Business
American Airlines CEO lays out vision to close $3 billion profit gap
Robert Isom, chief executive officer of American Airlines Group Inc., speaks during a Bloomberg Television interview in New York, US, on Wednesday, Dec. 10, 2025.
Christian Monterrosa | Bloomberg | Getty Images
FORT WORTH, Texas — American Airlines CEO Robert Isom has a math problem.
The carrier is flying about 6,500 flights per day this year — nearly an entire Alaska Airlines more worth of travel more than its closest competitor, according to Cirium — yet American’s profit gap has grown. United Airlines brought in about $3 billion more than American last year, and U.S. profit leader Delta Air Lines made nearly $5 billion more.
In an exclusive interview with CNBC late last month, Isom said American and its nearly 140,000 employees want “to be best at everything that we do.” He said that carrier’s “long-range plan is certainly making up the margin gap,” but he didn’t put a timeline on that goal.
American’s top executives at the carrier’s headquarters late last month outlined new initiatives to CNBC: bigger, more luxe airport lounges, a new wide-body aircraft order, and fresh interiors for even more of its long-haul fleet to attract big spenders.
Isom described the carrier’s identity as “a premium global airline with the largest footprint in North America.”
American has more decisions it needs to make — and soon — to close the gap. Perhaps its biggest challenge is getting customers to shell out more to fly, something Delta and United zeroed in on years ago.
American has mastered running an efficient business but “what we will measure over time is: Are we closing this revenue gap and closing the unit revenue gap?” American CFO Devon May said.
Cabins, planes and lounges
The carrier’s executives reiterated that American’s plan rests on growing its ever-more important loyalty program, improving customers’ experience, expanding its network and increasing higher-end revenue.
The airline is forecast to earn 64 cents a share this year, on an adjusted basis, which would be up almost 80% from last year, according to analyst estimates. It will give an updated forecast when it reports second-quarter results on Thursday.
United and Delta earlier this month reported bookings are still strong. The surge in fuel prices have both helped and hurt the industry this year: The sudden run-up in prices because of the Iran war took carriers off guard, though they’re passing more of those costs along to travelers, and executives don’t expect fares will drop much anytime soon.
Wall Street is optimistic American will continue to improve, expecting it to quadruple adjusted earnings in 2027 to $2.58 a share.
American is now remodeling cabins across the fleet and taking deliveries of new planes with interiors that feature new amenities and more premium seats. Executives have said they’re considering but haven’t decided on bringing back seatback screens to much of its narrow-body fleet, though American recently joined the ranks of airlines that are adding satellite Wi-Fi from SpaceX‘s Starlink.
Customers who are willing to pay more for premium seats or other perks like lounge access have been a bright spot across the industry, and everyone from profit leader Delta to now-defunct budget carrier Spirit Airlines has tried to woo those travelers as airlines rush to get fancy, new seats — small but profitable real estate — in the air.
Isom told CNBC that work to refresh cabins will soon expand to American’s Boeing 787-8 Dreamliners. Its revamped cabins on its largest planes, the 777-300ERs, could debut in the next few weeks. Each business-class, lie-flat seat can bring in close to $10,000 on some long-haul international routes compared with $2,000 or even much less for a seat in the back.
Keeping up high-touch service levels could be a challenge, the airline’s flight attendant union said, as the 70-seat business class soon comes online. American has been phasing out planes with separate first and business classes.
“Now, as American introduces 70 Business Suites and markets a premium international experience, they’re expecting a reduced number of Flight Attendants to deliver significantly more personalized service,” Julie Hedrick, president of the Association of Professional Flight Attendants, said in a statement. (American reduced flight attendant staffing on those aircraft from 13 to 11 in 2020. Other carriers have made similar moves.) “The result will be longer service times and a customer experience that falls short of what passengers expect.”
In another lure for premium travelers, Chief Customer Officer Heather Garboden told CNBC that American is going to build the biggest Admirals Club lounge in its network, at 37,000 square feet, at its sprawling Dallas Fort Worth International Airport hub in Terminal C.
Dallas Fort Worth International Airport under construction, American Airlines’ largest hub, June 2026.
