September 25, 2023, Qantas Airways Ltd ADR (OTC-QABSY) – The Qantas Group provides the following update to inform the market of a material increase to investment in customer improvements, continued strength in travel demand and the impact of elevated fuel prices.
CUSTOMER IMPROVEMENTS
The Group will invest a further $80 million in customer improvements across FY24 in addition to the $150 million previously budgeted, which will be funded from profits.
This additional investment is aimed at addressing a number of customer ‘pain points’ through improvements such as better contact centre resourcing and training, an increase in the number seats that can be redeemed with Frequent Flyer points, more generous recovery support when operational issues arise, a review of longstanding policies for fairness and improvements to the quality of inflight catering.
Qantas is also working to accelerate some initiatives already underway, such as the re-platforming of the Qantas app. More detail on these actions will be shared in coming weeks.
DEMAND LEVELS
Overall travel demand remains strong, with trading conditions in the first quarter of FY24 similar to the last quarter of FY23.
Qantas and Jetstar expect to carry more than 4 million passengers over the September/October school holidays and football finals period on almost 35,000 domestic and international services. This compares with around 3.7 million passengers on approximately 28,000 services over the same four week period last year.
Latest survey data shows that travel remains a top spending priority among Qantas Frequent Flyers over the next six months, well ahead of entertainment, renovations and homewares[1]. The Group greatly appreciates the continued support from customers choosing Qantas and Jetstar.
FUEL, FX AND FARES
Fuel prices have increased by around 30 per cent since May 2023, including a 10 per cent spike since August. This is driven by a combination of higher oil prices, higher refiner margins and a lower Australian dollar.
If sustained, this is expected to see the Group’s 1H24 fuel bill increase by approximately $200 million to $2.8 billion after hedging[2]. A further $50 million impact is expected due to non-fuel related foreign exchange changes.
The Group will continue to absorb these higher costs, but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings. Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated.
CAPACITY AND NETWORK UPDATE
New aircraft deliveries and wet-leasing arrangements will help Qantas and Jetstar boost international capacity by 12 percentage points by the end of the calendar year – an increase of almost 50 additional flights a week.
This includes Qantas resuming its Sydney-Shanghai services and starting two new routes, Brisbane-Wellington and Brisbane-Honiara, as well as a new Jetstar service from Brisbane to Tokyo.
Both international and domestic capacity for 1H24 is materially unchanged from estimates given in late August 2023.
FINANCIAL FRAMEWORK
The Group remains in a very strong financial position, including its debt levels and continued strong revenue intakes.
The on-market share buyback of up to $500 million announced on 24 August 2023 is now 10 per cent completed. Shareholder approval will be sought at Qantas’ upcoming AGM to increase the headroom for further share buybacks that the Board may choose to do in future in line with the Financial Framework.
[1] QFF sentiment tracker,n=2,019.Data collected between 1 August 2023 and 31 August 2023. Sample of QFF members from Red Planet panel. Based on respondents’ intended changes to upcoming spending across different categories.
[2] Assumes 1H24 underlying into-plane market reference price of approximately A$191 per barrel.
Boeing [NYSE: BA] and BBAM Limited Partnership today announced the lessor is expanding its 737-800 Boeing Converted Freighter fleet with six firm orders and six options. The agreement brings BBAM’s 737-800BCF orders and commitments to 15 and highlights the continued strength of the e-commerce and express cargo market.
“As we look ahead to expanding our cargo fleet, the 737-800 Boeing Converted Freighter provides the performance and efficiency our customers need,” said Steve Zissis, CEO of BBAM. “Adding these highly capable freighters to 276 Boeing airplanes in our managed fleet helps to further strengthen our leadership position in the marketplace.”
