Business

Shares of United, American, Southwest and Alaska all rose during a busy week for airline earnings reports.
Spirit shares were up again, extending a tumultuous run.
United CEO Scott Kirby told CNBC in an interview that the airline is seeing an increase in business travel in 2024.

Boeing 787-10 Dreamliner, from United Airlines company, taking off from Barcelona airport, in Barcelona on 28th March 2023. 
JanValls | Nurphoto | Getty Images

United Airlines shares rose about 5% on Tuesday after the company reported higher-than-expected earnings and revenue for the fourth quarter.
The carrier hit its full-year adjusted earnings target of between $10 and $12 a share in 2023 and said bookings so far in 2024 have been solid.

The report kicks off a busy week of airline earnings reports, with quarterly updates from American, Southwest and Alaska all due out on Thursday.
Shares of those three carriers were each up about 3% Tuesday. Shares of Delta, which reported fourth-quarter earnings earlier this month, were also up about 3%.
United forecast a first-quarter loss due to the grounding of Boeing 737 Max 9 planes this month but CEO Scott Kirby told CNBC in an interview Tuesday that the airline is seeing an increase in business travel in 2024.
“It’s only two weeks into the year, but we have seen a step up in business travel. We’re back now in terms of revenue, at least above where we were in 2019,” Kirby told CNBC’s Phil LeBeau.
United shares are about flat this year but are down about 30% from their 52-week high of $58.23 recorded in July.
Shares of Spirit Airlines, which have been on a tumultuous ride in the last week since a federal judge blocked the carrier’s planned merger with JetBlue, rose about 3% on Tuesday. JetBlue stock was also up about 3%. More

High-end skin-care brand SK-II saw its sales tumble 34% in the greater China region, owner Procter & Gamble said.
In August, Japan started releasing treated radioactive water into the Pacific Ocean, sparking opposition from China and its consumers, who feared nuclear contamination.
P&G said that consumer sentiment toward SK-II is improving.

Large advertisement of Japanese luxury skin care products brand, SK-II, in Causeway Bay, Hong Kong.
Miguel Candela | Lightrocket | Getty Images

Procter & Gamble on Tuesday said sales of its high-end SK-II skin-care brand fell 34% in the greater China region during its latest quarter — and it blamed an unlikely culprit.
With its high prices and reliance on travel retail, Japan-based SK-II has struggled as China’s economic recovery lags. But P&G executives also pointed to another factor that contributed to the brand’s cratering sales during the fiscal second quarter: anti-Japanese sentiment.

In August, Japan started releasing a huge amount of treated radioactive water from its Fukushima nuclear power plant, which was hit by an earthquake and tsunami more than a decade ago. The wastewater was dumped into the Pacific Ocean, leading to strong backlash from Japan’s neighbors — including China.
While Japan and the United Nations’ nuclear watchdog said the move was safe, China retaliated by banning all seafood imported from Japan. Chinese consumers followed with boycotts of Japanese brands, including P&G’s SK-II, fearing that their products would be tainted by radiation. P&G was among the companies that issued statements saying its products were safely produced as they tried to assuage consumer fears.
While the brand took a hit in the previous quarter, P&G executives said SK-II is already seeing sales turn around.
“Our consumer research indicates SK-II brand sentiment is improving, and we expect to see sequential improvement in the back half,” CFO Andre Schulten said on the company’s earnings conference call.
CEO Jon Moeller also reminded investors that previous tensions between Japan and China have hurt SK-II’s sales, but the brand always bounced back.

P&G’s overall beauty business reported flat volume for the quarter.
Shares of P&G closed up 4% on Tuesday after the company reported earnings that topped Wall Street’s estimates. Its quarterly sales, however, fell short of expectations.
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The tag-team of “Barbie” and “Oppenheimer” represented 88% of the cumulative box office haul generated by best-picture Oscar nominees prior to their nomination.
The 10 best-picture films together tallied $1.09 billion at the domestic box office ahead of Tuesday’s announcement, the fifth-highest haul for the slate of nominees since the academy began nominating 10 titles for best picture in 2009.
That could boost viewership for the Oscars awards ceremony on March 10.