Leslie Josephs/CNBC
At the under-construction Terminal F at that airport, American is also planning a grab-and-go Provisions airport lounge, as well as a Flagship check-in area in Terminal D. The entire airport, American’s largest hub, is undergoing a $12 billion makeover, and the carrier recently unveiled new gates in Terminal C, which will expand further. American and others have been upgrading and expanding airport lounges for the spendiest customers around the U.S.
But United has had a roughly decade head start at catering to higher-paying travelers, while Delta has close to two decades of experience. In the late 2000s, Delta was giving away about 90% of its domestic first-class seats through free upgrades for frequent flyers, but now it says it sells the vast majority, with customers paying cash or redeeming miles, now a trend among big carriers, though American wants to increase buy-ups.
Under Isom, American has been upping its game in premium investments. American’s commercial team is working on technical changes that aim to offer customers more opportunities to buy pricier seats.
Aside from its of fortress hubs, American’s chief commercial officer, Nat Pieper, said the airline needs to win in so-called jump-ball markets like Los Angeles, Chicago and Washington, D.C. He said American continues to grow sign-ups for its lucrative credit card program in some of those, including New York.
American said it’s flying is split about 80% domestic versus 20% international. International flights often carry a high premium compared with domestic routes — and the planes serving them generally have more luxurious seats on board.
Isom said the airline’s network breadth is a major strong suit and will continue to be.
While American and other airlines rely on alliances and partnerships to expand reach, United is flying a lot of that itself.
United flies more internationally than Delta and American, and made its geography quiz-like network a calling card and , adding dots on the map from Mongolia to Galicia, Spain.
‘Never been deterred’
Robert Isom, chief executive officer of American Airlines Group Inc., center, following a news conference at the US Department of Transportation in Washington, DC, US, on Thursday, May 8, 2025.
Samuel Corum | Bloomberg | Getty Images
A mechanical engineer by education who took his first flight at about age 4, Isom rose up the ranks at Northwest Airlines and America West Airlines, which through mergers became modern-day Delta and American, respectively.
The airline industry is one of the most insular. In part, because of the safety-critical and specific knowledge needed to keep thousands of planes on track every day, airlines don’t often hire from other industries, especially at the top.
The executive team that long worked at American is split between that carrier and United. The CEO of United, Scott Kirby, used to work at American, until he was fired almost exactly 10 years ago. United announced it hired Kirby as president the same day.
Isom, 62, took over the top role at American in March 2022, after the airline industry had been rocked by the pandemic.
“I’ve never been deterred, no matter what the challenges that we face,” he said.
He took over in a quarter when American lost $1.6 billion.
“I’m clear-eyed about the challenges in this business,” he said, pointing to an industry that has been through everything from the 9/11 terrorist attacks, to the financial crisis, bankruptcies, mergers and wars and disease.
American ranked sixth of 11 U.S. airlines in punctuality in the first half of the year, according to Cirium data that pointed to with a 76.6% on-time rate, while Delta and United took the No. 2 and No. 3 spots, respectively. Under Isom and COO David Seymour, the carrier is working to improve its on-time rate, spreading out its schedule instead of jamming chaotic connecting banks in major hubs, and using artificial intelligence to predict maintenance problems.
On top of that, the carrier’s earnings are still hamstrung from its $35 billion debt load though American has slashed that from around a $54 billion peak coming out of the pandemic, with balance sheet improvement a major priority.
“They’re a giant — with a limp,” said Dennis Tajer, spokesman for the Allied Pilots Association, which represents American’s 15,000 aviators. Earlier this year, the APA and the flight attendants’ union called Isom’s leadership into question. Underperformance from the broader company means less profit-sharing for staff.
Getting customers to notice improvements could take time.
“Changing a service culture is hard, but not impossible,” said Jay Barney, a professor of strategic management at the University of Utah David Eccles School of Business. To alter overall brand perception, he said, “You have to make the changes obvious and visible, to current customers and potential customers.”
One issue is that flyers are often locked in because the biggest airlines have such overwhelming market share at major hub airports, he added.
What airlines might be trying to do is “charge more to their current customers,” Barney said.
Wide-body planes
An American Airlines Boeing 787-9 Dreamliner approaches for a landing at the Miami International Airport on December 10, 2021 in Miami, Florida.
