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<keyword id="20207838" type="General" weightage="20" keywordseo="dsp-mutual-fund" source="keywords">DSP Mutual Fund</keyword>'s September 2024 Netra report credits <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>'s strong economic recovery to increased fiscal expenditure. The report, which tracks current economic trends and market insights through various charts, emphasizes the need for the private corporate sector and households to play a larger role in sustaining the ongoing growth momentum. Netra also pointed out an unsettling calm in the markets, with the Nifty 50 TRI index maintaining an impressive 53-month streak without a 5% decline and 13 years without a drop greater than 10%. Sahil Kapoor, Head of Products and Market Strategist, DSP Mutual Fund, said, "The calm in the markets, marked by an unnerving lack of volatility, is a double-edged sword. While it provides a sense of stability, it also masks underlying risks that could surface unexpectedly, catching investors off guard. To ensure a sustainable recovery, there is a need for the private sector and households to take the lead, transforming fiscal stimulus into lasting economic growth." However, the report notes a shift in market dynamics, with the momentum factor, which has outperformed since the COVID-19 bottom, beginning to lose its dominance. At the same time, the quality factor, which had underperformed over the last four years, is now seeing a resurgence, potentially indicating a change in market leadership that could favour quality-orientated funds, both active and passive. The report highlights the critical role government spending has played in the recovery, with a focus on capital investments crucial for future growth. However, contributions from the private corporate sector and households have lagged. It also draws attention to a slowdown in India's per capita consumption, approaching lows seen in previous cycles. Given that consumption accounts for around 60% of GDP, it is vital that this sector grows at a rate exceeding GDP growth to stimulate private capital expenditure. India's <keyword id="487578" type="General" weightage="20" keywordseo="tax-collections" source="Orion">tax collections</keyword> have demonstrated robust growth, with gross tax revenue showing a five-year compound annual growth rate (CAGR) of 14 %. This growth, largely driven by <keyword id="6354751" type="General" weightage="20" keywordseo="income-tax" source="Orion">income tax</keyword>, indicates a rising dependency on capital gains and stock market performance, introducing new vulnerabilities to the economy. The banking and financial services sector (<keyword id="19910880" type="General" weightage="20" keywordseo="bfsi" source="keywords">BFSI</keyword>) has emerged as a key driver of market earnings, recording a 12 % increase in profit after tax (PAT) growth, significantly outpacing the 4.6 % growth observed in non-BFSI Nifty 50 companies. This disparity underscores the sector's importance in India's economic story and highlights promising investment opportunities.

