FT : EasyJet’s taste for luxury flies the flag for the package holiday revival

EasyJet’s taste for luxury flies the flag for the package holiday revival
Carrier hits medium-term pre-tax profit target of £250mn two years ahead of schedule

Booking your Four Seasons resort with easyJet? Packing a wardrobe worthy of fancy lodgings could well make the low-cost carrier’s checked-in luggage charges seem reasonable. Luxury options were recently added to easyJet’s package holidays business, which like others, is booming.

EasyJet Holidays this week said it had hit its medium-term pre-tax profit target of £250mn two years ahead of schedule and claimed a 10 per cent share of the UK market, albeit still well behind leaders Tui and Jet2, with 40 per cent between them.

Investors though have been experiencing something more like this year’s viral Jet2 meme, where that company’s jazzy tagline plays over a scene of holiday snafus. Shares in easyJet, Jet2, and smaller online rival On The Beach, after optimism earlier in the year, have all fallen. Profit warnings in September from Jet2 and OTB pointed to weak winter seasons with holidaymakers worried about the state of the British economy, while a trend towards late bookings makes year-on-year comparisons look poor.


Yet the underlying trends are in their favour. All three are targeting a holiday market hotspot. Some 61 per cent of British holidaymakers have booked a package trip overseas in the last year, says Abta, the UK travel industry body, compared with 51 per cent in 2019. 

This new interest in bundled tours has arisen out of the chaos of pandemic-era travel. Holidaymakers are also wary of the risk that the best-laid plans may be upended by geopolitics, strikes or extreme weather. Having a single point of contact is a comfort and protection against the hassles of booking transfers, rerouting or cancelling flights, sorting refunds or even arranging repatriations.

EasyJet only launched its holidays offering in late 2019 — just months after the collapse of package tour originator Thomas Cook and several low-cost airlines. It arguably benefited from the pandemic disruption that hit very quickly afterwards, which gave managers time to build relationships and encouraged struggling hoteliers to be more receptive to new players.

The attraction for its top brass is fairly straightforward: the airline’s extensive flight network, carrying roughly 100mn passengers a year, offers more destinations and travel flexibility than any tour operator rival can muster. Pitching to its existing customers works in effect like a form of upselling, alongside speedy boarding and those much-despised luggage charges.

EasyJet boss Kenton Jarvis this week struck a bullish note, as did Jet2’s Steve Heapy when he updated investors earlier this month. Poolside cocktails all round? Investors aren’t yet convinced, but evidence of a steadier economy could soon have them digging out their resort wear.

FT : H&M caught in the middle of a fast-fashion battle : ‘We need to step up our

‘We need to step up our game’: H&M caught in the middle of a fast-fashion battle
The Swedish retailer is being squeezed from above by the likes of Zara and below by rivals such as Shein and Temu

H&M’s chief executive has urged European politicians to create a level playing field for fashion retailers in areas such as tax, chemical regulations, purchasing practices and workers’ rights to combat unfair competition from Chinese rivals such as Shein and Temu.

Daniel Ervér told the Financial Times that the Swedish fast-fashion retailer was on “a very long journey” towards increased profitability after ceding its crown as the world’s largest fashion chain to Zara’s Spanish owner in “an industry that is changing at a furious pace”.

He added: “I don’t think we have seen a level playing field. If you don’t pay taxes, if you don’t comply with chemical regulations, don’t adhere to purchasing practices, protect the social rights of workers, that’s not a responsible way of conducting business. There’s a responsibility for lawmakers to ensure there is a fair playing field, [otherwise] it will weaken our competitive strength as European companies.”

H&M has been increasingly squeezed from above by the likes of rivals Zara, and from below by cheaper rivals including Shein, Temu and Primark.

Zara has been pushing upmarket with tactics such as displaying limited-edition collections at high-profile events such as Paris Fashion Week and revamping stores designed by leading architects. H&M has followed its lead to some degree in a bid to set itself apart from cut-price online rivals such as Shein and Temu, which benefited from sales surges during the pandemic.

Ervér’s plan to turn around family-controlled H&M has focused on boosting profitability and putting the customer at the heart of its focus — both on display at the refitting of a central Stockholm store around the corner from its head office.

The store is airy for an H&M location, with more space between displays and fewer clothes on show, while items from its upmarket Studio and Atelier ranges as well as beauty products greet customers at the entrance. Shoppers can scan a code in the fitting room to ask an employee to bring them a different size or order anything out of stock for home delivery.

“Previously it was high-density but we wanted to break that. With the right product, we sell more with less. It becomes a more effective way of running the business,” said Johanna Klingspor, H&M’s head of creative development.

The revamp is already bearing some fruit as Ervér also targets cost control. Operating margins fell from more than 20 per cent in 2010 to just 3 per cent in 2022. They reached 8.6 per cent in the third quarter this year, up from 5.9 per cent a year earlier.

“What I recognised when stepping in is that this company has so much untapped potential . . . given how the competitive landscape has changed, we need to step up our game. We need to stop doing what doesn’t make a difference for the customer and really shift resources and money to what makes the difference,” said Ervér, who took over running H&M in February 2024.

Shareholders have given his plans a cautious welcome. Shares are up about 16 per cent this year, but were higher just before he took over as well as before the pandemic.

One top-10 shareholder said: “H&M were caught in between — not in Zara’s price point, and definitely not in Shein’s. They let the margins slide for too long.”

A fashion analyst added: “Ervér’s elevation strategy is taking the company in the right direction as it helps to reduce the H&M brand’s exposure to value fashion — the most competitive segment of the market and the most exposed to competition from not only the likes of Shein, but also second-hand platforms.”

But questions remain. H&M has historically sourced more of its clothes from Asia leaving it less nimble than Zara, which has more production closer to its biggest markets in Europe and the US. H&M’s need to discount some stock has led to volatility in both sales and gross margins.

