Airline shares slide as issues develop over client journey

A Delta Air Lines Boeing 767-332(ER).

Joan Valls | Nurphoto | Getty Images

Airline stocks slid further on Tuesday as Wall Street’s concerns about weaker-than-expected travel demand amid looming tariffs and a sharp drop in consumer confidence continue to weigh on the sector.

Shares of Delta Air Lines were down more than 3% in afternoon trading after Jefferies downgraded the carrier, the most profitable in the U.S., to a hold rating from buy, and nearly halved its price target to $46, several weeks after the airline cut its first-quarter guidance.

The bank said Delta would “likely” reduce its 2025 forecasts. While concerns have grown, particularly about more price-sensitive travelers, Delta executives have said the airline has been growing its share of revenue from its higher-end cabins like first class, as well as its lucrative credit card partnership with American Express.

Delta kicks off U.S. airlines’ earnings season when it reports results next Wednesday morning.

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Jefferies also cut its rating on American Airlines, Southwest Airlines and Air Canada, which has outsize exposure to a slowdown in cross-border travel with the U.S.

American was also down about 3% in afternoon trading, while Southwest sank more than 5%.

United Airlines remains Jefferies’ sole buy airline of the U.S. carriers, though it also slashed its price target by 48%.

Airline executives at a JPMorgan industry conference in mid-March warned about softer-than-expected demand, particularly for domestic travel, which makes up the bulk of the U.S. travel industry’s revenue.

U.S. household credit and debit card spending overall was up 1.5% over last year as of March 22, but spending on airlines dropped 7.2%, according to a Bank of America report last week.

On Monday, the Bank of America Institute wrote in a report that the decline in travel card spending “could be that the recent drop in consumer confidence is translating into people hesitating to book trips, or considering paring them back” but added that “bad weather and a late Easter this year are also likely playing a part.”

The NYSE Arca Airline Index, which tracks mostly U.S. carriers, fell 18% in the first quarter, outpacing the S&P 500′s decline and marking the sector index’s biggest percentage drop since the third quarter of 2023.

Correction: The NYSE Arca Airline Index fell 18% in the first quarter. A previous version misstated the drop.

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Beyoncé & Solange’s Mother Tina Knowles Interview on Motherhood

Tina Knowles Defends Family After Kanye West Tweets About Beyoncé and Jay-Z’s Kids

Tina Knowles knows that Beyoncé was born to be a protector for her kids.

In fact, one of the 71-year-old’s favorite things about her daughter—who shares daughter Blue Ivy, 13, and twins Rumi and Sir, 7, with husband Jay-Z—is how she places her children first amid her busy life in the spotlight.

“They are always her first priority,” Tina exclusively told E! News The Rundown’s Erin Lim Rhodes at Billboard’s Women in Music Awards in Los Angeles March 29, “no matter what else is going on.”

Beyond Beyoncé’s ability to focus on her kids, Tina—who shares the Cowboy Carter singer, 43, and Solange Knowles, 38, with ex Mathew Knowles—is adamant about shining a light on the important job of being a mom.

“Mothers take on the role of being behind the scenes and doing what they can to support,” the matriarch continued in the interview airing April 2. “It’s nice to be recognized for that.” 

Trump pardons BitMEX crypto trade convicts

Arthur Hayes, chief executive officer of BitMEX, speaks during the Consensus: Invest event in New York, U.S., on Tuesday, Nov. 28, 2017. 

Michael Nagle | Bloomberg | Getty Images

President Donald Trump granted pardons to three co-founders of the BitMEX global cryptocurrency exchange, as well as to a former high-ranking employee of the company, CNBC has learned.

The co-founders, former BitMEX CEO Arthur Hayes, Benjamin Delo and Samuel Reed, and former head of business development Gregory Dwyer, previously pled guilty to one count of violating the Bank Secrecy Act related to failure to maintain anti-money laundering and know-your-customer programs.

The founders received criminal sentences of probation of varying lengths and were ordered to pay civil fines totaling $30 million related to a lawsuit by the Commodity Futures Trading Commission.

