National

The U.S. Transportation Department lifted Trump-era flight restrictions to Cuba on Wednesday.

Why it matters: The move making U.S.-Cuba travel easier is part of a wider Biden administration drive to bolster support for the Cuban people, one year after the largest anti-government protests on the island in decades occurred, per Axios' Shawna Chen.

Driving the news: Secretary of State Anthony Blinken sent a letter to the Transportation Department requesting it lift the restrictions on U.S. airline and chartered flights from going to Cuban cities (other than Havana), "in support of the Cuban people and in the foreign policy interests of the United States."

Once the department had done this, "scheduled and charter air services between the United States and Cuban airports may resume effective immediately," and the agency did so on Wednesday, per AP.

U.S. lifts Trump-era flight restrictions on Cuba

Secretary of State Anthony Blinken said it's "in support of the Cuban people and in the foreign policy interests of the United States."

Secretary of State Antony Blinken speaks during a press conference in the Benjamin Franklin room of the State Department on June 01, 2022 in Washington, DC. 

Secretary of State Antony Blinken speaks during a press conference at the State Department on Wednesday. Photo: Anna Moneymaker/Getty Images

Cuba

Transportation

China is becoming the most formidable rival America has faced, and the risk of confrontation with Russia, North Korea or Iran still looms. Authoritarians are rising, the chaotic Afghanistan exit revealed the limits of U.S. power, and the pandemic, climate change and other critical challenges continue to pose grave threats.

World

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Whats Next

Axios What's Next

Most reputable transportation companies

Data: The Harris Poll; Chart: Kavya Beheraj/Axios

Faith in traditional automotive brands is stronger amid a wave of pandemic-related disruptions that underscored the importance of personal vehicles and the freedom to travel, new rankings from the Axios Harris Poll 100 suggest.

While Toyota (No. 7), Honda (No. 9) and Tesla (No. 12) were the three highest-rated car brands, Stellantis and General Motors both climbed sharply in the annual survey.

Stellantis (No. 45), better known for its sub-brands like Jeep, Dodge and Ram, jumped 30 spots after its rebranding through the merger of Fiat Chrysler Automobiles and PSA Groupe.

GM climbed 16 spots, to No. 52, in the rankings of brand reputation, driven by big gains in attributes such as trust, vision and growth.

The big picture: People are often quick to dismiss legacy automakers like GM and Ford in favor of sexy newcomers. But these results show how deeply traditional car brands still resonate with everyday Americans, even as carmakers race to reinvent themselves for a new era.

GM said its improvement in the poll was "another proof point that we are making progress on our journey to create a world with zero crashes, zero emissions and zero congestion."

Between the lines: The pandemic made cars harder to come by — and cost more — because of chip shortages and other supply chain disruptions. 

But as travel rebounds and workers head back to the office, vehicle demand remains strong.

Details: Toyota climbed 11 spots and Ford (No. 41) climbed 9 spots in the Axios Harris poll, an annual survey to gauge the reputations of the 100 most visible brands in the country. 

Honda, Tesla and Subaru (No. 20) all slipped in the rankings, but their reputations remain strong.

The bottom line: Don't write off Big Auto just yet.

Go deeper: Full results and methodology; Friendly brands poisoned by politics 

Editor’s note: This story and chart were updated to include historical data about Ford and Stellantis that shows Stellantis made the largest jump, at 30 spots.

Axios Harris Poll 100: Automotive brands show resilience

Stellantis, renamed after the Fiat Chrysler-PSA Groupe merger, rose more than other automaker in the annual poll.

General Motors

Walmart customers in six states will soon be able to have their orders delivered by drone in less than 30 minutes. 

Why it matters: This will be the first large-scale drone delivery operation in the United States. So far, drone deliveries have been available only in a few small towns, with customers selecting from a short list of items. 

Driving the news: Walmart's DroneUp delivery network will expand to 34 sites by the end of the year, potentially reaching 4 million U.S. households, the retailer said. 

The new markets are Phoenix, Ariz.; Tampa and Orlando, Fla.; Dallas, Texas; Salt Lake City, Utah; and Richmond, Va. (Walmart already has limited drone delivery in Arkansas.)

Drone delivery will be available 8 a.m. to 8 p.m. from at least three Walmart stores in each city. 

The scale of Walmart's planned operation is significant in other ways too.

Shoppers won't be limited to a short list of preselected items. Instead, they'll be able to order anything from Tylenol to diapers to hot dog buns — 100,000 different products in all, up to a total of 10 pounds — to be delivered by drone for $3.99.

"If it fits safely, it flies," DroneUp CEO Tom Walker tells Axios. 

When the service is up and running, Walmart says it could deliver more than 1 million packages a year by drone.

