Business

Last year was Denver International Airport’s busiest on record.
While airline stocks have yet to fully recover to pre-pandemic levels, passengers have returned in droves — and millions of them are flying through the Colorado hub.

“We will end 2023 much higher than our forecast at about 78 million passengers annually,” said Phil Washington, CEO of the Denver International Airport. “So this has been tremendous growth.”
The airport, known as DIA to Colorado locals, opened in 1995. It was originally built to handle 50 million passengers per year, but now that number is expected to reach more than 100 million people per year by 2027, according to DIA estimates.
OAG, a global travel data provider, said Denver went from the 21st busiest airport in the world in 2019 to the sixth in 2023. 
United Airlines is Denver’s biggest operator with 46.7% market share, followed by Southwest at 30.7% and Frontier Airlines at 9.7%, according to DIA.The midcontinent airport has become United’s busiest hub. It recently invested nearly $1 billion in Denver to add more gates, flights and destinations, and opened the largest lounge in its network.
“About 60% of our customers are connecting from other places. Forty percent of our customers are local Denver, and it’s a fast growing city,” said Jonna McGrath, vice president of Denver Airport operations for United Airlines. “We want to grow before 2030 to about 650 flights a day.”
CNBC got a behind-the-scenes look at United’s Denver operations and explored how the airport and the airline plan to keep up with demand.Watch the video to learn more. More

JetBlue and Spirit jointly said they will appeal the court’s decision.
A U.S. District Court judge this week blocked JetBlue’s purchase of Spirit on antitrust grounds.
Spirit shares plunged after the decision but recovered Friday after outlining a plan to refinance some of its debt.

Spirit and JetBlue planes at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on Nov. 1, 2023.
Eva Marie Uzcategui | Bloomberg | Getty Images

JetBlue Airways and Spirit Airlines on Friday said they are appealing a federal judge’s ruling earlier this week that blocks the two carriers’ planned merger on antitrust grounds.
JetBlue had planned to buy Spirit for $3.8 billion in a deal struck in 2022. A federal judge on Tuesday, however, barred that combination, saying it would eliminate the budget carrier and mean higher prices for cost-conscious consumers.

Spirit shares extended gains posted during the regular session on Friday, rising more than 10% in after-hours trading, while JetBlue’s were down slightly.
JetBlue said it was appealing the decision “consistent with the requirements of the merger agreement.”
Judge William Young noted in his ruling that JetBlue planned to take seats out of Spirit’s tightly packed planes, and said that removing Spirit from the market would leave price-conscious consumers without that option.
“To those dedicated customers of Spirit, this one’s for you,” he wrote.
Miramar, Florida-based Spirit had been struggling before the ruling with softening travel demand, higher costs and planes grounded for a Pratt & Whitney engine issue. But the judge’s decision drew questions from Wall Street analysts about how Spirit would survive, sending shares tumbling.

Spirit said Friday that it is trying to refinance its more than $1 billion of debt due in September 2025 and issued a sunnier-than-expected financial forecast, helping shares recover.
The U.S. Department of Justice will soon weigh in on another proposed merger: Alaska and Hawaiian. Analysts said those carriers’ deal doesn’t have the same challenges because they have less route overlap and plan to operate as separate brands.Don’t miss these stories from CNBC PRO: More

A New Mexico grand jury on Friday indicted Alec Baldwin on involuntary manslaughter charges in connection with the fatal 2021 shooting on the set of “Rust.”
Charges were dropped against the actor in April after “new facts” emerged that demanded further investigation, prosecutors said previously.
In 2022, Baldwin settled a lawsuit brought by Hutchins’ family that accused the actor and producer of reckless behavior and cost-cutting measures that led to the shooting.

An image of cinematographer Halyna Hutchins, who died after being shot by Alec Baldwin on the set of his movie “Rust,” is displayed at a vigil in her honor in Albuquerque, New Mexico, on Oct. 23, 2021.
Kevin Mohatt | Reuters

A New Mexico grand jury on Friday indicted actor Alec Baldwin on involuntary manslaughter charges in connection with the fatal 2021 shooting on the set of “Rust.”
Baldwin is facing two separate types of involuntary manslaughter charges, court records show. He is facing one count of involuntary manslaughter, negligent use of a firearm and involuntary manslaughter, without due caution or circumspection.

