Business

Disney named Asad Ayaz as its first-ever chief brand officer, as CEO Bob Iger works to refocus the company on its core entertainment properties.
Iger has said he plans on paring back Disney’s general entertainment content while maintaining a focus on streaming.

Disney World’s Magic Kingdom in Orlando, Florida.
Joe Raedle | Getty Images News | Getty Images

The Walt Disney Company is looking to update its image.
On Thursday, the company named Asad Ayaz as its first-ever chief brand officer, a position that will require the Disney vet to create a singular vision of the company for marketing campaigns.

Ayaz’s appointment comes as Iger, newly returned to the House of Mouse, has begun reorganizing the company’s structure to put content production, streaming and marketing in the hands of creators. He is also seeking to cut $5.5 billion in costs. The company also recently rolled out its first wave of layoffs as it seeks to cut 7,000 jobs this year.
Iger has said he plans on paring back Disney’s general entertainment content while maintaining a focus on streaming.
On Wednesday, the company tapped Joe Earley to take over the role of president of direct-to-consumer for Disney Entertainment. He replaces Michael Paull, and leaves his post as president of Hulu.
The new appointment also comes a week after Disney laid off Marvel Entertainment Chairman Ike Perlmutter. Perlmutter, however, Told the Wall Street Journal that he was fired for pushing too aggressively to cut costs and for clashing with creative executives.
Ayaz will continue as president of marketing for Walt Disney Studios, where he has overseen marketing and publicity for the studio’s films and TV series, as well as Disney+, since 2018.

“Asad is an exceptional creative leader with a deep understanding of what Disney means to millions of people around the world,” CEO Bob Iger said in a statement. “His taking on this role is particularly noteworthy and consequential as we commemorate our historic 100th anniversary, and I am confident that his strategic, operational, and creative prowess, along with his profound passion for Disney, will make him an outstanding steward of our stories, characters, brands, and franchises.”
Ayaz has handled massive marketing projects for Disney before. Over his 18 years with the company he developed and led marketing campaigns for “Star Wars: The Force Awakens,” “Black Panther” and “Avatar: The Way of Water.” He is responsible for the marketing of 13 of the top 15 box office debuts of all time, including the biggest worldwide debut ever: “Avengers: Endgame,” which tallied $1.2 billion in its first five days in theaters.
He will oversee the Disney100 campaign, which celebrates the 100th anniversary of the company. More

Bed Bath & Beyond is asking shareholders to approve a reverse stock split, warning it will likely file for bankruptcy if the measure isn’t approved.
The struggling home goods retailer needs equity from a stock offering to avoid bankruptcy.
If the reverse split is approved, Bed Bath will be able to issue more shares to cover the offering.

A customer leaves a Bed, Bath and Beyond store on August 31, 2022 in Oakland, California.
Justin Sullivan | Getty Images

Bed Bath & Beyond wants shareholders to approve a reverse stock split at an upcoming special meeting, as the retailer keeps working to avoid filing for bankruptcy, according to a securities filing late Wednesday. 
The retailer’s board is calling on shareholders to approve the reverse stock split at the May 9 meeting so it can have enough shares available to raise up to $300 million in equity from a stock offering announced last week. 

Bed Bath’s fundraising efforts have been hampered by its dwindling stock price, which has been on a precipitous decline and has been trading under $1 for the last few weeks. Shares of Bed Bath were trading around 30 cents Thursday morning, giving the company a market value of about $132 million.
The company is concerned that if the plan isn’t completed, it likely won’t have enough equity to pay its debts and keep its doors open, the company said in the filing. 
“The Company may be unable to avoid bankruptcy if the Reverse Split Proposal fails to obtain shareholder approval. We need to raise equity capital to have the necessary cash resources to fund operations and service obligations under our Credit Agreement,” the filing says. 
The beleaguered retailer said the reverse stock split would be at a ratio, to be determined by the board, in the range of 1-for-10 to 1-for-20. If the split is approved, it would significantly reduce the number of outstanding shares of common stock available, which will allow it to issue enough stock to cover the terms of the offering. 
The reverse split could also boost Bed Bath’s per-share price, which the company expects could improve perception of its stock and attract more investors. 

