The Wall Street Journal - 30.07.2019

THE WALL STREET JOURNAL. Tuesday, July 30, 2019 |B3

BUSINESS NEWS

Airlines and government

agencies that embraced mobile

boarding passes in the past

decade are already exploring

ways to use face scans and

other biometric screening

tools to move people through

the airport and onto planes

more quickly, as they contend

with rising passenger volumes.

Clear doesn’t replace secu-

rity screening at TSA check-

points, but it can make the

process for those enrolled

faster and more predictable.

Members verify their identi-

ties with a fingerprint or iris

scan, and bypass the line to

wait for an agent to check

their ID.

United said it has held talks

with Clear over the years, and

heard from customers that

they enjoyed the service at

other hubs, like Denver.

The growing use of finger-

prints and faces to verify iden-

tity and replace paper docu-

ments has sparked concerns

from privacy advocates that

say the personal data could be

misused or disclosed inadver-

tently.

Earlier this year, a federal

subcontractor working for U.S.

Customs and Border Protec-

tion was hit by a cyberattack

that likely compromised tens

of thousands of photos of trav-

elers’ faces and license plates

at a land-border crossing.

“It’s clear that we can’t re-

ally trust corporations or the

government to safeguard that

information even if they’re us-

ing it properly,” said Evan

Greer, deputy director of Fight

for the Future, a group that

advocates against collection of

biometric information. Ms.

Greer said Clear is less trou-

bling than other airline bio-

metric initiatives that collect

facial images and require peo-

ple to proactively opt out.

Clear Chief Executive Caryn

Seidman Becker said Clear

doesn’t sell or share its cus-

tomers’ data and has never

had a breach.

Clear’s growth has acceler-

ated in recent years—Ms.

Seidman Becker said it took

six years for Clear to enter its

first 12 airports and half that

time to bring the service to 19

more. It has 3.8 million mem-

bers, up from 2.5 million less

than a year ago.

Delta Air LinesInc., which

has a 7% stake in Clear, ac-

cording to securities filings,

has a similar relationship with

the New York-based company

and also offers discounted

Clear memberships for fre-

quent fliers. United didn’t dis-

close the size of the invest-

ment it is making.

Luc Bondar, vice president

of loyalty at United, said the

partnership will make the air-

port more convenient for its

customers.

United Airlines Holdings

Inc. wants to help its passen-

gers get through security

faster.

United said on Monday that

it is taking an equity stake in

Clear, a technology company

that uses fingerprints and iris

scans to verify a traveler’s

identity at security checks.

Clear operates at 31 air-

ports in addition to stadiums,

arenas and someHertz Global

HoldingsInc. rental-car loca-

tions. United’s investment will

help Clear expand into some of

the airline’s largest hubs.

Clear will launch at Newark

Liberty International Airport

and expand at Houston’s

George Bush Intercontinental

Airport later this summer. The

company also is seeking ap-

proval from the city of Chi-

cago to open lanes at O’Hare

International Airport.

Clear charges most mem-

bers $179 annually, but United

said it would enroll its top-tier

frequent fliers free of charge

and offer a discount to other

members of its loyalty pro-

gram.

Travelers are growing more

accustomed to new protocols

designed to ease their way

through security. The Trans-

portation Security Administra-

tion’s PreCheck program aims

to enhance security and speed

things up by letting travelers

who have been prescreened go

through an expedited check.

BYALISONSIDER

United Offers Biometric Screening

Airline invests in tech firm that helps speed up identity checks for travelers at airports and elsewhere.

JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES

climbed 6.8% to €9.66 billion.

Like its rivalsAnheuser-

Busch InBevSA andCarls-

bergA/S, Heineken has been

investing in no- and low-alco-

hol brews as millennials across

much of the developed world

cut back on drinking alcohol.

On Monday, the brewer said

its low- and no-alcohol vol-

umes had increased to 6.9 mil-

lion hectoliters in the report-

ing period, and 48 of its

brands sold nonalcoholic vari-

ants.

In the U.S., Heineken’s

eponymous brand continued to

struggle, but the company said

that was offset by the launch

of Heineken0.0.

Heineken’s exposure to the

U.S. is far smaller than that of

AB InBev orMolson Coors

BrewingCo. That is holding it

in good stead when many

Americans are spurning main-

stream lagers for craft or im-

ported brews, as well as wine

and spirits.

Globally, the company’s

beer volume rose 3.1% organi-

cally, while the Heineken brand

saw volume rise by 6.9%.

Beer volumes climbed

strongly in the Asia Pacific re-

gion, Africa, the Middle East

and Eastern Europe. They de-

clined in the rest of Europe,

which faced a tough compari-

son with the prior-year period

that benefited from the men’s

soccer World Cup and warmer

weather.

Asia is becoming a bigger

focus for brewers who hope to

accelerate efforts in the re-

gion’s higher-growth markets

at a time of sluggish growth in

many developed countries. In

April, Heineken closed its mul-

tibillion-dollar deal with gov-

ernment-controlledChina Re-

sources Beer HoldingsCo.,

which gives it access to a

sprawling distribution network

in the country.

On Monday, Ms. Debroux

said Heineken’s aluminum

prices for the first half of 2019

were locked in through hedges

last year when prices were

very high, raising the brewer’s

costs.