The big picture: The race to bring drone delivery to U.S. households is shaping up as a battle of titans, as everyone from Amazon and Alphabet to UPS and Domino's invests.

So far, Walmart seems to be out in front — but that could change quickly. 

The intrigue: Walmart and DroneUp will offset the cost of delivery with revenue from other drone-related services, such as insurance inspections, emergency response and construction oversight.

 For example, a local construction agency could work with DroneUp to monitor onsite job progress through aerial drone photography.

Those other services will help the entire drone industry by gathering more flight data.

Of note: Walmart is a minority investor in DroneUp and has a seat on its five-member board.

What they're saying: The Federal Aviation Administration is paying close attention to what Walmart and DroneUp are doing as it prepares regulations that will allow widespread drone deployment over longer distances. 

 "We think it’s important to show, yes, as operators, we can open 34 locations and recruit and find the right operators," says Walker of DroneUp.

"We can manage airspace safely so they can assess that this is really a viable, scalable, business model."

The big picture: Drone delivery is the latest effort by Walmart to expand customers' delivery options. 

With Express delivery, you can have purchases delivered to your doorstep in as little as two hours.

With InHome, a Walmart employee will place an order right in your refrigerator.

Dallas

Dallas Members

Dallas Alerts

A daily look at the most significant and interesting stories affecting Dallas. Written by Michael Mooney and Tasha Tsiperas.

Axios Dallas Thought Bubble

Axios Dallas

Walmart to begin America's first large-scale drone operation in 6 states

A 10-pound package will arrive by drone in half an hour.

Image of a DroneUp drone delivering a package for Walmart

DroneUp is delivering packages for Walmart. Photo courtesy of DroneUp

Drones

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

Percentage change in traffic fatalities from 2020 to 2021, by state

Data: National Highway Traffic Safety Administration; Cartogram: Axios Visuals

An estimated 42,915 people died in motor vehicle traffic crashes in the U.S. in 2021, the highest number of traffic fatalities since 2005, according to data released Tuesday from the Department of Transportation.

By the numbers: The National Highway Traffic Safety Administration said the number represents a 10.5% increase from 2020, when 38,824 deaths were reported. 

Compared to the 36,355 fatalities reported in 2019, prior to the pandemic, the number of traffic fatalities increased by 18% last year.

Zoom in: 44 states, Washington, D.C., and Puerto Rico are all projected to have had increases in the numbers of traffic deaths, NHTSA found.

Texas is estimated to have had the highest amount of deaths at 4,573, followed by California and Florida at 4,258 and 3,753, respectively.

Driving the news: "An increase in dangerous driving — speeding, distracted driving, drug- and alcohol-impaired driving, not buckling up — during the pandemic, combined with roads designed for speed instead of safety, has wiped out a decade and a half of progress in reducing traffic crashes, injuries and deaths," said Russ Martin, senior director of policy and government relations for the Governors Highway Safety Association.

Catch up fast: Earlier this week, the NHTSA released $740 million in funding for states and communities to "implement programs" to address risky driving.

Between the lines: Safety advocates say street design is a big contributor: U.S. roads prioritize the speedy movement of automobiles over other road users.

A new study shows that asphalt art is one way to slow traffic and make it safer for pedestrians and cyclists.

Our thought bubble, via Axios' Joann Muller: Ironically, assisted-driving technology is supposed to help make roads safer, but we're not seeing that yet.

One problem is that drivers put too much trust in automated features like lane-keeping assist, or simply don't know how to use them. And such misuse could actually make the roads more dangerous instead.

What they're saying: "We face a crisis on America's roadways that we must address together," Transportation Secretary Pete Buttigieg said in a statement.

"This crisis on our roads is urgent and preventable," said Steven Cliff, NHTSA's deputy administrator.

"We will redouble our safety efforts, and we need everyone — state and local governments, safety advocates, automakers, and drivers — to join us. All of our lives depend on it," Cliff added.

Why traffic deaths spiked more in the U.S. during COVID

U.S. traffic deaths hit highest level in 16 years

An estimated 42,915 people died in motor vehicle traffic crashes in the U.S. in 2021.

Deaths

Uber adds electric cars and stadium food to its menu

Now you don't have to stand in line for concessions and miss the action.

Illustration of a burger, drink, and fries, sitting on a cell phone as if it were a tray

Uber

JetBlue on Monday launched what is effectively a hostile takeover bid for Spirit Airlines.

Driving the news: JetBlue in a letter to Spirit's shareholders urged them to vote against an earlier deal to merge with Frontier airlines.

"Based on the clear superiority of our offer, we expected the Spirit Board to engage constructively," JetBlue CEO Robin Hayes said in the letter to shareholders.

"Given its unwillingness to share necessary information or negotiate in good faith, we adjusted our price accordingly, but will work towards a consensual transaction at $33 per share, subject to receiving the information to support it."

