Big Business, Big Shifts: Airlines, AI, Fast Food, and Wi-Fi in the Spotlight

5th September 2025

Today brought a wave of moves reshaping industries from travel to tech. The Trump administration scrapped a Biden-era plan that would have forced airlines to pay passengers cash compensation for major delays or cancellations, leaving U.S. travelers without the stronger protections common in Europe. In tech, OpenAI is preparing to launch its first in-house AI chip with Broadcom in 2026, a strategic push to cut reliance on Nvidia and secure the computing muscle behind its generative AI models. Meanwhile, JetBlue struck a deal with Amazon’s Project Kuiper to revamp its in-flight Wi-Fi by 2027, betting that low Earth orbit satellites will keep passengers better connected midair. And in the restaurant world, McDonald’s pulled out of the National Restaurant Association while blasting tipped wage rules, arguing they create an uneven playing field by letting sit-down chains shift labor costs onto customers, a break that fast-food players like McDonald’s don’t get. All this in today’s Read It and Eat! 

Major News 

• Trump Administration Scraps Airline Compensation Plan, Leaving Passengers Without New Protections

The Trump administration has scrapped a Biden-era proposal that would have required airlines to pay passengers cash compensation, along with meals and lodging, when flights were canceled or severely delayed due to issues within the airline’s control.

The rule, introduced in the final weeks of President Joe Biden’s term, would have brought U.S. regulations closer to European-style passenger protections. It outlined payments starting at $200 for cancellations or major delays caused by mechanical or computer failures, with compensation climbing to $775 for delays lasting nine hours or more.

Airlines pushed back hard, warning that mandatory payouts would drive up operating costs and eventually ticket prices. Spirit Airlines, which has recently filed for bankruptcy protection for the second time in a year, argued that such rules would even create “perverse incentives” for carriers to cancel flights preemptively rather than risk hefty penalties. Industry group Airlines for America, representing major carriers like United, Delta, and Southwest, welcomed the Trump administration’s decision, calling the Biden plan “unnecessary and burdensome.”

For now, airlines will continue to set their own policies for handling cancellations and long delays, often offering vouchers, hotel rooms, or rebooking options, but without the force of federal regulation. The move underscores the Trump administration’s broader approach of rolling back rules it sees as costly or excessive, even in areas where passengers might feel the pinch. CNBC 

• OpenAI Gears Up to Launch Its First AI Chip with Broadcom in 2026

OpenAI is getting ready to make a big leap into hardware. According to a Financial Times report, the ChatGPT maker is on track to launch its first in-house artificial intelligence chip in 2026, developed in partnership with U.S. semiconductor giant Broadcom. Unlike Nvidia or AMD chips widely used across the industry, this one won’t be for sale to outside customers at least not yet. Instead, OpenAI plans to put the chip straight to work powering its own AI models, which demand enormous computing resources.

The move has been in the works for some time. Reports last year revealed that OpenAI had been exploring chip options with Broadcom and Taiwan Semiconductor Manufacturing Co. while also continuing to source hardware from AMD and Nvidia to keep up with exploding demand. By building its own silicon, OpenAI aims to reduce costs, ease its dependence on Nvidia, and secure a more predictable supply of the high-performance processors that fuel generative AI.

Broadcom, meanwhile, is clearly leaning into the AI boom. CEO Hock Tan said Thursday that the company expects a major jump in AI-related revenue in 2026, backed by more than $10 billion in infrastructure orders from a new unnamed customer widely believed to be OpenAI. Broadcom has previously signaled it was working closely with several big players on custom chip projects, mirroring the approach taken by Google, Amazon, and Meta, which all now run their own in-house AI processors.

For OpenAI, the move underscores just how central computing infrastructure has become to the AI race. Developing its own chip is not just about efficiency it’s a strategic play to gain tighter control over the foundation of its technology. With rivals already scaling their custom hardware, OpenAI’s 2026 launch positions it to compete not just on software innovation, but on the raw power driving the next generation of AI systems. Bloomberg 

• JetBlue Taps Amazon’s Kuiper Satellites to Upgrade In-Flight Wi-Fi by 2027

JetBlue Airways is taking its onboard Wi-Fi up a notch. The airline announced Thursday that it’s teaming up with Amazon’s satellite broadband venture, Project Kuiper, with plans to roll out faster, more reliable internet on its flights starting in 2027.

