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| Here's your daily business briefing. - ✈️ Airlines trim flight times to save millions
- 🦃 Deep Dive: 46 Million Turkeys added to chilled cargo due to Thanksgiving.
- 🍎 Apple bounty triggers price plunge
Make sure to continue reading the Quarterly Earnings Report and the Quick Hits. Thank you! Shriram
p/Shriram | |
| 1 | | Airlines are adopting technologies like Smart Gating to reduce flight turnaround times, enhance efficiency, and cut costs. American Airlines' implementation of Smart Gating at Dallas/Fort Worth International Airport saved an average of two minutes of taxi time per flight, resulting in around 11 hours saved daily, and the technology has expanded to other airports. More: - American Airlines ranked third among major U.S. carriers for on-time arrivals in the first eight months of the year, with 76.4% of its flights arriving within 15 minutes of their planned arrival times.
- At crucial U.S. airports, the new gating program from American Airlines is expected to save 1.4 million gallons of fuel annually, or almost $4M.
- United Airlines has implemented a new economy-class boarding procedure to save up to two minutes per flight.
- Frontier Airlines is considering utilizing stairs directly onto and off the plane for approximately one-third of its flights within two years to expedite boarding and deplaning, potentially saving up to 10 minutes off the turn time.
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What the numbers say: Since 2018, the value of turkey production in the U.S. has nearly doubled. The Thanksgiving turkey demand stresses U.S. refrigerated freight, with a 12.8% increase in rejection rates in Indiana, reflecting trucking capacity shortages, as 46 million turkeys require about 29,000 truckloads. Relevance: The Thanksgiving season underscores the logistical hurdles of managing a substantial, anticipated surge in demand within the cold chain. The U.S. trucking sector, dealing with financial strains and the closure of companies like Convoy Inc. and Yellow Corp., grapples with increased demand for reefer capacity during seasonal peaks, emphasizing the critical need to maintain the integrity of the cold chain. More data: Throughout 2023, the U.S. trucking industry faced excess capacity and lower demand challenges. Consolidation in reefer capacity, crucial for transporting perishable goods and pharmaceuticals, involved private equity companies acquiring cold storage firms. | | | |
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| 3 | | Apple prices declined significantly by 7.9% from September to October, in contrast to increases in flour (0.9%), butter (2.1%), and sugar (1.6%) prices during the same period. The drop in apple prices is attributed to favorable growing conditions in the U.S., including moderate temperatures and moist soil in the spring, leading to a bountiful harvest and an anticipated 1.5% overall increase in U.S. apple production compared to the previous season, as predicted by the U.S. Apple Association. More: - Petrol prices are low, encouraging more competition in the home market and making shipping apples across states more economical.
- The removal of tariffs on U.S. apples by India has altered international trade dynamics, posing challenges for the U.S. to reclaim market share in the export sector.
- The conflict in Ukraine has reshaped global apple market dynamics, rerouting European apples away from conventional markets and impacting U.S. and Washington apple exports.
- The abundant apple harvest brings relief for farmers, but the resultant lower prices pose challenges, with some selling apples at or below the cost of production, placing financial strain on the industry.
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| 4 | | Streaming TV platforms leverage Black Friday promotions to attract viewers without permanently lowering subscription prices, and companies are actively promoting their new ad-supported plans. Despite this, major media companies like Disney, Warner Bros. Discovery, Comcast, and Paramount Global have raised prices for their streaming services in 2023. More: - Until Nov. 28, Walt Disney Co. is offering a one-year subscription to the ad-supported Hulu for $1 per month (down from last year's $2), and new customers can bundle Disney+ with commercials for an extra $2 (usually $10 per month or $16 individually).
- With over half of new Disney+ customers choosing the ad-supported option in October, this year's focus is on advertising-supported plans.
- Starz is a service that Lions Gate Entertainment Corp. offers for $1 a month for a six-month subscription.
- Streamers acquired 1.4 million new subscribers using Amazon's channels store in Nov. 2022.
- Netflix offers merchandising bargains on things related to its original programs, but it is not participating in Black Friday discounts.
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| 6 | | HP Inc. reported quarterly sales of $13.8B, reflecting a 6.5% decline from the previous year, slightly below analysts' predictions. Business computer sales dropped 11% to $6.21B, falling short of expectations, with the decline attributed to a slow recovery in the personal computer market affected by reduced demand in the post-pandemic period. More: - HP expects a profit per share for the current period ending in January of $0.76 to $0.86 (excluding certain items), less than analysts' average forecast of $0.85.
- The company is sticking to its $3.25 to $3.65 per share full-year profit projection, but given the first quarter's lower-than-expected outlook, it might take some improvement in the second half of 2024 to reach these goals.
- Enrique Lores, the CEO of HP, anticipates improvements in the future year, pointing to a stabilization in corporate demand and a rise in consumer spending around the holidays.
- HP predicts that the PC industry will return, and Lores believes that in 2024, businesses and consumers will choose higher-end machines, which will raise average sale prices.
- While sales from printing units were $4.4B, meeting projections, consumer PC revenue fell by 1% to roughly $3.19B in the fiscal fourth quarter.
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| 7 | | Quick Hits: - Raising capital? Fundingstack gives you fundraising super powers. Access a DB of 200k investors + CRM, pitch hosting, investor updates, and more. Sign up here to get priority access.*
- Former Obama and Clinton official, economist Larry Summers, is joining the new OpenAI board alongside reinstated CEO Sam Altman, who returned just days after being ousted by the previous board.
- Xiaomi records its first sales increase since 2021, surpassing revenue and net income estimates, as the electronics manufacturer expands its presence into electric vehicles.
- Italy passed a law prohibiting the production and sale of lab-grown meat, aiming to safeguard its culinary heritage, posing challenges for the emerging sector in terms of approval and scaling up.
- Burberry shares fell 9% as the company reported a sharp slowdown in comparable store sales growth to 1% from the previous quarter's 18%, attributing the decline to waning momentum in China.
- Experience exciting new stories of innovation from prominent brands like LEGO, Ben and Jerry's, Delta, and VMware on Season 2 of Adobe's The Power of Teamwork podcast.*
*This is sponsored content. | | | |
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Term of the Day Long (position): A long position involves the purchase of a security from another party believing it will appreciate in value. Question of the Week What perks would convince you to return to the office? Join the conversation |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Vibha Chapparike | |
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