“We believe a higher share price could make our Common Stock more attractive to a broader range of investors, as we believe that the current market price of our Common Stock may affect its acceptability to certain professional investors and other members of the investing public,” the filing says.
“In particular, we believe that an increased share price would enable us to attract additional institutional investors and investment funds who may not consider purchasing our Common Stock due to our low trading price.”
Still, even if the reverse split temporarily boosts Bed Bath’s share price, the stock offering will eventually dilute it, which happened after the company announced another stock offering in February. 
The home goods retailer has been warning of bankruptcy since January after a series of dismal quarters depleted the company’s liquidity and left it clinging to life. 
On Wednesday, it announced a $120 million lifeline provided by liquidator Hilco Global so it can get inventory back on its shelves in a last ditch effort to improve sales.
–CNBC’s Jesse Pound contributed to this report. More

Airlines are turning to bigger planes that fit more passengers to address airport congestion, rising costs and a pilot shortage.
The trend is taking on increased importance during what airline executives expect to be a busy spring and summer for travel.
But airlines face limitations to how much they can upgauge.

A United Airlines plane taxis at Newark International Airport, in Newark, New Jersey, on January 11 2023.
Kena Betancur | AFP | Getty Images

NEWARK, New Jersey — Faced with congested airports, rising costs, a pilot shortage and a resurgence in travel demand, airlines are increasingly turning to the same remedy: bigger planes that fit more passengers.
Flights operated by the 11 largest U.S. airlines had an average of more than 153 seats on domestic flights last year, up from an average of nearly 141 seats in 2017, according to aviation data firm Cirium. In April, U.S. carriers have 0.6% more seats in their domestic schedules compared with the same month of 2019, despite operating 10.6% fewer flights.

The trend toward larger planes, part of a strategy known in the industry as “upgauging,” means airlines can sell more seats on each flight and make do with fewer planes, which are in short supply. While more passengers per plane drive down an airline’s unit costs, it means fewer flight options for consumers.
For example, United Airlines said its flights have 20 more seats per departure in its full network than in 2019.
Rodney Cox, United’s vice president of airport operations at the carrier’s hub at Newark Liberty International Airport, told CNBC last month that it’s difficult to increase the number of flights operated into and out of the airport, one of the nation’s most congested.
“The way we continue to grow our model and grow the business is to upgauge our flights,” he said.
Last month, United said it would fly about 3,600 domestic routes using wide-body aircraft. The airline also devoted 777s, the largest plane in its fleet with 364 seats, to fly between major hubs and Orlando, Florida, during spring break, a spokeswoman said.

Early in the Covid pandemic, U.S. airlines reassigned their largest jets for domestic routes when international travel was hobbled by the crisis and travel restrictions. Now that international trips are picking back up, the competition for those planes has gotten tighter.
And, Cox noted, there are limits to how many flights the airline can upgauge, especially with its largest planes.
“Not every gate is equal,” he said. “You can’t put a wide-body [airplane] on every single gate.”

Avoiding disruptions

The trend toward larger planes is taking on increased importance during what airline executives expect to be a busy spring and summer with shortages of pilots, air traffic controllers and new aircraft.
Keeping the operation running smoothly at crowded Newark is key, United vice president Cox said. If planes don’t take off fast enough on schedule, because of limited numbers of gates “you’ll see it turns into a parking lot,” he said.
Airlines and federal officials have agreed to trim flights in hopes of avoiding a repeat this summer of flight cuts and schedule delays in busy airports serving New York and Washington, D.C.
Last month, the Federal Aviation Administration said it would allow airlines to cut flights at airports serving New York City and at Washington’s Reagan National Airport as a means to avoid disruptions.
American Airlines said that in response to the FAA’s slot waiver it will temporarily reduce frequencies on select routes from LaGuardia Airport and Newark this summer.
“We’re proactively reaching out to affected customers to offer alternate travel arrangements,” a spokeswoman said. The airline is planning to reallocate aircraft from reduced frequencies to routes at its hubs at Dallas Fort/Worth International Airport, Chicago O’Hare and Philadelphia International Airport.
United Airlines and Delta Air Lines have told the FAA they also intend to seek waivers that would allow them to reduce flights.
The FAA said it expects “airlines to take actions minimizing impacts on passengers, including operating larger aircraft to transport more passengers and making sure passengers are fully informed about any possible disruptions.”
Some airlines are challenged to switch to larger planes, though. JetBlue Airways, for example, operates all narrow-body jets.
“We don’t have a 70-seater we could turn into a 150[-seater],” JetBlue CEO Robin Hayes told CNBC last week. “And even the airlines that do, you’re just taking seats out from somewhere else.”
Plus, the airline doesn’t contract regional carriers for many of its flights like larger U.S. airlines do.
“This is going to have a very significant financial impact on JetBlue and our customers,” Hayes said of the reduced capacity. “It’s always the smaller communities that take the disproportionate impact on this.”