Movie posters for “Barbie” and “Oppenheimer” are pictured outside the Cinemark Somerdale 16 and XD in Somerdale, New Jersey, in 2023.
Hannah Beier | The Washington Post | Getty Images

“Barbenheimer” strikes again.
It’s no surprise that Warner Bros.’ “Barbie” and Universal’s “Oppenheimer” were among the 10 best-picture nominees announced Tuesday for this year’s Academy Awards ceremony. The duo exploded into cinemas in July, generating big box-office bucks and enchanting critics and audiences alike.

Helmed by academy darlings Greta Gerwig and Christopher Nolan, respectively, the dichotomous films have been on Oscar prediction lists for months. Although Gerwig missed out on a best director nomination, both filmmakers received nods for their screenplays.
Altogether, “Oppenheimer” led the pack with 13 nominations, while “Barbie” tallied eight.

Best Picture nominees for the 2024 Academy Awards

“American Fiction” (MGM/Amazon)
“Anatomy of a Fall” (Neon)
“Barbie” (Warner Bros. Discovery)
“The Holdovers” (Focus Features)
“Killers of the Flower Moon” (Apple Original Films/Paramount)
“Maestro” (Netflix)
“Oppenheimer” (Universal)
“Past Lives” (A24)
“Poor Things” (Searchlight Pictures)
“The Zone of Interest” (A24)

The tag-team of “Barbie” and “Oppenheimer” also represented 88% of the cumulative box-office haul generated by best picture nominees prior to their nomination, according to data from Comscore.
The 10 best picture films together tallied $1.09 billion at the domestic box office ahead of Tuesday’s announcement, the fifth-highest haul for the slate of nominees since the Academy of Motion Picture Arts and Sciences began nominating 10 titles for the top award in 2009.
“Barbenheimer” accounted for $963.1 million of this year’s figure.

Read more: ‘Oppenheimer’ and ‘Poor Things’ lead the Oscars nomination pack — See the full list
Last year, the 10 best-picture nominees generated $1.57 billion at the domestic box office before their nominations, the highest-grossing class of nominees on record. The 2023 films benefited from $718 million in ticket sales from Paramount’s “Top Gun: Maverick” and nearly $600 million in receipts from Disney and 20th Century’s “Avatar: The Way of Water.”

The box-office collection from nominated pictures can fluctuate greatly from year to year, depending on which films make the cut.
“Best picture Oscar nominees are ostensibly chosen based on their artistic and filmmaking excellence and not their box office revenues,” said Paul Dergarabedian, senior media analyst at Comscore. “Thus there are some years where the cumulative theatrical revenues for the films in contention are not reflective of their sheer popularity among moviegoers.”
In some years, nominated films were released later in the year, meaning they collect smaller box-office receipts prior to getting a nod from the academy. Traditionally, Oscar-bait films are released in the last quarter of the year, with the majority hitting cinemas in November and December.
For this year’s nominees, only three best-picture nominees arrived in theaters during that time — Searchlight’s “Poor Things,” MGM and Amazon’s “American Fiction” and A24’s “The Zone of Interest.” Together those three features generated less than $30 million at the domestic box office ahead of Tuesday’s announcement.
Additionally, nominated films from Netflix do not count toward the box-office haul, as the streaming studio does not report what it makes from its limited theatrical runs. This year Netflix had only one best picture nominee, “Maestro.”
According to Dergarabedian, those box-office dollars could translate to higher viewership for the Oscars awards ceremony on March 10.
“Thanks to ‘Barbenheimer,’ this year, as we also saw in 2023, the combined box office of the best picture nominees pre-nomination is in excess of $1 billion in domestic revenue,” he said. “This is the dream scenario for the telecast and movie fans for whom the allure of rooting for their favorite film makes viewership more essential and in turn a presumed ratings boost for the network.”
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More

General Motors is redesigning its gas-powered Chevrolet Equinox crossover to look more rugged than its predecessors in an attempt to move the vehicle upmarket and attract new buyers.
The 2025 Equinox, which GM revealed Tuesday, will include additional standard safety and convenience features such as heated seats and a steering wheel.
GM declined to disclose pricing for the next-generation Equinox. The vehicle’s current pricing starts around $28,000.