Joe Raedle | Getty Images
American might be behind in its premium game, but Isom said customer satisfaction scores are rising. Chief Commercial Officer Pieper, an airline industry veteran whom the company appointed last fall as the carrier was recovering from a failed corporate sales strategy in 2024, said demand is strong across the board.
Buying new wide-body planes will be key to the airline’s next phase, Isom said. An order is on the table for this year, with both Boeing and Airbus in the mix, he said.
American’s more than 1,000 planes make up the youngest fleet of the three largest U.S. airlines, according to 2025 annual filings, thanks in part to a more than 400-airplane order it made about 15 years ago for new Boeing and Airbus narrow-body planes, but dozens of its Boeing 777 wide-bodies average more than two decades old.
American’s refresh of those older planes, Boeing 777-200s, are next, Isom said, but the carrier is shopping for new planes.
“I think that Airbus could play a big role” in the new order, Isom said. American’s wide-bodies are all currently Boeing planes.
American declined to say the size of its planned order. New aircraft for American would likely arrive in the early or middle of the next decade.
Up in Chicago, rival United — which has been duking it out with American at O’Hare International Airport — snatched up delivery slots for more than 100 Boeing Dreamliners in the last four years.
A future without United
As Isom lays out his vision for the future of the airline, there’s one path he says the carrier doesn’t see as feasible.
United CEO Kirby suggested this year a merger with American, an idea the airline rebuffed.
“I spoke with Scott,” Isom told CNBC. “Given history, given law, given past mergers, there wasn’t anyone that we talked to, our advisors, interested parties, politicians, that said that there was any chance of this happening.
“At the end of the day, we spend time looking at things that have a chance of happening. We don’t spend a lot of time pursuing impossibilities,” he said.
United has a partnership with JetBlue (American had a more involved one with JetBlue in the Northeast but it was blocked by a judge on antitrust grounds in 2023). But Kirby has repeatedly said this year he’s not interested in acquiring that New York airline. He also acknowledged that a merger with American won’t happen without a willing partner in that carrier’s management.
United, meanwhile, gets several slots at New York’s John F. Kennedy International Airport as early as next year under the JetBlue deal.
“Why buy the cow if you’re getting the milk for free?” said Brett Snyder, who writes the Cranky Flier blog.
Isom gave a standard line from executives when CNBC asked his own appetite for possible mergers and acquisitions, saying the carrier is always on the lookout for opportunities to serve the company’s customers.
For now, though, Isom said he is firmly focused on American’s new chapter.
He said he gravitated toward the industry “to be involved with something where you can make a difference.
“This is this one that you never wake up in the morning or going to bed at night thinking: Did I do good for somebody or something?” he said. “You certainly had the chance to in this business.”
Business
Kennedy Center Ceiling Collapse During DC Storm Reignites Fight Over Two-Year Renovation Plan Amid Trump Push
WASHINGTON — A section of ceiling collapsed inside the John F. Kennedy Center for the Performing Arts’ Grand Foyer Friday evening following a severe storm that swept through the nation’s capital, prompting the venue’s leadership to renew its push for a controversial two-year renovation closure.
The collapse occurred around 5 p.m. Friday, with Kennedy Center staff first noticing pieces of the ceiling falling into the Grand Foyer as the storm passed through the region. Photographs from the scene showed a visible hole in the ceiling and debris scattered across the floor of the venue’s main hall. No injuries were reported in connection with the incident.
The overnight storm that preceded the collapse brought widespread damage to Washington, D.C., toppling trees and cutting power to tens of thousands of residents across the city as heavy rainfall continued into a second day.
Following the collapse, Kennedy Center staff received an email announcing that the Main Building would be closed for the remainder of Friday night. The Grand Foyer itself is expected to remain closed through the weekend while repairs are made, though the rest of the building is expected to reopen for normal operating hours on Saturday.
Kennedy Center Vice President of Public Relations Roma Daravi framed the incident as further justification for the venue’s long-planned renovation, attributing the structural failure to years of insufficient maintenance under prior leadership.
