Business Inflation Expectations Decline
The Federal Reserve Bank of Atlanta released the results of their January survey of business year ahead unit cost inflation expectations showing a decline from 2.2% in December to 2.0%. Two-thirds of firms surveyed have active job openings, with many citing normal turnover as the primary reason. Many firms see a stabilization in the economy, innovative expansion strategies, and oncoming capital upgrade programs as major opportunities in 2026.
Source: Federal Reserve Bank of Atlanta
United Bullish On 2026
United Airlines announced last week that it expects a roughly 22% increase in 2026 in adjusted earnings (x-one-time items), in line with Wall Street estimates. For the last quarter, premium offering revenue rose 9%, outpacing total revenue which was up about 5% at $15.4 billion. United’s loyalty program revenues rose 10% in the quarter. United’s pretax earnings took a hit of about $250 million from the government shutdown.
Source: Wall Street Journal
United & Starlink
Earlier this month, United Airlines announced that their entire regional fleet has been equipped with Starlink systems. They expect to have 450 mainline planes finished by year end. The system works the moment you board until you step off the plane. You’ll be able to connect your personal phone/laptop simultaneously with speeds fast enough for live gaming and seamless 4K streaming. And free if you are a MileagePlus member.
Source: United Airlines
Spirit Lifeline?
CNBC has reported that Spirit Airlines is in talks with alternative investment firm Castlelake for a potential takeover as the discount airline looks for a path out of bankruptcy. Earlier this month, Frontier Airlines called off merger talks with Spirit citing Spirit’s deep financial crisis. Minneapolis-based Castlelake has been active for years in aviation finance with $1.8 billion in deployable capital. No details have been made public yet so it’s hard to predict any potential outcome.
Source: CNBC
No Spend January?
A NerdWallet survey this year of more than 2,000 U.S. adults found that 12% took the vow to cut out nonessential spending for 31 days. Google searches for a similar “No Buy January” strategy, hit a five-year high in December, driven largely by Gen-Zers and millennials, according to PricewaterhouseCoopers. Some miss the thrill of packages showing up on their doorsteps but find some comfort in rethinking their consumption habits to be more fiscally responsible.
Source: NerdWallet, Price Waterhouse Coopers
Microvacations
A growing number of people are looking for ways to stretch their limited time off and save money. A person was able to fly on a Thursday evening from New York to Athens and stayed 8 hours touring the Parthenon. He then hopped on a flight to Egypt, saw the pyramids, rode a camel and visited the Grand Egyptian Museum, all before returning to San Francisco in time for Sunday dinner. According to TripAdvisor, the average length of a trip in 2025 was three days. It’s one way to target specific items on your bucket list without big, complicated trip plans.
Source: New York Times, TripAdvisor
Rip Cheap Cars
The average price of a new car is currently $49,766. In 2024, buyers had a choice of three cars priced under $20,000. Now there are none. The last one to go was the Nissan Versa in December with a starting price of $18,000. The least expensive new car today is the 2026 Hyundai Venue, which has a manufacturer’s suggested retail price of $20,550.
Source: Edmunds.com, Kelley Blue Book
