Economics

The Daily Chase: WestJet strike deadline down to the wire

The WestJet logo is pictured on a band near travellers in line at Vancouver International Airport (YVR) in Richmond, British Columbia, Canada, on Wednesday, November 13, 2013.

Here are five things you need to know this morning:

WestJet cancels 25 flights ahead of possible Friday strike: Things are coming down to the wire between WestJet and its mechanics union, as the airline has pre-emptively cancelled 25 flights today and tomorrow, impacting 3,300 travelers ahead of the Canada Day long weekend. Members of the Aircraft Mechanics Fraternal Association overwhelmingly rejected a potential labour deal earlier this month, setting the stage for a walkout that is scheduled to happen as of 5:30 p.m. mountain time tomorrow. WestJet says more than 250,000 people are scheduled to fly on its network over the next week, and those trips are now in doubt. The union says WestJet’s statement about a strike putting travelers “in peril” is “inflammatory” and is urging the airline to get back to the bargaining table while it still can.

Micron misses high expectations, dragging down AI names with it: The AI boom underway on U.S. markets could face a test today after earnings from Micron yesterday didn’t live up to lofty expectations. The company, which is the largest domestic maker of computer memory chips in the U.S., is down about five per cent premarket today after the company said it expects fourth quarter sales to come in between US$7.4 and $7.8 billion. That’s below the high end of the range analysts were hoping for. The small sell off comes after the company has seen its stock price gain more than 80 per cent this year. ‘The market is holding totally unrealistic expectations as many names who are beating street estimates by a wide margin are still being sold down,” Andrew Jackson, head of equity strategy at Ortus Advisors, told Bloomberg.

BlackBerry shares move up on better than expected results: Shares in BlackBerry are poised for gains on Thursday after the technology company posted quarterly results Wednesday showing the company is moving toward profitability. The company posted a net loss of US$42 million during its first quarter. That’s down from the $56 million posted in the previous quarter. On an adjusted basis, the loss works out to three cents per share, which is better than the five cents that analysts were expecting. The shares are up about five per cent in premarket trading.

Slate Office REIT set to default on $158M debt: TSX-listed Slate Office REIT is tumbling this week after the real estate company’s lenders warned it is in default on $158 million of debt. The company which focuses on office properties in Canada and the U.S. announced plans last year to bring down its more than $1 billion debt load. That plan included selling assets and cutting the dividend payout. But those restructuring plans took a turn when the company’s lenders this week said the REIT was in default on some loan payments coming due soon. Slate says it does not expect to pay cash interest payments due in the coming days and weeks on a number of debentures. The trust says it is in discussions with its senior lenders to determine a path forward, but the market isn’t liking what it is seeing. The units are changing hands at 23 cents apiece this morning. That’s down by more than 70 per cent since the start of the year. As recently as early 2023, the units were worth about $4.

CDK says some car dealerships back online as cyber-hack saga nears end: Software company CDK Global says it has managed to bring a small number of car dealerships back online to its system, the first step toward ramping back up after a cyberattack severely disrupted operations last week. Shares in CDK’s parent company Brookfield Business Partners rose almost six per cent on Wednesday on optimism the saga may be coming to an end.