Based on the popular Next-Generation 737, the 737-800BCF is meeting customer demand for a newer-generation freighter that offers higher reliability and lower fuel consumption and operating costs per trip compared to other standard body freighters. Primarily used to carry express cargo on domestic or short-haul routes, the airplane is capable of carrying up to 23.9 tonnes (52,800 pounds) and flying up to 2,025 nautical miles (3,750 kilometers). Since entering service in 2018, the 737-800BCF has won more than 150 orders and commitments.
“BBAM is one of the industry’s leading full-service leasing companies and has built their reputation on smart investments. We are honored that BBAM has selected more 737-800BCFs, based on the success of our standard body freighters in their portfolio,” said Ihssane Mounir, Boeing’s senior vice president of Commercial Sales and Marketing. “The continued strong demand for the 737-800BCF demonstrates the critical role these converted freighters play in the growing express and e-commerce market.”
BBAM is the world’s largest dedicated manager of investments in leased commercial jet aircraft, providing over 200 airline customers in more than 50 countries with fleet and financing solutions over the last three decades. BBAM is the only manager in the aircraft leasing industry focused exclusively on generating investment returns for third-party investors. BBAM currently has more than $28 billion of assets under management and employs over 150 professionals at its headquarters in San Francisco and in additional offices in Tokyo, Singapore, Zurich, Dublin and Santiago. For more information about BBAM, please visit its website at www.bbam.com.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
For the 10th year in a row, corporate travel professionals have named Delta the No. 1 airline in the annual Business Travel News Airline Survey, with significant improvements over the airline’s already-leading 2019 scores.
The survey asks corporate travel professionals to rank airlines on a number of important attributes, from customer service to distribution. This year, the survey also asked participants to rank how well each airline responded to the COVID-19 pandemic, including overall response, effective communication and flexibility. Delta earned its top marks for pandemic response, customer service and communication, while also improving its score substantively in all other categories. Again this year, Delta led in all categories, and is the only airline to sweep all categories for seven consecutive years.
Delta is the only airline in survey history to win 10 consecutive times, thanks to its industry-leading employees.
“It’s always an honor to earn our customers’ trust and respect, but to receive this award in 2020 – when the stakes have never been higher – is incredibly gratifying,” said Delta CEO Ed Bastian. “In the face of historic challenges, we’ve stayed true to Delta values and have put our employees and our customers first. This recognition tells us we’re on the right path, and I could not be more thankful or more proud of the Delta team.”
Delta’s actions in 2020, including many steps we’ve taken to respond to the COVID-19 crisis, have been guided by the airline’s “listen, act, listen” approach, which includes hearing customer feedback, taking action and then listening to make sure we got it right.
Based on survey feedback, some of the actions Delta customers have most valued in 2020 include:
– Blocking middle seats through Jan. 6, 2021 to provide space for safer travel
– Unparalleled service from Delta’s corporate sales team and employees throughout operation
– Providing constant communication to corporate customers, including personalized airport tours and Corporate Customer Town Halls so attendees could hear directly from Delta leaders and partner medical experts
– Rigorous mask compliance and more than 100 layers of safety via the Delta CareStandard
– Flexibility, from offering industry-leading flexibility to plan, re-book and travel to eliminating change fees to being the first airline to extend Medallion status and offer extensions for Delta Sky Club Memberships
Business Travel News is the leading global source of business travel information and intelligence, reaching more than 44,000 corporate executives who are responsible for setting travel policy, managing and buying business travel/meetings for their companies.
JetBlue (NASDAQ: JBLU) has issued the following message to its 23,000 crew members.
It has been a very tough few weeks. We are so proud to see once again how the JetBlue culture brings us together during times of crisis. Thank you for continuing to serve our Customers and deliver the JetBlue experience, particularly when your own lives are being disrupted in so many ways.
With safety our #1 value, we continue to take the measures necessary to protect your health. But as it relates to our business, we are not going to sugarcoat it. Demand continues to worsen, and the writing is on the wall that travel will not bounce back quickly.