The 2025 Chevrolet Equinox RS.

DETROIT — General Motors is redesigning its gas-powered Chevrolet Equinox crossover to look more rugged than its predecessors in an attempt to move the vehicle upmarket and attract new buyers.
The 2025 Equinox, which GM revealed Tuesday, will feature additional standard safety and convenience features.

Brad Franz, director of Chevy car and crossover marketing, said the changes to the Equinox are meant to boost the appeal of the vehicle, which GM introduced about 20 years ago. The compact crossover has grown to be among GM’s best-selling vehicles.
“It’s critically important for us to be introducing this product right now. We feel it’s going to be just as important, if not more, than [before],” he said. “We still expect it to be the No. 2 Chevy volume vehicle and, frankly, it plays in the biggest segment in the industry at 22% [market share]. We don’t see that declining.”
Sales of the Equinox have been level the past two years at more than 212,000 units. The sales remain far below pre-Covid pandemic levels of nearly 350,000 units in 2019.

The 2025 Chevrolet Equinox RS.

The 2025 model will have heated seats and a heated steering wheel standard on all models — a first for the Equinox and many mainstream brands. Some automakers have implemented or discussed including such features in monthly or annual subscription fees rather than offering them as standard or optional features. GM said about 90% of owners surveyed wanted the features.
Franz declined to disclose pricing for the next-generation Equinox, which is expected to arrive in dealer showrooms midyear in three trims: LT, RS and Activ. He said the company has “no intention of deviating too far from our current pricing.”

Pricing for the 2024 Equinox ranges between $28,000 and $35,000, including mandatory destination fees.
Among the reasons to buy an Equinox, customers most often cite price and value, according to GM. The entry-level LT is expected to account for about 60% of sales, Franz said.
“Even though we are intending to push this vehicle upmarket like we have with some of our other executions we’ve announced, we are still highly focused on value,” he said.

Design changes

The exterior design of the next-generation Equinox is similar to other recently redesigned Chevy vehicles. It features a large hour-glass grille, a more sculpted design and slim front and rear lights. The design is similar but different than an all-electric Equinox that’s expected to go on sale this year after being delayed in 2023.
On the interior, GM made changes to the compact crossover to make it roomier for the driver and passengers, including moving the gear shifter to the steering wheel column rather than between the passenger and driver or as buttons or knobs on the instrument panel.

The 2025 Chevrolet Equinox Activ.

For drivers who have used column shifters before, this is not like the ones of the past. It’s a growing technology in the auto industry called “shift by wire” that removes many manual components and allows the car to change gears with ease. With traditional column shifters, the driver needs to pull the lever forward and manually shift the vehicle into gears.
The new Equinox features a new 11 inch diagonal configurable driver information center and 11.3 inch diagonal infotainment screen in front of the driver.
“The first thing you’re going to notice when you get in there is the technology, the screens — it just doesn’t feel like an Equinox,” Franz said.
The vehicle will be produced at a plant in Mexico, where Franz says GM has room to increase production, if needed.
The 2025 Equinox will continue to be powered by a 1.5 liter, four-cylinder turbocharged engine that produces up to 175 horsepower and 203 foot-pounds of torque. The vehicle is standard with front-wheel drive and available in all-wheel drive.Don’t miss these stories from CNBC PRO: More

The FAA grounded Boeing 737 Max 9 aircraft earlier this month after a door plug blew out during an Alaska Airlines flight.
United said it expects a quarterly loss of at least 35 cents a share due to the grounding.
The first-quarter warning from United comes after a relatively strong holiday period.

A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport on March 13, 2019.
Justin Sullivan | Getty Images

United Airlines on Monday forecast a first-quarter loss due to the Federal Aviation Administration’s grounding of Boeing 737 Max 9 planes this month after a part blew out during an Alaska Airlines flight operated with that type of aircraft.
United expects to post an adjusted loss of between 35 cents and 85 cents a share for the first three months of the year, it said in a filing. The forecast is the first indication for investors of the financial damage caused by the FAA’s grounding of the planes, issued a day after the incident on Alaska Airlines Flight 1282 on Jan. 5.