Though Baldwin is charged with two counts of involuntary manslaughter, he would only be convicted of one if found guilty.
The new indictment comes after earlier charges were dropped against the actor in April in light of “new facts” that demanded further investigation, prosecutors said previously. At the time, prosecutors cautioned that their decision to drop the charges did “not absolve” Baldwin of culpability for his role in the fatal shooting, which killed cinematographer Halyna Hutchins and injured director Joel Souza.
The earlier charges, similarly two counts of involuntary manslaughter, were filed more than a year after the shooting, in January 2023. Prosecutors at the time said Baldwin had not been properly trained to handle the weapon that killed Hutchins.
The armorer of the film, Hannah Gutierrez-Reed, was also charged in 2023 and is expected to face trial next month for involuntary manslaughter and tampering with evidence in connection with the shooting. Gutierrez-Reed has pleaded not guilty.
Baldwin, who was also a producer on the film, was rehearsing a scene when the gun fired and killed Hutchins. Baldwin has repeatedly denied that he pulled the trigger.

In 2022, Baldwin settled a lawsuit brought by Hutchins’ family that accused the actor and producer of reckless behavior and cost-cutting measures that led to the shooting.
Financial terms of the settlement were not released. Matthew Hutchins, the widower of Halyna Hutchins, served as an executive producer on the film when it resumed production in early 2023.
Responding to the new indictment, Baldwin’s attorneys Luke Nikas and Alex Spiro of Quinn Emmanuel said they “look forward to our day in court.”Don’t miss these stories from CNBC PRO: More

Beyond Yoga has tapped former Athleta CEO and Gap veteran Nancy Green as its new CEO.
The leadership shift comes as Beyond Yoga looks to scale, compete and differentiate itself in an increasingly crowded athletic apparel space.
Levi Strauss acquired Beyond Yoga for $400 million in 2021 and is looking to scale the brand beyond its modest roots.

Beyond Yoga
Courtesy: Beyond Yoga

Levi Strauss’ Beyond Yoga has tapped former Athleta CEO and longtime Gap veteran Nancy Green to be its next chief executive, as the company looks to scale beyond its modest roots and compete with industry leaders such as Lululemon and upstarts such as Alo Yoga and Vuori.  
Beyond Yoga’s founder Michelle Wahler, along with its Chief Operating Officer and Chief Financial Officer Jesse Adams, will both be stepping down. Green is slated to take the reins on Feb. 1, the company said in a news release. 

Wahler and Adams will stay on as advisors to ensure a smooth transition, the company said.
“We have arrived at a natural inflection point for this incredible brand,” Levi’s incoming CEO Michelle Gass said in a statement. “As we pursue the next stage of growth, we believe Nancy has the experience to fully unlock the potential of Beyond Yoga by leveraging her impressive retail expertise and [Levi Strauss’] extensive global resources and capabilities.” 
The leadership shift comes as Beyond Yoga looks to scale and set itself apart in an increasingly crowded athletic apparel space. Retailers such as Lululemon and Nike have long dominated the category, with Beyond Yoga and Gap-owned Athleta following close behind. But upstarts such as Alo Yoga and Vuori have been nipping at their heels and taking market share. 
Lululemon customers spent 7.1% and 3% of their active and athleisure dollars at Vuori and Alo Yoga, respectively, during the holiday shopping season in December, BTIG’s Janine Stichter wrote in a research note, which cited a wallet analyst from Earnest.
Meanwhile, during Levi’s most recent quarter ending Aug. 27, sales at Beyond Yoga increased 25%. In Gap’s quarter ending Oct. 28, sales at Athleta fell 18%.

As these companies compete, they have also poached one another’s top talent. In August, Athleta named former Alo Yoga President Chris Blakeslee its next CEO.
Now, Athleta’s former CEO is joining Beyond Yoga. 

Nancy Green
Courtesy: Beyond Yoga

Green started her career as a New York stylist and went on to spend about 25 years with Gap. She worked her way up from a merchandiser to president and CEO of Athleta, a position she held for six years, according to her LinkedIn profile. 
During her time with Athleta, she reshaped and innovated its product line, enhanced sustainability efforts and grew sales from $250 million to nearly $1 billion. She also expanded Athleta’s store footprint from 39 to 175. Green developed a set of skills that will be crucial at Beyond Yoga, which is embarking on a similar growth plan. 
Founded in 2005 in Los Angeles, Beyond Yoga started out selling its leggings and tops in yoga studios and gyms. After garnering a cult-like following, it expanded its wholesale partnerships to a slew of retailers, including Nordstrom, Bloomingdale’s and Revolve. 
Levi acquired Beyond Yoga in 2021 for $400 million. In fiscal 2022, it brought in nearly $100 million in revenue for the apparel retailer. 
Levi has focused on wholesale partnerships since it was founded in 1853, but under outgoing CEO Chip Bergh’s leadership, it has worked to build out its direct-to-consumer channel — a strategy that extends to Beyond Yoga. The brand opened its first store in 2022, and has now expanded to six locations, with direct-to-consumer sales consistently growing double digits year over year. 
The company is set to report earnings next week.Don’t miss these stories from CNBC PRO: More

Japan’s JAXA SLIM spacecraft successfully landed on the moon’s surface Friday morning.
The country joins Russia — then the Soviet Union — the U.S., China and India in reaching the lunar surface.
JAXA’s president confirmed SLIM successfully established signals after landing, though its solar capabilities malfunctioned.