“Another example of the urgent need to close for renovation and revitalization, as our Chairman President Trump has championed,” Daravi said in a statement. “Fortunately, no one was injured when the main hall’s ceiling collapsed. This structural failure stems from decades of neglect and deferred maintenance by the previous leadership, and there’s no justification for further delays in restoring America’s cultural center.”
Friday’s collapse arrives in the middle of a monthslong legal and political fight over the Kennedy Center’s future, one that has intensified since President Donald Trump became chairman of the center’s Board of Trustees in February 2025 and moved to overhaul its leadership with allies. The center’s Trump-aligned board voted roughly three weeks before Friday’s collapse to proceed with a two-year closure of the building for extensive renovations, following an earlier vote on the same plan that had been blocked by a federal judge in May, who left open the possibility of a new vote following a more thorough review process.
Justice Department attorneys, in a related court filing tied to the renovation dispute, described the Kennedy Center in stark terms, calling it “a financially insolvent facility, housed in a decrepit, dilapidated, crumbling building” that they said continued to “race toward physical and financial ruin” absent significant intervention.
Not everyone connected to the Kennedy Center’s governance has supported the board’s push for a full two-year closure. Rep. Joyce Beatty, D-Ohio, an ex officio member of the Kennedy Center’s board, has challenged the closure plan, arguing that the board’s initial decision was rushed and did not adequately consider alternative approaches, including keeping the venue at least partially open during renovation work. Notably, Beatty had stood in the Grand Foyer during a visit on Sept. 2, just two days before the section of ceiling collapsed in the same space.
The renovation dispute has also touched on a separate controversy involving the potential renaming of the venue. Representatives for the Kennedy Center previously told a federal court that the institution would not formally rename the performing arts center the “Trump-Kennedy Center,” but indicated the president’s name would instead be incorporated into the building in several other ways. Beatty subsequently filed an emergency motion arguing that even those alternative measures still crossed an inappropriate line regarding the center’s naming and identity.
According to reporting on the underlying renovation proposal, the plan was originally recommended by Kennedy Center executive director Matt Floca and is intended to address a range of critical infrastructure failures at the aging facility, including persistent water damage, corroded structural steel, and outdated industrial cooling systems that have contributed to the building’s ongoing maintenance challenges.
Friday’s incident is not the only recent development to draw public attention to changes at the Kennedy Center under its current leadership. In the days preceding the ceiling collapse, the venue drew scrutiny after workers removed iconic willow trees from its outdoor terrace, along with a prominent and highly visible outdoor sculpture that had long been associated with the center’s grounds, changes that added to a broader pattern of visible alterations at the facility in recent months.
The Kennedy Center, which opened in 1971 and serves as the nation’s official memorial to President John F. Kennedy alongside its role as a major performing arts venue, has faced persistent questions about its physical condition and long-term funding structure in the years leading up to the current renovation dispute. The facility’s board and administration have continued to describe the building’s underlying infrastructure problems as increasingly urgent, a characterization Friday’s ceiling collapse appeared to reinforce for those advocating a full closure of the venue.
With the Grand Foyer remaining closed through the weekend and repairs underway, the broader question of whether the Kennedy Center will ultimately proceed with a complete two-year closure for renovations remains tied up in ongoing legal and political disputes, including continued opposition from figures such as Beatty who have pushed for alternative approaches that would allow the venue to remain at least partially operational during any construction work. For now, the Main Building is expected to resume normal operating hours Saturday, even as the debate over the facility’s longer-term future continues playing out amid renewed attention following Friday’s structural failure.
DIVI: Ahead Of Benchmark, Behind Top Peers
Merrill Lynch wealth management advisor Gordon Whittaker says college athletes earning income from NIL and revenue sharing deals should be good stewards of those funds and focus on building good financial habits.
College football season is kicking off and some young athletes taking the field around the country will be seeing an influx of income from name, image and likeness (NIL) and revenue sharing deals, which can pose financial challenges as they look to manage those funds.
NIL first took hold in college sports in 2021 and monetary compensation for student athletes recently evolved to include revenue sharing directly with the colleges they’re playing for. For some players, they may earn six- or seven-figures in income through those deals – particularly at colleges in the power four (P4) conferences, including the Big Ten, SEC, ACC and Big 12 or for players competing in college football and basketball.