We’d like to give you some color on what we are seeing. Last year on a typical day in March we took in about $22 million from bookings and ancillary fees. Throughout this March, our sales have fallen sharply and in the last several days we have taken in an average of less than $4 million per day while also issuing over $20 million per day of credits to Customers for canceled bookings. This is a stunning shift, which is being driven by fewer new bookings, much lower fares, and a Customer cancel rate more than 10 times the norm. If you do the math, $4 million per day does not come anywhere close to covering our daily expenses. It is hard to predict how long these conditions will last and how much more challenging the environment may become.
We are not alone. Virtually every major carrier is taking actions that were almost unthinkable a few weeks ago, making huge schedule reductions and parking significant portions of their fleets.
Even though we entered this from a position of strength with a strong balance sheet and cash in the bank, because of the dramatic fall-off in bookings, we need to reduce our spending immediately so that we can continue to fund JetBlue’s operations and ensure your jobs are protected. We have already announced an initial capacity reduction, pay cuts for our officers (VPs and above), voluntary time off programs, re-negotiated Business Partners agreements, and other spending reductions.
We’ve taken swift and decisive actions to protect you, but we must do more and do so quickly to weather this storm.
Reducing our flying to reflect demand We are reducing our capacity in the coming months, with a reduction of at least 40% in April and May. We also expect substantial cuts in June and July, and given the unpredictability of this event, we will ground some of our aircraft. We know this is not an easy move – it will impact hours for many frontline Crewmembers, but it is also essential that we reduce capacity in the face of dramatically falling demand.
We will be notifying Customers of their specific cancellations in a phased approach so that we do not overwhelm Customer Support as they continue to receive exponentially more calls than they ever have before.
Reviewing our fleet plan One of our most substantial capital expenses is the purchase of new airplanes. In collaboration with Airbus, we are looking at our order book for opportunities to slow deliveries and reduce aircraft pre-delivery payments (PDPs). We will also defer the four previously used airplanes that we announced earlier this year.
Cutting our capital and operational spending We will reduce spending wherever we can to preserve our cash, and both of us will be taking a 50% pay reduction during this crisis.
We entered the year with a list of major initiatives to invest in our infrastructure, technology and real estate. As of today, we have paused or stopped more than 75% of these projects and will continue to stand down work wherever we can.
Increasing our cash reserves The dramatic loss of revenue in recent days means we will have to start dipping into our cash savings. Although we came into this with about $1.2 billion, our expenses total millions of dollars each day. The good news is we have secured a new liquidity facility – an extra credit line – which allowed us to borrow $1 billion. This is not free money – it’s a band-aid solution that holds us over and we have to pay it back with interest. Even with these cash reserves we, like the rest of the industry, will need significant government support to help us through these losses.
Calling for government intervention The governmental warnings and actions taken to manage this health crisis have hit both domestic and international travel hard. We have been coordinating with Airlines for America (A4A) and other U.S. airlines to ensure government leaders understand the threat to our global economy if air travel is not supported. When this pandemic passes – and it will – air travel will play a major role in getting life back to normal and supporting economic recovery. We are going to need significant government help to do that. This is not a position we’d like to be in, but government assistance will help us protect our 23,000 Crewmembers who are our most important priority as we navigate these turbulent times.
From the beginning we have faced many challenges and, against all odds, we have thrived through some incredibly difficult events. Now we are faced with what is by far the biggest challenge our company and our industry has ever seen. While we know this is an incredibly difficult time for all of you as you work to juggle your own concerns around coronavirus, we have come through other challenges in our 20 year history and we can – and will – come through this together.
The next few months won’t be easy, but please know that all the steps we’re taking today are focused on protecting the health and safety of our Crewmembers and Customers and ensuring JetBlue remains a great place for you to work well into the future.
Core to Delta’s mission of connecting the world is our work to first reflect and respect the world. Often, misunderstanding can be one of our biggest barriers to connection.
