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Air Transport Services Group said Amazon will be flying less in response to a worsening economic outlook.
ATSG operates a significant portion of Amazon’s air freight network.
Demand for air cargo has cooled recently after increasingly rapidly during the Covid pandemic.

An Amazon-branded Boeing 767 freighter, nicknamed Amazon One, flies over Lake Washington during the Seattle Seafair Air Show on Aug. 5, 2016 in Seattle.
Getty Images

One of Amazon’s key air cargo operators said Monday that the e-commerce giant is scaling back on flights this year, citing lower demand and slower economic growth.
Air Transport Services Group, which runs a significant portion of Amazon’s air cargo fleet, said it expects to operate Boeing 767 freighters dedicated to servicing Amazon and DHL at reduced schedules and less flight time per aircraft.

“Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023,” ATSG said.
Air cargo rates, which surged in recent years due to port congestion and high demand for fast deliveries, have slumped. The Baltic Air Freight Index was down more than 33% on Jan. 30 from a year earlier. The International Air Transport Association said last month that air cargo demand in November was down nearly 14% from the year-ago period, while capacity fell 1.9%.
Meanwhile, passenger airlines have said travel demand has held up as consumers prioritize trips and other experiences.
But coming off Amazon’s weakest year for growth in its quarter century as a public company, CEO Andy Jassy has taken steps to curtail expenses. That includes cutting more than 18,000 jobs, pausing warehouse expansion and shuttering some projects.
Amazon built out its fulfillment and logistics network at a frenzied pace during the Covid pandemic, as demand for e-commerce surged. Since then, rising inflation and a slowdown in consumer spending has forced Amazon to downsize. The company has weighed selling excess space on its cargo planes to other airlines, Bloomberg reported last December.

ATSG said Monday that Amazon may not extend its leases on five Boeing 767-200 freighters, which are due to expire between May and September. Amazon opted to continue leasing four 767-200s into 2024, it added.
Shares in ATSG slumped 9% in afternoon trading. Amazon’s stock fell about 1%. Representatives from both companies didn’t immediately respond to a request for comment.
Amazon in October hired Hawaiian Airlines to fly large, rented Airbus cargo jets, and said it would retire some older planes.
Through Amazon Air, the company has built up a burgeoning air network to control more aspects of the delivery process and ensure faster delivery. It invested in ATSG and Atlas Air Worldwide Holdings, though Atlas agreed last year to be taken private by an investor group. Amazon also contracted with passenger airline Sun Country to provide crews and planes to fly packages. The e-retailer typically leases freighters from its air contractors, but it has also purchased used jets from Delta and WestJet.
In addition to Amazon and DHL reducing their air cargo schedules, delivery giant FedEx has also announced cost-cuts that include parking planes and cutting some corporate jobs.
WATCH: How the pandemic shifted how Boeing and airlines think about air cargo

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More than 56% of all domestic tickets sold for Disney’s “Avatar: The Way of Water” have been for 3D screenings.
The James Cameron film is just shy of becoming the third-highest grossing film of all time.
In 2022, 3D showings accounted for 7.7% of all ticket sales. Removing “The Way of Water,” these tickets were only 3.7% of total sales.

Avatar: The Way of Water
Courtesy: Disney Co. 

As Disney and James Cameron’s “Avatar: The Way of Water” climbs its way up the box office ladder — as of Monday, it was just shy of becoming the third-highest grossing film of all time — movie theater analysts are spotting an important trend in ticket sales.
While moviegoers have been gravitating towards premium cinema experiences in the wake of the pandemic, “The Way of Water” has easily outpaced the competition. Released in mid-December, the movie has drawn significantly more patrons to higher-priced showings on its way to more than $2 billion globally. Only this past weekend did it give up the no. 1 spot at the domestic weekend box office.

When people go to the movies they have several choices for how to watch a movie. Film formats include traditional 2D viewing, 3D shows and 70 millimeter movies, said Steve Buck of movie data firm EntTelligence. Auditorium formats are digital, often called standard, and then premium, which includes screens like IMAX, Dolby Cinema and ScreenX.
Throughout its run, “The Way of Water” has generated nearly 30% of its domestic ticket sales from premium format showings, averaging $17.80 per ticket, according to data from EntTelligence. For comparison, all other movies released in 2022 — not including “The Way of Water” — saw less than 14% of ticket sales from premium showings, averaging $15.76 a ticket.
Bolstering box office numbers for the film is the push from Disney and Cameron for 3D showings. This format, which can be found at standard theaters and in premium auditoriums, also carries a higher price tag. Since its release, the “Avatar” sequel has seen more than 56% of its tickets sold for 3D showings. These tickets averaged $16.30 a piece, while traditional 2D tickets sold for around $12.12 each.
In 2022, 3D showings accounted for 7.7% of all ticket sales. Removing “The Way of Water,” these tickets were only 3.7% of total sales.
The original 2009 “Avatar,” which is the top grossing film of all time, also did well with 3D and premium tickets. According to Variety, 80% of its haul came from those formats and auditoriums.

