Business News Bits for Tuesday, September 1, 2009

Southwest Airlines has eliminated 92 flights from January 9 to March 12. The airline's cut reduction of flights is a response to reduced air traffic and travel patterns that change by the season. At this time Southwest offers 3, 300 flights per day.

American Airlines cuts over 900 flight attendant jobs

Effective October 1, over 900 American Airlines flight attendant jobs will be cut in response to sinking revenue and declining air traffic. Initially 1,200 flight attendant jobs were to be cut, but the airline was able to spare 279 jobs.

Home sales are up in July

The first-time home buyer tax credit motivated many to purchase their first homes, pushing home sales up in July. For the month of July, sales are the highest they have been in more than two years. The Real Estate market is recovering more quickly than anticipated and the $8,000 tax credit for new buyers helped boost home sales in the country's southern and western states.

Bank of America to pay some of its federal aid

The intensity of the government's watchful eye over the banking industry has prompted Bank of America to pay off some of the aid it received from the government. The bank intends to pay back $500 million. In July, the company reported substantial gains for the second quarter.

Rumors of bank failure worry investors

Tuesday, the stock market experienced a decline in the face of rumored bank failure that left investors feeling uneasy. The Dow Jones fell 182 points and the main indexes around 2 percent.

Cash for Clunkers didn't pull GM and Chrysler out of slump

The Clash for Clunkers program, which intended to boost auto sales and revive the falling auto industry helped Toyota and Ford make progress. Chrysler and General Motors, however, continued to experience decline. For ten days, the program motivated car buyers to trade in their existing cars for new, fuel-efficient cars, giving buyers up to $4,500 toward their new purchase. Toyota and Ford boast several new, fuel-efficient car models that drew customers. Ultimately, Chrysler and GM's lack of fuel-efficient vehicle models meant fewer customers.

Animal rights group releases video of live chicks ground at Iowa egg plant

Mercy for Animals, an animal rights group, exposed serious cruelty at an Iowa egg plant. In a video released by the group, workers toss unwanted baby chicks into a grinder while still alive. Male chicks are sent to the grinders because they are of little value to the egg plant since they are unable to lay eggs and cannot be raised for meat.

Unemployment rates fall in July

Reports show that, in 56 percent of metro areas, unemployment rates fell in July. In June, 342 of 380 metropolitan areas experienced an increase in unemployment rates. In July, figures show 9.4 percent unemployment. In June, the figures were at 9.5.

Oil prices fall

This week, crude oil prices slid nearly 6 percent after coming in at $69.96 per barrel.

Tuesday, the value of the dollar advances.

Tuesday, in the midst of concerns about the stability of the banking industry, investors stuck with the dollar causing it to advance. Other currencies like the euro, British pound, and Japanese yen fell.

References

Southwest Airlines reduces flights on 92 routes

American to cut 921 flight attendant jobs

July pending home sales rise to 2-year high

Report: Bank of America offering to repay some aid

Worries about banks drag stock market lower

Clunkers aid Ford, Toyota sales; GM, Chrysler fall

Video shows chicks ground up alive at egg hatchery

Jobless rates up in 44 pct. of metro areas in July

Oil prices fall as stock markets decline

Dollar climbs on growing worries about the economy