Dwyer, who received a sentence of 12 months of probation, agreed to pay $150,000 in fines.

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Prosecutors accused the men of effectively operating BitMEX as a “money laundering platform” and that its purported withdrawal from the U.S. market was “a sham.”

Trump issued the pardons on Thursday, more than three months after BitMEX was sentenced to pay a fine of $100 million for violating the Bank Secrecy Act by failing to establish and maintain anti-money-laundering and know-your-customer programs.

Hayes, in a tweet on Friday, wrote, “Thank you POTUS,” using the term for “President of the United States.”

Delo, in a statement, said, “The US Department of Justice wrongfully targeted BitMEX and its co-founders.”

“This full and unconditional pardon by President Trump is a vindication of the position we have always held – that BitMEX, my co-founders and I should never have been charged with a criminal offense through an obscure, antiquated law,” Delo said.

“As the most successful crypto exchange of its kind, we were wrongfully made to serve as an example, sacrificed for political reasons and used to send inconsistent regulatory signals.”

“I’m sincerely grateful to the President for granting this pardon to me and my co-founders,” Delo said. “A legal wrong has been righted today and despite the distress I have been through over the past few years I’m pleased to have cleared my name and to be able to continue my life and philanthropic work without the burden of an unfounded conviction.”

Hayes, Delo and Reed founded BitMEX in 2014. Prosecutors said the executives knew that the exchange was required to implement an anti-money laundering plan because it served U.S. customers “but chose to flout those requirements, requiring only that customers provide an email address to use BitMEX’s services.”

“Indeed, senior executives each knew that customers residing in the U.S. continued to access BitMEX’s trading platform through at least in or about 2018, and that BitMEX policies nominally in place to prevent such trading were toothless or easily overridden to serve BitMEX’s bottom line goal of obtaining revenue through the U.S. market without regard to U.S. criminal laws,” the Manhattan U.S. Attorney’s Office said in a statement in January.

Delo, the former chief operating officer and chief strategy officer of BitMEX, had been sentenced to 30 months of probation after his guilty plea in U.S. District Court in Manhattan.

Hayes was sentenced to six months of home confinement, followed by two years of probation.

Reed, who is the exchange’s former chief technology officer, was sentenced to 18 months of probation.

Trevor Milton, the founder and former CEO of electric truck maker Nikola, revealed Thursday night that Trump had pardoned him for his criminal conviction for securities fraud. Milton had been sentenced to four years in prison in that case, but remained free on appeal.

Meta is concentrating on ‘tons of of tens of millions’ of companies for agentic AI

Meta Platforms is among the U.S. tech giants leading the race to invest in generative AI and the foundational large language models that the AI breakthroughs rely on, and it’s also taken an open-source approach to its AI development, allowing the tech innovations to be shared widely.

Those innovations are occurring rapidly. “Not just daily. It’s evolving multiple times a day,” says Clara Shih, head of business AI at Meta.

Its Llama LLMs, available to developers around the world, have been downloaded over 800 million times. Earlier this week, Meta chief product officer Chris Cox said the upcoming open-source Llama 4 AI will help power AI agents, the latest trend in generative AI.

The AI agents won’t just be responding to prompts. They will be capable of new levels of reasoning and action — surfing the web and handling many tasks that might be of use to consumers and businesses. And that’s where Shih comes in. Meta’s AI is already being used by over 700 million consumers, according to Shih, and her job is to bring the same technologies to businesses.

“Not every business, especially small businesses, has the ability to hire these large AI teams, and so now we’re building business AIs for these small businesses so that even they can benefit from all of this innovation that’s happening,” she told CNBC’s Julia Boorstin in an interview for the CNBC Changemakers Spotlight series.

She expects the uptake among businesses to happen soon, and spread far and wide.

“We’re quickly coming to a place where every business, from the very large to the very small, they’re going to have a business agent representing it and acting on its behalf, in its voice — the way that businesses today have websites and email addresses,” Shih said.