“We need to continue to become quicker. Nearshoring is one piece of the puzzle, but there are many others,” Ervér said. His aim is to have some items on sale between six and 10 weeks after the initial idea.

The 44-year-old pointed to H&M presenting its latest collection at London Fashion Week for the first time in two decades. “That puts a lot of pressure on us to step up because you have the whole world, journalists, influencers, looking at you and assessing you.”

H&M is controlled by the family of Stefan Persson, son of the company’s founder, who owns shares carrying 83 per cent of voting rights. He has gradually increased his ownership in recent years and many observers in Stockholm expect him eventually to take the company private.

Ervér said he did not think it was “so provocative” to put customers ahead of investors. H&M had been “fortunate to have one large shareholder” and that satisfying all investors meant “being focused on the customer,” he added.

The retailer is also making a push into second-hand through its Sellpy platform. Some of its stores, such as the one in central Stockholm, have curated second-hand sections that attract younger shoppers. Ervér said: “We see it becoming an important part of the way that you express yourself and the way you shop second-hand becomes a complement to the existing business.”

Ervér disagrees with critics who say sustainability is incompatible with fast fashion: “To do fully sustainable collections for the richest people is not so difficult. The big challenge is to do it at scale.”

He is happy that H&M has broken the link between growth and emissions, going up in sales and down in greenhouse gases although he concedes “we are far from done”.

The Swedish group has a partnership with start-up Syre, a sister company to bankrupt battery maker Northvolt, to recycle polyester that recently expanded to include products from sporting goods group Nike.

Ervér said that few customers “want to pay more” for green products but that entrepreneurship, creativity and policy should drive the change because it “won’t happen organically”.

On competition, the H&M chief executive argued that the big disruption came a decade ago when digitalisation changed how people shop, as well lowering the barriers to entry in fashion. That opened up the market for a “completely new set of competitors” without physical stores.

“We need to make sure we leverage the strengths of having 500 in-house designers, the strength of curating the experience, and really facilitating the shopping experience,” Ervér added.

FT Lex : Hybrid-car believers should bet on platinum’s renaissance

Hybrid-car believers should bet on platinum’s renaissance
With take-up of battery electric vehicles slowing in the US and Europe, catalytic converters will remain in demand

Shiny metals are all the rage this year, with gold and silver on a tear. So it might be tempting to see platinum’s revival — the metal is up almost 80 per cent since January — as the result of spillover demand from investors seeking a hedge against currency debasement. But while platinum has in the past been viewed as a store of value, it is now best understood as a hedge against the slowing energy transition. 


That’s because the automotive sector currently accounts for almost 40 per cent of platinum consumption. The metal is used in catalytic converters, which turn noxious exhaust fumes into less noxious substances. That huge source of demand was pencilled to decline to roughly zero over time, as fumeless electric vehicles took over from traditional internal combustion engines. Now, forecasters are busily revising their estimates up.

For one thing, the take-up of battery electric vehicles — those that have no traditional ICE engine or catalytic converter at all — has hit potholes in the US and Europe. Policy flip-flops are partly to blame. The expiry of federal consumer incentives in the US cut October BEV sales by almost a quarter year on year, according to preliminary figures. RBC analysts have reduced their estimates for US BEV penetration in 2030 from 35 per cent to 17 per cent.

Secondly, hybrid cars are selling more than expected, and may well sell for longer than expected. The category, which includes both plug-in hybrids and cars which charge batteries internally, sports both electric drivetrains and combustion engines with catalytic converters. In China, hybrids will account for almost 40 per cent of total “new energy” car sales this year, according to Citigroup analysis. Demand beyond the main coastal cities is particularly strong given longer driving distances.

In Europe, too, hybrids are doing a roaring trade, accounting for some 45 per cent of new car registrations between January and September and knocking both fully electric vehicles and petrol cars into a cocked hat. Chinese carmakers such as BYD are winning over consumers with cheap and longer-range vehicles. While upcoming legislation in Europe still strongly favours battery electric vehicles, there is clearly a lot of demand for cars that are both ‘greener’ and don’t require consumers to modify their habits in any way.

The upshot is that the platinum market may well find its current deficit — of over 10 per cent of consumption last year — continuing. Better still, rising prices are unlikely to result in lots of new supply coming on stream. Platinum miners such as Valterra, Impala and Sibanye-Stillwater may be riding high, with prices for the platinum metals group — which also includes palladium and rhodium — about 10 per cent above the marginal cost of production according to RBC. But, while lengthened, the demand runway is still too short for mining’s long-term investments. Platinum’s value is set to motor ahead.

FT : Swatch activist lambasts Omega owner’s ‘worst-in-class’ governance

Swatch activist lambasts Omega owner’s ‘worst-in-class’ governance
Steven Wood pushes for board overhaul after giving up hope of constructive relations with controlling Hayek family

Activist investor Steven Wood has accused Swatch Group of “worst-in-class governance” as he proposes a raft of changes to the Swiss watchmaker’s board and abandons hopes of a constructive relationship with the controlling Hayek family.

Wood, whose Greenwood Investors fund owns Swatch shares that carry about 0.5 per cent of total voting rights, has ditched plans to gain a board seat and is now pushing the board to adopt a package of governance reforms.

“I no longer think of the primary goal as going on the board and having a constructive relationship. These are new moves to force them to evolve their worst-in-class governance,” Wood told the Financial Times.

The Hayek family owns a quarter of Swatch’s shares but controls 44 per cent of the voting rights. The watchmaker — which owns 16 brands including Omega, Longines and Tissot — has been run by chief executive Nick Hayek for 22 years. His sister, Nayla, has chaired the board since 2010.

While Swatch shares have risen by 3 per cent this year, they are still trading near lows last reached in the aftermath of the 2008 financial crisis.

