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United Airlines, Pilots Reach Deal on Voluntary Separations
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Per CNBC, United Airlines Holdings, Inc. (UAL - Free Report) has reached an agreement with the labor union, representing approximately 13,000 pilots, on voluntary furloughs and early-retirement packages.
The move follows the carrier’s recent revelation that it has informed approximately 36,000 U.S.-based employees about possible furloughs on or after Oct 1, once the federal aid, the terms of which prohibit job cuts until Sep 30, expires.
Before embarking on with such mass-scale involuntary layoffs, United Airlines, carrying a Zacks Rank #3 (Hold), plans to first exhaust all voluntary measures to reduce workforce as air travel demand remains significantly below the year-ago levels. Fresh surge in coronavirus cases in some parts of the United States and new quarantine rules have dampened the modest uptick in passenger demand, which the carrier was experiencing since May as economies opened up.
The pilots’ union stated that the deal needs to be ratified by union leaders sometime this week. Details of the deal weren’t disclosed. Last month, Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #3, reached an agreement with the labor union representing more than 14,000 Delta pilots for an early-retirement program. Per the terms of the agreement, pilots would get pay for 58 hours a month until they reach the age of 65 or for 36 months, whichever is earlier. Employees would also receive health and travel benefits for a limited period of time. Earlier this month, JetBlue Airways Corporation (JBLU - Free Report) , carrying a Zacks Rank #3, and its pilots union inked an agreement to avoid involuntary furloughs until May 1, 2021.
Coming back to United Airlines, the company plans “to be 30% smaller next summer”. In this regard, there might be more furloughs in the future besides the potential layoff of 36,000 employees this fall.
Shares of Corporacion America Airports have rallied more than 26% in the past three months.
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United Airlines, Pilots Reach Deal on Voluntary Separations
Per CNBC, United Airlines Holdings, Inc. (UAL - Free Report) has reached an agreement with the labor union, representing approximately 13,000 pilots, on voluntary furloughs and early-retirement packages.
The move follows the carrier’s recent revelation that it has informed approximately 36,000 U.S.-based employees about possible furloughs on or after Oct 1, once the federal aid, the terms of which prohibit job cuts until Sep 30, expires.
Before embarking on with such mass-scale involuntary layoffs, United Airlines, carrying a Zacks Rank #3 (Hold), plans to first exhaust all voluntary measures to reduce workforce as air travel demand remains significantly below the year-ago levels. Fresh surge in coronavirus cases in some parts of the United States and new quarantine rules have dampened the modest uptick in passenger demand, which the carrier was experiencing since May as economies opened up.
United Airlines Holdings Inc Price
United Airlines Holdings Inc price | United Airlines Holdings Inc Quote
The pilots’ union stated that the deal needs to be ratified by union leaders sometime this week. Details of the deal weren’t disclosed. Last month, Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #3, reached an agreement with the labor union representing more than 14,000 Delta pilots for an early-retirement program. Per the terms of the agreement, pilots would get pay for 58 hours a month until they reach the age of 65 or for 36 months, whichever is earlier. Employees would also receive health and travel benefits for a limited period of time. Earlier this month, JetBlue Airways Corporation (JBLU - Free Report) , carrying a Zacks Rank #3, and its pilots union inked an agreement to avoid involuntary furloughs until May 1, 2021.
Coming back to United Airlines, the company plans “to be 30% smaller next summer”. In this regard, there might be more furloughs in the future besides the potential layoff of 36,000 employees this fall.
A Key Pick
A better-ranked stock in the airline space is Corporacion America Airports SA (CAAP - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Corporacion America Airports have rallied more than 26% in the past three months.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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