Gordon Whittaker, a wealth management advisor and managing director at Merrill Lynch, told FOX Business that whether student athletes are likely to play professionally after their college careers end, it gives them the chance to build financial habits and a foundation that can serve as a springboard for their futures.
“The earlier you can establish financial habits… the more likely that it is to be effective and the more likely it is to stick. And so extending that period of time and giving the opportunity for these young men and women to earn money earlier in their careers, earlier in their lives, expands that opportunity to start to really build those financial habits,” he said.
JOEL KLATT’S 10 BURNING QUESTIONS GOING INTO THE 2026 COLLEGE FOOTBALL SEASON
Notre Dame QB CJ Carr is one of the top returning signal-callers in 2026. (Justin Casterline/Getty Images)
“The majority of the conversations that we’re having with these young people is about being a good steward of those funds and building those positive financial habits,” Whittaker said.
He said that while college athletes are in school, “their budget ought to be very small in terms of what they need to spend. Whether they’re a star player on a P4 football team or they’re a backup on a second- or third-tier school, they don’t have a lot of ongoing expenses, so anything they receive ought to be at an incremental savings rate.”
“We just encourage them to live like college students and retain those assets, start to own assets and allow that force of compound interest to take effect over the next several decades,” Whittaker said. “Even small dollar amounts turn into massive dollar amounts if given enough time.”
Oregon QB Dante Moore returned to college for another season with the Ducks after making the CFP semifinals a season ago. (Alika Jenner/Getty Images)
One area that Whittaker said advisors are trying to instill in college athletes is the importance of understanding that if they’re fortunate enough to play their sport professionally, they need to save money to account for the fact that they’ll need to support themselves after their playing career eventually comes to an end.
“We spend a lot of time talking about this idea of being an owner versus being an employee and what wealth really looks like,” he added. “What we really approach is to shift that mindset away from equaling wealth, towards owning assets equaling wealth.”
“You’re not going to work until you’re 65, or at least not in this capacity, and so every dollar that you make – 10 cents of that may be today, 90 cents of that is to make up that gap when you stop in your primary profession,” Whittaker said.
“Having those conversations and really imploring the importance of delaying gratification has been very important,” he added, noting that it’s helpful for athletes to look at professional athletes who are being good stewards of their funds with an ownership mentality.
The Ohio State Buckeyes were one of the top teams in the country in preseason projections. (Scott W. Grau/Icon Sportswire via Getty Images)
Earning income from NIL and revenue sharing means that players also owe taxes, which Whittaker noted was a stumbling block in the earlier days of NIL, as some didn’t understand that 1099 income hasn’t been withheld like W-2 income would. He said that a lot of collegiate programs have begun helping the athletes split their income to account for their tax bill.
“That has been popularized enough now where we don’t come across people who have no idea that they have to do some tax planning when they receive the funds very often anymore, which is definitely a good thing,” Whittaker explained.
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The shifts in student athlete compensation also present a new question for student athletes who are capable of playing professionally, as they have to weigh what they would earn in pro sports versus the opportunity to stay in college and earn more while they still have eligibility.
Whittaker said that the question used to be “are you going to improve your draft status enough by sticking around for it to warrant delaying income for a year?” Now, the current income flows are considered in that process.
Indiana head coach Curt Cignetti and the Hoosiers celebrate winning last season’s national championship in January 2026. (Matias J. Ocner/Miami Herald/Tribune News Service via Getty Images)
Student athletes who are hoping to bolster their earning potential via NIL or revenue sharing while they’re in college also need to be mindful of how they’re presenting themselves and building their brand.
“This may be a message to those that are looking to NIL and looking to play a sport in college, the most important thing to keep in mind is you are your own brand, particularly as it relates to NIL. And the decisions you make off the field directly impact how you’re compensated,” Whittaker said.
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“There’s a significant amount of responsibility that comes with notoriety and being purposeful and understanding that your actions, every minute of every day, impact your monetization,” he added.
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Bitcoin trades at $79,000, next week’s US inflation data to test rate-cut hopes and crypto valuations
In the past 24 hours, Bitcoin was down 1.8% and Ethereum was down 2.3% to trade at $2,452 mark. Among the major altcoins, BNB, XRP, Solana, Hyperliquid, Dogecoin and Cardano were down 5.4% whereas Tron was up 0.9%. The global crypto market capitalisation edged down 1.4% to $2.77 trillion, according to Coingecko.