India's strong economic recovery is led by fiscal expenditure: DSP MF

<ul class="summary-list"><li><keyword id="23944870" type="General" weightage="100" keywordseo="Sonya-Moore" source="keywords">Sonya Moore</keyword> decided that if Trump won in 2016, she would leave the US.</li><li>She followed through and has been living abroad for seven years.</li></ul>"If Trump wins this election, I'm <a target="_blank" class="" href="https://www.businessinsider.com/trump-reelected-americans-are-planning-to-flee-in-droves-2024-3">moving out of the country</a>." I said those words in November 2016. So did a lot of other Americans: so many, in fact, that <a target="_blank" class="" href="https://www.businessinsider.com/canadian-immigration-site-crash-election-2016-11">Canada's immigration website crashed</a> as votes were being tallied due to increased traffic. No joke. I don't know how many others <a target="_blank" class="" href="https://www.businessinsider.com/americans-who-left-us-because-of-trump-talk-biden-presidency-2020-12">followed through on that declaration</a>, but I did. Trump won the election, and 9 months later, I left the US. Full disclosure: Trump becoming president was not the only reason I left — it was also about being fed up with my corporate job, coupled with a strong desire to explore the world. I was 37, single, with no children or pets, so I was free to <a target="_blank" class="" href="https://www.businessinsider.com/working-mom-quit-job-expat-move-abroad-qatar-singapore-2023-12">quit my job</a>, uproot myself, and take off. I did own a house at the time, which I sold a few months after I left. Upon my departure, I didn't have much of a plan other than the intention to spend some time slowly exploring Asia and teaching English when I needed to make money. This no-plan thing was out of character for me, but I was very comfortable with <a target="_blank" class="" href="https://www.businessinsider.com/southeast-asia-travel-mistakes-packing-weather-clothing-traditions-medicine-2024-4">solo international travel</a>, thanks to previous study abroad experiences and 14 years of intensive overseas work-related travel. <div type="image" title="Sonya Moore in Siem Reap, Cambodia" height="1280" width="1600" msid="115071450" hostid="261"></div><h2>The move opened a new chapter in my life</h2>As months unfolded, I discovered that when you leave space for it, life guides you to the places, people, and opportunities that are meant for you. Seven years later, I'm still living <a target="_blank" class="" href="https://www.businessinsider.com/boomer-couldnt-afford-retirement-in-california-moved-abroad-travel-happy-2024-10">happily outside the US</a>. While my decision to leave opened up a horizon of experiences beyond my wildest dreams and led me to the man of my dreams, it hasn't all been a bed of roses. The first year, I lived off savings while traveling slowly through Asia. I started my travels in India, where I spent 10 days at a silent meditation retreat, attended teachings by the Dalai Lama, and took a <keyword id="20626363" type="General" weightage="20" keywordseo="yoga-teacher-training" source="keywords">yoga teacher training</keyword>. I promptly got hooked on teaching yoga. After four months in India, I continued <a target="_blank" class="" href="https://www.businessinsider.com/what-to-pack-traveling-in-southeast-asia-singapore-thailand-bali-2023-9">making my way through Asia</a> for eight more months. I swam in the crystal clear waters of the Maldives, visited healers in <a target="_blank" class="" href="https://www.businessinsider.com/american-family-kids-bali-decompress-relocate-slow-life-work-remote-2024-10">Bali</a>, witnessed breathtaking sunrise views from mountaintops in Laos, went island-hopped through the Philippines, rode motorbikes around Thailand's islands, and discovered ancient pagodas in Myanmar The cost of living in much of Asia is so low that savings can stretch a long way. I have high standards for my accommodations, and while traveling, I usually spent around $20 to $25 per night on hotels. Lower-maintenance friends of mine found simpler places for $6 per night in India. Meals usually cost around $3. After six weeks in India, I considered a lunch bill of $5 to be expensive. <h2>There have been times along the way when I've felt lost </h2>From time to time, I experienced stretches of feeling <a target="_blank" class="" href="https://www.businessinsider.com/relocation-moved-to-milan-living-abroad-emotionally-exhausting-unspoken-truths-2023-9">unsettled and lacking a sense of purpose</a>. Over the years, I learned that those periods of doubt and uncertainty will continue to surface. But I also learned to just keep trusting, and the way forward would eventually reveal itself. People often ask me if I was ever afraid while <a target="_blank" class="" href="https://www.businessinsider.com/what-women-need-to-know-traveling-solo-southeast-asia-tips-2022-12">traveling alone through Asia</a>. I never was — except a couple of times in India when riding on some precariously high Himalayan roads with no guardrails. But of people? I never had a reason to be. After a year away, I found an opportunity to teach yoga in a small mountain town in Myanmar. Life there was quiet, simple, and beautiful. I lived there for 9 months, and I was profoundly happy most of the time. But there were times <a target="_blank" class="" href="https://www.businessinsider.com/loneliness-how-to-make-friends-remote-worker-freelancer-new-city-2024-2">I felt lonely</a>. The locals were sweet and kind, with love in their eyes and actions, but I missed friends who spoke my language fluently, with whom I could have deep conversations over a glass of wine. And the dating scene? Nonexistent. <div type="image" title="Sonya Moore kissing a man at the airport" height="2118" width="1754" msid="115071453" hostid="261"></div><h2>I found love during my travels</h2>Another yoga teaching opportunity took me to Siem Reap, Cambodia. Siem Reap is not a big city, but after my small-town Myanmar life, it felt like Manhattan. There were so many restaurants, bars, social events, friends, and even some attractive single men. I fell in love with the town, the quality of life, and the locals. It was easy to get a tourist or work visa to live here long term, and it was almost as inexpensive as India and Myanmar. I was living in Siem Reap when COVID-19 hit. By that time, I was in a <keyword id="20752574" type="General" weightage="20" keywordseo="long-distance-relationship" source="keywords">long-distance relationship</keyword> with a French man I met during my travels. After the closed borders of the pandemic kept us apart for 7 months, I moved to France to be with him. Our story was long and winding, but it felt like destiny. He <a target="_blank" class="" href="https://www.businessinsider.com/my-partner-couple-travel-together-full-time-one-date-2024-5">loves global travel</a> like I do. We've been together for four years and are living together in Papua New Guinea. Our plan is to go back to a nomadic slow-travel lifestyle. My career has gradually evolved to encompass creative pursuits that light me up inside: retreats, writing, photography, and yoga. I am deeply grateful to my former self for <a target="_blank" class="" href="https://www.businessinsider.com/live-abroad-cheap-low-cost-living-high-quality-life-2024-1">choosing to leave the US</a>. I sometimes miss family and friends, but thanks to technology, our connection stays alive across the distance, and I go back to visit once a year. I still love America and feel lucky to have been born and raised there. But there's a big world out there waiting to be discovered. Do you have a personal essay about relocating to Asia that you want to share? Get in touch with the editor at <a target="_blank" href="mailto:akarplus@businessinsider.com">akarplus@businessinsider.com</a>. November 11, 2024 — An earlier version of this story mentioned Trump becoming president was not the reason Moore left, it was not the only reason.

