since more than 30,000 Boeing machinists walked off the job after overwhelmingly voting down a tentative contract. Costs and tensions have only risen since then.
The strike is adding to pressure on Boeing’s new CEO, Kelly Ortberg, who was brought in over the summer to solve the plane maker’s various troubles. The strike, which S&P Global Ratings estimates costs Boeing more than $1 billion a month, bookends an already difficult year that started with a near-catastrophic blowout of a 737 Max door plug and comes six years after the first of two fatal Max crashes put the storied manufacturer in constant crisis mode.

The union and company remain at an impasse, and airplane production at factories in the Seattle area and other locations has been idled, depriving Boeing of cash. Boeing last week pulled a sweetened contract offer that the union had rejected, saying it wasn’t negotiated.
Boeing officials had been upbeat to airline customers about getting to a deal in the weeks before the original vote, according to people familiar with the matter who spoke on the condition of anonymity because the conversations were private.
But that optimism didn’t pan out, as workers on Sept. 13 voted 95% against an initial tentative labor deal.
“They’ll have to increase their offer. There’s no doubt about that,” said Harry Katz, a professor who studies collective bargaining at Cornell University’s School of Industrial and Labor Relations. He said one of the union’s demands, a return to a pension plan, is unlikely, however, and estimated the strike could last two to five more weeks.
Acting Labor Secretary Julie Su on Monday was set to meet with the two sides “to assess the situation and encourage both parties to move forward in the bargaining process,” a spokeswoman for the Labor Department said.

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The process of ending strike has turned more fraught, with federally mediated talks breaking down midweek.
Boeing on Thursday said it filed an unfair labor practice charge with the National Labor Relations Board that accused the International Association of Machinists and Aerospace Workers union of negotiating in bad faith and misrepresenting the plane makers’ proposals.
Late Friday, Jon Holden, president of the striking workers’ union, IAM District 751, pushed for a return to negotiations.
“CEO Ortberg has an opportunity to do things differently instead of the same old tired labor relations threats used to intimidate and crush anyone that stands up to them,” he said in a statement. “Ultimately, it will be our membership that determines whether any negotiated contract offer is accepted. They want a resolution that is negotiated and addresses their needs.”
Boeing’s unionized machinists are not receiving paychecks and lost their company-backed health insurance at the end of September. However, unlike during the last Boeing factory strike in 2008, there is more contract work in the Seattle area to help workers fill the gaps. A union message board posts job opportunities like driving for food delivery services and warehouse work.

Slashing workforce

A Boeing 737 MAX aircraft is assembled at the Boeing Renton Factory in Renton, Washington, on June 25, 2024. 
Jennifer Buchanan | AFP | Getty Images

After the stock market closed Friday, Ortberg said the company plans to cut its global workforce by about 10% “over coming months,” including layoffs of executives, managers and employees.
He also told staff that Boeing will stop producing commercial 767 freighters when it fulfills its backlog in 2027 and that the delivery of its 777X will be delayed yet another year, to 2026.
The surprise cuts came alongside preliminary financial results that showed deepening losses: Boeing said it expects to lose nearly $10 a share for the third quarter and that it will incur charges of about $5 billion in its commercial and defense units. The manufacturer hasn’t had an annual profit since 2018. Ortberg faces investors in his first full earnings call as CEO on Oct. 23.
“The thing is once they get 737 production on track all their money problems are gone but they’re not willing to settle to make that happen,” said Richard Aboulafia, managing director at AeroDynamic Advisory. “They’re firing a lot of people who could make that [stable production] happen. It seems like they’re kind of burning down their own house.”
Aboulafia estimated labor in final assembly of an aircraft accounts for about 5% of the airplane’s cost.
Ortberg is now tasked with drumming up cash and stopping the bleeding as the company’s losses mount. Boeing’s shares are down almost 43% this year through Monday’s close, the steepest drop since 2008.

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Boeing and S&P 500 performance

“We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment,” Ortberg said in a note to staff on Friday.
S&P Global Ratings last week warned the company that it was at risk of a downgrade to junk status, as halted production of Boeing’s bestselling 737 Max and its 767s and 777s costs the company more than $1 billion per month. The estimate includes previously announced cost cuts like temporary furloughs, a hiring freeze and a halt of most purchase orders for affected aircraft.
Boeing is “facing issues on quality, labor relations, program execution and cash burn, which seem to have created a continuous doom loop cycle,” said Bank of America aerospace analyst Ron Epstein in a note Friday. He said Boeing’s early financial release on Friday likely points to an equity raise in the works of as much as $15 billion.

Boeing 737 fuselages on railcars at Spirit AeroSystems’ factory in Wichita, Kansas, US, on Monday, July 1, 2024. 
Nick Oxford | Bloomberg | Getty Images

The announced job cuts come after Boeing and the rest of the aerospace supply chain worked to hire and train new machinists and other specialists after pandemic-era buyouts and layoffs of thousands of employees.
Instability at Boeing could fan out to its suppliers. Boeing’s 737 fuselage maker, Spirit AeroSystems, is considering furloughing workers in its cost-cutting contingency plans, a spokesman said, adding it hasn’t made any decisions. Boeing is in the process of acquiring that company.
“They’re probably telling us a story about cost savings carrying them through,” Aboulafia said of Boeing’s latest cost cuts. “When has stuff not working stopped them from trying it again?”

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Delta said its caterer was informed of a “food safety issue” in its Detroit hub and that activity there had been suspended.
Delta said no customers or employees illnesses were reported.
Customers affected by the problem were given frequent flyer miles or travel vouchers.

Delta Air Lines planes are seen parked at Seattle-Tacoma International Airport on June 19, 2024 in Seattle, Washington.
Kent Nishimura | Getty Images

Delta Air Lines had to suspend hot meal service on more than 200 flights out of its Detroit Metropolitan Wayne County Airport hub over the past several days because of a “food safety issue.”
Delta said that operations from the facility were shut down and hot food will be managed by other kitchens.

“During a recent inspection at a DTW kitchen, Delta’s catering partner was notified of a food safety issue within the facility,” Delta said in a statement on Sunday. “Delta and its catering partner immediately shut down hot food production and subsequently suspended all activity from the facility. Hot food and other onboard provisioning will be managed from other facilities.”
A message to a flight crew on Friday said first-class meals couldn’t be loaded because of “an unforeseen supply chain issue” and that the flight would be stocked with additional snacks.
The Food and Drug Administration did not immediately respond to requests for comment on Sunday.
The carrier said no employee or customer illnesses were reported, and that it gave affected customers travel vouchers or frequent flyer miles as compensation.
Airlines serve thousands of meals to passengers a day, generally through third-party catering kitchens. Do & Co., which works with Delta, didn’t immediately comment.
In July, a Detroit-to-Amsterdam Delta flight diverted to New York because of a report of spoiled chicken, forcing the carrier to limit meals to pasta for several days on certain flights. More