“The very essence of the film’s appeal is inextricably linked to the manner in which it is viewed by the audience and perhaps more than any other film series in history has 3D baked into its cinematic DNA,” said Paul Dergarabedian, senior media analyst at Comscore. 
To be sure, “The Way of Water” has not reached its historic box office just because of surcharges for 3D and premium format screenings. While some questioned the franchise’s cultural relevance after more than a decade between films, the sequel has lured in moviegoers across the demographic spectrum.

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IMAX stock performance

The film has skewed toward male audiences between 18 and 34 years old, but “The Way of Water” has also brought in a significant number of older moviegoers, who, up until recently, had been reticent to return to cinemas.
“When I saw ‘Avatar,’ the new one, I had to see that one in 3D,” said Jorge Rodriguez, a 23-year-old film school graduate living in Miami. Rodriguez sees between two and four films a month, rarely opting for premium showings unless a movie demands it, as was the case for “The Way of Water.”
While “The Way of Water” has generated significant interest for 3D screenings, box office analysts don’t expect the format will experience the same wave of prominence as was seen in 2009 when the first film was released. There was a small window in the wake of “Avatar’s” release where studios marketed 3D heavily and audiences came out in droves for those features. However, that interest has waned in the last decade.
Premium formats, on the other hand, are expected to continue to draw moviegoers. Movie theater operators are investing heavily in upgrades to seating, projectors and sound systems. Many are removing traditional digital projectors and installing laser units, citing cost savings over time and a better picture quality for moviegoers.
One operator told CNBC that traditional digital bulbs need to be replaced after around 2,000 hours and produces so much heat, that theaters have to pay more to air-condition the rooms that these projectors are housed. Laser components last for 20,000 hours, meaning they can go years without being replaced. While there is a higher upfront cost for theaters to install these new projectors, it provides a crisper picture and less maintenance over time.
In the wake of the pandemic, moviegoers have become even more discerning about which films they will leave the house to see in theaters and how they want to view those films. In improving the baseline for these experiences, cinema owners hope to lure consumers back more frequently and persuade them to upgrade to premium screenings.
This can most recently be seen from AMC, which on Monday announced a new ticket pricing scale based on seat locations in its auditoriums. Dubbed Sightline, this new program allows customers to pay less, or more, for a movie ticket based on where they choose to sit.
Avid moviegoer Rodriguez said he is very price conscious when it comes to buying tickets, often only choosing to pay for premium showings for big blockbusters or horror films.
“I love the comfy seats, but mostly I go for the sound,” he said. “I really like the sound in theaters as opposed to the house.”

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The FAA alleged United removed a fire-system warning check from its Boeing 777 checklist.
The agency said the carrier operated more than 100,000 flights that didn’t meet airworthiness requirements.
United has 30 days to respond to the FAA’s enforcement letter.

United Airlines Boeing wide body 777-200 aircraft as seen during take off and flying phase, passing in front of the air traffic control tower while the plane is departing from Amsterdam Schiphol Airport AMS towards Houston IAH in the United States of America as flight UA21. 
Nicolas Economou | Nurphoto | Getty Images

The Federal Aviation Administration said Monday it is proposing a more than $1.1 million penalty against United Airlines for allegedly failing to perform required fire system safety checks on its Boeing 777s.
The FAA alleged that in 2018 United removed a fire system warning check from a preflight checklist and operated 102,488 Boeing 777 flights from June 2018 to April 2021 without making sure they were in an airworthy condition “properly maintained for operation,” according to a letter from the FAA on Monday to United’s CEO, Scott Kirby. CNBC viewed the letter.

