Airline: Muslim fliers to U.S. off a little
DUBAI, United Arab Emirates -- The chief executive officer of one of the Middle East's largest carriers said Monday that passenger numbers to the United States have dipped slightly over fears by some Muslim passengers that their visas could be rejected upon arrival.
Qatar Airways CEO Akbar al-Baker said uncertainty about travel to the United States is "affecting the business, but to a very small extent."
"We didn't have massive decline like other carriers, so we still have robust loads to the United States and we will continue our commitment to our passengers in the United States," al-Baker said.
Emirates, the Middle East's largest airline, reduced its service to the United States by 20 percent last week.
Dubai, where Emirates is based, and Doha, Qatar Airways' main hub, were among the 10 cities in Muslim-majority countries affected by a ban on laptops and other personal electronics in carry-on luggage aboard U.S.-bound flights.
"Qatar Airways does not plan and will not reduce frequencies to the United States," he said.
Al-Baker also expressed hope that Trump would resist pressure from American Airlines, Delta Air Lines and United Airlines to block expansion into the U.S. market by Gulf-based carriers.
"I have repeatedly mentioned that President Trump is a very wise individual and a very good businessman, and I don't think that he will buy into bullying by the three American carriers," he said.
-- The Associated Press
Halliburton narrows 1Q loss to $32M
NEW YORK -- Halliburton Co. on Monday reported a smaller first-quarter loss as greater demand for domestic drilling services improved revenue.
The provider of drilling services to oil and gas operators reported a loss of $32 million, or 4 cents per share, compared with a loss of $2.41 billion, or $2.81 per share, a year earlier when it had hefty charges.
The results exceeded Wall Street expectations.
The Houston-based company said drilling activity increased rapidly in North America during the first quarter. Revenue rose 12 percent to $4.28 billion, meeting Street forecasts.
Halliburton shares fell 31 cents to close Monday at $46.75.
Halliburton shares have fallen 13 percent since the beginning of the year, while the Standard & Poor's 500 index has increased almost 5 percent.
-- The Associated Press
Investors leery of Guitar Center's debt
Guitar Center Inc. investors are fretting about its billion-dollar debt load.
Bonds issued by the biggest U.S. music retailer are hovering near record lows after Moody's Investors Service said the chain needs to refinance this year and do a better job of curtailing leverage. If it doesn't, Guitar Center's credit rating could fall deeper into junk, a move likely to drive up borrowing costs.
Investors are giving Guitar Center the same rough treatment dished out to other retailers, especially the ones that loaded up on debt to pay for ill-timed buyouts. From apparel and shoes to appliances and electronics, merchants have been forced to close stores, restructure debts or file for bankruptcy as consumers increasingly shop online from their sofas instead of in stores. That trend is cutting deeply into Guitar Center's cash flow, Moody's said.
"We're expecting them to refinance but not necessarily restructure," Moody's analyst Keith Foley said in an interview. "It'd be interesting to see if they use any of their resources to buy the bonds back at a very large discount, which by definition would be a restructuring."
-- Bloomberg News
JAB thinning out luxury-goods holdings
The billionaire Reimann family's investment vehicle is unwinding its luxury holdings, putting shoemakers Jimmy Choo and Bally International up for sale to focus on the food and beverage operations it has spent billions expanding in recent years.
The Vienna-based family's JAB Holding Co. said Monday it's reviewing strategic options for both companies at a time when it's snapping up U.S. coffee and restaurant chains.
"We consider disposals of JAB's luxury business make sense as they do not offer the same cost synergy advantages as the company's other businesses in the fast-moving consumer goods sector," Jeanine Arnold, senior analyst at Moody's, said in a note.
The announcements signal the end of a nearly decade-long involvement in high-end shoemaking for JAB that started when its Labelux unit bought Bally in 2008. More recently, the closely held company has fixed its focus on food and beverages, buying the likes of Caribou Coffee, Krispy Kreme Doughnuts and Panera Bread.
JAB said it has made a "strategic decision" to focus on consumer goods, including a 37 percent stake in cosmetics maker Coty Inc. The announcement made no mention of British jacket-maker Belstaff, which also forms part of JAB's luxury-goods portfolio.
-- Bloomberg News
Business on 04/25/2017