In the first half of the year the watchmaker’s operating profit slumped by two-thirds to SFr68mn and revenue fell 7.1 per cent to SFr3.06bn amid weak demand in China.


Greenwood has formally submitted six proposals to be included on the agenda for the next AGM, most likely to be held in May.

They include giving bearer shareholders, whose shares carry lower voting rights than the so-called registered shares held by the Hayek family, the right to elect three board members. The investor is also pushing for the introduction of a mandatory rotation of auditors and a shareholder-elected independent chair for the board compensation committee.

Three of Swatch’s seven board directors are Hayek family members.

“The company needs more than just one new board member, the board needs total change,” Wood said.

Holders of so-called bearer shares represent 55 per cent of Swatch’s share capital but carry a minority of voting rights. Wood’s effort to gain a board seat this year was in effect blocked by the Hayek family despite gaining the support of more than 60 per cent of bearer shareholders.

Swatch’s board recommended shareholders vote against Wood’s resolution for several reasons, including that he is not Swiss and does not live in the country. The company told the FT that 79 per cent of shareholders rejected Wood’s candidacy at the previous meeting.

Wood maintains he has plentiful backing. “Many investors have told me they are supportive. We are encouraging them to also express to the company their support for change,” he said.

One major institutional investor in Swatch said it was supportive of Wood’s ideas to drive governance improvements.

“We think this could unlock much more value in such a strong Swiss brand,” they said.

Swatch said that while Greenwood has informed the company it would provide evidence it fulfils the legal requirements for placing motions on the agenda for the AGM, it has “not yet received any such evidence.”

The New Yorker : The Airport-Lounge Wars

The Airport-Lounge Wars
When you’re waiting for a flight, what’s the difference between out there and in here?

Airport lounges are about who gets in and who does not. There are lounges with hot dogs on rollers, lounges with pedicurists, and lounges with personal butlers. Ease of admission varies accordingly. Most people at an airport don’t visit a lounge. If they did, it would kind of defeat the purpose. But we’re getting there. Last year, Priority Pass, a membership network of mostly low- and mid-tier lounges, saw a thirty-one-per-cent increase in visits. By 2023, amid the post-pandemic travel boom, John F. Kennedy Airport had increased its lounge space in Terminal 4 alone to some seventy thousand square feet—about the size of Bill Gates’s mansion, Xanadu 2.0. Since then, the terminal has added another Xanadu’s worth. There are more than thirty-five hundred airport lounges in the world. Suvarnabhumi Airport, in Bangkok, has thirty-seven—roughly one for every two gates. Kasane, Botswana, a town of about ten thousand people, has an airport smaller than some lounges; it has an airport lounge. Three of the four lounges in Punta Cana’s airport have outdoor pools.

Some people fly just to visit a specific lounge. Others go to great lengths to get in. In 2016, at Changi Airport, in Singapore, a Malaysian businessman named Raejali Buntut missed a flight to Kuala Lumpur. He’d dozed off in the Plaza Premium Lounge. Instead of rebooking, he went to more lounges, hopping from one to the next, a total of thirty-one times. He didn’t leave the airport for eighteen days. He got into the lounges with a Priority Pass—a perk of his Citi credit card—and forged flight tickets. A staffer at one lounge eventually alerted the authorities. She received a special ceremony and a plaque. Buntut received a fraud conviction and was sent to jail, a place definitionally very similar to a lounge, but emotionally very different.

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Recently, I endeavored to visit as many lounges as I could in the span of a week without leaving New York, like Buntut but without the fraud. I have a fondness for free stuff and a willingness, on occasion, to sit around and do nothing. I do not have status—of any kind—but I do have a Priority Pass. Thus I found myself at the HelloSky Lounge, in a busy corner of J.F.K.’s Terminal 4.

Like a D.M.V. with couches, HelloSky had ceiling tiles, almost no natural light, and carpet that will take centuries to decompose. There were cheap Halloween decorations everywhere. Everyone seemed thrilled to be there. I sat down in front of a paper cutout of a witch. Nearby were Matt and Joann Gross, who were waiting for a flight to Memphis. “We’re going on a geriatric cruise down the Mississippi,” Joann explained. They were fans of HelloSky. “It’s really nice!” Joann said. “In here it’s less airporty.”

“It’s not very crowded,” Matt said. “I’ve been in some that are like being on the subway. You might as well sit out there.” He gestured to the concourse.

Kevin James, a history professor at the University of Guelph who has studied airport lounges, called their product offering “an enhanced experience of stasis”—waiting but better. Peter Greenberg, CBS News’ travel editor, who, fifty years ago, bought lifetime lounge passes with six airlines, said, “What they want people to say is ‘Well, it’s better than nothing.’ And that’s usually what they are—slightly better than nothing.” A lounge is the kind of place that puts fruit in your water. One better-than-nothing criterion to judge a lounge is its bathrooms. An Air France lounge in Paris has rest-room suites with padded leather walls and blown-glass chandeliers, like a jewel box for bowel movements. HelloSky had no bathrooms. The water was basic: lemons, cloudy, warm. I ate some mushy cheesecake bites out of a supermarket box labelled “Dianne’s Fine Desserts” and some meatballs (tasty), and ended my experience of stasis.

I’d heard that the Air India lounge had toilets, so I made my way over. The lounge looked like a college cafeteria and smelled of fenugreek. I loaded up a plate at the buffet. The cheesecake bite tasted familiar: Dianne’s. As I nibbled on a soggy samosa, I noticed that the two men next to me weren’t eating at all.