United has 79 of the aircraft in its fleet, more than any other carrier, followed by Alaska. United said Monday it expects the planes to remain grounded through Jan. 26, though its forecast assumes it won’t be able to fly the planes at all this month.
Both airlines have canceled hundreds of flights this month while the planes remain grounded for inspection. The more common Boeing 737 Max 8, which is in fleets at United, American and Southwest, isn’t affected by the grounding order.
United said it expects unit costs, excluding fuel, to be up mid-single-digit percentage points in the first quarter from last year, three points of that impact coming from the Max grounding. It forecast flat unit revenues for the first three months of the year.
The first-quarter warning from United comes after a relatively strong holiday period, though airlines have faced several winter storms in the first few weeks of January.
United shares were up more than 6% in after-hours trading.

For the last three months of 2023, United posted net income of $600 million, down nearly 29% from a year ago. Revenue came in at $13.63 billion, which was up almost 10% from a year earlier and ahead of analysts’ estimates. Adjusting for one-time items, United’s fourth-quarter earnings of $2 a share fell from $2.46 a year earlier.
Here’s what United reported in the fourth quarter compared to what Wall Street expected, based on average estimates compiled by LSEG, formerly known as Refinitiv:

Adjusted earnings per share: $2.00 vs. an expected $1.69
Total revenue: $13.63 billion vs. an expected $13.54 billion

United hit its full-year adjusted earnings target of between $10 and $12 a share, posting $10.05 for the full-year 2023.
“Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible — and set new operational records for our customers,” said United Airlines CEO Scott Kirby in an earnings release.
The airline touted strong travel demand late last year and solid bookings so far this year. For the full-year 2024, United forecast adjusted earnings of between $9 and $11 a share, within analysts’ estimates.
United executives are holding an earnings call at 10:30 a.m. ET on Tuesday when they are likely to face questions about compensation from Boeing for the grounding. Alaska reports before the market opens on Thursday, and Boeing is scheduled to report results Jan. 31.Don’t miss these stories from CNBC PRO: More

United is considering fleet plans without the Boeing 737 Max 10.
CEO Scott Kirby expressed frustration with delays and manufacturing issues at Boeing.
Kirby said the Max 9 grounding after a door plug blew on an Alaska Airlines flight is the “straw that broke the camel’s back.”

United Airlines Boeing 737 MAX 9 passenger aircraft as seen taxiing at Chicago International Airport O’Hare ORD preparing for a departure flight. The modern and advanced Boeing 737M is a new commercial airplane, flying less than half year, with the registration tail number N77543, ETOPS certified and is powered by 2x CFMI jet engines. 
Nicolous Economou | Nurphoto | Getty Images

United Airlines is weighing plans without the Boeing 737 Max 10 after a series of delays and most recently, the grounding of a smaller variant of the plane, the carrier’s CEO said Tuesday.
The Max 10 is the largest model of the plane and hasn’t yet been certified by the Federal Aviation Administration.

United CEO Scott Kirby said the plane is already “best case” about five years delayed and expressed frustration at Boeing for the most recent problem in which a door plug blew out during an Alaska Airlines 737 Max 9 flight on Jan. 5, prompting the FAA to ground those planes.
United has 79 of the 737 Max 9 aircraft in its fleet, more than any other carrier, and the ongoing grounding will drive a first-quarter loss, the airline said Monday while reporting its fourth-quarter earnings.
“I think the Max 9 grounding is probably the straw that broke the camel’s back for us,” Kirby said in an interview with CNBC’s “Squawk Box” on Tuesday. “We’re going to at least build a plan that doesn’t have the Max 10 in it.”
Last week, Delta Air Lines CEO Ed Bastian told CNBC he was confident moving forward with his airline’s order of Boeing Max 10s.
Boeing didn’t immediately comment.
This is breaking news. Check back for updates. More

Netflix and TKO Group Holdings said Tuesday that the streaming platform will air the WWE’s flagship program Raw starting next year.
Netflix is trying to drive revenue by cutting down on subscription sharing and pushing viewers toward its ad-tier membership.