I swore I would leave the US if Trump won the 2016 election. Here's how that worked out for me.

The <keyword id="22407175" type="General" weightage="100" keywordseo="U-WIN" source="keywords">U-WIN</keyword> portal, a replication of the <keyword id="19897423" type="General" weightage="20" keywordseo="COVID-19" source="keywords">Covid-19</keyword> vaccine management system Co-WIN, is set for a pan-India launch likely by the end of August, aiming to maintain an electronic registry of routine immunisations, official sources said. Currently, U-WIN is in pilot mode across all states and Union Territories, except for West Bengal, which is yet to start uploading data, the sources told PTI, adding that it is still under consideration in the state. The U-WIN platform captures every <keyword id="19933690" type="General" weightage="20" keywordseo="vaccination" source="keywords">vaccination</keyword> event for pregnant women and children under the Universal Immunization Programme (UIP). Minister of Finance <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> had announced in the interim Budget for 2024-2025 that U-WIN, along with intensified efforts under Mission Indradhanush, will be rolled out nationwide for managing <keyword id="21423640" type="General" weightage="20" keywordseo="immunisation" source="keywords">immunisation</keyword>. "The U-WIN will ensure timely administration of vaccine doses by digitally recording every vaccination event under the Universal Immunisation Programme among all pregnant women and children aged 0-5 years," an official told PTI. "The portal will target 2.9 crore pregnant women and 2.6 crore infants (0-1 years) annually by providing 11 vaccines against 12 vaccine preventable diseases -- diphtheria, measles, rubella, and tetanus through more than 1.2 crore vaccination sessions across the country," the official added. The platform generates a uniform QR-based, digitally verifiable e-vaccination certificate, similar to Covid vaccination certificate, which can be accessed anytime by the citizens through a single click. Vaccination records under UIP are being maintained manually as of now. So this will do away with the hassle of keeping a physical record, the officials explained. It will enable the digitisation of session planning, and updating vaccination status on a real-time basis, they added. "Also, there is no mechanism of individual tracking. There is also lack of awareness among beneficiaries about session location and date especially in urban areas and iniquity in immunisation coverage in states and UTs," another official said. "Besides, another major issue is that immunisation at private health facilities is not recorded," the official added. The U-WIN is going to be the single source of information for immunisation services which will record pregnancy details and outcome, newborn registration and immunisation at birth. It will update vaccination status, and delivery outcome, among others, on real time, the official said. As of July 9, 2024, the pilot has registered 5.33 crore beneficiaries on U-WIN. Over 83.55 lakh vaccination sessions have been digitally conducted, and 18.15 crore vaccine doses have been recorded. The platform aims to reduce zero-dose and left-out children through a name-based tracking mechanism and empower citizens with anytime, anywhere access to vaccination services, particularly benefiting migratory populations, the official said. "The U-WIN portal is likely to be launched pan <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> in August end," the official stated. Citizens can self-register for vaccinations via the U-WIN web portal or its Android mobile application, select preferred vaccination centres, and schedule appointments. Automated SMS alerts inform citizens about registration confirmations, administered doses, and upcoming dose reminders, ensuring timely and age-appropriate vaccinations. It also facilitates the creation of Ayushman Bharat Health Account (ABHA) IDs for comprehensive health record maintenance. The U-WIN also supports the frontline workers to digitally record all vaccination events for children and pregnant women for complete, accurate and easy record maintenance, the official said.