Reducing regional

To help increase passengers per plane, United and other network carriers are also decreasing their reliance on regional feeder airlines, where the pilot shortage is most acute and unit costs are high.
Delta said 70% of its domestic flights this year are operated by the mainline airline, up from 55% in 2019. Seats per departure are up 15 from 2019, a spokesman told CNBC.
Delta has also shifted from regional jets to mainline planes like Airbus A320s and Boeing 737s on traditional business routes like Boston to Chicago, Seattle to San Francisco and Los Angeles to Las Vegas. It has eliminated regional jets in Las Vegas, Houston, Dallas/Fort Worth and San Antonio, Texas, altogether, replacing them with larger planes, a spokesman said.
Some major airlines have halted service to some small airports, citing a shortage of pilots at regional airlines. American last year left cities including Dubuque, Iowa, and United most recently said it would stop flying to Erie, Pennsylvania, in June. Delta also said it will temporarily stop service to State College, Pennsylvania, and to La Crosse, Wisconsin that month.
Reducing regional flights in lieu of mainline flights “could cut departure options in half for travelers, meaning long layovers and higher trip time and cost burdens, but it also could mean one city previously served can’t be served any longer,” said Faye Malarkey Black, president and CEO of the Regional Airline Association.
“This is one more harm for small communities who don’t have the passengers to fill larger planes,” she said.
— CNBC’s Gabriel Cortes contributed to this article. More

American Airlines is replacing its frequent flyer award chart to reflect a shift to dynamic pricing.
The new chart will show starting points for frequent flyer redemptions.
American in December said it would get rid of different redemption categories, MileSAAver and AAnytime awards.

American airlines planes are seen at San Francisco International Airport (SFO) in San Francisco, California, United States on September 15, 2022.
Tayfun Toskun | Anadolu Agency | Getty Images

American Airlines is getting rid of its traditional frequent flyer award chart as the carrier moves toward dynamic pricing for mileage redemptions, the latest shift in its lucrative AAdvantage loyalty program.
Starting late Wednesday, the carrier will publish starting levels for how many frequent flyer miles are likely required to redeem for a ticket in certain regions — for example, 7,500 for a one-way ticket within the contiguous 48 U.S. states and Canada. Previously, the chart showed redemption levels that were static.

American in December said it would get rid of different redemption categories, MileSAAver and AAnytime awards, which have set minimum rates. The new redemption level will be called “Flight Awards” and the chart will serve as a reference guide.
“Just like cash tickets, these are going to float based on demand,” Chris Isaac, American’s director of loyalty, said in an interview.
American introduced dynamic pricing for award tickets in 2019, meaning the number of miles required to redeem for a ticket fluctuate based on supply and demand.
“This product has become the product that our members have gravitated to,” Isaac said. That category required the same number or fewer miles than the awards that were set in the chart “up to 85% of the time over the last few years,” American said.
Previously the chart looked like this:

Arrows pointing outwards

American Airlines’ old frequent flyer award ticket chart
American Airlines

Now it will look like this:

Arrows pointing outwards

American Airlines’ new frequent flyer award ticket chart
American Airlines

Award tickets on American and other airlines can also vary based on the time of year.
For example, it cost 126,000 frequent flyer miles for a roundtrip ticket in standard economy on American between New York and Rome between June 1 and June 8, during the high season, but only 89,500 miles from Oct. 1 to Oct. 8, during the lower-demand season.
“What I think is good about this, it aligns the award chart where American is today. To tell [travelers] that an award ticket is going to cost them a certain number of miles is no longer accurate,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel industry consulting firm. More

A Delaware judge said Wednesday he would compel Fox Corp.’s Rupert Murdoch and Lachlan Murdoch to testify live in court during the trial that’s slated to kick off later this month.
Dominion also wants the judge to compel Paul Ryan, the former speaker of the House and a Fox board member, and Viet Dinh, Fox’s chief legal and policy officer, to testify in person.
Fox’s top talent, including Tucker Carlson, Sean Hannity, Maria Bartiromo and Laura Ingraham are to appear live in court.