“We’re just waiting to get into the Virgin Clubhouse,” one of them, Ryan, said. Lounge access is governed by a complex array of memberships, airline alliances, and credit-card partnerships, with rules stipulating duration of stay and hours of entry. Sometimes you can pay to enter. (HelloSky charged fifty-nine dollars for three hours.) The Virgin Atlantic Clubhouse is a different lounge at different times of day. “It’s a Priority Pass lounge from 5 A.M. to 1:30,” Ryan said, meaning that you get a bagel, yogurt, porridge. “From two to later, it’s the real clubhouse,” meaning sit-down service: venison burgers, pan-fried salmon, beet salad.

Ryan’s friend Danny explained that the Air India lounge served as a kind of pre-lounge for the Virgin lounge—a place to wait for the place you wait. They were on a Delta layover from Stockholm. Ryan is only twenty but said that he expected to hit a million miles soon. “I can’t count all of the lounges I’ve been to,” he said. “I’ve probably been to all the Delta clubs in Atlanta.” There are nine; some fliers do a club crawl, which involves finishing one drink at each Sky Club during a single layover. “Obviously, I’ve been to a lounge on every continent,” Ryan went on. (He doesn’t count Antarctica, though there is a lounge there, consisting of a complex of igloos on a private airstrip which advises you to “drink your champagne quick before it freezes!”) “One lounge gave me food poisoning, twice,” Ryan told me. “One lounge in China was just a room.” That was in Shangri-La, in the Diqing Tibetan Autonomous Prefecture. Oddly, he wasn’t a fan of lounges. “In Atlanta, it’s better to go to P. F. Chang’s,” he said.

Ryan was diamond-medallion tier on Delta, but this did not afford him admission to any of the three Delta lounges at J.F.K. “If you’re platinum or diamond medallion on Delta and travelling internationally, you’re allowed into the Virgin Clubhouse but not the Delta Sky Club, unless you’re flying Delta One,” he said. “Delta is very judgy. They make you feel like you did something special to get in, to be worthy.”

The men offered to try to get me into the Virgin lounge. “There’s no guarantees,” Ryan warned. The distracted attendant let all of us in. The lounge gleamed. There were polished wooden floors and a red felt pool table. One couch looked like it was made of red balloons. The water pitcher had slices of orange and lemon and sprigs of mint, spaced evenly around its perimeter, and it was ice-cold. A waitress brought me a duck tostada.

We used to spend a lot more time waiting than we do now. We waited for the mail, for the milkman, for the news, for a ship, for a sign, for the bread to rise, for the tide to ebb, for the cavalry, for good things to come. As people were always waiting for something, dedicating special areas in which to do so would’ve been ludicrous. In the sixteenth century, kings, Popes, Medicis, and other aristocrats began constructing rooms where courtiers would wait. In “The Antechamber: Toward a History of Waiting,” the historian Helmut Puff recounts that, when Mozart was twenty-one and seeking a patron, he complained in letters home about waiting in antechambers across Europe: an hour in Bavaria, another “whole hour” in France, a half hour in a frigid room of a duke and a duchess. When the duchess finally appeared, he told her, “I’d be only too happy to play something but that it was now impossible, as my fingers were numb with cold.” Waiting can make one feel needy, like a baby. The waiter waits because the waitee is too important to.

By contrast, waiters wait in the airport lounge because they are important. The airport lounge was created in 1939 by American Airlines’ C.E.O., C. R. Smith, as a way to build support for commercial aviation. Smith called his first lounge, at LaGuardia, the Admirals Club. (He referred to his planes as the Flagship Fleet.) Membership was private, free, and at the company’s discretion. A manual listed those eligible: generals, congressmen, governors, judges, members of the U.N. Secretariat, “persons listed in Who’s Who.” New “Admirals” were commissioned in faux naval ceremonies. Often, they’d get a writeup in the local paper. Smith would send personal letters about Admiral business. (“Dear Admiral: As you know, we are not permitted to extend membership in the Admiral’s Club to the ladies. . . .”) He’d sign off, “C. R. Smith, Fleet Admiral.”

The lounge itself was homey: low ceilings, lamps, blue carpet (“Flagship Blue”), and red leather armchairs. “It’s the kind of room men enjoy, but in which women will feel at home,” a company brochure claimed. It was staffed by a young woman called the skipper and hidden within the airport; you’d ring a doorbell, then, once inside, play bridge, or maybe send a telegram. At Washington National, Admirals would come on Sundays, without a flight, just to drink.

Other lounges followed: Continental’s Presidents Club, T.W.A.’s Ambassadors Club. Braniff Airways’ president wrote to prospective members that “we would consider it an honor if you would become a member of the Braniff International Council.” Drinks could be more expensive than they were in the concourse. Exclusivity was the appeal. A Pan Am employee-training guide instructed that members of its Clipper Club should be made to feel “VERY V.I.P.” Some very, very V.I.P.s got special tags that read “EXCOR,” meaning that they were deserving of extra courtesy. Within a few decades, there were half a million lounge members. The Times described them as “an arbitrarily created aristocracy of nabobs, moguls, tycoons and big cheeses whom the airlines like to indulge on the chance that they might eventually throw some business their way.” In 1959, the Civil Aeronautics Board, the industry regulator, began an investigation to determine whether American Airlines used undue influence to win a lucrative route between New York and San Francisco. One person involved testified that he’d been made an Admiral.

In 1965, a night-light salesman from Providence, Rhode Island, named Herbert Goldberger was flying on American Airlines with a layover in New York. There were lots of delays. Goldberger wanted a Scotch-on-the-rocks. His seatmate suggested the Admirals Club. He found it, after some searching, behind a door marked with a drawing of a hat that looked like Cap’n Crunch’s. The skipper asked if he was an Admiral. He asked to enlist. She sent him away.