Pan-India rollout of U-WIN to track routine immunisations likely by Aug end

As many as 290 cases of <keyword id="21545939" type="General" weightage="20" keywordseo="KP-2" source="keywords">KP.2</keyword> and 34 cases of <keyword id="21748081" type="General" weightage="20" keywordseo="KP-1" source="keywords">KP.1</keyword>, both sub-lineages of COVID-19 that are responsible for surge in cases in Singapore, have been found in India, according to official data. However, a source in the Union health ministry told PTI that they are all sub variants of <keyword id="20115417" type="General" weightage="20" keywordseo="JN1" source="keywords">JN1</keyword> and there is no associated increase in hospitalisation and severe cases. "So there is no reason for concern or panic. The mutations will keep happening at a rapid pace and this is the natural behaviour of viruses like SARS-CoV2," the source said. The source further said that the INSACOG surveillance is sensitive and is able to pick up the emergence of any new variant and samples are also picked from hospitals in a structured manner to detect any change in the severity of disease due to virus. Data compiled by the Indian SARS-CoV-2 Genomics Consortium (INSACOG) showed that 34 cases of KP.1 have been found across seven states and UTs with 23 cases registered from West Bengal. The other states are Goa (1), Gujarat (2), Haryana (1), Maharashtra (4) Rajasthan (2) and Uttarakhand (1). As many as 290 cases of KP.2 have been registered with Maharashtra reporting the highest number at 148, according to the data. The other states and Union territories are Delhi (1), Goa (12), Gujarat (23), Haryana (3), Karnataka (4), Madhya Pradesh (1), Odisha (17), Rajasthan (21), Uttar Pradesh (8), Uttarakhand (16) and West Bengal (36). Singapore is seeing a new COVID-19 wave as the authorities recorded more than 25,900 cases from May 5 to 11 with KP.1 and KP.2 accounting for over two-thirds of cases in Singapore. Globally, the predominant COVID-19 variants are still JN.1 and its sub-lineages, including KP.1 and KP.2. KP.1 and KP.2 belong to a group of COVID-19 variants scientists have nicknamed 'FLiRT', after the technical names of their mutations. The strains in FLiRT are all descendants of the JN.1 variant, an offshoot of the Omicron variant. KP.2 was classified by the World Health Organization as a Variant Under Monitoring.

290 cases of COVID-19 variant KP.2, 34 cases of KP.1 detected in India: INSACOG data