Rupert Murdoch, chairman of News Corp and co-chairman of 21st Century Fox, arrives at the Sun Valley Resort of the annual Allen & Company Sun Valley Conference, July 10, 2018 in Sun Valley, Idaho.
Drew Angerer | Getty Images

A Delaware judge said Wednesday that he would compel Fox Corp. Chairman Rupert Murdoch, and his son, CEO Lachlan Murdoch, to appear live in court for the upcoming trial in Dominion Voting System’s $1.6 billion defamation lawsuit against Fox and its networks.
Earlier on Wednesday Dominion in a letter filed to the court urged Judge Eric Davis, who is presiding over the case, to compel both Murdochs to appear live. It also requested in-person testimony from Paul Ryan, the Republican former speaker of the House and a Fox board member, and Viet Dinh, Fox’s chief legal and policy officer.

“Fox and Dominion have made these four parties very relevant,” Davis said during a hearing on Wednesday. “It’s not the corporation that raises its hand on the stand, it’s their officers and directors that raise their hand on the stand.”
“So if Dominion wants to bring them in live, they need to do a trial subpoena and I would not quash it. I would compel them to come,” Davis added on Wednesday.
The letter comes days after the judge ruled that the lawsuit would go to trial in April.
Davis had rejected Fox’s arguments, but granted several of Dominion’s motions with the exception of its argument that Fox and its hosts acted with malice in broadcasting false claims about the 2020 presidential election between Donald Trump and Joe Biden.
The trial is scheduled to begin on April 17. Dominion and Fox have agreed that some of Fox’s top TV talent, including Tucker Carlson, Sean Hannity, Maria Bartiromo and Jeanine Pirro, as well as former host Lou Dobbs and Fox News CEO Suzanne Scott, will appear in court to give their testimonies live.

In earlier court papers Dominion did not included the Murdochs on its list for live testimony, although it had been earlier discussed in court.
Fox had opposed Murdoch, as well as the other Fox Corp. executives, giving their testimony live in court. They had also pointed to the elder Murdoch’s age, 92, as a reason for why he couldn’t appear live in court. The judge rejected that argument during last week’s hearing.
“Dominion clearly wants to continue generating misleading stories from their friends in the media to distract from their weak case,” a Fox spokesperson said in a statement. “Demanding witnesses who had nothing to do with the challenged broadcasts is just the latest example of their political crusade in search of a financial windfall.”  
On Wednesday, Davis also noted ahead of next week’s pre-trial conference, that he didn’t see Jan. 6, 2021 – the day a violent mob breached the U.S. Capitol in support of then-President Trump – as relevant in this case.
“I know that probably shocks everyone,” Davis said, adding that in developing this case and the court’s opinion, the focus is on a specific timeframe and is aware of only one statement made subsequent to Jan. 6 that is concerning Dominion.
In the trove of evidence that has come to light in this case, documents show the network’s internal response to Jan. 6, including Fox executives shutting down Trump’s attempt to appear on air that evening. That same evening Carlson texted his producer calling Trump “a demonic force. A destroyer. But he’s not going to destroy us,” referring to Fox’s network and its audience, according to court papers. More

Johnson & Johnson shares climbed after the company proposed paying $8.9 billion to settle thousands of claims that its baby powder and other talc products caused cancer.
More than 60,000 claimants have committed to support the proposed resolution, which would require approval in bankruptcy court.
On Wall Street, some analysts were also encouraged by J&J’s move despite uncertainty around the final outcome of the proposal.

