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    American Airlines lifts profit view on higher pricing, sales strategy correction

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    In its attempt to improve margins, the airline had cut perks and discounts tied to its contracts with corporate travel agencies and clients. But the strategy backfired, giving its peers an advantage. Since then, American has taken several steps to win back corporate clients. In the third quarter, it renegotiated contracts with travel agencies, while many of its corporate customers reintroduced its benefits program to their business travelers.”We have taken aggressive action to reset our sales and distribution strategy and reengage the business travel community, which we’re confident will improve our revenue performance over time,” CEO Robert Isom said. American’s pricing power has also improved as the airline industry cut down excess capacity in the domestic market. It had led many carriers to offer seats at a discount to fill their planes during the summer season, denting their earnings.The company expects an adjusted earnings per share of $1.35 to $1.60, compared with its prior forecast of 70 cents to $1.30.But shares of the company slipped 1.8% before the bell as it forecast total revenue per available seat mile (RASM), a proxy for pricing power, to be down about 1% to 3% for the fourth quarter.It also anticipates unit costs in the quarter to rise by about 4% to 6%.”Q4’s RASM guide was a little bit light, and unit costs growth a little higher than expected, ” Citi analyst Stephen Trent wrote in a note.The airline’s adjusted profit of 30 cents per share exceeded expectations of 16 cents, according to data compiled by LSEG, while total operating revenue rose 1.2% to $13.65 billion, above estimates of $13.49 billion. More

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    Brazil inflation picks up in mid-October with higher electricity costs

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    Prices as measured by the IPCA-15 index rose 0.54% in the month to mid-October, up from 0.13% in the previous month, government statistics agency IBGE said on Thursday. Economists polled by Reuters were expecting a 0.50% rise.In the 12 months to mid-October, inflation stood at 4.47%, up from the 4.12% seen the month before and above the 4.43% forecast by economists.The main impact on inflation in the month to mid-October came from residential electricity prices, which rose 5.29%.Food prices also picked up, with a 0.87% increase on a monthly basis.Electricity costs had already pushed inflation higher in Brazil in September amid a major drought, reinforcing expectations of further interest rate hikes by the country’s central bank.The monetary authority’s rate-setting committee, known as Copom, kicked off an interest rate-hiking cycle last month with a 25 basis point increase and signaled more tightening ahead.”With comments from BCB (Banco Central do Brasil) policymakers warning about strong services inflation and unanchored inflation expectations, a step up in the pace of rate hikes from 25 bp to 50 bp is looking increasingly likely,” said Kimberley Sperrfechter, emerging markets economist at Capital Economics. More

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    Harry Potter publisher Bloomsbury tracks ahead of FY24-25 expectations on fantasy-fiction demand

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    The publisher, best known for picking up J.K. Rowling’s Harry Potter series in 1997, has managed to attract a broader readership with “A Court of Thorns and Roses” or ACOTAR series author Sarah J. Maas’s fantasy-fiction novels.The genre is gaining popularity among teenagers and adults alike through word-of-the-mouth recommendations on social media, including TikTok and Instagram.The company reported revenues of 179.8 million pounds ($232.4 million), compared to the 136.7 million pounds it reported last year.It expects to report revenues of 319.3 million pounds and pre-tax profit of 37.5 million pounds for the year ending Feb. 28, 2025.($1 = 0.7735 pounds) More

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    Boeing Union Workers Reject New Contract and Extend Strike

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    The vote, hours after Boeing reported a $6.1 billion loss, will extend a nearly six-week-long strike at factories where the company makes its best-selling commercial plane.Boeing’s largest union rejected a tentative labor contract on Wednesday by a wide margin, extending a damaging strike and adding to the mounting financial problems facing the company, which hours earlier had reported a $6.1 billion loss.The contract, the second that workers have voted down, was opposed by 64 percent of those voting, according to the union, the International Association of Machinists and Aerospace Workers. The union represents about 33,000 workers, but it did not disclose how many voted on Wednesday.“There’s much more work to do. We will push to get back to the table, we will push for the members’ demands as quickly as we can,” said Jon Holden, president of District 751 of the union, which represents the vast majority of the workers and has led in the talks. He delivered that message at the union’s Seattle headquarters to a room of members chanting, “Fight, fight.”Jon Holden, president of the union’s District 751, announcing the vote results on Wednesday in Seattle: “We will push to get back to the table.”M. Scott Brauer for The New York TimesBoeing declined to comment on the vote, which was a setback for the company’s new chief executive, Kelly Ortberg, who is trying to restore its reputation and business with a strategy he described in detail earlier on Wednesday. In remarks to workers and investors, Mr. Ortberg said Boeing needed to undergo “fundamental culture change” to stabilize the business and to improve execution.“Our leaders, from me on down, need to be closely integrated with our business and the people who are doing the design and production of our products,” he said. “We need to be on the factory floors, in the back shops and in our engineering labs. We need to know what’s going on, not only with our products, but with our people.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More