People raise their hands after a successful moon landing by the Smart Lander for Investigating Moon, in a public viewing event in Sagamihara, south of Tokyo, Japan, on Jan. 20, 2024.
Kim Kyung-hoon | Reuters

Japan staked its claim as a national space power on Friday, as its SLIM spacecraft successfully landed on the lunar surface.
The country’s SLIM lander launched in September and touched down on the lunar surface around 10:20 a.m. ET, according to telemetry readings by the Japan Aerospace Exploration Agency, or JAXA.

JAXA’s president, Hiroshi Yamakawa, confirmed that the soft landing was successful, and the spacecraft was able to send signals after its descent. However, the solar panel capabilities seemed to be impaired upon landing, leaving the spacecraft reliant on battery power.
“I believe this was a greater step forward,” said Hitoshi Kuninaka, director general of JAXA.
The feat makes Japan the fifth country to land on the moon, following Russia — then the Soviet Union — the U.S., China and India. Last year, India joined the list of moon landings with its Chandrayaan-3 mission.
Japan’s SLIM, which stands for Smart Lander for Investigating Moon, is a cargo research mission. It carries a variety of scientific payloads, including an analysis camera and a pair of lunar rovers.

An artist’s rendition of the SLIM lunar lander on the moon’s surface.
Japan Aerospace Exploration Agency

Governments and private companies alike have made more than 50 attempts to land on the moon with mixed success since the first attempts in the early 1960s, a track record that has remained shaky even in the modern era. 

Last year, Japanese company ispace made its first attempt to land on the moon, but the spacecraft crashed in the final moments. Earlier this month, U.S. company Astrobotic got its first moon mission off the ground but encountered problems shortly after launch. The flight was cut short and failed to make a lunar landing attempt.
More attempts are on the way, with U.S. companies Intuitive Machines and Firefly preparing to fly moon landers this year, while China plans to launch another lunar lander in May. 

The SLIM lunar lander before launch.
Japan Aerospace Exploration Agency

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JetBlue’s network and staffing changes come days after a judge barred the airline from buying budget airline Spirit.
JetBlue said it was exiting Baltimore and would work with staff there on options.
The carrier is trying to return to profitability as it battles high costs and capacity in the U.S. market.

The JetBlue drop-off area at New York’s LaGuardia Airport on Oct. 31, 2023.
Leslie Josephs/CNBC

JetBlue Airways told staff this week that it will cut some routes and service as it struggles to return to profitability and grapples with the fallout of its blocked plan to buy Spirit Airlines.
JetBlue said it will stop flying from New York’s John F. Kennedy Airport to Portland, Oregon, and to San Jose, California, and from Westchester, New York, and Martha’s Vineyard, according to an internal memo, which was reviewed by CNBC. The airline will also suspend service from New York to Ponce, Puerto Rico, and to Milwaukee, Wisconsin, in October.

“We can’t fly everywhere we’d like, so we need to be highly selective about where we point our aircraft in order to turn a profit, support our overall network strategy, and offer a reliable operation,” wrote Dave Jehn, vice president of network planning and airline partnerships, in a note to staff.
The airline is instead focusing on leisure routes, adding service throughout the Caribbean and to Paris, the memo said.
JetBlue is also exiting Baltimore/Washington International Thurgood Marshall Airport, Jehn said. He added that the carrier will “provide a number of options moving forward” to staff there. The airline said it would still serve the area with service from Washington D.C.
Jehn said the changes were in the works for almost a month, before the court decision that blocked JetBlue’s planned $3.8 billion acquisition of Spirit on antitrust grounds. Judge William Young’s opinion only blocks the merger that the companies agreed to in July 2022, not a different proposed combination, should the airlines take that route.
JetBlue said in a statement that the changes were in “no way” related to the judge’s decision.

“We constantly adjust our network to support our strategy and these recent changes are a necessary quick step to help return our business to profitability,” JetBlue said. “All the routes included have recently underperformed our expectations and these changes come as post-COVID travel patterns continue to evolve.”
JetBlue also said it’s trying to improve its reliability.
“By removing some of our less in-demand flights, we will give our operation more breathing room as we plan for air traffic control challenges in the northeast,” the company said. 
JetBlue ranked 9th in on-time arrivals among U.S. airlines in the first 10 months of 2023, according to the Transportation Department.
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Stellantis won’t sell electrified vehicles such as hybrids and all-electric models at a loss like other automakers have, CEO Carlos Tavares said Friday.
Stellantis currently has 25 EVs available globally and expects to launch another 23 by the end of this year.
Some automakers have sold EVs at a loss to spur sales, meet fuel economy standards or build up capacity in hopes of eventually making the vehicles profitable.