State of play: Spirit Airlines earlier this month rejected an acquisition offer from JetBlue for $3.6 billion, saying it feared the deal would not be cleared by antitrust regulators.

The Justice Department last year sued JetBlue and American Airlines over their planned consolidation, saying it is anticompetitive. A number of states have also sued to block the partnership, per the New York Times.

Thought bubble from Axios' Dan Primack: It's unclear if U.S. antitrust regulators would allow JetBlue to buy Spirit (despite what JetBlue argued this morning). But, if the deal is allowed, it could spark a series of airline industry mergers.

Go deeper ... Spirit Airlines rebuffs acquisition offer from JetBlue

JetBlue launches hostile takeover bid of Spirit Airlines

"Based on the clear superiority of our offer, we expected the Spirit Board to engage constructively."

A passenger checks in for a JetBlue flight at O'Hare International Airport on April 06, 2022 in Chicago, Illinois.

A passenger checks in for a JetBlue flight at O'Hare International Airport on April 6. Photo: Scott Olson/Getty Images

Airlines

New airlines don't come along very often, but the pandemic provided a rare opportunity for new carriers to establish themselves in smaller markets that had been abandoned by the major airlines in recent years.

Why it matters: Startups like Breeze Airways and Avelo Airlines represent a new generation of low-frills carriers that aim to disrupt the status quo just as Jet Blue and Southwest Airlines did decades earlier.

They're using technology as a differentiator — in addition to low fares and convenient routes.

Driving the news: Several de novo airlines were born during the pandemic, taking advantage of the near-shutdown of air travel that brought the big-name carriers to their knees not long ago.

The newcomers have grown quickly, adding new, larger planes and more nonstop routes to bigger cities:

Breeze, which launched a year ago mostly on the East Coast, is now offering $99 one-way fares to Los Angeles, San Francisco and Las Vegas. And it just announced service from Westchester County Airport, a popular alternative to New York's three busy airports.

Avelo, which started last year on the West Coast, is now adding routes such as New Haven, Conn.,-to-Orlando, Fla. 

PLAY, an Icelandic airline launched last year, is offering cheap flights to Europe, through Reykjavik, from Baltimore/Washington, D.C., Boston, New York and Orlando.

The tech angle: Breeze was the brainchild of David Neeleman — who also founded JetBlue and other airlines — and it's taking a "tech-first" approach to customer service. 

You have to book and manage your flights through an app or the company's website — there is no toll-free customer service number.

Passengers communicate with Breeze representatives solely via text, chat or Facebook messenger. 

Each service agent manages multiple text conversations at once.

The company says this makes response times faster than they would be if passengers were holding on the telephone.

Customers usually connect with an agent within 5 to 10 minutes, a company spokesperson says, adding that conversations are typically resolved within 20 minutes.

Yes, but: The remote encounters don't sit well with everyone, as complaints on the company's Facebook page indicate, notes USA Today.

Reality check: It wasn't easy for any of these airlines to launch during the pandemic, which effectively killed the travel industry.

"It delayed us a good year or so, but that was the main downside," Neeleman, the CEO, tells Axios via email.

"On the other hand, the pandemic exacerbated the reduction of airline services that secondary and tertiary markets had been experiencing for the last five years. So, if anything, it gave us more opportunities there."

The big picture: Low-cost carriers swooping in to undercut the industry leaders "is a play we’ve seen before," said Adam Gordon, managing director and partner at Boston Consulting Group, who leads the firm's airline practice.

Discount carriers take advantage of their lower cost of operations: newer planes with low maintenance requirements, lower labor rates and simple business models, for example. (Think Spirit, Allegiant and Frontier.)

"As they mature, their labor costs tend to rise, the aircraft need more maintenance, and it all gets more complex. That creates space for new players to come in beneath them."

Flashback: JetBlue, born in February 2000, stood out for its low fares, new planes and passenger amenities like seatback screens, satellite television and free Wi-Fi.

Other airlines were forced to respond by adding similar amenities. Many also adopted the tiered pricing structure for economy seats that discount airlines pioneered.

Editor's note: This story has been updated to clarify that Breeze passengers can manage flights on the company’s website as well as through its app. This story was originally published on May 10. 

New generation of budget airlines aims to disrupt flying

Pandemic-era startups Breeze Airways and Avelo Airlines offer non-stop flights from smaller cities.

Illustration of an airplane tail design with a dollar bill sign on it.   

Ford's F-150 Lightning — which is just hitting the market — is more than simply another pickup truck: It's poised to open the floodgates for electric vehicle adoption in the U.S. by showing how much an EV can do. 

