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Global Industry News

American Airlines removed from S&P 500 due to market valuation

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American Airlines will be removed from the S&P 500 index before market open on Monday, September 23rd. The airline will be reassigned to the S&P MidCap 400.

This change reflects the market's valuation of the company rather than an assessment by S&P. American Airlines currently has a market capitalization of approximately $7 billion.

In comparison, United Airlines, which faced similar bankruptcy risks during the pandemic and has made significant new aircraft commitments, holds a market cap of $15 billion. Delta Air Lines stands at $27 billion, while Alaska Airlines is valued at nearly $5 billion.

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The previous CEO had publicly predicted that shares would reach $60; however, shares now hover around $10, close to their lows from the start of the pandemic. This is despite receiving substantial government subsidies and a recovery in travel demand.

American Airlines attributes its underperformance to its decision to move away from managed travel and penalize travel agencies, estimating this strategy costs them about $1.5 billion in annual revenue. However, with nearly $53 billion in revenue last year, this explanation does not fully account for their challenges in absolute or relative terms. The architect of this strategy was dismissed but appears to have been used as a scapegoat.

Critics argue that American Airlines suffers from a lack of leadership and insufficient focus on product improvement. The company's board has tolerated these issues without implementing significant changes.

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Lufthansa appoints Felipe Bonifatti as VP for Asia Pacific

Lufthansa Group has announced the appointment of Felipe Bonifatti as Vice President Asia Pacific & Joint Ventures East. Based in Singapore, Bonifatti will oversee all commercial activities, including Joint Venture sales, in the Asia Pacific region starting November 1, 2024.

Sep 26, 2024

UNI Property Services outlines strategic plan at global conference

Union leaders from over 30 countries gathered in Galway this week for the UNI Property Services Global Conference. The conference focused on building union power in the cleaning and security sectors, with delegates voting on strategic initiatives to address low wages, job insecurity, and unsafe working conditions. These initiatives will guide the sector's actions for the next four years.

Sep 26, 2024

Air France introduces free ultra-high-speed Wi-Fi across all aircraft starting in 2025

Air France is set to enhance its onboard Wi-Fi service, marking a significant move towards providing an upgraded travel experience. Starting in 2025, the airline will gradually introduce ultra-high-speed connectivity for passengers, aiming to offer a "ground-like" internet experience. This new service will be free of charge across all travel cabins and accessible by logging into a Flying Blue account. The rollout will eventually cover all Air France aircraft, replacing the current Wi-Fi offering.

Sep 26, 2024

Air France highlights new routes partnerships at IFTM Top Resa trade fair

After a summer marked by the excitement of the Paris 2024 Olympic and Paralympic Games, Air France teams attended the IFTM Top Resa trade fair for three days filled with announcements, conferences, and meetings with tourism professionals.

Sep 24, 2024

Michigan security guards vote against mandatory union dues

A group of Michigan security guards employed by Triple Canopy, Inc. has voted to remove the power of United Government Security Officers of America (UGSOA) union officials to mandate union dues as a condition of employment. The vote, known as a "deauthorization" election, took place by mail in April and May, but the National Labor Relations Board (NLRB) only recently released the full vote count.

Sep 23, 2024

Marriott employees request labor board vote on UNITE-HERE Local 2 removal

Employees at the San Francisco Airport Marriott Waterfront Hotel have initiated a process to remove UNITE-HERE Local 2 union officials from their workplace. Erika Chavez, a hotel employee, has submitted a petition for this purpose to the National Labor Relations Board (NLRB) Region 20 in San Francisco. Chavez received free legal aid from the National Right to Work Legal Defense Foundation.

Sep 23, 2024

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