To broaden understanding of ourselves, our world, our differences and all that we share, Delta hosted our second Day of Understanding with over 300 guests at the Delta Flight Museum in Atlanta.
The day was one pin on Delta’s map to seek diversity and promote inclusion, following Ed Bastian’s commitment to the CEO Action for Diversity & inclusion, a movement including more than 850 of the country’s leading CEOs and presidents to advance diversity and inclusion in the workplace.
Bastian hosted the event in partnership with the Office of Global Diversity and Inclusion and the Diversity and Inclusion Council.
“Our journey of diversity and inclusion at Delta is one of continuous progress. And it is not a journey we will win alone, nor a milestone that can be achieved overnight. Like the value diversity places on unique perspectives, it will take each of our unique commitments to seeing this succeed at Delta,” said Bastian. “I am personally invested in seeing Delta continue to grow and improve in this space, but it will truly take a shared responsibility from each member of the Delta family to make this a success.”
Eric Phillips, Senior Vice President – Pricing and Revenue Management and Chairman of Delta’s Corporate Diversity and Inclusion Council, added: “Diversity and inclusion is not this altruistic term. It’s a business imperative, and importantly, it’s a skill and a capability. We want to be world-class in diversity & inclusion the same way we’re world-class in operational reliability, the same way we’re world class in revenue generation, the same way that we’re world class in taking care of our customers.”
The event included a moderated training on how to have “R.I.C.H.” dialogues – which Reggie Butler, CEO of Performance Paradigms, calls conversations around race, identity, culture and heritage. Within the next 18 months, Delta is aiming to train people at every level of the organization with programs for employees and leaders at every level of the company to engage in a similar dialogue in smaller groups.“It’s our differences that add perspective and value that Delta needs,” said Keyra Lynn Johnson – Chief Diversity & Inclusion Officer. “As we talk about our similarities, I don’t ever want us to overshadow that our differences are an important part of what makes Delta unique. And we are going to put those differences to work today.”
D&I teams and employees from Coca-Cola, Expedia, The Home Depot, Korn Ferry, PwC, and UPS joined Delta’s event. Special guests also included Delta Board of Directors members Kathy Waller, William “Bill” Easter, and David Taylor.
“We have heard time and time again that it is the Delta people that make [diversity and inclusion] happen. And you ought to know that that is authentically said because in the boardroom we hear it each meeting,” said David Taylor, Chairman, President and CEO of The Procter & Gamble Company.
“To create a culture that’s truly inclusive, that unlocks the potential in this room and throughout the company… it’s going to be a force to be reckoned with. More than just the best company in your industry, you’ll impact so many people.”
Take the “I Act On” pledge to check your bias, speak up for others and show up for all here. Learn more about how Delta is seeking diversity, promoting inclusion and celebrating Black History this month here.
Strong Net Rooms Growth Fuels Nearly 11% Increase in Management and Franchise Fees
CHICAGO (October 30, 2019) – Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today reported third-quarter 2019 financial results. Net income attributable to Hyatt was $296 million, or $2.80 per diluted share, in the third quarter of 2019, compared to $237 million, or $2.09 per diluted share, in the third quarter of 2018. Adjusted net income attributable to Hyatt was $39 million, or $0.37 per diluted share, in the third quarter of 2019, compared to $37 million, or $0.33 per diluted share, in the third quarter of 2018. Refer to the table on page 14 of the schedules for a summary of special items impacting Adjusted net income and Adjusted earnings per share in the three months ended September 30, 2019.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, “The strength of our brands and the consistent approach we have to operating with excellence and efficiency are serving us very well in this period of volatile economic conditions. In particular, our management and franchise fee growth of nearly 11% this quarter is driven by roughly 13% year-over-year net rooms growth. Further, we have successfully increased productivity and operating efficiency for 23 straight quarters which has allowed us to maintain strong hotel operating margins even in the face of flat RevPAR growth this quarter.”
Third quarter of 2019 financial highlights as compared to the third quarter of 2018 are as follows:
Net income increased 25.4% to $296 million.