“Frankly, I was humiliated by the assumption that I wasn’t as good as the next person,” Goldberger later recalled. He filed a discrimination complaint with the C.A.B., seeking to open the clubs to the paying public. The board seemed uninterested. Years passed. The airlines fought back. One American Airlines executive asked, “If we let just anybody become an Admiral, why would anybody want to be an Admiral?” Goldberger kept pushing his case. It was a lonely stand. C. R. Smith appeared at a hearing and said that Goldberger would be the end of lounges. Senators got involved. Walter Mondale was briefed with updates. Goldberger received hate mail. His wife and kids were hardly supportive. The case went into its eighth year. Goldberger would not relent.

Goldberger eventually won, and he became a minor cult hero. The Times labelled him “the James Meredith of the private airline clubs.” “I never joined the Young Communist League, never marched on Washington, never even wrote a letter to the editor,” he said. “Now I’m drawing people with problems to me.” But, he promised, “this is my last big cause. I do have another pet peeve—I think people who pay cash in restaurants ought to get a seven-per-cent discount. . . . But I am going to do nothing about it.”

Goldberger could come across as a troll—aggrieved but amused. His daughter, Joy, recently assured me that he was not. “It was the biggest thing in his life,” she said. “I don’t remember my father ever standing up for any other causes, ever.” Something about the lounges inflamed a latent sense of righteousness. Either that or he just wanted in. One of the last times Joy saw her father, he had a layover in Baltimore, where she lived. “He wanted me to meet him. Where?” she asked. “At the Admirals Club.”

Like Venice or the “Mona Lisa,” lounges can become victims of their own appeal. Initially, the lounge glasnost was a letdown. People expected the Elizabeth Taylor movie “The V.I.P.s,” which was set in a Heathrow lounge where white-tuxedoed servers carried trays of champagne and patrons discussed tax shelters. Instead, they got “bad hummus and sweaty pretzels,” Greenberg, the travel editor, said. At least you could get in. The more lounges improved, the more crowded they became—lounge gentrification. It’s not uncommon to see a lounge line snaking through the concourse. Inside, seats are scarce. The difference between out there and in here can be blurry—shoe taker-offers, phone talkers, seat hoggers. There are ninety-minute waits for Delta Sky Clubs, standby lists at Chase Sapphire lounges. Queuers would rather sit on the floor than skip the lounge for a chair at the gate, a desperation that might have something to do with Instagram envy, inequality, or an overabundance of premium-economy professionals with business-class expectations. The reason for the lines is obvious: the airlines started letting more people in.

In 1986, Continental Airlines and Marine Midland Bank rolled out the airline industry’s first co-branded credit card. Co-branded credit cards are the ones that offer perks like free checked bags, reward miles, and lounge access. “Our product was terrible, our reliability was terrible, our service was terrible,” Henry Harteveldt, who worked on Continental’s marketing team at the time, told me. They hoped the cards might sell some seats. They became wildly popular. Harteveldt explained, “Now you sell the airline seats to get people to sign up for credit cards.”

Credit-card deals have become the core of the airline industry. During the pandemic, United’s mileage program, built around its partnership with Chase, was valued at around twenty billion dollars; the rest of the business—the passenger part—was ten billion dollars underwater. Annually, charges on Delta’s American Express cards total about one per cent of the U.S. G.D.P. (“It’s amazing how much money people will spend for a free flight,” Harteveldt observed.) In most years, the programs account for much of the airlines’ profits. This year, Delta’s card will earn the company eight billion dollars. Why do people sign up for the cards? “Lounge access is the No. 1 reason,” a Delta executive recently said, of their Reserve card. Since the airline business is largely a credit-card-loyalty business, and since the credit-card-loyalty business is largely a lounge business, it’s only a minor stretch to think of Delta or United as lounge companies that also fly planes. In Atlanta alone, there are two lounges that together cost more than a hundred million dollars to build.

Lounge purveyors view overcrowding as a grave long-term threat. To address it, Delta recently changed its admission policies, capping the number of annual visits and prioritizing American Express passengers. United has a similar policy with Chase. The airlines are also increasing supply. Emirates’ business-class lounge in Dubai is a hundred thousand square feet, which is significantly larger than J.F.K.’s original terminal. United is building a lounge in Houston that will be fifty thousand square feet. “It’s a little bit larger than a football field,” Aaron McMillan, who runs United’s hospitality programs, told me. The only space they could find big enough to mock up the floor plan was an airplane hangar.

I visited a new United Club at Newark that was styled like a lofted co-working space: skylights, subway mosaics, exposed brick. It had a remarkable view of the Manhattan skyline. The sandwiches were fresh. The water had cucumbers. The club wasn’t at capacity, but there must have been hundreds of people in there—it felt as bustling as the terminal. This one was thirty thousand square feet, about the size of the main concourse at Grand Central and several times bigger than some airports I’ve been to.

The most intense fighting in the “lounge wars,” as the aviation press calls them, is among the credit-card companies. In 2013, American Express opened a stand-alone lounge, for owners of its high-end cards, called the Centurion Lounge. “The narrative was ‘Why would you do that?’ ” Audrey Hendley, the president of American Express Travel, told me. “We’re trying to convey the world-class service and backing of American Express.” Chase soon followed. Each competes to out-fancy the other. The Centurion Lounge at LaGuardia was nice, with refreshing lemon-cucumber water, but a little cramped. If this was once world-class, it is no longer. So, this summer, American Express rolled out a new buffet menu—crab frittata, cornflake-crusted French toast—created by four James Beard Award-winning chefs, including Kwame Onwuachi, the star chef of Tatiana. Onwuachi’s plantain bread pudding, I feel obliged to say, was way better than P. F. Chang’s.