While major companies across sectors of the economy are investing millions of dollars to develop customer LLMs, “doing fancy things like fine tuning models,” as Shih put it, “If you’re a small business — you own a coffee shop, you own a jewelry shop online, you’re distributing through Instagram — you don’t have the resources to hire a big AI team, and so now our dream is that they won’t have to.”

For both consumers and businesses, the implications of the advances discussed by Cox and Shih will be significant in daily life.

For consumers, Shih says, “Their AI assistant [will] do all kinds of things, from researching products to planning trips, planning social outings with their friends.”

Rival OpenAI recently launched its Operator AI for tasks like travel planning.

On the business side, Shih pointed to the 200 million small businesses around the world that are already using Meta services and platforms. “They’re using WhatsApp, they’re using Facebook, they’re using Instagram, both to acquire customers, but also engage and deepen each of those relationships. Very soon, each of those businesses are going to have these AIs that can represent them and help automate redundant tasks, help speak in their voice, help them find more customers and provide almost like a concierge service to every single one of their customers, 24/7.”

The more AI does, the less people have to do, at least in traditional definitions of roles. Shih says every person must prepare now for the changes that will be coming. “There isn’t a single job that hasn’t been completely transformed by the internet and by mobile and by social media. I think we’re at the same juncture now with AI, where it’s clear that there are certain professions where AI will significantly change the job. But my prediction is that over time, AI will change every job function across every industry,” she told Boorstin.

Her advice for every individual and every company is “to learn, to experiment, to understand and to almost define what that [AI transformation] could look like for their particular job.”

“Just like in 1990 we had to learn email, we had to learn search. I think today, everyone, regardless of where they live, what job they have or want to have, needs to learn AI,” she said.

The good news? According to Shih, AI makes it easier to learn. “You can talk to it. You can literally talk to it.”

She’s been doing that herself. “Something that I often do is, if there’s long research papers, AI research papers, or there’s developments, you can ask AI. You can use Meta AI, and it’ll break it down for you. You can ask it, ‘Explain this at a ninth grade level, explain this at a fifth grade level,’ and it’ll do it. And you can kind of go back and forth. And so that’s how I learn a lot of the more complicated topics.”

The full interview with Shih is available at CNBC Changemakers and on CNBC’s YouTube channel.

We’re shopping for extra shares of two shares because the broader market sinks additional

Trump to announce new auto tariffs Wednesday

U.S. President Donald Trump holds paperwork he signed during an Ambassador Meeting in the Cabinet Room of the White House on March 25, 2025 in Washington, DC. 

Win McNamee | Getty Images

President Donald Trump will announce new tariffs on auto imports Wednesday, the White House said.

Trump will unveil the new tariffs during a press conference in the Oval Office at 4 p.m. ET, White House press secretary Karoline Leavitt said.

Trump on Monday had hinted that the auto tariffs could arrive prior to April 2, the day his sweeping “reciprocal tariff” plan is set to begin.

“We’ll be announcing that fairly soon over the next few days, probably, and then April 2 comes, that’ll be reciprocal tariffs,” he said at a Cabinet meeting.

Stocks fell to session lows after the new tariff plans were announced.

A truck carrying vehicles prepares to cross into the US from Canada at the Ambassador Bridge in Windsor, Ontario, on March 8, 2025. 

Geoff Robins | Afp | Getty Images

Trump has long signaled his plans to impose heavy tariffs on foreign trading partners. But his unpredictable and frequently shifting policy rollouts have stirred turmoil in the stock market and left business leaders uncertain about how to plan for the future.

Trump has hyped April 2 as “liberation day” and “the big one.” His plan, as originally described, would slap reciprocal tariffs on all countries that have their own import duties on U.S. goods, while also imposing tariffs in response to other disfavored trade policies, such as the use of value-added taxes.

But Trump and his officials have recently suggested that the tariffs coming April 2 could end up being softer than they first appeared.

