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San Jose and Oakland airports are hoping for a vacation boost as travel slows

chandankumarsoft — Thu, 19 Dec 2024 06:48:21 +0000

San Jose International Airport and Oakland International Airport may have to depend on strong passenger flight activity in the course of the holiday season to stave off a malaise in air travel for each hubs.

During the year-long period ending in October, San Jose airport handled 11.82 million passengers, recent reports show. That is 2.3% lower than in 2023 (12.1 million). During the identical period, Oakland International Airport handled 11.04 million passengers, down barely 1.8% from 11.24 million a yr ago.

Vehicles drive near Oakland International Airport, Nov. 13, 2024. (Jane Tyska/Bay Area News Group)

The updated travel numbers suggest each airports are counting on leisure travel to push aviation hubs above last yr's totals.

There is a few hope, nonetheless, as passenger travel was higher in October than in September – although still below the full for a similar month in 2023.

San Jose Airport handled 1.04 million passengers in October, up 6.6% from September but down 1.3% from October 2023. Oakland Airport handled just over 871,500 passengers in October, up 1.3% from October 2023 2.1% in comparison with September, but a decrease of 8.8% in comparison with the identical month last yr.

The slowing travel trends for the 2 airports represent a setback as each airports reported improvements in passenger activity.

San Jose International Airport handled 4.71 million passengers in 2020, a nosedive from the record high of 15.65 million in 2019. Oakland International Airport handled 4.62 million passengers in 2020, down from 13.38 million in 2019.

Oakland airport officials said preliminary numbers compiled from Transportation Security Administration statistics indicate that Thanksgiving weekend travel this yr was 2% lower than overall estimates for a similar Thanksgiving period in 2023.

San Jose airport officials said they’re waiting for the complete report in November.

The latest numbers from San Francisco International Airport had not yet been released as of midday Wednesday.

Originally published: December 18, 2024 at 12:50 PM PST

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Adyen shares fall 9% as transaction volume growth slows

chandankumarsoft — Thu, 07 Nov 2024 08:56:25 +0000

Shares of Adyen lost ground in deals early Thursday as the corporate reported a slowdown in deal volume growth within the third quarter.

Adyen shares were initially unable to start trading on Thursday following the discharge of the corporate's third-quarter report, but have resumed trading. The stock was down 9.8% at 8:35 a.m. London time, putting it at the underside of the pan-European Stoxx 600.

Adyen's sales growth resulted from a rise in total processing volume (TPV), which rose 32% year-on-year to €321 billion. In the primary half, Adyen reported a forty five% increase in TPV, after previously reporting 46% year-over-year growth in the primary quarter.

Analysts at Citi said in a research note that Thursday's “weaker” transaction volume would likely draw most of investors' attention amid concerns about end-market weakness.

“In any case, the processed volume adoption rate is significantly higher than expected and, if sustained, should support acceleration in revenue growth in 2025/26, while the lower hiring rate should support further margin expansion,” they wrote.

Adyen said digitally processed volumes increased 29% year-over-year, down from the previous quarter, resulting from the impact of a single major customer. blocks Cash App.

Elsewhere, the corporate reported a jump in revenue within the third quarter because the Dutch payments company gained market share and added recent customers, diversifying its merchant mix. Adyen, whose technology enables businesses to just accept payments online and in-store, reported net sales of 498.3 million euros ($535.5 million) within the third quarter, up 21% 12 months over 12 months on a continuing basis Exchange rates correspond.

The company saw stronger traction in in-store payments within the third quarter, with its “unified commerce” point-of-sale terminals seeing 33% year-over-year growth as its installed base of physical payment devices increased by 46,000 to 299,000.

Adyen also said the corporate expanded hiring barely, adding 35 recent employees within the quarter. The company scaled back hiring last 12 months amid concerns concerning the pace of investment.

Last 12 months, shares of the Dutch payments giant plunged nearly 40% in a single day as worse-than-expected sales and profits fell in the primary half of 2023

Payments firms saw a lift from the rise in online shopping throughout the peak of the Covid-19 pandemic.

But lately, firms like Adyen have been under pressure from lower consumer spending.

However, Adyen has benefited from significant growth through partnerships with its North American customers, equivalent to Cash App within the US and Shopify in Canada.

Adyen maintained its guidance on Thursday, saying it expects net sales growth to be between the high and low 20s through 2026.

The company added that it expects to grow its earnings before interest, taxes, depreciation and amortization to levels above 50% by 2026.

Capital expenditures will remain constant at as much as 5% of net sales, Adyen said.

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Real estate prices in Alameda County are faltering as price growth slows significantly

chandankumarsoft — Wed, 10 Jul 2024 21:51:53 +0000

OAKLAND — Real estate prices in Alameda County are rising at their slowest pace in three years, and attempts by office constructing owners to appeal assessments could further damage values.

