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Southwest Airlines (LUV) Inks Provisional Deal With AMFA
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Southwest Airlines Co. (LUV - Free Report) announced that it has reached a tentative agreement for its Aircraft Appearance Technicians with the Aircraft Mechanics Fraternal Association (AMFA).
AMFA is the union representing Southwest Airlines’ Appearance Technicians, who help deliver safe, secure, clean and reliable aircraft for LUV’s customers and employees.
Southwest Airlines has approximately 170 Appearance Technicians. Per Adam Carlisle, vice president, LABOR Relations at Southwest Airlines, “This agreement rewards our Appearance Technicians for the contributions they make to our Company’s success. It’s also a result of the hard work exemplified by both Negotiating Committees, and we appreciate all of their efforts”
However, the new contract still has a long way to go before it becomes effective. We note that tentative agreements do not necessarily mean that the deal will be operational. The provisional deal inked by Southwest Airlines will now be voted upon by union members. It will be effective only if the voting result is favorable.
Shares of Southwest Airlines have outperformed the industry in the year-to-date period. The stock has rallied 2.4% against the industry’s 7.7% fall.
Image Source: Zacks Investment Research
We expect the provisional deal, on successful ratification, to boost the stock further. Naturally, we expect investors to keenly await further updates on this issue.
Investors interested in the broader Zacks Transportation sector can also check out some other stocks worth considering like Ryder System, Inc. (R - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and GATX Corporation (GATX - Free Report) .
Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. R is benefiting from improving economic and freight conditions in the United States. Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022.
R currently sports a Zacks Rank #1.
The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Improving freight market conditions are aiding CHRW. In first-quarter 2022, the top line improved 41.8% on favorable truckload pricing for customers and sizable profits in ocean freight.
Driven by the positives, the stock has rallied 9.7% in the past year. CHRW currently flaunts a Zacks Rank of 1.
GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. The gradual improvement in the North American railcar leasing market is a huge boon for GATX.
Driven by the upsides, the stock has risen 11.8% in the past year. GATX currently has a Zacks Rank #2 (Buy).
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Southwest Airlines (LUV) Inks Provisional Deal With AMFA
Southwest Airlines Co. (LUV - Free Report) announced that it has reached a tentative agreement for its Aircraft Appearance Technicians with the Aircraft Mechanics Fraternal Association (AMFA).
AMFA is the union representing Southwest Airlines’ Appearance Technicians, who help deliver safe, secure, clean and reliable aircraft for LUV’s customers and employees.
Southwest Airlines has approximately 170 Appearance Technicians. Per Adam Carlisle, vice president, LABOR Relations at Southwest Airlines, “This agreement rewards our Appearance Technicians for the contributions they make to our Company’s success. It’s also a result of the hard work exemplified by both Negotiating Committees, and we appreciate all of their efforts”
However, the new contract still has a long way to go before it becomes effective. We note that tentative agreements do not necessarily mean that the deal will be operational. The provisional deal inked by Southwest Airlines will now be voted upon by union members. It will be effective only if the voting result is favorable.
Shares of Southwest Airlines have outperformed the industry in the year-to-date period. The stock has rallied 2.4% against the industry’s 7.7% fall.
Image Source: Zacks Investment Research
We expect the provisional deal, on successful ratification, to boost the stock further. Naturally, we expect investors to keenly await further updates on this issue.
Zacks Rank & Other Key Picks
Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Zacks Transportation sector can also check out some other stocks worth considering like Ryder System, Inc. (R - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and GATX Corporation (GATX - Free Report) .
Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. R is benefiting from improving economic and freight conditions in the United States. Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022.
R currently sports a Zacks Rank #1.
The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Improving freight market conditions are aiding CHRW. In first-quarter 2022, the top line improved 41.8% on favorable truckload pricing for customers and sizable profits in ocean freight.
Driven by the positives, the stock has rallied 9.7% in the past year. CHRW currently flaunts a Zacks Rank of 1.
GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. The gradual improvement in the North American railcar leasing market is a huge boon for GATX.
Driven by the upsides, the stock has risen 11.8% in the past year. GATX currently has a Zacks Rank #2 (Buy).