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Southwest Airlines (LUV) Announces Tentative Deal With AMFA

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Southwest Airlines Co. (LUV - Free Report) announced reaching a tentative agreement for its Aircraft Appearance Technicians with the Aircraft Mechanics Fraternal Association (AMFA).

AMFA is the union representing Southwest Airlines’ Aircraft Appearance Technicians, who help to 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, "Our Appearance Technicians contribute to Southwest's success every day, and I am proud of both Negotiating Committees for reaching an agreement that rewards our Employees for their continued hard work."

However, the new contract still has a long way to go before it becomes effective. The tentative agreement does not necessarily mean that the deal will be operational. AMFA will now inform the members about its details and the ratification process, which will follow in the coming days. The provisional deal will become effective only after successful ratification (i.e. the outcome of the voting procedure is favorable).

Shares of Southwest Airlines have lost 12.1% compared with the industry ’s 19.2% fall in the year-to-date period.

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Zacks Rank and Stocks to Consider

Currently, Southwest Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the broader Zacks Transportation sector are GATX Corporation (GATX - Free Report) , Triton International Limited and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2 (Buy).

GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.

The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 5.9% over the past year.

Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. TRTN has a long-term expected growth rate of 10%.

The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 12.8% over the past year.

Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. TNK has a long-term expected growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 106.3% over the past year.


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