American Airlines reveals what we all know about America’s labor shortage

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Monday November 1, 2021

It was a rough weekend for one airline and say weekend On the state of labor shortage in America.

American Airlines canceled about 14.3% of its flights on Sunday, according to data the company shared with Yahoo Finance, in large part due to its inability to find staff to carry out operations. Staffing problems were most acute in the flight attendant category. The data shows the airline has canceled a staggering 1,623 flights since Friday.

“We expect a significant improvement starting tomorrow with some impact remaining from the weekend,” an American Airlines spokesperson told Yahoo Finance via email.

The conclusion here is twofold.

First, if you’re traveling this holiday season, expect an even more horrific experience than the one you remember from the trip to Oregon in 2019. Grab a packet of beef bacon and a protein bar as soon as you get past the checkpoint because you can easily get stranded at the airport at any Moment. Airlines will face severe challenges trying to flex their workforce to meet the inevitable increase in travel after most of us don’t have a holiday season in 2020.

Second, for those on the street who say companies handle business challenges just fine (those challenges include paying higher wages materially and finding bodies to pay those higher wages materially) I say…

The labor shortage in America – and all the ugly aftershocks associated with it – is getting worse and underestimated earnings risk heading into 2022. And the labor shortage is hurting sales at businesses (restaurants can’t stay open if no one’s doing food) and margins. profit.

I mean look at this comment:

“Sure, it’s a very tough employment environment in the US, and a little less so in Europe, but it’s still a challenge in Europe. In the US for us, we’re seeing, as I mentioned a few calls ago, that there is wage inflation. Our franchisees are working to increase The wages there are at over 10% year-to-date wage inflation, which we see at McOpCo restaurants is up over 15% on wages, and that has some beneficial benefits, sure, the higher wages you get paid allows you to stay in the competition. We also see that this is just a huge challenge right now in the market to find the level of talent you need.So for us it’s some pressure on things like opening hours where we might call back later at night for example than we would normally. It also puts some pressure around service speed, where we fall back a little bit on service speed during the last, kind, year-to-date and we did that last quarter. And that’s also a function of not bei ng able to staff restaurants with full staff.” – McDonald’s CEO Chris Kempinski on the company’s earnings call

“We’ve seen some challenges in hiring in certain parts of the country, but I think from the results that we’ve been able to provide, it shows our ability to get through these challenges, whether it’s people, whether it’s any of the supply chain challenges or any of the pressures When you look at it, one of the things that we’ve done during this time, where we’ve looked at adjusting staffing levels and how we’re managing that, have we also taken action to adjust store hours and when I say we’ve really looked at the evening part and we’ve looked back on that from an hours perspective, and have This enabled us to redeploy employees to other stores where we needed them.” — Starbucks CEO Kevin Johnson, on the company’s earnings call (Starbucks had to raise wages recently).

“We clearly saw some pressure in the near term. Popeyes was more affected during the third quarter. We saw some of that late at night, which is a big part of our business for Popeyes in the US, and we also saw some of that in our distribution business in The Northeast, which affected our ability to launch some products in a timely manner in the Northeast, which had some hurdles to business. There is pressure. There are still challenges in the near term for employment ahead.” – CEO of Catering José Cel Yahoo Finance Live.

And on that note, prepare your travel bag and inventory while on vacation accordingly. Bring on Friday the October jobs report.

Possibilities and endings

Game over for one Amazon student: Seven months into a potentially nightmarish job as COO of GameStop, Jenna Owens is leaving A retailer that becomes a self-imposed tech player. Owens—a former senior executive at Amazon and Google—was one of the first to be stunned by GameStop president and main shareholder Ryan Cohen, of Chewy fame. The regulatory deposit No reason was given for Owens’ exit. GameStop did not return a request for comment. As I wrote, GameStop is a disaster with no clear path to its existence in 2031. The company’s lack of transparency with the media (analysts no longer cover GameStop) and the investors who backed its stock are not helping its transformation. Shares are down 47% from their 52-week high on Jan. 27.