Aluminum prices last year

were hit by a range of factors

including higher tariffs and

production curbs at the

world’s largest alumina refin-

ery in Brazil.

Nonetheless, Heineken

backed its guidance for the

year. Bernstein analyst Trevor

Stirling said the second half of

the year “needs to be excep-

tionally strong” but added that

this was “doable.”

—Anthony Shevlin

contributed to this article.

Higher costs held down

profit in the first half of the

year forHeinekenNV, despite

the world’s second-biggest

brewer selling more beer glob-

ally and launching its nonalco-

holic Heineken variant in the

U.S.

Shares of Heineken fell 6.3%

to €96.52 in trading in Amster-

dam after the brewer reported

operating profit that missed

expectations Monday. The

Dutch brewer—which also

owns Sol, Birra Moretti and Ti-

ger beer—blamed its higher

costs on strong aluminum

prices and expenses tied to the

rollout of a new technology

system.

Chief Financial Officer Lau-

rence Debroux said Heineken

also had logged higher ex-

penses tied to advertising for

the introduction of its nonal-

coholic beer Heineken 0.0 in

the U.S.

“In the U.S. you always have

to punch above your weight in

terms of advertising invest-

ment,” she said.

In the six months through

June 30, Heineken’s operating

profit grew 0.3% organically to

€1.78 billion ($1.98 billion),

missing analyst estimates by

6.7%. Its expenses for the half

BYSAABIRACHAUDHURI

Higher Costs Weigh on Profit

As Heineken Sells More Beer

Shares fell in trading in Amsterdam after the brewer reported operating profit that missed estimates.

JEAN BIZIMANA/REUTERS

Ryanair HoldingsPLC said

further delays in the return to

service ofBoeingCo.’s 737

MAX jetliner would lead to job

cuts and less flying during

next year’s peak summer

travel season.

One of Boeing’s biggest cus-

tomers, Ryanair had expected

to receive the first of 135 MAX

jets it has ordered this past

April. But the planes have

been grounded by global regu-

lators since March, after two

fatal crashes in six months

that killed 346 people.

Ryanair has yet to receive

any of the jets, and now ex-

pects it will end the company’s

2020 fiscal year with as many

as 30 of the MAX aircraft,

rather than the 58 it has con-

tracted to receive by then.

“I think there is going to be

significantly less capacity in

Europe in summer 2020, in

part, because of the MAX de-

lays,” Ryanair Chief Executive

Michael O’Leary said Monday,

warning that further schedule

slippage could leave the airline

without any MAX jets next

summer.

Boeing is aiming to have

software changes to the MAX

approved by regulators in the

fourth quarter, but some carri-

ers and officials don’t expect

the plane to be cleared to fly

again until early next year.

Mr. O’Leary said while

Ryanair is in talks with Boeing

over possible follow-on orders,

it is also adding to the fleet of

AirbusSE jets flown by its

Lauda unit. Airbus is “pricing

very aggressively,” he said as

the Ireland-based carrier re-

ported a quarterly profit on

Monday and left its fiscal

2020 guidance unchanged.

Ryanair said further delays

in the return of the MAX, as

well as pricing pressures in

the U.K. and German markets,

could trigger job cuts.

BYDOUGCAMERON

Ryanair

Warns of

Job and

Flight Cuts

ket debuts, with both stocks

still sagging below their initial

public offering prices.

Uber cut about one-third of

its marketing arm in a reorga-

nization of a division that had

grown to around 1,200 employ-

ees, an Uber spokesman said.

Less than two months ago,

marketing was put under the

portfolio of Jill Hazelbaker,

who previously ran communi-

cations and policy.

In an email to staff, Uber

Chief Executive Dara Khosrow-

shahi wrote that the cuts are

part of an effort to become

more agile amid concerns

about slowing growth.

“Put simply, we need to get

our edge back. Being fast

wins,” he wrote. “Many of our

teams are too big, which cre-

ates overlapping work.”

The Uber staff cuts were re-

ported earlier by the New York

Times.

Lyft said in an email to staff

Monday that Jon McNeill—a

former Tesla Inc. executive

who was hired in early 2018 as

chief operating officer—is leav-

ing the company and that his

roles will be distributed to

other executives.

Lyft Chief Executive Logan

Green and President John Zim-

mer said in the email that it

was “with gratitude that we

say goodbye” to Mr. McNeill.

The message didn’t offer fur-

ther detail on the reason for

his departure.

Mr. McNeill’s focus at Lyft

included driver supply and re-

tention, a critical issue for

ride-sharing companies. He re-

ceived compensation valued at

$32.8 million in 2018, including

a $420,000 bonus “in recogni-

tion of his outstanding leader-

ship and contributions to our

2018 performance,” according

to regulatory filings. Mr. Mc-

Neill’s departure was reported

earlier by Bloomberg News.

Uber TechnologiesInc. and

LyftInc. went through sepa-

rate staff shake-ups Monday, as

Uber cut about 400 jobs in its

marketing department and Lyft

eliminated the role of chief op-

erating officer.

The two ride-hailing compa-

nies have been under pressure

from Wall Street amid heavy

losses and disappointing mar-

BYELIOTBROWN

ANDSARAHNASSAUER

UberSlashes400Jobs;LyftOperatingChiefExits

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