Trump said Friday that “there’ll be flexibility” on those tariffs, and on Tuesday night suggested the duties will be more “lenient than reciprocal.” Treasury Secretary Scott Bessent said last week that countries can pre-negotiate with the U.S. to avoid facing new tariffs on April 2.

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Trump Points Absurd Toothless Govt Order On Elections

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Donald Trump loves to issue executive orders that have no legal authority. The president has never understood the difference between executive orders and laws and that was never made more clear by Trump’s latest executive order that requires proof of citizenship to use the federal registration form, insists that no ballots can be counted after election day, and threatens states that do not comply with his order with a loss of federal funds.

The most absurd part of the order is in section 7 where Trump claims to have enforcement powers:

To achieve full compliance with the Federal laws that set the uniform day for appointing Presidential electors and electing members of Congress:

(a) The Attorney General shall take all necessary action to enforce 2 U.S.C. 7 and 3 U.S.C. 1 against States that violate these provisions by including absentee or mail-in ballots received after Election Day in the final tabulation of votes for the appointment of Presidential electors and the election of members of the United States Senate and House of Representatives.

(b) Consistent with 52 U.S.C. 21001(b) and other applicable law, the Election Assistance Commission shall condition any available funding to a State on that State’s compliance with the requirement in 52 U.S.C. 21081(a)(6) that each State adopt uniform and nondiscriminatory standards within that State that define what constitutes a vote and what will be counted as a vote, including that, as prescribed in 2 U.S.C. 7 and 3 U.S.C. 1, there be a uniform and nondiscriminatory ballot receipt deadline of Election Day for all methods of voting, excluding ballots cast in accordance with 52 U.S.C. 20301 et seq., after which no additional votes may be cast.

Sec. 8. Preventing Foreign Interference and Unlawful Use of Federal Funds. The Attorney General, in consultation with the Secretary of the Treasury, shall prioritize enforcement of 52 U.S.C. 30121 and other appropriate laws to prevent foreign nationals from contributing or donating in United States elections. The Attorney General shall likewise prioritize enforcement of 31 U.S.C. 1352, which prohibits lobbying by organizations or entities that have received any Federal funds.

As The Guardian put it, “Many of the provisions in the order are likely to be quickly challenged and are legally suspect. The US constitution explicitly gives states and Congress the authority to set the rules for election and does not authorize the president to do so.”

That is a very restrained way of saying that this order is a big pile of nonsense.

United Airways Pilot Turns Airplane Round For His Forgotten Passport

Roommates, weigh in on this one! United Airlines is going viral after a pilot turned an international flight headed to China back around. And what was the reason? The pilot left his passport behind. But the internet is really chattin’ about what the company decided to offer the passengers on the delayed flight.

RELATED:  Wayment! Man Faces Charge After Wildin’ Like THIS On A United Airlines Flight

Here’s What Happened In The United Airlines Incident

According to NBC Los Angeles, the flight incident happened on Saturday, March 22. The United Airlines plane was traveling toward Shanghai, China. It departed from Los Angeles at around 2 p.m. Two hours in the sky, one of the pilots realized his passport was back in the U.S.

Additionally, the plane was diverted to the San Francisco International Airport and landed at around 5 p.m. local time. About 270 people were on the plane then, including 257 passengers and 13 crew members. After landing in San Francisco, a new crew boarded, and the airline resumed its travel to China. It reportedly landed about six hours behind schedule.

“The pilot did not have their passport onboard,” United Airlines said in a statement, per CNN. “We arranged for a new crew to take our customers to their destination that evening.”

Additionally, the airline said it offered its passengers “meal vouchers and compensation.”

Passenger Reveals Experience With Airlines Offer

However, several passengers, including Yang Shuhan, have already spoken about how United Airlines handled the pilot incident. Yang told CNN that United Airlines only offered her two meal vouchers, totaling $30. She spent the vouchers on a Japanese meal at the airport. Yang took it further by complaining to United Airlines through their website. The company has given her a 14-day time frame for a response.