In this photo illustration a bottle of Johnson & Johnson baby powder is displayed on a table on November 12, 2021 in San Anselmo, California.
Justin Sullivan | Getty Images

Johnson & Johnson shares on Wednesday climbed after the company proposed paying $8.9 billion to settle thousands of claims that its baby powder and other talc products caused cancer. 
More than 60,000 claimants have committed to support the proposed resolution, which would require approval in bankruptcy court, the company announced in a securities filing late Tuesday.

J&J’s stock closed nearly 4.5% higher Wednesday. The company’s market value stands at more than $430 billion.
The pharmaceutical giant also said its subsidiary LTL Management refiled for Chapter 11 bankruptcy protection after its first attempt faced legal challenges. The subsidiary is shouldering tens of thousands of talc lawsuits in a bid to reduce J&J’s losses from litigation and settlement. 
Some lawyers representing plaintiffs in the talc lawsuits called J&J’s proposal a “significant victory” in a legal fight that has lasted more than a decade. 
On Wall Street, some analysts were also encouraged by J&J’s move despite uncertainty around the final outcome of the proposal.
JPMorgan analyst Chris Schott on Thursday called the proposed settlement a positive for the company in a note. He said the bank has viewed ongoing talc headlines as the “larger overhang” for the company compared to an actual settlement value. 

The proposed $8.9 billion settlement is also in-line with JPMorgan’s $8 billion to $10 billion estimate, Schott noted. 
A Thursday note from Morgan Stanley analyst Terence Flynn shared a similar positive take on J&J’s move. But Flynn said he is waiting for clarity on how the 60,000 claimants tie back to the 40,300 plaintiffs cited in J&J’s recent 10-K filing and the roughly 37,500 actions pending on the company’s talc cases. 
It’s also unclear whether the proposed settlement will win approval in bankruptcy court, Bank of America analyst Geoff Meacham noted Thursday. Meacham pointed to J&J’s legal woes over LTL Management’s bankruptcy protection filing. 
A judge affirmed J&J’s ability to use the Chapter 11 strategy in February 2022. But the U.S. Court of Appeals for the 3rd Circuit overturned the ruling in January this year, saying neither LTL nor J&J had a legitimate need for bankruptcy protection because they were not in “financial distress.”
Bernstein Analyst Lee Hambright acknowledged that there are “many issues” to sort through with J&J settling talc liability in bankruptcy court. But he added that the firm believes “this is a creative approach that might actually work.” More

Chipotle Mexican Grill filed a lawsuit against Sweetgreen alleging trademark infringement over its new “Chipotle Chicken Burrito Bowl.”
Chipotle said it sent the salad chain a cease and desist notice before filing the lawsuit in California federal court.
In addition to asking the court for an injunction against Sweetgreen, Chipotle is also asking for the profits that Sweetgreen earns from the Chipotle Chicken Burrito Bowl.

Sweetgreen’s Chipotle Chicken Burrito Bowl
Source: Sweetgreen

Sweetgreen’s stock closed down 6% Wednesday after Chipotle Mexican Grill filed a lawsuit against the salad chain alleging trademark infringement over its new “Chipotle Chicken Burrito Bowl.”
Chipotle filed the suit in California federal court Tuesday, less than a week after Sweetgreen launched the menu item.

When the new bowl was announced on Thursday, Sweetgreen co-founder and Chief Concept Officer Nic Jammet said in a statement that the name was inspired by its use of “bold chipotle spices.” Chipotle said in its complaint that it sent Sweetgreen a cease and desist notice and asked the company to drop “chipotle” from the name when it heard about the Chipotle Chicken Burrito Bowl, but Sweetgreen never responded. (Sweetgreen told CNBC on Wednesday the company responded to the cease and desist on Tuesday, after the lawsuit was filed.)
Chipotle’s lawsuit also claims that Sweetgreen advertisements for the menu item feature “Chipotle” in a font similar to the burrito chain’s stylized logo and sometimes use a shade of red similar to Chipotle’s trademarked Adobo Red. Sweetgreen’s website features the product name larger than any other identifying feature that ties it back to Sweetgreen, Chipotle argues in the complaint.
The complaint also notes multiple times that Chipotle and Sweetgreen are both competitors in the fast-casual sector.
In addition to asking the court for an injunction against Sweetgreen, Chipotle is also asking for the profits that Sweetgreen earns from the Chipotle Chicken Burrito Bowl.
“We don’t typically comment on litigation, but we will say generally that we’re committed to protecting our valuable trademarks and intellectual property,” Laurie Schalow, Chipotle chief corporate affairs officer, said in a statement to CNBC. “Consistent with that, we will take appropriate actions whenever necessary to protect our rights and our brand.”

