United and American Airlines are now under pressure not just to conclude their pilot contract negotiations, but also better Delta's deal. The industry's wage cost pressures are expected to worsen after pilots at rival Delta Air Lines secured a contract deal that includes over $7 billion in cumulative increases in pay and benefits over four years. carriers have seen a jump in their labor and fuel bills in the past year. It also retained the full-year earnings outlook. United, however, said its outlook for the second quarter has improved, with total operating revenue now expected to be up in the "mid-teens" versus last year. Sheila Kahyaoglu, an analyst at Jefferies, said United's latest outlook provides "some credence to the bear thesis" that a weakening consumer could put downward pressure on pricing power this year. In January, the company forecast an adjusted profit between 50 cents and $1.00 per share for the quarter. The Chicago-based carrier now expects an adjusted loss between 60 cents and $1.00 per share for the quarter through March. Total revenue per available seat mile, a proxy for pricing power, is estimated to be up 22% to 23% in the first quarter from a year ago, slower than the 25% growth expected earlier. United said a combination of lower-demand in January and February and higher capacity has weakened its pricing power. Investors, however, are worried any slip in demand would make it harder to protect profits. carriers including United to offset cost pressures with higher ticket prices. United Airlines Holdings Inc on Monday forecast an unexpected loss in the current quarter, citing lower demand as well as higher costs from a potential contract deal with pilots. But the Bezos investment could indicate future collaboration opportunities with Amazon, enabling Pilot to reach the etail giant’s millions of SMB clients.United Airlines Unexpectedly Forecasts Quarterly Loss On Lower Demand, Pilot PayĪ United Airlines Boeing 777-200ER plane is towed as an American Airlines Boeing 737 plane departs from O'Hare International Airport in Chicago, Illinois, U.S. To this end, it has already entered into comarketing partnerships with the likes of American Express, Stripe, and Brex. Pilot will need to build its reach, though, to compete with other SMB-focused platforms. For example, it could launch a business loan offering, akin to fellow accounting platform Quickbooks, leveraging its data on SMBs’ finances to assess their creditworthiness and ease their access to capital. And with its significant new funding, Pilot can better position itself to capture this need. Three out of every 10 US small businesses say they likely won't survive 2021, highlighting their ongoing financial pressure and need for smart back-office solutions. Pilot will likely continue to see strong uptake as the pandemic goes on-and Bezos’ backing could suggest an Amazon partnership on the horizon. As a result, Pilot now has more than 1,000 customers and has completed more than $3 billion in bookkeeping transactions in 2020, up from more than $100 million per month in 2019. Pilot takes on the accounting role to track cash flow, reconcile accounts, create annual budgeting, and more, allowing SMBs to focus more on product development or other growth initiatives such as digitization-key amid lockdown measures. And Pilot’s platform is successfully filling this gap.This lack of access has been particularly harmful in the past year, as the pandemic made it essential for SMBs to get a clear picture of and better manage their finances: 51% of SMBs reported a significant decrease in sales due to the pandemic last year. SMBs have traditionally been underserved when it comes to accessing tailored accounting solutions because they generate less revenue per head than their corporate counterparts, despite requiring comparatively similar costs to serve. The pandemic-induced economic slowdown has exacerbated SMBs’ need for smart accounting solutions.
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