“The safety of our flights was never in question,” United said in a statement. 
The carrier said that it changed its preflight checklist in 2018 “to account for redundant built-in checks performed automatically by the 777” and said that was reviewed and approved by the FAA at the time.
“In 2021, the FAA informed United that United’s maintenance program called for the pre-flight check by pilots,” the airline said in a statement. “Once confirmed, United immediately updated its procedures.”
United said it will review the proposed fine.
“The inspection is required in the maintenance specifications manual. Removal of the check resulted in United’s failure to perform the required check and the operation of aircraft that did not meet airworthiness requirement,” the FAA said in a statement. 
United had 96 Boeing 777s as of the end of 2021, making up about 11% of its total fleet, according to a securities filing.

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Cava, the Mediterranean restaurant chain modeled after Chipotle, has confidentially filed for an IPO.
In 2018, Cava bought Zoes Kitchen and is converting those locations into its own fast-casual restaurants, expanding its footprint.
Cava also sells its dips and spreads, like spicy hummus, tzatziki and tahini dressing, at Whole Foods and other grocery stores.

A logo outside of a Cava restaurant location in Chantilly, Virginia.
Kristoffer Tripplaar | Sipa USA | AP

Mediterranean chain Cava announced Monday it has confidentially filed for an initial public offering.
It’s the first restaurant company so far this year to take the first step toward a public market debut, following a drought of IPOs in 2022.

Cava Group was founded in 2006 and opened its first fast-casual location in 2011, modeling its build-your-own Mediterranean meals after the formula made popular by Chipotle Mexican Grill. In 2018, it bought Zoes Kitchen for $300 million, taking the chain private. The company is converting Zoes locations into new Cava restaurants, expanding its footprint.
Cava also sells its dips and spreads, like spicy hummus, tzatziki and tahini dressing, at Whole Foods and other grocery stores.
The company raised $230 million in April 2021 at a valuation of $1.71 billion, according to Pitchbook data.
Cava said Monday the offering is subject to market conditions and other factors. Last year, the war in Ukraine, soaring inflation and recession fears caused many companies to scrap their plans to go public. Among those was Panera Bread, which was founded by Cava investor and Chairman Ron Shaich.
Investors have had mixed reactions to fast-casual restaurant chains over the last year. Chipotle’s stock has risen 13% as price hikes have fueled sales growth, but salad chain Sweetgreen has seen its shares lose more than half their value over concerns about its path to profitability.
Cava CEO Brett Schulman told CNBC in 2019 that the company was profitable at that time, which could make the offering more attractive to potential shareholders.

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Cuba is battling an investment fund over millions of dollars in defaulted sovereign debt that dates back to when Fidel Castro ran the communist island nation.
The UK judge in the case will likely take months to make her decision in the case.
The trial, which wrapped up last week, featured chaotic protests and accusations of corruption.

Fidel Castro observes the May Day parade at the Revolution Square in Havana, Cuba May 1, 1998.
Sven Creutzmann | Mambo Photography | Getty Images

Can the Cuban government be sued for unpaid debts from the early 1980s – debts so old they are denominated in a currency that no longer exists?
That’s the question before a judge at the UK High Court after a seven-day trial marked by chaotic protests, a bribery accusation and remote testimony from an imprisoned Cuban banker.

The trial ended last week, but it could be months before the judge, Sara Cockerill, renders judgement in the case of CRF vs Banco Nacional de Cuba & Cuba. Her decision is central to whether Cuba may finally be forced to pay back billions of dollars in unpaid debts.
The trial is seen as a test case. CRF1, formerly known as the Cuba Recovery Fund, owns more than $1 billion in face value of European bank loans extended to Cuba in the late 1970s and early 1980s, when Fidel Castro still ruled the island. Cuba defaulted on the debt in 1986.
CRF1, which began accumulating the position in 2009, is suing Cuba and its former central bank over only two of the loans they own for more than $70 million dollars. If CRF wins on this small slice of Cuba’s total outstanding commercial debt, which is estimated at $7 billion, it could lead to further lawsuits from other debt holders, with claims against Cuba rising into the billions.
While the most dramatic testimony has focused on an accusation of bribery, much of the trial has focused on the arcana of Cuban and English law.
Were there enough signatures from Cuban bank officials on the paperwork when the loans in question were “reassigned” or transferred to CRF?  Was the paperwork stamped with a dry-pressure seal or a wet-ink stamp and did they use the correct blue security paper? At one point the barrister for CRF cited a British property case regarding the lease of a fried fish shop.