As of March 2024, <keyword id="21574670" type="General" weightage="20" keywordseo="foreign-portfolio-investment" source="keywords">foreign portfolio investment</keyword> (<keyword id="725142" type="General" weightage="100" keywordseo="FPI" source="Orion">FPI</keyword>) ownership in <keyword id="20868945" type="General" weightage="20" keywordseo="NSE-listed-companies" source="keywords">NSE-listed companies</keyword> have fallen below 18%, marking a notable shift in investments pattern in the Indian markets. Notably, this has happened for the first time in over 11 years. FPI in India's NSE-listed companies has experienced significant fluctuations over the past two decades, reflecting global economic trends and geopolitical events, according to NSE report. Between 2002 and 2015, the <keyword id="22083141" type="General" weightage="20" keywordseo="FPI-ownership" source="keywords">FPI ownership</keyword> in the country showed a gradual upward trend, except for a temporary dip during the 2007-08 financial crisis. The subsequent years saw the FPI's share dip marginally, due to global uncertainties such as the US-China trade war and Brexit. Despite a brief resurgence in 2018-19, FPI ownership plunged yet again in the first half of 2020, due to the onset of the <keyword id="19955291" type="General" weightage="20" keywordseo="COVID-19-pandemic" source="keywords">COVID-19 pandemic</keyword>. However, the situation reversed quickly as global liquidity injections improved risk appetite, leading to a temporary increase in FPI share in late 2020. But since then, FPI participation has been on a downward trajectory, driven by recurring waves of COVID-19, a slowdown in China, the Russia-Ukraine war, and concerns over global economic stability. These factors, coupled with rapid monetary tightening by central banks, notably the US Federal Reserve, have further dampened foreign investor confidence. Consequently, by the end of FY24, FPI ownership in the NSE-listed space dropped to below 18%, marking its lowest point in over 47 quarters. However, individual investor participation in the NSE-listed universe has remained relatively stable over the past decade, staying between 8% and 10%. While direct individual ownership has shown resilience, the rise in systematic investment plans (SIPs) also indicates a shift towards indirect ownership. Despite a minor decline in FY21, the <keyword id="19956399" type="General" weightage="20" keywordseo="sip" source="keywords" medley.seotitle="systematic-investment-plan" medley.uid="systematic-investment-plan" medley.msid="19377158" medley.seopath="s/systematic-investment-plan" medley.containers="mutual-fund,investopedia" medley.title="Systematic Investment Plan">SIP</keyword> route has become increasingly popular among <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>, reflecting growing confidence in long-term equity investments. The direct individual ownership trend highlights a maturing market where investors are more inclined towards indirect participation through <keyword id="6357979" type="General" weightage="20" keywordseo="mutual-funds" source="Orion" topicspecial.url="https://economictimes.indiatimes.com/mutual-funds">mutual funds</keyword> and other investment vehicles. This shift also underscores the growing sophistication of retail investors who seek diversified exposure to the <keyword id="19911354" type="General" weightage="20" keywordseo="equity-market" source="keywords">equity market</keyword>. The ownership landscape has also changed significantly among promoters over the years. From 2001 to 2009, promoter ownership rose sharply, reaching a 19-year high of 57.6% in March 2009. But this increase was followed by a gradual decline as the Securities and Exchange Board of India (SEBI) mandated a minimum free float requirement of 25% in 2010. The reduction in promoter ownership was primarily driven by a decline in government stakes, as the government aimed to enhance public participation in Central Public Sector Enterprises (CPSEs) and generate resources for economic development. Meanwhile, private promoter ownership, including both Indian and foreign entities, saw an increase of approximately 11.6% between June 2010 and December 2021. In recent years, promoter share has shown signs of a slight increase, particularly due to a rise in government holdings, except for a minor dip in FY23. This resurgence in promoter ownership reflects the ongoing adjustments in the market dynamics and regulatory landscape. Domestic mutual funds (DMFs) have also seen a substantial rise in ownership of NSE-listed companies from 2014 to 2019, driven by increasing SIP inflows. Despite a temporary drop in FY21 due to economic uncertainties and high redemption pressures during the COVID-19 pandemic, mutual fund participation has rebounded strongly in the past few years.

