Latest news with #domestic market
Reuters
6 days ago
- Business
- Reuters
Southwest Airlines misses Q2 profit estimates as US travel demand wavers
July 23 (Reuters) - Southwest Airlines (LUV.N), opens new tab posted second-quarter profits that missed Wall Street estimates on Wednesday, hurt by weak travel demand in the domestic market. Lingering uncertainty about the broader economy and rising living costs in the aftermath of President Donald Trump's trade war have taken a toll on carriers that primarily service the U.S. domestic market and price-sensitive customers. To stimulate demand, they have been leaning on fare discounts. Southwest's shares were down 2% after the bell. The company said it expects $600 million-$800 million in earnings before interest and taxes this year, less than half its previous forecast of $1.7 billion. Still, Southwest said domestic leisure travel demand has stabilized and is showing signs of improvement. Southwest said its unit revenue, or revenue generated from each seat, in the current quarter is expected to be in the range of down 2% to up 2% from a year ago. In April, several major U.S. carriers scrapped their financial forecasts, citing uncertainty linked to President Donald Trump's broad tariff measures and government spending cuts, which pressured consumers to scale back travel plans. Since then, airline executives and analysts have signaled that demand trends and the broader travel environment are showing signs of steadiness. Even so, the domestic market remains under pressure, with cost-conscious travelers remaining cautious as household budgets tighten. Summer, typically the peak money-making season for airlines, is falling short this year as sluggish demand for standard economy seats forces carriers to cut fares, undermining their pricing power. Delta Air Lines (DAL.N), opens new tab and United Airlines (UAL.O), opens new tab have seen strong revenue gains from premium cabins, buoyed by affluent travelers willing to pay for upgrades. By contrast, low-fare carriers such as Southwest are under pressure to maintain profitability as price-sensitive travelers remain cautious with discretionary spending. Southwest reported an adjusted profit per share of 43 cents, compared with analysts' average expectations of 51 cents, according to data compiled by LSEG. It reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier.
Bloomberg
18-07-2025
- Business
- Bloomberg
CIBC Overtakes Scotiabank in Market Value After Stock's 47% Run
Canadian Imperial Bank of Commerce has inched past Bank of Nova Scotia in market capitalization to become Canada's fourth-most valuable bank, as investor sentiment shifts in favor of lenders with more exposure to the domestic market. CIBC has been the top-performing major Canadian bank over the past year, with its shares soaring 47%, giving it a market value of C$94.6 billion ($68.9 billion) as of Friday's close. It hadn't outranked Scotiabank since the early 2000s, until this month.
South China Morning Post
10-07-2025
- Business
- South China Morning Post
A Chinese economy focused on home market can be just as powerful
China's economy has proved to be resilient, but the threats of deflation, a softening labour market and weak consumer demand remain. In this context, President Xi Jinping held a high-powered meeting to elevate consumption and an integrated domestic market as the main focus of policymakers. Against a volatile global economic environment and an ongoing trade and tech war with the US, it is imperative that Beijing moves quickly to fortify the domestic economy by enhancing its strengths and eliminating weaknesses. The meeting at the powerful Central Financial and Economic Affairs Commission calls for a 'unified national market'. Multiple concerns need to be addressed, such as self-defeating cutthroat competition, which has driven out businesses, and persistently depressed consumer prices. But it's not just businesses undercutting one another; provinces often penalise each other's goods and services. Local officials must understand that doing business across each other's boundaries enhances commerce and is a win-win. A blueprint is now in force to promote what has been called a less 'regionalised state of affairs' for the exchange of goods and services. Businesses have long complained about unpredictable changes in regulation and enforcement. They have been reassured by the passage of the first law on the protection of the private economy . Regulatory reforms need to be made with the adaptability and survivability of private companies and sectors in mind. Meanwhile, party discipline has been severe enough to deter officials from spending much in public, lest they be accused of corruption. But if they are using their own money and not spending ostentatiously, it's good for the local economy and must be welcomed. Boosting consumer demand is now a top policymaking priority. The good news is Beijing's push is starting to bear fruit. Long-suppressed Chinese consumers are showing their power.