Property values in Alameda County totaled $435.85 billion in fiscal yr 2024-2025, up 5.1% from the $414.86 billion in assessed values for fiscal yr 2023-2024, based on the County Assessor's Office. The latest assessment list represents an official snapshot of values as of Jan. 1, 2024.

The Landing, a two-building office complex at 303 and 333 Hegenberger Road in Oakland. The two office buildings were sold to their lender in foreclosure earlier this yr, suggesting that the constructing values have plummeted. (Google Maps)

“The real estate market has been particularly affected this year … by rising interest rates,” said Phong La, Alameda County tax assessor, in a prepared press release announcing the brand new overall tax list.

Although Alameda County property values increased in essentially the most recent sample from the January 2024 tax rolls, the pace of increase was much slower than lately.

The January 2023 assessment sample increased 7.3% year-over-year. The January 2022 sample represented a 7.8% increase year-over-year. The January 2021 benchmark was 4.6% higher than the previous yr.

The sluggish increase measured from January 2021 was to be expected given the economic shocks brought on by the coronavirus.

The economic unintended effects of the coronavirus included widespread business closures, leading to countless office buildings, industrial properties, retail stores and restaurants closing their doors.

A slow return to the office market and job cuts within the technology industry have led to a decline in corporate demand for office space. More office space is being offered for sublease and office leasing activity has declined.

This in turn has led to falling office rents and a discount in the worth of office buildings.

More and more office buildings have fallen into arrears. The waves of loan defaults and foreclosures have also weakened the worth of economic real estate.

Real estate values in each California county provide greater than only a snapshot of a region's economic vitality and the condition of a city's industrial and residential properties.

Property taxes, that are derived from the assessed value of a property, also represent a vital income for a variety of services provided by quite a few county, city and regional authorities and administrations.

“The tax list provides funds for roads, public safety (including police and fire), public schools, medical safety services (such as hospitals and clinics), cities and local special districts, as well as water, parks, health care and utilities,” the Alameda County Tax Office reported this week.

The property tax also plays a significant role in financing public education, the expert explained.

It can be possible that the present total valuation amounts will decrease.

Alarmed by falling office, retail and hotel property values, an increasing number of industrial property owners are hoping to steer Alameda County authorities to lower their fees and property taxes.

“The number of property assessment appeals is increasing, particularly for office buildings, shopping centers and some residential properties,” the Alameda County Assessor's Office reported. “The outcome of these appeals can have a significant impact on local services.”

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Contra Costa County home prices slowly rise as housing market slows

chandankumarsoft — Mon, 01 Jul 2024 19:29:48 +0000

MARTINEZ – Falling prices for a lot of industrial properties, comparable to office buildings, have undermined property values in Contra Costa County, an annual government report shows.

While property values in Contra Costa County are rising, their increase has been at its slowest pace in three years, reflecting weakness in sectors comparable to industrial real estate.

NoMa Apartments, a 135-unit apartment complex at 1910 North Main Street in Walnut Creek. (Google Maps)

The sluggish increase in property values could lead on to a decline in property tax revenues for municipal, regional and county governments in Contra Costa County.

According to a report released by the County Assessor's Office, the full value of real estate in Contra Costa County for the 2024-2025 tax rolls was $278.84 billion.

Contra Costa County real estate values increased 4.2%, or $11.16 billion, as of January 1, 2024, in comparison with the previous 12 months. The current assessment represents a record high for real estate values within the county.

Still, Contra Costa County is showing some signs of weakness, as a review of the county's assessment reports from recent years shows.

The 4.2% increase was the bottom annual rate of increase in property values in Contra Costa County because the 2021-2022 assessment period three years ago, which applied to property values starting in January 2021.

The sluggish increase in real estate values on this a part of the East Bay follows on the heels of a tricky environment for office constructing prices within the Bay Area.

Contra Costa County was also not spared from the brutal trends within the industrial real estate sector.

“The office building business has dropped dramatically,” said Gus Kramer, Contra Costa County tax assessor.

The values of residential and industrial properties also began to falter.

Here are some examples of real estate transactions in 2023 that indicate weaker values for industrial real estate:

– The Concord Corporate Center in Concord was purchased for $20 million, a staggering 68.5% drop from the office constructing complex’s value in 2017.

– A Concord Centre in Concord was purchased in August 2023 for $40.5 million, a 42.6% decrease from its 2017 value.

– The NoMa Apartments in downtown Walnut Creek were returned to the residential property lender after the apartment complex’s developer defaulted on a $79.8 million loan.

Concord, Walnut Creek and San Ramon saw the smallest increases in assessed values, the report shows.

