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Spirit Airlines said on Monday it is preparing to furlough one-third of its flight attendants after filing for its second bankruptcy in a year, as the carrier grapples with dwindling cash and mounting losses. The low-budget airline will temporarily lay off about 1,800 flight attendants from its total strength of approximately 5,200, effective December 1. Spirit filed for bankruptcy again last month after a previous reorganization failed to put it on firmer financial footing. The company forewarned job cuts in a memo sent to employees last Wednesday, adding that it also plans to slash flight capacity 25% year-over-year by November. “We need to shift our focus to a complete rightsizing of the airline, which means volume-based adjustments to our flight attendant group,” the airline said in an email to employees seen by Reuters on Monday. The Association of Flight Attendants, in a separate memo also seen by Reuters, said: “The problem is that the significant reduction of aircraft and flight hours requires a much higher reduction in force and the company is clear that a furlough is necessary.” The airline, with more than 800 staff voluntarily absent now, has so far relied only on voluntary furloughs rather than imposing mandatory ones. It will continue offering voluntary furloughs, even as it moves forward with additional staffing reductions. According to the union, voluntary furloughs are being offered for six months to one year time periods and are set to begin on November 1. The union also said in its memo that it is coordinating to arrange preferential interviews for its members at other airlines. Spirit’s financial difficulties, combined with U.S. carriers competing for premium travelers, have raised concerns that the era of ultra-low fares may be ending for budget-conscious passengers. Last week, United Airlines said it would not pursue Spirit’s assets if they become available as part of the carrier’s restructuring. Doyinsola Oladipo, Aishwarya Jain, and Aatreyee Dasgupta, Reuters
Category:
E-Commerce
President Donald Trump’s appointee to the Federal Reserve’s Board of Governors said Monday that the central bank’s key interest rate should be much lower than its current 4.1% level, staking out a position far different than his colleagues. Stephen Miran, who is also a top economic adviser to Trump, said in remarks to the Economic Club of New York that sharp declines in immigration, rising tariff revenue, and an aging population all suggest that the Fed’s rate should be closer to 2.5% instead. According to projections released last week, that’s almost a full percentage point lower than any of his 18 colleagues on the Fed’s rate-setting committee, an unusually high divergence. Miran’s comments underscore the different perspective he brings to the Fed’s deliberations over interest rate policy. His appointment has been controversial because he has kept his position as the head of the White House’s Council of Economic Advisers while taking unpaid leave, raising concerns about the Fed’s traditional independence from day-to-day politics. His term on the Fed’s board expires in January, and Miran has suggested he would return to the White House after that, though he could remain on the board until a successor is appointed. It should be clear that my view of appropriate monetary policy diverges from those of other . . . members of the committee, Miran said in written remarks. I view policy as very restrictive, he added, meaning that it is holding back the economy and poses material risks to the Fed’s congressional mandate of seeking maximum employment. Miran said that fewer immigrants should free up more housing and lower rental costs, reducing inflationary pressures. And tariff revenueswhich may top $300 billion a year, according to Congressional Budget Office estimatesshould reduce the deficit, he added. Over time, that would mean the Fed doesn’t have to keep its benchmark interest rate as high as it is now to bring inflation down. By Christopher Rugaber, AP economics writer
Category:
E-Commerce
Shares of Kenvue Inc. (KVUE), the parent company of Tylenol, are down around 6% in midday trading on Monday on news the Trump administration is expected to link the over-the-counter pain relief medicine to autism. According to MSNBC, there is growing alarm in the medical community ahead of an expected announcement after Trump told reporters he believed Tylenol was a very big factor in autism risk. Longtime Tylenol maker Johnson & Johnson spun off the Tylenol brand in 2023 to become a standalone publicly traded company, Kenvue, known for such household products as Band-Aid, Listerine, and Zyrtec. Tylenol, which has been available in some form in the U.S. since 1955 and available for purchase over-the-counter since 1960, is the brand name for acetaminophen, the pill’s active ingredientand one of the most widely used medications around the world. Acetaminophen is a pain reliever and fever reducer for minor aches and pains. According to a number of publications, including the Washington Post, federal health officials on Monday are expected to raise concerns about pregnant women using acetaminophen based on researchincluding an August review by Mount Sinai and Harvardsuggesting a potential link between Tylenol use in early pregnancy and an increased risk of autism in children. However, it is important to note that Tylenol is generally considered safe to use and generally not linked to autism. A study from JAMA also found using acetaminophen during pregnancy was not associated with increased risk of autism, ADHD, or intellectual disability in children. The study refuted recent research papers that argued otherwise. At the same time, officials are expected to introduce leucovorin, a lesser-known drug, as a potential treatment for autism. Leucovorin is a folinic acid, an active form of vitamin B9 (folate) used to treat side effects and enhance chemotherapy drugs and anemia, and treat vitamin B9 deficiencies. Speculation comes after Trump reportedly said Sunday that the administration “found an answer to autism.” Trump is set to make an announcement late Monday afternoon with Health and Human Services Secretary Robert F. Kennedy Jr., according to USA Today. Tylenol’s owner, Kenvue, told the outlet in a statement that the active ingredient “acetaminophen does not cause autism.” Kennedy has said finding the cause of autism is one of his priorities. The Centers for Disease Control and Prevention (CDC) said one in 31 American 8-year-olds were diagnosed with the condition in 2022, compared with one in 150 in 2000, Politico reported.
Category:
E-Commerce
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