Business
Big Vs. Small: US consumers are in a business bind

Big Vs. Small: US consumers are in a business bind

Antitrust-worthy

Google can’t stop catching antitrust cases: the search giant is now battling Fortnite maker Epic Games over its Play Store in court, while simultaneously defending ongoing monopoly allegations from the Justice Department in Washington.

Antitrust laws exist to stop companies from dominating the market to the detriment of consumers, and the US population is — for the most part — right behind them, with some 69% of Americans “strongly or somewhat” supporting the competition-encouraging legislation, according to recent YouGov data.

The size paradox

Although the election cycle will likely bring about much talk of small business as “the backbone of the American economy”, and see politicians make various promises to keep bigger corporations in check, there’s a discrepancy at the heart of the business size debate.

The same survey also reveals a classic paradox of the big vs. small argument: we love small businesses, but we also can’t get enough of the lower prices offered by industry behemoths. Indeed, while Americans view smaller companies more positively in environmental, ethical, and even wider economic terms, they just can’t compete against the titans on prices, with 44% of Americans agreeing that big companies charge less.

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The entrance of Allbirds seen from Hayes St. in San Francisco, Calif.

Allbirds, the once buzzy multibillion-dollar sneaker startup, is selling up for $39 million

That’s less than 1% of its peak market cap about four years ago.

business

JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

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