Adjusted EBITDA decreased 7.3% to $163 million, a decrease of 6.5% in constant currency.
Comparable system-wide RevPAR was flat, including a decrease of 0.1% at comparable owned and leased hotels. Comparable system-wide RevPAR growth was favorably impacted by approximately 50 basis points from the timing of the Jewish holidays, but was offset by a similar reduction resulting from political unrest in Hong Kong.
Comparable U.S. hotel RevPAR decreased 0.6%; full service hotel RevPAR increased 0.2% and select service hotel RevPAR decreased 2.3%.
Net rooms growth was 13.2%, or 7.9% excluding the acquisition of Two Roads Hospitality LLC (“Two Roads”) in the fourth quarter of 2018.
Comparable owned and leased hotels operating margin decreased 20 basis points to 21.0%.
Adjusted EBITDA margin of 26.9% decreased 280 basis points in constant currency.Mr. Hoplamazian continued, “We continue to execute on our capital strategy and shift our earnings profile while maintaining our focus on global growth. We expect to end the year with approximately 57% of our earnings coming from our hotel management and franchise business, an increase of roughly 400 basis points from 2018. Our pipeline remains robust while continuing to deliver solid organic net rooms growth of almost 8% this quarter, net of the acquisition of Two Roads in the fourth quarter of 2018. While theNote: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
current global operating environment is challenging, we feel confident in our ability to manage through volatility and identify opportunities to strengthen our brands and performance.”
Third quarter of 2019 financial results as compared to the third quarter of 2018 are as follows:
Management, Franchise and Other Fees
Total management, franchise and other fees increased 11.9% (12.5% increase in constant currency) to $148 million. Base management fees increased 17.8% to $64 million, primarily in the Americas management and franchising segment due to the acquisition of Two Roads. Incentive management fees decreased 1.3% to $33 million. Franchise fees increased 11.8% to $37 million. Other fees increased 22.0% to $14 million. Excluding other fees, management and franchise fees increased 10.9% (11.6% increase in constant currency) to $134 million.
Americas Management and Franchising Segment
Americas management and franchising segment Adjusted EBITDA increased 11.2% (11.4% increase in constant currency), driven by higher management, franchise, and other fees from the Two Roads acquisition and recently opened hotels. RevPAR for comparable Americas full service hotels increased 1.5%, occupancy increased 70 basis points, and ADR increased 0.7%. RevPAR growth was driven by strength in certain resort locations outside of the United States and benefited from the timing of the Jewish holidays which had an approximate 110 basis point favorable impact. RevPAR for comparable Americas select service hotels decreased 2.4%, occupancy decreased 40 basis points, and ADR decreased 1.8%. Total Americas management and franchising adjusted revenues increased 29.6% (29.9% increase in constant currency) including revenue from the residential management operations acquired as part of Two Roads.
Transient rooms revenue at comparable U.S. full service hotels increased 1.0%, room nights increased 2.3%, and ADR decreased 1.3%. Group rooms revenue at comparable U.S. full service hotels decreased 0.2%, room nights decreased 2.3%, and ADR increased 2.2%.
Americas net rooms increased 11.5% compared to the third quarter of 2018, or 5.2% excluding Two Roads.
Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising Segment
ASPAC management and franchising segment Adjusted EBITDA increased 0.9% (2.5% increase in constant currency). RevPAR for comparable ASPAC full service hotels decreased 2.0%, reflecting weakness in Hong Kong. Excluding Hong Kong, RevPAR for comparable ASPAC full service hotels would have increased 0.8%. Occupancy decreased 50 basis points and ADR decreased 1.3% for ASPAC full service hotels. Revenue from management, franchise, and other fees increased 4.2% (5.4% increase in constant currency).