FPI ownership in NSE-listed companies drops below 18% in FY24

The pharmaceutical giant <keyword id="19910149" type="General" weightage="20" keywordseo="AstraZeneca" source="keywords" meta.keywordsubtype="org" meta.entityname="AstraZeneca" meta.hostid="261" meta.entityid="AstraZeneca">AstraZeneca</keyword>'s <keyword id="20040659" type="General" weightage="20" keywordseo="COVID-19-vaccine" source="keywords">COVID-19 vaccine</keyword> is being withdrawn worldwide after the company acknowledged for the first time in court documents that it can cause a rare and dangerous side effect, according to a report in the British Newspaper 'The Telegraph'. AstraZeneca has announced that the <keyword id="19959412" type="General" weightage="20" keywordseo="vaccine" source="keywords">vaccine</keyword> was being removed from markets for commercial reasons. It further said that the vaccine was no longer being made or supplied, having been superseded by updated vaccines that fight new variants. The application to withdraw the vaccine was made on March 5 and came into effect on May 7. The vaccine can be no longer used in the European Union following the company's decision to withdraw its "marketing authorisation." Similar applications will be submitted in the UK and other nations in the coming months that have given a go-ahead to the vaccine, known as Vaxzevria. In recent months, Vaxzevria has come under scrutiny over a very rare side effect, which causes blood clots and low blood platelet counts. In court documents, AstraZeneca in the High Court in February admitted that the vaccine "can, in very rare cases, cause <keyword id="20218859" type="General" weightage="20" keywordseo="TTS" source="keywords">TTS</keyword>". TTS which stands for <keyword id="21475609" type="General" weightage="20" keywordseo="Thrombosis-with-Thrombocytopenia-Syndrome" source="keywords">Thrombosis with Thrombocytopenia Syndrome</keyword> has been associated with at least 81 deaths in the UK and hundreds of serious injuries. More than 50 alleged victims and grieving relatives have filed a lawsuit against AstraZeneca in a High Court case. AstraZeneca has insisted that the decision to withdraw the vaccine is not related to the case or admission that it can cause TTS and termed the timing a pure coincidence, according to The Telegraph report. "We are incredibly proud of the role Vaxzevria played in ending the global pandemic. According to independent estimates, over 6.5 million lives were saved in the first year of use alone and over three billion doses were supplied globally. Our efforts have been recognised by governments around the world and are widely regarded as being a critical component of ending the global pandemic," The Telegraph quoted AstraZeneca as saying. In a statement, the pharmaceutical giant said, "As multiple, variant Covid-19 vaccines have since been developed, there is a surplus of available updated vaccines", adding that it has led to a decline in demand for Vaxzevria, which is no longer being manufactured or supplied, The Telegraph reported. It further announced its decision to initiate the withdrawal of the marketing authorisations for Vaxzevria within Europe. The company said, "We will now work with regulators and our partners to align on a clear path forward to conclude this chapter and significant contribution to the Covid-19 pandemic." Last week, AstraZeneca reiterated its commitment to patient safety while emphasising the vaccine's overall safety profile. An AstraZeneca spokesperson had stated, "Our sympathy goes out to anyone who has lost loved ones or reported health problems. Patient safety is our highest priority, and regulatory authorities have clear and stringent standards to ensure the safe use of all medicines, including vaccines." This comes in the wake of a recent admission by AstraZeneca, the pharmaceutical company, that its <keyword id="19896627" type="General" weightage="20" keywordseo="covid" source="keywords">Covid</keyword> vaccine Covishield and Vaxzevria "can, in very rare cases, cause Thrombosis Thrombocytopenia Syndrome (TTS)." Despite these rare occurrences, the pharmaceutical company maintained that extensive clinical trial data and real-world evidence consistently support the vaccine's safety and efficacy. Regulatory agencies worldwide continue to assert that the benefits of vaccination outweigh the risks of such extremely rare side effects. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/aadhar-housing-finance-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/109919298.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/aadhar-housing-finance-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/109919298.cms" target="_blank">Aadhar Housing Finance IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/business/auto/webstories/top-selling-cars-in-india-in-april-2024-tata-punch-continues-to-dominate/slidelist/109909744.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/top-selling-cars-in-india-in-april-2024-tata-punch-continues-to-dominate/slidelist/109909744.cms" target="_blank">Top-selling cars in India in April 2024 – Tata Punch continues to dominate</a><a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank">Worldwide tablet shipments grow in Q1 2024 after two years of decline</a>