In Walnut Creek, estimated values rose by 1.5%, in Concord by 1.7% and in San Ramon by almost 3%.

According to the County Assessor's Office report, the cities with the biggest increases in value included Martinez, Oakley, Antioch and Richmond.

This is how the cities with the biggest increases in unit values performed:

– Martinez, up 6.1%

— Oakley, up 5.2%

– Antioch, plus 5%

– Richmond, up 4.7%

The revenue from property tax will depend on the assessed value of the properties in query.

This implies that a slow pace of appreciation could also result in a decline in tax revenues going to the federal government and native authorities in Contra Costa County and surrounding cities.

“This could have an impact on the budgets of cities and counties,” Kramer said. “It has a significant impact on the services that cities and counties provide.”

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American Airlines slows growth after sales strategy backfires

chandankumarsoft — Sat, 01 Jun 2024 21:57:29 +0000

American Airlines will sharply reduce its capability growth within the second half of the 12 months and consider a series of other changes to a backfiring sales strategy, CEO Robert Isom said on Wednesday. The comments come a day after the airline cut its revenue and profit forecast and announced it was parting ways with its chief business officer, Vasu Raja.

American will increase capability by about 3.5% year-over-year within the second half of the 12 months, down about 8% year-over-year growth in the primary six months of 2024.

The company's shares plunged greater than 13 percent on Wednesday as investors weighed the airline's missteps initially of the height travel season, with some analysts wondering how American can capitalize on the record-breaking summer expected by rivals. It was the stock's biggest percentage drop in nearly 4 years, through the travel slump initially of the Covid-19 pandemic.

United Airlines shares rose greater than 2 percent and Delta shares fell lower than 1 percent.

Isom said American is considering changes to a plan initiated by Raja that goals to encourage direct bookings with the airline as an alternative of third-party web sites and travel agents. That strategy also includes slimming down the airline's sales department.

The changes angered travel agents, who were now not in a position to access a few of the airline's fares as before, making it harder for them to sell tickets on American flights.

The Chief Commercial Officer will leave the corporate next month.

A stock chart of American Airlines shows how the corporate's share price has fallen over the past 12 months.

“We've already applied a lot of pressure. We now need to use more carrots and make sure our product is available everywhere customers want to buy it,” Isom said Wednesday on the Bernstein Strategic Decisions conference.

American announced in February that it could limit eligibility for earning AAdvantage frequent flyer miles on some bookings made through travel agents. Isom said Wednesday that the airline would reverse that call.

“That's not OK,” Isom said. “We don't do that because it would cause confusion and disruption for our end customer.”

Isom called Raja, who has been with American for 20 years, an “innovator, disruptor,” adding, “Sometimes we need a fresh start.” Raja didn’t immediately comment.

Problems with business trips

Raja said last month that American's corporate booking growth was lagging behind major competitors delta And United.

Corporate bookings are particularly lucrative for airlines, especially when those travelers book on the last minute when fares are highest – so-called short-term bookings. Airlines struggled through the pandemic and shortly afterward when business travel was slow to return, but recently airlines have seen an improvement.

“The weakness you've seen at American, I think, is due to short-term bookings, the highest-reward customers, for whom we unfortunately haven't made ourselves as available and approachable as possible,” Isom said.

During a quarterly earnings call last month, Raja said American's corporate bookings grew by a mid- to high-single-digit percentage in the primary quarter, while Delta and United reported increases of about 14 percent.

“A significant loss, partly due to short-term bookings, further calls into question AAL's ability to take full advantage of a strong summer flying season,” said David Vernon, an analyst at Bernstein Airline, in a note.

Loss of income

After the market closed on Tuesday, American said second-quarter unit sales could fall as much as six percent in comparison with a 12 months ago. Last month, the corporate had forecast a decline of not more than three percent. Airlines make most of their money within the second and third quarters, but some areas have performed higher than others.

Isom acknowledged on Wednesday that the corporate had seen fewer bookings than expected, noting an “imbalance” between supply and demand that had prompted airlines to discount tickets. He said the industry's capability is more likely to decline within the second half of the 12 months while this can slow its own growth.

United reaffirmed its second-quarter results minutes after American revised its forecast on Tuesday EstimatesHowever, there was no sales outlook.

“American's reduced key rate says much more about its flawed original forecast than about a broad-based shift in passenger demand,” JPMorgan Airline analyst Jamie Baker said in a note Wednesday, adding that United's renewed forecast was an encouraging sign for Delta.

In addition, American has prioritized Sun Belt cities and its major hubs in Texas and North Carolina over coastal markets.

The Transportation Security Administration screened more people than ever before over Memorial Day weekend, and executives at United and Delta predicted a record-breaking summer of transatlantic bookings.

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