Also Read | Explained: Looking to start a mutual fund SIP? Know the different types and which one suits youRiya Sehgal, Research Analyst, Delta Exchange said Crypto markets headed into the weekend after a sharp reversal highlighted the market’s sensitivity to U.S. monetary policy. Bitcoin moved above $82,000 as expectations of a September rate hike eased and institutional demand returned. Ethereum reclaimed $2,500. The move reversed after Friday’s U.S. jobs data.
Sehgal further said that the rally remains intact, but the next move will depend on macro data. Bitcoin needs to hold the $78,500–$79,000 zone after its rejection near $82,000. Ethereum faces support around $2,440, while $2,500 remains a key level for a recovery.
In the past week, Bitcoin and Ethereum were up 2.5% and 0.4% respectively. Among the major altcoins, BNB, XRP, Hyperliquid, and Cardano rallied up to 4.9% whereas Solana, Tron, Dogecoin corrected upto 2.4%.
Global macro conditions remained mixed but broadly supportive for crypto during the week, said Nischal Shetty, Founder, WazirX. He further said that institutional crypto demand strengthened this week, with ETF products attracting approximately $510 million across four sessions as of September 4.“Strong inflows on August 31 and September 3 offset the $194.38 million withdrawal on September 1. Bitcoin and Ethereum ETFs were still net negative by September 2, at $135 million and $37 million, respectively.”
Also Read | Vikas Khemani’s Carnelian Asset Management files draft document with Sebi for its first fund
He also said that Bitcoin’s move above $81,000 and Ether’s recovery above $2,500 showed improving spot demand and macro liquidity.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
I have been a keen student of the markets for several years now. I love studying how companies grow over time, what value they deliver to their stakeholders, and projecting long-term value as an investment opportunity. I work as a content professional for a software company, but my passion is capital markets.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Edelweiss MF’s Altiva Equity Long Short Fund to launch September 10, Radhika Gupta explains strategy
This long-short strategy seeks to address a key challenge for investors: generating consistent alpha from large-cap equities through income oriented derivatives without relying solely on stock-picking.
Also Read | Altiva Equity Long Short Fund to launch on September 10; Radhika Gupta explains its large-cap alpha strategy
According to Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, the strategy is designed to deliver consistent large-cap alpha through income-oriented derivatives strategies, rather than depending entirely on individual stock selection. The fund will combine large-cap equity exposure with a derivatives overlay to seek additional income and enhance returns.
She posted on social media platform X that, “Altiva’s next fund (Equity Long Short) in 4 slides. The solution: consistent large cap alpha through income oriented derivatives (not stock picking).”
Altiva’s next fund (Equity Long Short) in 4 slides.
The solution: consistent large cap alpha through income oriented derivatives (not stock picking). pic.twitter.com/xnxuffWTQC
— Radhika Gupta (@iRadhikaGupta) September 4, 2026
The portfolio positioning of the fund indicates that it aims to combine beta, stock alpha, and derivative income alpha to deliver alpha at comparable risk. Large-cap equities typically form the core of investor portfolios because of their relative stability and resilience.
The strategy is expected to behave differently across market conditions. Over the multiple cycles, the strategy aims to generate alpha over the benchmark and other large cap strategies.According to Gupta, it is designed to perform relatively well during flat or bearish markets, while investors should be prepared for the possibility of it trailing the broader market during exceptionally strong rallies. For instance, in a month when the market rises sharply by around 10%, the strategy may not capture the entire upside.
The fund house said that in the bull market phase, the fund is expected to be inline with the market over rising market phases and may miss some upside during sharp market rallies. In the bear market phase, the fund aims to outperform the market during extended bear market periods and it can experience slightly lower drawdowns vs the benchmark during sharp market falls. The fund aims to outperform in flat market conditions.
The trade-off is intended to be more consistent performance across market cycles, with the fund targeting alpha over the Nifty 100 while seeking volatility comparable to other large-cap-oriented strategies. The strategy also aims to limit drawdowns during sharp market corrections.