ASPAC net rooms increased 17.7% compared to the third quarter of 2018, or 13.7% excluding Two Roads.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising Segment
EAME/SW Asia management and franchising segment Adjusted EBITDA increased 4.8% (7.8% increase in constant currency). RevPAR for comparable EAME/SW Asia full service hotels increased 1.6%, driven by strong growth in certain European markets, including France and the United Kingdom, and Southwest Asia, offset partially by weaker performance in Russia which lapped the FIFA World Cup in 2018.
Occupancy increased 290 basis points and ADR decreased 2.6% for EAME/SWA full service hotels. Revenue from management, franchise, and other fees increased 2.2% (4.3% increase in constant currency).
EAME/SW Asia net rooms increased 15.6% compared to the third quarter of 2018, or 14.4% excluding Two Roads.
Owned and Leased Hotels Segment
Total owned and leased hotels segment Adjusted EBITDA decreased 17.6% (16.9% decrease in constant currency), including a decrease of 12.0% (11.4% decrease in constant currency) in pro rata share of unconsolidated hospitality ventures Adjusted EBITDA. Refer to the table on page 11 of the schedules for a detailed list of portfolio changes and the year-over-year net impact to total owned and leased hotels segment Adjusted EBITDA.
Owned and leased hotels segment revenues decreased 3.9% (3.0% decrease in constant currency), and was negatively impacted by non-comparable hotels. RevPAR for comparable owned and leased hotels decreased 0.1%. Occupancy and ADR were both flat.
Corporate and Other
Corporate and other Adjusted EBITDA decreased 22.4% (22.5% decrease in constant currency), inclusive of $6 million of expenses from the Two Roads acquisition.
Corporate and other adjusted revenues increased 19.1% (consistent in constant currency).
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased 1.0%, inclusive of rabbi trust impact and stock- based compensation. Adjusted selling, general, and administrative expenses increased 13.8%, or $10 million, including $8 million of integration costs related to the acquisition of Two Roads. Refer to the table on page 17 of the schedules for a reconciliation of selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses.
OPENINGS AND FUTURE EXPANSION
Twenty hotels (or 4,422 rooms) opened in the third quarter of 2019, contributing to a 13.2% increase in net rooms compared to the third quarter of 2018. Excluding the impact of the Two Roads acquisition, net rooms increased 7.9% compared to the third quarter of 2018.
As of September 30, 2019, the Company had executed management or franchise contracts for approximately 460 hotels, or approximately 92,000 rooms. The Company is expected to open approximately 85 hotels in the 2019 fiscal year.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
SHARE REPURCHASE/DIVIDEND
During the third quarter of 2019, the Company repurchased a total of 1,776,891 (1,099,507 Class A shares and 677,384 Class B shares) for approximately $133 million. The Company ended the third quarter with 36,811,374 Class A and 66,438,444 Class B shares issued and outstanding. From October 1 through October 25, 2019, the Company repurchased 523,499 shares of Class A common stock for an aggregate purchase price of approximately $37 million. As of October 25, 2019, the Company had approximately $351 million remaining under its share repurchase authorization.
The Company’s board of directors has declared a cash dividend of $0.19 per share for the fourth quarter of 2019. The dividend is payable on December 9, 2019 to Class A and Class B stockholders of record as of November 26, 2019.
CAPITAL STRATEGY UPDATE
In a Form 8-K filed on September 16, 2019, the Company announced the sale of the 1,260-room Hyatt Regency Atlanta for approximately $355 million to an unrelated third party and the entry into a long-term management agreement for the property upon sale.
The Company is in the process of pursuing the sale of one of its wholly-owned hotels and will provide further details as appropriate.
BALANCE SHEET / OTHER ITEMS As of September 30, 2019, the Company reported the following:
Total debt of $1,623 million.
Pro rata share of unconsolidated hospitality venture debt of approximately $564 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
Cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of $660 million, restricted cash of $140 million, and short-term investments of $63 million.