The question before the judge is of whether the fund has the right to sue Cuba. Still, experts said she could issue a summary judgement in which she rules not only on jurisdiction but also on substance, meaning not just whether CRF can sue, but also whether Cuba must pay.
Throughout the trial, representatives of the fund have repeatedly stated that they did not want to sue Cuba but did so only as a “last resort” after the government ignored their requests to negotiate for 10 years.
“Even at this late date, in a case where we expect to prevail, CRF is willing to settle,” David Charters, chairman of CRF, said at the conclusion of the trial.
During testimony, CRF representatives said they made more than one offer to the Cuban government that would not drain the island’s current cash flow and would help improve its economy. They described offers of long-duration non-coupon bonds and debt for equity swaps, neither of which would force Cuba to come up with cash in the near term, or even the long term, depending on the deal.
The Cubans have argued that it was always CRF’s intention to sue and has described them as a vulture fund taking advantage of an impoverished country.
No matter how the judge rules, the Cuban government will still owe the money. And they will not be able to borrow on the international capital markets until they have settled all their past debts. Cuba hasn’t been able to borrow in the markets since 1986, when the country defaulted. Since then, Cuba has survived on the largesse of other countries such as the former Soviet Union and, more recently, Venezuela and China.
Cuba is not a member of the IMF or the World Bank, institutions that would typically be involved in helping an impoverished country restructure its debts and reemerge into the international financial system.
The Cuban government did not respond to requests for comment.

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The National Enquirer, the tabloid at the center of several controversies involving Donald Trump, will be sold.
The tabloid will be bought by a group that includes a company founded by Theodore Farnsworth, the indicted ex-chairman of MoviePass.
The sale also includes tabloid brands the Globe and the National Examiner.

In this photo illustration, celebrity gossip dominates the cover of a National Enquirer magazine on April 11, 2019 in Chicago, Illinois.
Scott Olson | Getty Images

The National Enquirer, the tabloid at the center of several scandals involving former President Donald Trump, will be sold to a joint venture involving Theodore Farnsworth, the former MoviePass chairman who has been criminally charged with securities fraud.
The Enquirer’s parent company, a360 Media, agreed to sell the publication – along with other tabloid brands the National Examiner, the Globe and the National Enquirer UK – to VVIP Ventures, a joint venture made up of Vinco Ventures and Icon Publishing, the companies said Monday. Vinco owns Lomotif, which it touts as a TikTok competitor.

“We look forward to integrating these publications into our business and continuing their legacy of success,” Vinco Executive Chairman Rod Vanderbilt said in a statement.
The deal’s price wasn’t disclosed, but Farnsworth, the founder of Icon Publishing, told The New York Times that it was a little under $100 million. The National Enquirer has been on the block for about four years.
Both sides of the transaction have checkered and controversial histories.
In November, prosecutors alleged that Farnsworth and others misled investors about MoviePass, the once-hot movie ticketing startup, by saying its “unlimited” plan would be sustainable and profitable. Rather, authorities said, the two men knew it was merely a marketing tactic. The Securities and Exchange Commission also accused Farnsworth of misdeeds. A spokesman for Farnsworth has said his lawyers would fight the charges until he’s vindicated.
The news of the deal also comes a week after former National Enquirer publisher David Pecker and his attorney were seen entering a Manhattan courthouse where a grand jury was meeting to determine whether to charge Trump over an alleged scheme to pay hush money to porn star Stormy Daniels ahead of the 2016 election.

Pecker was known to be friends with Trump. He has been accused of pulling “catch and kill” tactics on stories that were seen as potentially embarrassing to Trump. Meaning, the Enquirer under his watch would allegedly pay for stories about Trump and never publish them.
In 2018, for instance, federal prosecutors gave immunity to the National Enquirer’s parent company over the $150,000 hush-money payment the tabloid gave Karen McDougal, the Playboy model who claims she had an affair with Trump.
Yet while the Enquirer had occasionally played a key role in American politics over the past few years, given its link to Trump and how it broke the John Edwards affair story in 2008, the supermarket checkout line mainstay is a shadow of its former self. In 2020, The Washington Post reported that the Enquirer’s circulation had fallen 90% over the previous two decades.

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The organizing body of the top-level English men’s league said this included its rule that clubs must provide it with accurate financial information representing a “true and fair view of the club’s financial position,” particularly relating to revenue.
This was alleged to have been breached in each season from 2009-10 to 2017-18.