For JetBlue, the move is all about staying ahead in the increasingly competitive race to offer seamless in-flight connectivity. “A lot of our competitors are trying to jump on the bandwagon,” JetBlue President Marty St. George said, noting that Amazon’s technology will give the carrier a meaningful edge with fewer delays and stronger performance. JetBlue already sets itself apart as the only major U.S. airline to offer free Wi-Fi across its entire fleet.

Project Kuiper, Amazon’s $10 billion low Earth orbit (LEO) satellite project, plans to deploy more than 3,200 satellites to beam high-speed internet around the world. The company has launched over 100 satellites so far, positioning itself to go head-to-head with Elon Musk’s Starlink, which has struck deals with Hawaiian Airlines and United Airlines for similar services.

JetBlue currently relies on traditional geostationary (GEO) satellites for its Wi-Fi, but with Kuiper, the carrier will look to adopt a hybrid “multi-orbit” system that blends LEO and GEO networks. LEO satellites operate closer to Earth, which typically makes them cheaper and faster than their higher-orbit GEO counterparts, a potential game-changer for keeping passengers better connected at 35,000 feet. Reuters 

• McDonald’s Pushes Back on Tipped Wages, Splits With Restaurant Lobby

McDonald’s is stepping into the middle of the restaurant industry’s long-running tipping debate and not quietly. The fast food giant announced it has left the National Restaurant Association (NRA) on the same day its CEO, Chris Kempczinski, publicly criticized rules that allow restaurants to pay workers below the standard minimum wage if tips make up the difference.

“There’s an uneven playing field,” Kempczinski told CNBC. “If you are a restaurant that allows tips or has tips as part of your equation, you’re essentially getting the customer to pay for your labor.” McDonald’s doesn’t benefit from these rules unlike casual dining chains such as Chili’s or Applebee’s, which can offset labor costs with tipped wages. For McDonald’s, where employees aren’t tipped, labor is a much bigger expense.

That’s the core of McDonald’s frustration: while full-service restaurants can legally shift part of their payroll burden to customers through tipping, fast-food players like McDonald’s have no such cushion. By taking a public stance, the company is arguing that current wage rules give sit-down establishments a competitive advantage, particularly at a time when labor costs are rising across the industry.

The National Restaurant Association framed the split as a policy disagreement, saying McDonald’s decision to exit was based on “a difference in views.” But McDonald’s departure from the industry’s most powerful lobbying group signals it’s ready to challenge the status quo and force a broader conversation about who really ends up paying restaurant workers’ wages: the company, or the customer. CNBC 

Minor News 

• Angela Rayner Resigns Following Ministerial Code Violation.  CityAM 

• Goldman Sachs to Acquire Up to $1B Stake in T. Rowe Price. Bloomberg 

• Lululemon Stumbles in Q2 Amid Tariff Pressures and Product Missteps. Wall Street Journal 

• Gap Steps Into the Beauty Market. Wall Street Journal 

• Kelce Brothers’ Garage Beer Soars to $200 Million Valuation. Morning Brew 

• Giorgio Armani, Iconic Italian Fashion Designer, Dies at 91. Wall Street Journal 

• Goldman Sachs Sees Gold Prices Surging as High as $5,000 Amid Fed Uncertainty. Bloomberg 

• Porsche to Leave Germany’s DAX Index. Wall Street Journal 

Earnings 

Beats + Raised Guidance (Clear Winners)

• Dollar Tree → Beat earnings/revenue, raised FY outlook despite tariff headwinds. Wall Street Journal 

• Macy’s → Beat earnings/revenue, raised FY guidance on tariff clarity, store revamps, and inventory strength. CNBC  

• Figma → Beat revenue, raised Q3 + FY guidance in debut earnings, driven by AI tools and acquisitions. CNBC 

Beats but Mixed/Weaker Guidance (Cautious Outlook)

• Salesforce → Beat earnings/revenue, but softer guidance; lagging peers in AI adoption. CNBC 

• American Eagle → Beat earnings/revenue, but guided lower operating income due to tariffs. CNBC 

Outperformance & Strategic Momentum

• Alibaba → Shares jumped 19% on booming AI-fueled cloud sales (triple-digit growth for 8 straight quarters), new AI chip plans, prioritizing growth over margins. Bloomberg