Source: WWE

Netflix and TKO Group Holdings said Tuesday that the streaming platform will air the WWE’s flagship program Raw starting next year, in Netflix’s first major foray into live sports.
The deal 10-year deal is valued at more than $5 billion, according to a person familiar with the matter.

Netflix, which is trying to drive revenue by cutting down on subscription sharing and pushing viewers toward its ad-tier membership, has made few attempts at live programming in its history but has never struck a long-term sports rights deal before this. Adding Raw, which currently airs on USA Network, to its programming lineup will be a boon to the platform.
For TKO, the parent company of WWE, striking a deal with Netflix brings WWE wrestling to more than 250 million global subscribers.
Raw has been the top program on NBCUniversal’s cable network USA, drawing 17.5 million unique viewers per year, the companies said.
Separately Tuesday, the WWE’s parent company TKO announced actor and former wrestling superstar Dwayne Johnson would join its board of directors.
TKO shares jumped more than 10% in premarket trading following the announcements.

Disclosure: Comcast NBCUniversal, CNBC’s parent company, owns USA Network.
This story is developing. Please check back for updates.
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Procter & Gamble on Tuesday reported mixed quarterly earnings and revenue for its fiscal second quarter.
The company narrowed its outlook for full-year adjusted earnings per share, although its forecast for unadjusted earnings fell due to its plans to write down Gillette and restructure certain markets.
After roughly two years of higher prices on their Charmin toilet paper and Downy fabric softener, consumers have pulled back on their purchases of P&G products.

A Procter & Gamble (P&G) logo is seen during the 6th China International Import Expo (CIIE) at the National Exhibition and Convention Center (Shanghai) on November 7, 2023 in Shanghai, China.
VCG | Getty Images

Procter & Gamble on Tuesday reported mixed quarterly earnings and revenue for its fiscal second quarter of 2024 as price hikes helped boost revenue 3%.
The company also narrowed its outlook for full-year adjusted earnings per share to a range of $6.37 to $6.43, although its forecast for unadjusted earnings fell due to its plans to write down Gillette and restructure certain markets.

Shares of the company rose about 1% in premarket trading.
Here’s what P&G reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

Earnings per share: $1.84 adjusted vs. $1.70 expected
Revenue: $21.44 billion vs. $21.48 billion expected

P&G reported fiscal second-quarter net income attributable to the company of $3.47 billion, or $1.40 per share, down from $3.93 billion, or $1.59 per share, a year earlier.
The Tide detergent owner wrote down the value of razor brand Gillette by $1.3 billion, following through on an announcement it made in December. The company previously said it would record up to $2.5 billion in charges over the next two fiscal years related to Gillette impairment charges and restructuring its business in some markets, like Argentina and Nigeria.
Excluding the impacts of restructuring and intangible impairment, the company earned $1.84 per share.

Net sales rose 3% to $21.44 billion. P&G’s organic revenue, which strips out the impact of acquisitions, divestitures and foreign exchange, rose 4% in the quarter.

Product volumes

After roughly two years of higher prices on their Charmin toilet paper and Downy fabric softener, consumers have pulled back on their purchases of P&G products. The company’s volume was flat overall for the quarter, and only its grooming business reported volume growth. The metric excludes the impact of currency and pricing changes to reflect demand.
The grooming division, which includes Gillette, saw volume grow 1% in the quarter.
P&G’s beauty segment reported flat volume for the quarter as sales of its pricey SK-11 skincare brand continued to struggle. Its fabric and home care business also reported flat volume.
The company’s health care division reported volume declines of 3%. P&G said the market for respiratory products, like its brand Vicks, shrank during the quarter.
P&G’s feminine, baby and family care business saw its volume fall 2% in the quarter, fueled by shrinking demand for its diapers and tampons. Of that division, only its family care segment, which includes Bounty paper towels, saw volume increase.
For fiscal 2024, the company now anticipates core earnings per share growth of 8% to 9%, narrowing its prior range of 6% to 9%. However, it now expects unadjusted earnings per share to be flat to down 1%, significantly lower than a prior range of 6% to 9% growth.
P&G reiterated its forecast for fiscal sales growth of 2% to 4%.
This story is developing. Please check back for updates. More