A general view of Etihad Stadium, home of Manchester City, on September 14, 2022 in Manchester, United Kingdom. The Premier League has referred the club to an enquiry over an alleged breach of financial rules.
Dave Howarth – Camerasport | Camerasport | Getty Images

LONDON — The English Premier League on Monday announced it has referred soccer club Manchester City to an independent commission over alleged breaches of its financial rules.
The organizing body of the top-level English men’s league said this included its rule that clubs must provide it with accurate financial information representing a “true and fair view of the club’s financial position,” particularly relating to revenue.

This was alleged to have been breached in each season from 2009-10 to 2017-18.
The Premier League also claimed the club had failed in its duty to provide full details of manager remuneration, during the 2009-10 to 2011-12 seasons, and on player remuneration, from the 2010-11 season to 2015-16 season.
It further alleged the club had failed to cooperate or assist with its investigations into the matter over the last four years; and had breached Union of European Football Associations (UEFA) Club Licensing and Financial Fair Play Regulations between 2013 and 2018.
A commission will be held in private, with members appointed by the chair of the Premier League Judicial Panel.
The club told the BBC in a statement: “Manchester City is surprised by the issuing of these alleged breaches of the Premier League Rules, particularly given the extensive engagement and vast amount of detailed materials that the [English Premier League] has been provided with.”

“The club welcomes the review of this matter by an independent commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position. As such we look forward to this matter being put to rest once and for all.”
Angus Buchanan, managing director of London-based group The Sports Consultancy, told CNBC the timing was unlikely a coincidence given the impending publication of a government review, due on Wednesday, covering the reform of football governance. The paper is expected to recommend an independent regulator to monitor club ownership and funding.
Manchester City is owned by Sheikh Mansour bin Zayed Al Nahyan through his Abu Dhabi-registered firm Newton Investment and Development LLC, the majority shareholder in holding company City Football Group.
In 2022, the club won the Premier League for the fourth time in the last five years.
A spokesperson for Manchester City was not immediately available for comment when contacted by CNBC.

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AFAD said the second quake took place at 1:32 p.m. local time at a 7km depth and had its epicenter in the Elbistan region of the Kahramanmaras province.
Earlier on Monday, roughly 1,300 lives were lost as a first powerful 7.8 magnitude earthquake rocked southeastern Turkey and northern Syria.

People search through rubble following an earthquake in Adana, Turkey February 6, 2023. 
Iha | Reuters

A second earthquake of 7.6 magnitude struck southern Turkey on Monday, within 12 hours of a first massive quake that already claimed hundreds of Turkish and Syrian lives, according to Turkey’s Disaster and Emergency Management Authority.
AFAD said the second quake took place at 1:32 p.m. local time at a 7km depth and had its epicenter in the Elbistan region of the Kahramanmaras province.

Earlier on Monday, roughly 1,300 lives were lost as a first powerful 7.8 magnitude earthquake rocked southeastern Turkey and northern Syria.
Turkish President Recep Tayyip Erdogan said the first earthquake killed 912 and wounded 5,385 people in Turkey alone, describing the event as the “biggest disaster” since the 1939 Erzincan earthquake, according to Turkish state-owned news agency Anadolu. Around 2,818 buildings were toppled, the head of state added.
Syria’s state news agency reported 371 deaths and 1,089 injured in the Aleppo, Hama, Latakia and Tartous regions, as a result of the first earthquake. It is thought that the Sana figures reflect casualties in government-held regions. The humanitarian White Helmets rescue service, which operates in Turkey and the opposition-controlled parts of Syria, had earlier estimated Syrian life losses near 221, with 419 injured.

People search through rubble following an earthquake in Diyarbakir, Turkey February 6, 2023.
Sertac Kayar | Reuters

The European Union said in a statement that it has mobilized 10 search and rescue teams in response to the tragedy: “10 Urban Search and Rescue teams have been quickly mobilised from Bulgaria, Croatia, Czechia, France, Greece, the Netherlands, Poland, and Romania to support the first responders on the ground,” it said.
“Italy and Hungary have offered their rescue teams to Türkiye as well. The EU’s Emergency Response Coordination Centre is in direct contact with the authorities in Türkiye to coordinate further support if needed.”

The EU said it is also ready to offer support to Syria through its humanitarian assistance programs. The EU Council in May 2022 extended its sanctions against President Bashar Assad’s regime for an additional year, stretching to June 2023, “in light of its continued repression of the civilian population in the country.”
Russian President Vladimir Putin has extended condolences and an offer of assistance to Ankara and Damascus, Moscow’s state news agency Tass reported.

People search through rubble following an earthquake in Diyarbakir, Turkey February 6, 2023.
Sertac Kayar | Reuters

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