Why it matters: While Tesla started the EV revolution, Ford will likely get credit for taking these vehicles mainstream. Priced just under $40,000, the F-150 Lightning is a versatile and affordable gateway product that can (sometimes) be charged in under an hour.

What's happening: Ford is overhauling its F-Series pickup truck — America's best-selling vehicle — by ripping out the engine and transmission and replacing it with an electric powertrain. 

It's a bet-the-company move that, if all goes as planned, will attract buyers who never considered an EV — or a pickup — before. 

So far, it looks like a success: Ford has taken nearly 200,000 reservations and already bumped up production capacity twice, hoping to hit an annual rate of 150,000 by next year. 

The big picture: Ford sells 900,000 gasoline-powered F-Series trucks per year, bringing in more than $40 billion in annual revenue — more than companies like McDonalds, Nike and Coca-Cola.

There are 16.4 million of them in operation — 5.8% of all vehicles on the road.

Ford is not the first to deliver an electric truck; General Motors' GMC Hummer and Rivian's R1T beat them to market. But those are fun, expensive toys.

The Ford Lightning's starting price is half of the Rivian and far less than the six-figure Hummer, putting it within reach for many.

Situational awareness: I flew to Texas, the truck capital of America, last week to be among the first to try the new electric F-150.

I drove from downtown San Antonio through suburban stop-and-go traffic, then north on I-10 to explore the rolling hills of central Texas and the Singing Water vineyards, where I went off-roading — pretty much every kind of driving scenario you can imagine.

I even used the Lightning to tow a 24-foot electric speedboat — 8,600 pounds, including the trailer — in the Hill Country and on the freeway.

Details: The Lightning comes with two battery choices — a 230-mile standard range and a 320-mile extended range — and four trim levels. I tried them all, from the $39,974 Lightning Pro work truck for fleet customers all the way up to the $90,874 Platinum edition.

Charging time ranges from 15 hours with a 240-volt wall outlet to about 40 minutes at a public 150-kW fast-charging station.

The "mega power frunk" — or front trunk — could be the Lightning's biggest selling point:

All EVs have a front trunk where the engine is normally found, but Ford's is massive: It's got 14 cubic feet of space, with room for 400 pounds of cargo, plus a deep well with a drain that doubles as a cooler. 

Push the key fob and it opens wide like a lion's mouth. It easily fits two sets of golf clubs, or valuable tools and equipment you don't want to store in the bed. 

It's also a source of power, with up to 11 outlets onboard to power tools, camping gear — even your house or your neighbor's EV in a pinch.

Yes, but: Towing a nearly 9,000-pound boat cut the truck's 320-mile battery range to 157 miles.

The bottom line: The Ford F-150 Lightning is the most anticipated vehicle in decades — and, so far at least, lives up to the hype. 

Editor’s note: The annual revenue figure that Ford derives from its F series trucks has been corrected: It is $40 billion, not $40 million.

Ford F-150 Lightning review: A watershed moment for electric vehicles

At $40K, F-150 Lightning is a versatile and affordable gateway product.

Image of a Ford F-150 Lightning electric pickup with a tent on the roof and the open frunk stuffed with gear. 

Ford's F-150 Lightning's frunk stores gear in a secure, dry place. Photo courtesy of Ford

Electric vehicles

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

Tesla will update the software for almost 130,000 of its cars to fix their central display screen from overheating and running slowly or going blank, the National Highway Traffic Safety Administration said Tuesday.

Why it matters: The screen is a crucial component of Tesla vehicles, as they display rearview cameras, windshield defrosters settings, warning lights and the gear shift indicator.

The software update is not a physical recall. Federal law requires automakers to submit a recall when they issue an "over-the-air" software update that mitigates a defect that poses an unreasonable risk to drivers.

The big picture: The NHTSA said the recall covers Model S sedan and Model X SUVs from 2021 and 2022 and Model 3 cars and Model Y SUVs from 2022.

It said the overheating defect occurs during the fast-charging process and affects at least 1% of the vehicles under the recall.

Tesla said it is not aware of any crashes, injuries, or deaths related to the defect and that the update will improve the screen's temperature management.

Tesla recalls 130K cars over touchscreen display overheating

The central display screen is a crucial component of Tesla vehicles.

A Tesla charging in South Burlington, Vermont, in April 2022.

A Tesla charging in South Burlington, Vt., in April 2022. Photo: Robert Nickelsberg/Getty Images

Tesla

Closer

Axios Closer

Uber CEO Dara Khosrowshahi has told employees that the ride-share company will reduce hiring in response to a "seismic shift" in the market, CNBC reports.

Why it matters: Khosrowshahi is setting a new tone for the company as investors are growing wary of unprofitable businesses.

Uber to cut down on hiring in bid to focus on profitable growth

"We will treat hiring as a privilege and be deliberate about when and where we add headcount," Uber's CEO said.

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