Carlos Tavares, CEO of Stellantis, poses during a presentation at the New York International Auto Show in Manhattan, New York, on April 5, 2023.
David Dee Delgado | Reuters

Stellantis won’t sell electrified vehicles such as hybrids and all-electric models at a loss like other automakers have, CEO Carlos Tavares said Friday.
Tavares, who has been skeptical about consumer adoption of EVs, said the company is currently making money on its electrified vehicles and will continue to do so with its next-generation vehicles, which Stellantis released additional details of Friday.

“Being in Europe as much as in the U.S., we are making money with the electrified vehicles,” Tavares said during a roundtable Friday. “We are making money, and it is in our discipline to make sure that whatever we sell we make money with because, if not, then the company will not be sustainable.”
Some automakers, including one of Stellantis’ predecessors, Fiat Chrysler, have sold EVs at a loss to spur sales, meet fuel economy standards or build up capacity in hopes of eventually making the vehicles profitable.
Stellantis currently has 25 EV models available globally and expects to launch another 23 through the end of this year.
The company previously announced an all-electric version of the Jeep Wrangler SUV and a Dodge muscle car. An all-electric version of the Ram 1500 pickup is also expected to be released early next year.

Read more CNBC auto news

Tavares said the automaker remains committed to its plans to invest 50 billion euros ($54.4 billion) in electrified vehicles and related technologies through 2030, despite slower-than-expected adoption in many countries.

“There is no such thing as slowing down for the EV road map for Stellantis,” he said Friday during a virtual media roundtable.
However, Tavares did say those plans could shift based on consumer demand and potential political changes that could result from elections this year in the U.S. and Europe.

New architecture

A few of Stellantis’ forthcoming vehicles will be on the company’s “STLA Large” platform, which it revealed details of Friday.
The STLA Large platform is just one of four architectures, or brains of the vehicle, that will support the company’s next-generation models.
The company said it plans to launch eight new vehicles, including all-electric models, on its STLA Large platform that will underpin the vehicles through 2026. Stellantis did not specify how many of those vehicles would be electric, as the platform will be able to support other propulsion systems as well, such as plug-in hybrid electric vehicles (PHEVs), non-plug-in hybrids and traditional internal combustion engines.
Stellantis said the EV models on the Large platform will be available in 400-volt and 800-volt battery-electric-vehicle architectures, allowing for a variety of charging speeds and driving range of roughly 500 miles for sedans.
Tavares said vehicles on the platform will first be released in the North American market, starting with the Dodge and Jeep brands, followed by Alfa Romeo, Chrysler and Maserati.
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Dow component Travelers said insurance premiums that it charges are still soaring, at a time when other key input costs are falling.
Homeowner renewal premiums skyrocketed 21%, while auto policy renewal premiums jumped 17%.
Although rising premiums are good news for insurance firms such as Travelers, it’s bad news for customers.

Getty Images

A stealth inflationary cost is biting into corporate profits.
While some companies are now seeing lower input and freight costs, one expense is not falling: insurance.

In its earnings report Friday morning, Dow component Travelers said insurance premiums that it charges are still soaring. Premiums on business policies jumped 14% in the last quarter. Consumers are feeling the pinch, too. Homeowner renewal premiums spiked 21%, while those for auto policies jumped 17%.
Those higher prices aren’t deterring demand, though. The insurer noted “retention remained historically high” and “new business increased significantly.”
Although rising premiums are good news for insurance firms such as Travelers, they are bad news for customers — whether they are individuals or companies.

A J.B. Hunt Transport Services tractor-trailer.
Luke Sharrett | Bloomberg | Getty Images

Soaring insurance costs have hit companies such as freight shipper J.B. Hunt hard. During Thursday’s earnings report, it said it took a hefty $53 million charge, or 38 cents per share, related to higher insurance and claims expenses in the latest quarter.
“As we reset the premiums going into 2024, we saw upwards of 50% to 60% increases in those premiums,” Chief Financial Officer John Kuhlow told analysts during the company’s earnings call. “And so when we talk about the inflationary pressures that we’re seeing in 2024, it’s mostly around our premiums.”

He added that claims costs are “what’s driving a lot of the inflationary pressures” for J.B. Hunt.
CEO John Roberts reiterated those sentiments.
“As an industry, we are also seeing unprecedented pressure in the area of claims cost or settlements,” he said. He added that “ultimately, these inflationary costs get passed on to customers and consumers.”Don’t miss these stories from CNBC PRO: More