A representative for Sweetgreen said the company is aware that Chipotle filed the lawsuit but declined to comment on pending litigation.
As Sweetgreen investors fret over the chain’s ability to become profitable, shares of the company have fallen 19% in 2023, dragging its market value down to $768 million.
Chipotle, on the other hand, has seen strong sales despite macroeconomic concerns. Its stock has climbed 22% in the same period, giving the fast-casual giant a market value of $46.8 billion. More

Jeep is updating its flagship Wrangler SUV with more capability, technology and features.
The Ford Bronco has been gaining momentum with off-road buyers.
A key differentiator attracting new customers to the Wrangler is a plug-in hybrid electric version, or PHEV, that the brand calls “4xe.”

2024 Jeep Wrangler Rubicon X 4xe

Jeep is updating its flagship Wrangler SUV with more capability, technology and features as it battles for off-road buyers against Ford’s newer Bronco.
The 2024 Jeep Wrangler features an evolutionary exterior design, which is typical for the quintessential SUV, and a redesigned interior that includes additional safety, convenience and tech features such as a 12.3-inch center control screen.

“Today, we are raising the bar once again by combining the most capable Wrangler to date, with more technology, comfort and safety features,” Jeep CEO Christian Meunier, said in a release pegged to the vehicle’s reveal Wednesday at the New York International Auto Show.
In addition to the interior upgrades, the 2024 Wrangler will offer additional off-road features such as larger tires and an 8,000-pound-capacity warn winch. It also adds many additional safety features and new roof options similar to what Ford’s Bronco has offered since it arrived to market in 2021.

2024 Jeep Wrangler Rubicon 392 (left) and Wrangler Rubicon X 4xe

Jeep, specifically with the Wrangler, has long dominated the off-road SUV segment. Many competitors from General Motors, Ford Motor and others have come and gone, but the Wrangler has remained the industry leader.
However, the Ford Bronco has been gaining momentum — following some launch and supply chain problems. Ford sold 117,057 Broncos last year. That compares with 181,409 Jeep Wranglers sold. The sales gap between the two significantly narrowed during the first quarter of this year, however, to fewer than 2,000 vehicles.
A key differentiator attracting new customers to the Wrangler is a plug-in hybrid electric version, or PHEV, that the brand calls “4xe,” a play on the brand’s “4×4” off-road reputation combined with electrification.

2024 Jeep Wrangler interior

The Wrangler 4xe has been the bestselling PHEV in the U.S. for the past two years, according to the company. The automaker hopes to further expand those sales buy offering 4xe on a lower-priced model called the Wrangler Sport S.
“I think we shocked the world a little bit with Wrangler being the No. 1 selling plug-in hybrid now two years in a row,” Jim Morrison, head of Jeep in North America, said during a media event ahead of the SUV’s reveal. “For us, I’m pretty sure that competition didn’t see that coming. But it’s a really good Jeep, and it’s electrified.”
The 2024 Jeep Wrangler will be available in Sport, Willys, Sahara, High Altitude, Rubicon and Rubicon 392 models. Ordering is open now, and vehicles will start to arrive in U.S. Jeep dealerships later in 2023, the company said.
A Jeep spokesman said pricing for the 2024 Wrangler will be announced closer to the vehicle’s launch. Current Wrangler starting prices range from about $31,000 for an entry-level model to more than $82,000 for a V-8-powered Rubicon 392 model.
Jeep is an important part of parent company Stellantis’ electrification plans, which include offering an “electrification” option on the entire lineup by the end of 2025. The company is targeting that 50% of Jeep sales will be all-electric in the U.S. — and 100% in Europe — by 2030.
Stellantis is investing more than 30 billion euros ($32.7 billion) through 2025 in electrification and software to hit the company’s target to sell 5 million all-electric vehicles by 2030, including all passenger car sales in Europe and 50% passenger cars and light-duty trucks in the U.S.

2024 Jeep Wrangler Willys More