Altiva’s three-solution ladder
The Altiva SIF platform is being positioned around three different investor requirements and these three strategies are designed to address income generation, large-cap alpha, and focused exposure to mid- and small-cap stocks.
The new Altiva Equity Long Short Fund sits in the second category, targeting investors looking for large-cap exposure with a more consistent alpha-generation approach. The other strategies are aimed at investors seeking income generation and focused mid- and small-cap opportunities.
Gupta has previously emphasised that investors should look at SIFs as solutions to specific portfolio requirements rather than simply adding another product to their portfolios.
Also Read | Explained: Looking to start a mutual fund SIP? Know the different types and which one suits you
Altiva Equity Long Short Fund
Altiva Equity Long Short Fund will be an open ended equity investment strategy investing in listed equity and equity related instruments including limited short exposure in equity through derivatives instruments.
The fund will open for subscription on September 10 and will close on September 24. The fund will be managed by Bharat Lahoti, Bhavesh Jain and Amit Vora.
The fund will aim to generate alpha over Nifty 100 across cycles, with volatility comparable to other large cap oriented strategies. From this fund, investors can expect relatively consistent outperformance than traditional large cap strategies and lower drawdowns in sharp corrections; may miss some upside during sharp market rallies, according to the fund presentation.
The minimum investment amount will be Rs 10 lakh. Existing Altiva SIF investors who have met the minimum threshold may invest Rs 1,000 and in multiples of Re 1 thereafter. Minimum investment in SIP, STP, SWP (subject to min investment of Rs 10 lakh) will be Rs 1,000 and in multiples of Re 1 thereafter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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The GM Defense Infantry Squad Vehicle was engineered to meet U.S. military specifications. It is based on the automaker’s off-road Chevrolet Colorado ZR2 midsize truck architecture.
GM Defense
DETROIT — General Motors and Ford Motor have rivaled each other for more than a century in racing, vehicle sales and many other automobile-related activities.
But their latest battlegrounds have moved to actual battlefields and the U.S. energy grid.
Ford joined GM this year in seeking U.S. military contracts after the Trump administration approached U.S. companies about assisting the military with their expertise in mass manufacturing. The automakers’ efforts so far are largely focused on military vehicles, but could grow with time.
Simultaneously, both companies are entering the energy storage system, or ESS, market amid an expected growing need related to rising consumer energy costs and data centers. Energy storage systems use a lot of the same underlying technology as electric vehicle batteries to store power for homes, businesses and even utilities.
Both markets are viewed by Wall Street analysts as new potential growth areas for the automakers. At one point, it was thought new opportunities might come from all-electric vehicles, but Ford and GM have since lost billions of dollars on those efforts.
“They’re looking for new verticals,” Morningstar senior equity analyst David Whiston told CNBC. “Ford’s following GM’s lead into defense, and energy makes a lot of sense because you have all this EV capacity that now you don’t need. So instead of selling those factories, it’s a way to try and capitalize on the data center boom.”
The two markets are expected to be small portions of the companies’ focus and revenue for the foreseeable future, but they could help the automakers diversify their operations and complement their core businesses as new vehicle sales slow in the U.S.
“It’ll be hard to move the needle here massively, given the auto business’s top line, but it certainly can be helpful,” Whiston said.
Energy storage
The global ESS market is estimated to grow from $668.7 billion in 2024 to $5.12 trillion by 2034, according to research and consulting firm Global Market Insights. As part of that, the firm expects to see a significant expansion in the U.S.
“We’re seeing this huge projection of growth, and it’s already started growing,” Devon Wilson, vice president of sales and marketing at LG Energy Solution’s U.S. energy storage division, said during a recent event. “There’s a massive amount of just fundamental electricity need within the country.”
GM and Ford are attempting to capitalize on such expected growth to fill a void. The companies invested billions of dollars in plants to produce battery cells to meet EV demand that didn’t materialize.
GM’s energy business does not currently offer its own ESS, but its military division does and its Ultium Cells joint venture in Tennessee produces cells for its partner LG Energy Solution for storage.