The Chase Sapphire Lounge, next door, offers private lounges within the lounge, starting at twenty-two hundred dollars for three hours. Each is a suite that comes with a PlayStation, a shower, and bathrobes. Dana Pouwels, Chase’s head of airport lounges, showed me around. “Typically, when you arrive at the suite, you would have welcome caviar and champagne,” she said. The suite seemed unnecessary; the rest of the lounge was nice enough. There was an Art Deco bar, custom wallpaper, and carpentry imported from Germany. Everything was JPMorgan blue. Water taps were built into the wall. “We rotate this quarterly to maintain seasonality,” one of Pouwels’s deputies said. “This rotation includes a blackberry-sage spa water.”

There was also a photo booth, a faux fireplace, and a spa. “The Sapphire Reserve customer is an experience maximizer,” Pouwels said. I was booked for a facial.

The technician told me, “Your skin’s kind of sensitive and dry.” She prepared a mask and an infrared treatment, “to help with the collagen.” Afterward, she rubbed cold metal balls around on my face. “This is cooling,” she said. “It’s for puffiness.” My skin was analyzed and graded using A.I. My score: seventy-four out of a hundred. I went to a mirror and rubbed my cheek. “You look nice and shiny!” the technician said. My face felt smooth, cold, and a little wet, like a hard-boiled egg in the fridge.

When I emerged, I received enough compliments that I felt closer to an eighty-four. Pouwels said, “We have principles called the host mentality.” They’re granular enough to cover how to refer to a guest—first name, sir, ma’am, honorific—in different situations. She declined to elaborate. “Our competitors pay attention,” she said.

Everyone at the Capital One Lounge at J.F.K. called me Mr. Zach, which made me feel like a preschool teacher, only wealthier. Capital One was a late but enthusiastic lounge-war combatant. Last year, it opened a lounge at Washington National Airport which included a kitchen custom designed by José Andrés, who oversees the food. One company executive told the Times, “If there was a budget, I was not aware of it.” There’s a little cart, which is wheeled around to deliver cones filled with caviar. In New York, it’s used for a sunset champagne service. There’s also a counter meant to evoke a bodega, stocked with fresh Ess-a-Bagel. I spent a delightful forty-five minutes at the cheesemonger’s bar, where I was served a personalized flight consisting of a Swiss cows’-milk cheese shaved into little bouquets, a deep-orange cheddar, and a black-truffle sheep-milk cheese from Italy, along with sherry and wine, with limoncello to clear my palate. When I was done, I moved to hand my plate back to the cheesemonger. “The cheese attendant will take care of that, Mr. Zach,” the cheesemonger told me. Out of the wall taps flowed regular water. A Capital One travel employee told me that fresh-fruit-infused water can be a pain—everything has to be cleaned constantly and kept at a low temperature, and the fruit clogs up the spigots. “I just want a glass of water,” she said. “We don’t need all that stuff.”

Credit-card lounges are a way to feel like you have status and money, but they do not necessarily require you to have that much of either. (Chase and American Express recently raised their annual fees; you can still break even, but only by carefully coupon-booking the perks.) For those who are actually wealthy, there are even more rarefied options. The Delta One Lounge at J.F.K. has its own check-in area, which looks like the lobby of a luxury hotel. I was met there by a friendly woman named Hiroko, from the premium-services department. After checking me in, she escorted me through T.S.A. “We’re supposed to have our own separate security line,” she said, apologizing. It was closed because of the government shutdown. This cost us approximately sixty seconds.

The private checkpoint, when open, leads directly to the lounge, which is furnished with marble, hardwoods, and burnished metals. Hiroko showed me around: sunroom, business workstations, hand towels in the showers arranged into cute animal shapes. Occasionally, as we walked, a diffuser let out a puff of fog that smelled like clean linen. Near the spa, Hiroko stopped by some spigots and announced, “The magic juice wall.” She poured me her favorite, kale-cucumber-celery-fennel-lemon juice. I downed two cups.

The space wasn’t vastly different from the Polaris lounge—United’s top-tier offering—at Newark. Delta had the spa; United had little sleeper suites, with a ceiling lit up like the night sky. Neither is open to credit-card holders or day-pass buyers. These are only for those with long-haul business-class tickets, which typically go for several thousand dollars.

The fancier the lounge, the less the lounge goer has to interact with the actual airport. “We have Porsches,” Hiroko told me, by the windows. “You see them down below?” She led me to the tarmac, where there was a fleet of six cars. For an extra five hundred and fifty dollars, Delta will drive you straight to the plane and pick you up on the other end.

Hiroko booked me at the lounge’s restaurant, a Danny Meyer venture. I had trouble deciding what to eat. I eventually ordered the mussels with charred pineapple as an appetizer, and an entrée of lamb chops. “Are you sure you don’t want to order two?” my waiter, Darren, asked. I added risotto. “No surf and turf? Maybe the swordfish?” I ordered the swordfish. It was 11:30 A.M. Everyone around me was drinking red wine.

I’d made a miscalculation and accidentally booked a massage at the same time I was supposed to be getting my dessert. So Darren held my soufflé and pretzel brownie while an attendant escorted me to the spa. Around me, passengers wore compression pants that looked like astronaut suits, to drain the fluid out of their travel-bloated legs. My treatment was a chair massage. It was a little disappointing. Even this lounge was filling up, making it hard to fully relax, and I couldn’t help but think of Thai Airways’ first-class lounge in Bangkok, whose free one-hour massages are full body—the real deal.

The thing about lounging is that it’s impossible to lounge without worrying that someone, somewhere, is lounging better. My swordfish was, frankly, perfect, but would it have been even more perfect in Frankfurt, where Lufthansa has an entire first-class terminal whose restaurant has items from all of the cities in its route system flown in fresh daily? Had I missed out on the best lounge without even knowing it? The Virgin Clubhouse at Heathrow used to have a hydrotherapy, bath-steam, room-tanning, booth-ski simulator, and a four-hole putting green with a sand trap.