Air Travel Has Been In Shambles In 2025 

According to CNN, UA is one of the largest air-bound companies in global travel, with about 140 million passengers across six continents every year. Air travel has been concerning in recent weeks, with incidents ranging from crash landings to fires, missing aircraft, and even two-plane collisions.

Last month, United Airlines joined the list of flight companies that have experienced plane-related troubles. As previously reported, a flight from Houston to New York had to be evacuated for engine trouble. One wing of the plane appeared to be covered in smoke and flames.

RELATED: United Airlines Flight Evacuated At Houston Airport After Catching Fire Before Takeoff

What Do You Think Roomies?

AstraZeneca to speculate $2.5 billion in Beijing hub

AstraZeneca on Friday said that it will invest $2.5 billion in a research and development center in Chinese capital Beijing, months after the British pharmaceutical giant faced local regulators’ scrutiny over its import duties.

The new hub is expected to take AstraZeneca’s Beijing workforce to around 1,700 employees.

The investment in Beijing comes as part of a partnership with the city’s Municipal Government and the Beijing Economic-Technological Development Area Administrative Office, AstraZeneca said.

Under the deal, AstraZeneca will enter research and development collaborations with biotech firms Harbour BioMed and Syneron Bio and will launch a joint venture with BioKangtai to develop, produce, and market vaccines for respiratory and other infectious diseases.

The partnership with BioKangtai will see the company open its first vaccine manufacturing facility in China.

AstraZeneca’s Beijing research hub will be the second of its kind in China, as the company already has a research and development center in Shanghai. The Beijing center “will partner with the cutting-edge biology and AI science in Beijing and be a critical part of our global efforts to bring innovative medicines to patients worldwide,” CEO Pascal Soriot said in a statement.

Shares of AstraZeneca were down by around 0.9% at 12:28 a.m. in London.

Speaking to CNBC’s Julianna Tatelbaum on Friday, Soriot said that China was a “fundamental part of innovation in the future,” but stressed his company’s ongoing devotion to its U.S. footprint.

“We are very committed to the United States, we have two very large research and development centers in the U.S.,” he said.

European companies are under pressure to take steps to shield themselves from White House tariffs under the second administration of Donald Trump, who seeks to reduce the U.S.’ trade deficits with commercial partners and encourage international production Stateside.

Chinese probe

Last month, AstraZeneca said it could face a fine from Chinese authorities of up to $4.5 million, in relation to $900,000 million of unpaid import duties.

The company said investigations into these allegations were underway in China in its full-year earnings report out in February.

“To the best of AstraZeneca’s knowledge, the importation taxes referred to in the Appraisal Opinion relate to [cancer medications] Imfinzi and Imjudo,” the company said at the time. “A fine of between one and five times the amount of unpaid importation taxes may also be levied if AstraZeneca is found liable. AstraZeneca continues to fully cooperate with the Chinese authorities.

In a Friday interview with CNBC, Soriot said his company’s investment in China was “not connected at all” to ongoing investigations into business activities there.

“We have been committed to investing in China for a long time. In the last couple of years, we’ve invested $10 billion in more than 10 R&D partnerships with local biotech companies,” he said.

“Companies like ours, the size of our company, means that we will face headwinds from time to time, and challenges and issues, and of course we regret having to go through a challenging period like this, but it is not related at all to our investment in Beijing, the two are totally separate. This project started in our minds much earlier than the recent challenges we are facing.”

Zepbound copycats stay on-line regardless of FDA ban

This week was supposed to mark the end of compounding pharmacies making copycat versions of Eli Lilly‘s weight-loss drug Zepbound and its diabetes drug Mounjaro. Online, it doesn’t look like much has changed. 

Popular websites like Amble, EllieMD, Willow and Mochi Health are all still advertising versions of tirzepatide, the active ingredient in Zepbound. Some, like Ivim, have stopped taking new patients.