For traders out there: Here are some of the names that include an interesting action (or potential upcoming triggers) that caught my eye this weekend. By the end of Friday’s session, eBay had regained most of its daily profits that had fallen from earlier in the week with very strong trading volumes. There is no evidence of who is applying to buy shares in this a company which sees users rejected but someone rejected it, and it’s a name to watch this week. Follow Harley Davidson News this weekend from U.S Armistice in steel tariff war between the United States and the European Union. These tariffs have really held back Harley-Davidson in terms of cost (while the top line still suffers from anemia due to People buy epidemic cars, not two-wheelers). Reducing the cost, however slight, should help Harley. Hotel stocks like Marriott, Hilton and Hyatt should be on your radar before what could be more upbeat commentary from executives at The main conference in New York City early next week. I liked what Royal Caribbean said about booking trends in its earnings call last week, and comments from hotel companies will likely resonate as the holiday season approaches. Airbnb’s earnings this week may also shed light on positive demand trends that are beginning to take hold. Jason Liberty, Royal Caribbean’s chief financial officer, and Christopher Nassetta, Hilton’s CEO, will appear on Yahoo Finance Live this morning.

Electric vehicle maker Polestar: I’ve spent this weekend touring the all-electric Polestar 2 trying to better understand the soon-to-be public company (Here’s my conversation with Alec Gores, SPAC sponsor, and CEO of Polestar Thomas Ingenlath). I’ll say this: Polestar 2 embarrassed the GM’s Chevy Bolt (Which I also test drive, but I consider Polestar 2 my first fact The electric car experience because Bolt’s overall experience was horrible.) Is Polestar 2 perfect? No, I think it needs more cup holders, for example. Is driving an electric car absent a headache? No, as I learned to drive around looking for charging stations and then invest two hours on a Sunday to go from a 66% fee to a 78% fee inside a Toyota parking lot. Did I miss the engine sound? Hell yeah. But overall, it was a solid experience that reminded me of the credible competition that comes directly at Tesla (the Tesla owner who parked near me in the Walmart parking lot said Polestar looked great) from Polestar, Ford, Volkswagen and yes, even GM. It also got me thinking that Polestar could succeed as a public company if it could achieve its production and financial goals.

Photo from Polestar 2 Road, next to a Ford 10 MPG pickup truck, in front of a Harley-Davidson dealer. Credit: Brian Suzy

Brian Suzy It is a comprehensive editor and Announcer at Yahoo Finance. Follow Suzy on Twitter Tweet embed and on LinkedIn.

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What are you watching today

Economie

  • 9:45 a.m. ET: Markit US Manufacturing PMI, October Final (predict 59.3, September 59.2)

  • 10:00 a.m. ET: building spending, Month by month, September (0.4% expected, 0.0% in August)

  • 10:00 a.m. ET: ISM Manufacturing Index, October (60.5 expected, 61.1 in September)

earnings

  • 4:00 p.m. Eastern time: Diamondback Energy (fang) Expected to post adjusted earnings of $2.79 per share on earnings of $1.54 billion.

  • 4:05 p.m. ET: Avis Budget Collection (the cars) Expected to report adjusted earnings of $7.24 per share on revenue of $2.73 billion.

  • 4:05 p.m. ET: Chegg Inc. (CHGG) Expected to report adjusted earnings of 19 cents per share on revenue of $174 million

  • 4:05 p.m. ET: ZoomInfo Technologies (day) Expected to report adjusted earnings of 12 cents per share on revenue of $183.47 million

  • 4:10 p.m. ET: Simon Real Estate Group (SPG) Expected to report adjusted earnings of $2.53 per share on revenue of $1.21 billion.

  • 4:15 p.m. ET: Clorox (CLX) Expected to report adjusted earnings of $1.03 per share on revenue of $1.70 billion.

Policy

  • World leaders part of United Nations Climate Change Conference (COP26) Starts in Glasgow with President Biden Join the rally today. Conference President It started on Sunday saying “Very frankly, we’re not where we need to be” in the effort.

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Editorial: The most ambitious climate action plan ever tried [Michael R. Bloomberg]

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