The best lounges generally are abroad, often in destinations with a long history of aristocracy. Air France’s first-class lounge in Paris, with the jewel-box bathrooms, offers fifteen-year-old Veuve Clicquot, twelve different brands of bottled water, and an Alain Ducasse restaurant serving foie gras and truffles. According to one visitor, “The difference between this meal and one in a Polaris-lounge restaurant is like the difference between that same Polaris-lounge meal and the food you’d get at an Ambassadors lounge.” You can pay for your own hotel-style suite with a bed, an outdoor patio, and a dedicated butler. They’re militant about entry rules. If you’re merely business class and want to partake, you have to pay nine hundred and ninety euros, and you’re allowed to do that only if you’ve flown first class sometime in the past year. The Al Safwa First Lounge, in Doha (private duty-free shop, screening room, Keith Haring on the wall, architecture “more comparable to a cathedral, mosque, mausoleum, or state monument than anything else,” as one visitor described it), is more lenient. You can even bring your nanny. She’ll go in the nanny room, a windowless white space with a few seats and high chairs.

In the U.S., the best you can do is P.S., short for “private suite,” which houses its lounges in bespoke buildings far away from the terminal so that you never even have to deal with the airport at all. (Their tarmac cars are BMWs.) “It’s meant to feel like you’ve been invited into a good friend’s home,” Jean Liu, who is designing a P.S. lounge in Dallas, told me. There’s art and curated bookshelves, along with Michelin-rated chefs and a spa. Liu was prioritizing vintage pieces. “So it feels a little more storied, not everything is new, new, new,” she said. “We are also really fortunate to work with Sandra Jordan. She was the pioneer in luxury alpaca fabrics. She is actually giving us all of the fabrics for the window treatments.” You still have to go through T.S.A. and customs, but they feel more like the help you’ve invited into your home. “For example, when you approach C.B.P., the podium is actually a custom piece of furniture that we’re designing with them,” Liu said. Each departure and arrival with P. S. costs thirteen hundred dollars. (For an extra sixteen hundred and fifty dollars per person, a car will pick you up directly from the plane and drop you off at your final destination.) “I don’t know where you live,” Liu told me, “but you really should try it.”

>>> US Close Dow +0.61% S&P +0.54% Nasdaq +0.65% Russell +0.56%

Closing Market Summary: Stocks cap strong week with modest, broad-based gains
The stock market moved modestly higher during today's abbreviated session, capping a solid week for equities that saw the major averages capture sizable week-to-date gains.

Today's action saw the DJIA (+0.6%) move into positive territory for the month in the last session of November, while the S&P 500 (+0.5%) and Nasdaq Composite (+0.7%) captured similar gains.

Ten S&P 500 sectors captured gains today, and all eleven sectors notched week-to-date gains, underscoring the recent market-wide momentum that has been driven by reinvigorated odds for a December rate cut.

The energy sector (+1.5%) was today's top mover, supported by a $0.81 (+1.4%) increase in crude oil prices to $59.46 per barrel.

Amazon (AMZN 233.26, +4.10, +1.79%) and Tesla (TSLA 430.14, +3.56, +0.83%) provided solid mega-cap leadership for the consumer discretionary sector (+0.9%), padding its solid week-to-date gains (+5.3%).
The financials sector (+0.7%) also captured a nice gain as major banking names such as JPMorgan Chase (JPM 313.08, +5.44, +1.77%) traded higher. Coinbase Global (COIN 273.04, +8.07, +3.05%) advanced as Bitcoin began to rebound from recent lows.

Intel (INTC 40.71, +3.90, +10.59%) was the top-performing S&P 500 name after analyst Ming-Chi Kuo reported on X that Apple (AAPL 278.69, +1.14, +0.41%) may begin sourcing its lowest-end M-series processors from INTC as early as 2027. The potential partnership would initially focus on AAPL's most affordable MacBook and iPad models, where the lower-power M chips currently rely entirely on Taiwan Semiconductor Manufacturing (TSM 291.46, +1.50, +0.52%).

The information technology sector (+0.5%) captured a modest gain, as NVIDIA (NVDA 176.84, -3.42, -1.90%) and Oracle (ORCL 201.80, -3.16, -1.54%) both faced pressure.

Meanwhile, only the health care sector (-0.5%) traded lower today, facing some profit-taking after a recent run of outperformance that still leaves it up 9.0% for the month. Eli Lilly (LLY 1074.20, -30.14, -2.73%) was the worst-performing S&P 500 name today.

Despite the holiday-shortened week, the stock market was able to reclaim a considerable amount of ground that was ceded earlier in the month. The major averages are now holding above their 50-day moving averages and enter December buoyed by improving sentiment and supportive rate-cut expectations.
  • Nasdaq Composite: +21.0%
  • S&P 500: +16.5% YTD
  • DJIA: +12.2% YTD
  • Russell 2000: +11.9% YTD
  • S&P Mid Cap 400: +5.9% YTD

WSJ : Airbus Grounds ‘Significant Number’ of A320 Planes

Airbus Grounds ‘Significant Number’ of A320 Planes
Solar radiation may corrupt data critical to flight controls, creating safety issues

Airbus AIR 0.15%increase; green up pointing triangle said its A320 family of planes need immediate updates to software and, in some cases, hardware, which could ground many flights around the world.

A recent event involving an A320 aircraft revealed that intense solar radiation may corrupt data critical to the functioning of flight controls, the company said Friday.

Airbus has identified “a significant number” of aircraft in that family of planes that could be impacted, potentially delaying or canceling flights in the near-term.

“We apologise for the inconvenience caused and will work closely with operators, while keeping safety as our number one and overriding priority,” Airbus said.

TechCrunch : How OpenAI and Google see AI changing go-to-market strategies

How OpenAI and Google see AI changing go-to-market strategies

For years, when it was time for startups to start selling their product, they could turn to any number of traditional playbooks. But as with so many things, AI is changing how companies prepare to go to market.