Mochi Health has no plans to stop, and neither do the four pharmacies it uses to supply patients with the medications, said Mochi CEO Myra Ahmad. The company uses a network of about 500 providers to write prescriptions for weight-loss drugs, including compounded versions. It’s betting that offering personalized versions of the drugs will keep the company out of the crosshairs. 

“It can be different dosing schedules … some patients prefer to go up in dosage much more slowly,” Ahmad said. “Some patients like to mix a number of other medications into their compounded formulations, depending on the side effects that they’re having. Some patients have side effects with any additives and brand name formulations. Compounding really opens up the door for so much personalization.” 

Amble, EllieMD and Willow didn’t respond to CNBC’s request for comment. 

Compounding is where pharmacies mix ingredients of a drug to create a specialized version for specific patients. Say someone is allergic to a dye in a branded medication or needs a liquid form and the main manufacturer only sells capsules. In that case, the patient can turn to a compounded version.

When drugs are in shortage, they can be compounded in larger quantities to help fill the gap. 

Copycat versions of Lilly’s Mounjaro and Zepbound and Novo Nordisk‘s Wegovy and Ozempic have been widely available in recent years because the U.S. Food and Drug Administration listed the brand versions as being in short supply. 

That created a booming business for pharmacies compounding the highly popular class of weight loss and diabetes medications called GLP-1s.

But late last year, the FDA said all doses of Mounjaro and Zepbound were readily available and took the drug off its shortage list, spelling the end for mass compounding of the drug. After months of legal challenges, the FDA gave smaller pharmacies until early March to stop and larger pharmacies until this week before it started enforcing its rules.

The larger facilities aren’t allowed to compound tirzepatide at all anymore. Smaller ones aren’t supposed to make products that are essentially copies of a commercially available drug, a moniker with some wiggle room. The FDA sees essential copies as those that have a dosage within 10% of the commercially available drug or combine two or more commercially available drugs.

Mochi insists all of its prescriptions are personalized, including doses that differ from the standard Zepbound strengths. Other websites like EllieMD are advertising tirzepatide mixed with vitamin B12. 

Scott Brunner, CEO of the Alliance for Pharmacy Compounding, said formulations or dosage strengths that aren’t commercially available aren’t considered a copy. However, combining two drugs into one — like adding vitamin B6 or B12 — would be considered a copy under a strict reading of FDA guidance. But tweaking the dosage and adding in other commercially available drugs wouldn’t be considered an essential copy, he added.

“FDA guidance are pretty clear about what is and is not a copy,” Brunner said. “And I would say any compounding pharmacy or outsourcing facility that continues to prepare copies of tirzepatide injection after today are putting themselves in a certain amount of legal risks.” 

John Herr, pharmacist and owner of Town & Country Compounding Pharmacy, stopped compounding tirzepatide earlier this month. He didn’t want to take the risk even though his 300 to 400 patients on it have been calling nonstop to complain about losing access.

Town & Country, based in Ramsey, New Jersey, was charging patients about $200 a month — about one-fifth the list price for Zepbound and less than half the price Lilly charges self-paying patients. 

What happens next is an open question. Enforcing the ban on mass compounding of tirzepatide mostly falls to the FDA. The agency didn’t immediately respond to CNBC’s request for comment.

Lilly can try to sue companies that continue, but it hasn’t had much luck in the past. A Florida judge last year dismissed one of Lilly’s cases, saying the company was trying to enforce a law that only the FDA can. 

Ahmad, the CEO of Mochi, said she isn’t worried about Lilly taking legal action against her providers. The way she sees it, they have established patient-physician relationships with the autonomy to decide how best to manage their patients.

The next two months will be informative. Mass compounding of semaglutide — the active ingredient in Novo Nordisk’s Ozempic and Wegovy — needs to stop by the end of May, according to the FDA.

Hims & Hers Health has already said it will stop selling commercially available doses of semaglutide when the time comes. Customers who have a personalized dosing regimen will be able to continue without any change, the company added. 

— CNBC’s Leanne Miller contributed to this report

Clarification: This story has been updated to clarify Scott Brunner’s comments.