Long-term, GM could move further into ESS, including developing next-generation sodium-ion batteries with Denver-based startup Peak Energy. Kurt Kelty, GM’s vice president of battery and sustainability, said he believes that technology can reshape grid-scale energy storage.
“We’re developing the cells right now. The performance on these cells is tremendous,” Kelty said. “The ESS market is a very attractive market. It’s a big market. It’s growing very quickly, and it’s something that we can contribute to.”
GM also has a partnership with Redwood Materials for reusing its large EV batteries for energy storage systems. GM also offers EV charging and ESS for residential use through its energy unit.
Meanwhile, Ford said in December that it plans to spend $2 billion to launch an energy business, including converting a Kentucky battery factory it had recently built with partner SK On to make units for energy storage by late 2027. It also plans to devote some factory space to make cells for residential storage at a factory in Marshall, Michigan.
“Investors see value in Ford’s ESS business,” Morgan Stanley analyst Andrew Percoco said in an investor note in June. He’s also called it an “underappreciated driver” of a path to profitability for Ford’s Model e electric vehicle business.
Ford Energy is part of the company’s Model e electric vehicle segment, which has guided for $4 billion in losses in 2026 before reaching breakeven by 2029. A key turning point is expected to be the company’s ESS business coming online in 2027.
The Ford BlueOval Battery Park under construction in Marshall, Michigan. The plant will produce lithium-ion phosphate batteries for electric vehicles and smaller batteries for household use.
Jim West | UCG | Universal Images Group | Getty Images
Ford CEO Jim Farley told investors on the automaker’s second-quarter earnings call in July that it’s in the “third inning” of selling out the 20 gigawatt hours of production capacity for ESS after announcing a five-year framework agreement with renewable-energy service provider EDF Power Solutions North America.
Defense industry
GM is years ahead of Ford when it comes to the U.S. defense industry. GM resurrected its defense unit in 2017 after a 14-year hiatus.
It has worked with the U.S. military on many projects, but the automaker was recently awarded a contract by the U.S. Army to build infantry squad vehicles, or ISVs, that it said could exceed $1 billion, depending on congressional appropriations.
While the contract amount is small compared with the company’s $48 billion in revenue during the second quarter, the opportunities for the automotive industry in U.S. military operations are expected to grow.
“Leveraging the capabilities, the scalability and the manufacturing abilities that come with all of the automotive companies and their tiered supplier is a huge benefit,” Alfred Grein, executive director for research and technology integration for the U.S. Army Combat Capabilities Development Command Ground Vehicle Systems Center, told CNBC.
GM said it expects its 2026 defense revenue to grow to almost $700 million and is targeting positive results on an earnings before interest and tax basis this year, while also building a backlog of future business.
“We are also working with Lockheed Martin and other leading companies to expand speed, scale and resilience in the defense industrial base,” GM CEO Mary Barra told investors in July. “Over time, all of this should make GM Defense a more meaningful and diversified contributor to our earnings.”
GM Defense’s next-generation prototype tactical vehicle.
Courtesy image
Grein, who manages the technology of manned and unmanned ground systems throughout the U.S. Army, said the Trump administration has made it easier for new companies, including automakers, to be granted such contracts. He also said domestic manufacturing in the U.S. is critical.
“Obviously, the concern about foreign entities’ involvement in particularly Department of Defense product becomes more and more crucial,” Grein said.
GM and Ford were included in a group of companies that were awarded prototype contracts to produce heavy infantry squad vehicles, which are bulkier versions of what the companies have worked on previously.
Ford has not released many details about its U.S. defense efforts. The automaker on Wednesday, though, announced a tie-up with General Dynamics Land Systems and engineering firm Ricardo to compete for a next-generation vehicle for the United Kingdom’s Ministry of Defence’s Light Mobility Vehicle program.
The defense efforts of GM and Ford are the latest in a long line of such initiatives, including, most notably, the “Arsenal of Democracy” during World War II in which the companies worked with the U.S. and the Allied nations to provide military supplies to fight Nazi Germany.
“We already dominate in that market in the commercial world. We want to offer the U.S. government the same advantages that our commercial customers get,” Farley told investors in July. “It’s a great opportunity for us. … We are discussing, continue to discuss, additional defense-related projects with the U.S. government.”
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