“You can do more with less than ever before,” Max Altschuler, general partner at GTMfund, told the audience at TechCrunch Disrupt last month.

The challenge for founders and operators, though, will be threading the needle. While there has been some chatter of startups hiring developers more versed and loosing them on typical GTM problems, he said, there’s still a need for more specific domain expertise.

“When you have great advisors around you can learn some of the tried-and-true playbooks. Those things haven’t gone out the window. I think it’s still necessary that you have a general understanding of how and why certain things work in marketing,” Altschuler said.

Alison Wagonfeld, vice president of marketing at Google Cloud, said the craft of marketing is still very much required.

“You certainly need the AI knowledge, the AI curiosity, the technologists, but also understanding what the purpose of marketing is, to understand customer insights, to do research, to see what great creative is like,” Wagonfeld said.

Teams that adopt AI, though, can move more quickly “You can just get out there with so many more messages faster, and then you can think more holistically about what metrics am I driving for,” , she added.

Marc Manara, head of startups at OpenAI, has found many startups have embraced AI in their GTM strategy, though it’s not necessarily with the sole focus of minimizing how many resources they put toward it.

“There’s a movement of, yes, you can do more with less, but you can also be very focused with how you do it,” he said. “The degree of personalization and signal following that you can do with AI is differentiated now.”

Specifically, he said there are tools that help build leads which are much more sophisticated than in the past. Rather than just a simple query of a database, AI prompts can help startups find prospective customers that fit a very specific set of requirements.

Inbound marketing has changed, too, he added, by using the results of those prompts to qualify and score inbound leads “with a lot more precision could have been in the past.”

When it comes time for a startup to begin crafting its go-to-market strategy, Wagonfeld said its important to consider what qualities it might want in a GTM team.

“It’s a change in hiring perspective, where the past it was more about hiring specialists, people who really knew, sometimes even like a sub-specialty within marketing or within sales. And now it’s hiring for a sense of curiosity and understanding,” she said. “It’s almost the top thing to hire for now.”

WSJ : Liverpool Is in the Midst of a $500 Million Collapse

Liverpool Is in the Midst of a $500 Million Collapse
The Premier League’s defending champion spent more on talent than any club in Europe last summer. But after six defeats since late September, its title defense is already on the rocks.

Few sights could be more dispiriting to the rest of English soccer than Liverpool cruising to a championship last spring and immediately adding half a billion dollars’ worth of talent.

The record-breaking spending spree represented much more than a club retooling after a romp through the Premier League. This was a show of force. Liverpool was building for a dynasty.

Instead, this season is spiraling into the club’s most catastrophic campaign in decades. Liverpool has lost nine of its past 12 games in all competitions, marking its worst run of form since the 1950s. It sits in 12th place in the Premier League, 11 points behind league-leading Arsenal. And the club is even looking up at its crosstown rival, Everton, in 11th place.

As far as title defenses go, English soccer hasn’t seen a collapse this dramatic since Leicester City chased its Cinderella championship with a 12th place finish in 2017.

“This season is a shock,” manager Arne Slot said this week. “And it’s very, very unexpected if you look at the quality we have.”

The most recent fiasco came on Wednesday night, when Liverpool lost 4-1 at home in the Champions League against PSV Eindhoven. The defeat came on the heels of consecutive 3-0 shellackings by Nottingham Forest and Manchester City, which means that Liverpool has now racked up three consecutive defeats by at least three goals for the first time in 77 years.

The situation is so dire that sections of the Liverpool faithful have begun to wonder aloud whether Slot’s time is running out. Although the Dutchman was only hired before the 2024-25 season—and delivered a title in his first season in charge—there’s little relief in English soccer for managers in a tailspin. Only two of the 20 coaches currently in the Premier League have tenures longer than five years, while 13 have been in their jobs for less than two.

“It’s lower than the level expected at Liverpool,” Slot said. “For sure I take the responsibility and I feel guilty for it.”

At the heart of Liverpool’s crisis is a total evaporation of its attack. A side that averaged over 15 shots per 90 minutes in the league last season is now producing barely a third of that total.

Slot knew that his side was aging and needed turnover—which is precisely what the club attempted to address by breaking the British transfer record twice in the space of three months. German playmaker Florian Wirtz, signed from Bayer Leverkusen for $156 million in June, has delivered just two assists in 15 games and exactly zero goals. Striker Alexander Isak, meanwhile, is still waiting to score his first Premier League or Champions League goal since his $165 million move from Newcastle. At this point, he isn’t even an automatic starter.

Making matters worse are Liverpool’s former stalwarts fading from view. At 33, Mohamed Salah is finally beginning to slow down with only four goals in 12 league games. This time last year, he had more than twice as many.

All of which seems profoundly out of character for Liverpool in its modern era. Under its American owners, Fenway Sports Group, the club had been a model of succession planning. It replaced key players, such as Sadio Mane and Robert Firmino, before they had a chance to go stale and made a seemingly smooth transition from former manager Jürgen Klopp to Slot.

But if this season shows anything, it’s that not much has to go wrong for the wheels to come off completely. A couple of signings underperforming in their first three months at Anfield, a superstar showing his age, and a few individual errors can be the difference between title defense and existential crisis.

The problem now is that Liverpool has limited scope to make changes. The club can’t add new players until January, by which time it will be fully out of the title race and could be facing elimination from the Champions League. It wouldn’t be unheard of for the owners to make a midseason change in the dugout—they did it twice before appointing Klopp—but Liverpool captain Virgil van Dijk explained that the real blame lay with the players.

“This season we don’t have any consistency, we concede far too many goals, we are losing battles, and everyone is responsible for it,” he said.

“And I hope everyone sees that.”

As the club’s own fans filed out of Anfield before Wednesday’s final whistle, it was impossible to miss.