Undrawn borrowing availability of $1.5 billion under Hyatt’s revolving credit facility.2019 OUTLOOK The Company is revising the following expectations for the 2019 fiscal year:
Comparable system-wide RevPAR is expected to increase approximately 0.5%, as compared to fiscal year 2018.
Net income is expected to be approximately $431 million to $470 million. Please refer to the table on page 13 of the schedules for revised ranges impacting net income.
Other income (loss), net is expected to be approximately $98 million to $103 million, reflecting increased interest income and unrealized gains on marketable securities. The estimated $40 million negative impact related to performance guarantee expense for the four managed hotels in France is unchanged.
Adjusted EBITDA is expected to be approximately $730 million to $745 million, primarily reflecting a one point reduction in expected comparable system-wide RevPAR and the sale ofNote: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
Hyatt Regency Atlanta (as previously reported in a Form 8-K filed on September 16, 2019). Refer to the table on page 13 of the schedules for a reconciliation of Net Income to Adjusted EBITDA.
Depreciation and amortization expense is expected to be approximately $329 million to $334 million.
Interest expense is expected to be approximately $77 million.
Adjusted selling, general, and administrative expenses are expected to be approximately $335 million. This is inclusive of approximately $25 million of expenses related to non-recurring integration costs for Two Roads. Adjusted selling, general, and administrative expenses exclude approximately $33 million of stock-based compensation expense and any potential impact related to benefit programs funded through rabbi trusts.The Company is reaffirming the following information for the 2019 fiscal year:
The Company expects to grow units, on a net rooms basis, by approximately 7.25% to 7.75%, reflecting approximately 85 new hotel openings.
Capital expenditures are expected to be approximately $375 million.
As previously reported in an 8-K filed on September 16, 2019, the Company expects to return approximately $500 million to shareholders through a combination of cash dividends on its common stock and share repurchases.
The effective tax rate is expected to be approximately 25% to 27%.
No additional disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the outlook. The Company’s outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that Hyatt will achieve these results.
– Companies sign MOU to investigate product development for premium market
– Builds on efforts to develop new urban air mobility ecosystem
STUTTGART, Germany and CHICAGO, Oct. 10, 2019 /PRNewswire/ — Porsche and Boeing [NYSE: BA] signed a Memorandum of Understanding to explore the premium urban air mobility market and the extension of urban traffic into airspace. With this partnership, both companies will leverage their unique market strengths and insights to study the future of premium personal urban air mobility vehicles.
“Porsche is looking to enhance its scope as a sports car manufacturer by becoming a leading brand for premium mobility. In the longer term, this could mean moving into the third dimension of travel,” says Detlev von Platen, Member of the Executive Board for Sales and Marketing at Porsche AG. “We are combining the strengths of two leading global companies to address a potential key market segment of the future.”
As part of the partnership, the companies will create an international team to address various aspects of urban air mobility, including analysis of the market potential for premium vehicles and possible use cases.
Boeing, Porsche and Boeing subsidiary Aurora Flight Sciences are also developing a concept for a fully electric vertical takeoff and landing vehicle. Engineers from both companies, as well as Porsche subsidiaries Porsche Engineering Services GmbH and Studio F.A. Porsche, will implement and test a prototype.
“This collaboration builds on our efforts to develop a safe and efficient new mobility ecosystem, and provides an opportunity to investigate the development of a premium urban air mobility vehicle with a leading automotive brand,” said Steve Nordlund, Vice President and General Manager of Boeing NeXt, an organization that is laying the foundation for a next-generation mobility ecosystem in which autonomous and piloted vehicles can safely coexist. “Porsche and Boeing together bring precision engineering, style and innovation to accelerate urban air mobility worldwide.”
A 2018 study by Porsche Consulting forecasts that the urban air mobility market will pick up speed after 2025. The study also indicates that urban air mobility solutions will transport passengers more quickly and efficiently than current conventional means of terrestrial transport, at a lower cost and with greater flexibility.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