AstraZeneca withdraws COVID-19 vaccine worldwide, cites commercial reasons

<ul class="summary-list"><li>An influx of cheap economy-class seats hitting that market in recent months has depressed airfares.</li><li>This has weighed down airline earnings despite strong demand for flights.</li></ul>It may not feel like it, but there are a lot of cheap flights to be had this summer — and the influx of low-priced, often money-losing economy seats has airlines scrambling."The unprofitable capacity is just not sustainable," <a target="_blank" class="" href="https://www.businessinsider.com/american-vs-delta-united-airlines-economy-compared-flight-review-2024-7">United Airlines'</a> chief commercial officer Andrew Nocella told investors Thursday.Despite reporting a 23% increase in second-quarter profits over the prior year, United's earnings guidance for the upcoming third quarter fell short of Wall Street expectations."This is a quarter where industry capacity growth has exceeded still solid demand," CEO Scott Kirby said on the earnings call.In recent months, airlines have flooded the market with <a target="_blank" class="" href="https://www.businessinsider.com/united-basic-economy-review-carryon-middle-seat-new-york-denver-2024-7">economy-class seats</a>, leading to lower airfares as carriers cut prices to fill their planes as travel demand soars.<div type="image" title="United Airlines CEO Scott Kirby speaks during a joint press event with Boeing at the Boeing manufacturing facility in North Charleston, South Carolina, on December 13, 2022." height="683" width="1024" msid="111845420" hostid="261" sizebytes="33648"></div>According to the Bureau of Labor Statistics, average ticket prices in June were the cheapest in 15 years, excluding the COVID-19 pandemic years of 2020 and 2021. And in July, TSA screenings hit a record.But as labor, fuel and other overhead costs remain high, airlines — <a target="_blank" class="" href="https://www.businessinsider.com/spirit-airlines-says-flyers-spending-less-extras-like-food-baggage-2024-7">especially low-cost carriers</a> — have sold seats at a loss in a desperate attempt to generate as much revenue as possible."The pressure other US airlines are experiencing today is due in large part to their <a target="_blank" class="" href="https://www.businessinsider.com/why-airlines-are-struggling-despite-record-travel-demand-profits-revenue-2024-6">unprofitable flying in many domestic markets</a>," Kirby said.Nocella added: "In the past, the magnitude of the worst flying has never been this bad for the lower-margin airlines," the United CCO said.<h2 id="97bdff66-347d-4129-8071-e980028f9b1c">Low-cost airlines are bearing the brunt of the pain</h2><a target="_blank" class="" href="https://www.businessinsider.com/delta-air-lines-ceo-questions-financial-strategy-low-cost-carriers-2024-7">Delta CEO Ed Bastian</a> also questioned the long-term financial viability of the business strategy of low-cost carriers during the airline's earnings call last week."You cannot, if you are on the lower end of the industry's food chain, continue to post losses, particularly given the health of the demand set we've seen over these last couple of years," Bastian said. The carrier kicked off a series of bad news for airlines earlier in June, posting disappointing earnings that sent the entire sector down.<div type="image" title="Ed Bastian" height="2964" width="4332" msid="111845415" hostid="261" sizebytes="343154"></div><a target="_blank" class="" href="https://www.businessinsider.com/southwest-changes-activist-investstor-free-bags-open-seating-fees-2024-6">Southwest Airlines,</a> for example, lost $231 million in the first quarter of 2024, while fellow low-cost carriers <a target="_blank" class="" href="https://www.businessinsider.com/spirit-frontier-fees-bags-seats-snacks-how-to-avoid-paying-2024-6">Spirit</a> and <a target="_blank" class="" href="https://www.businessinsider.com/i-bought-frontiers-all-you-can-fly-gowild-pass-downsides-2023-7">Frontier </a>lost $143 million and $26 million, respectively, during that same period.The most effective and direct method of addressing this issue for airlines is to slow the introduction of additional seats for sale. Something airlines are quickly working to do."It was inevitable that carriers would begin to cancel this unprofitable flying, and you see that happening in earnest in the second half of August," Kirby said, echoing similar projections by Delta.Based on upcoming flight schedules, Kirby said the airline expects domestic capacity growth across the industry to decrease by 5% by the fourth quarter of 2024.<div type="image" title="United Airlines Polaris business class seat." height="768" width="1024" msid="111845413" hostid="261" sizebytes="59182"></div>In addition to <a target="_blank" class="" href="https://www.businessinsider.com/jetblue-cutting-20-routes-leaving-5-cities-see-list-2024-3">capacity reduction</a>, the US mainline carriers are leaning on their premium, higher-margin cabins to help cover the losses.United reported an 8.5% revenue increase during the second quarter from its premium cabins, such as <a target="_blank" class="" href="https://www.businessinsider.com/flying-on-united-polaris-great-game-changer-2023-8">Polaris business class</a> and domestic first class.Delta is also banking on its premium cabins, which accounted for 56% of its second-quarter revenue.<a target="_blank" class="" href="https://news.alaskaair.com/guest-experience/alaska-airlines-more-first-class-and-premium-seating/">In addition, Alaska Airlines</a> announced this week that it's retrofitting its Boeing 737 fleet to add 1.3 million first-class and premium economy seats annually. The retrofit starts in September and will ensure that each Alaska Boeing 737 has 16 first-class and 30 premium economy seats.American Airlines will report its second-quarter performance on July 25.

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