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American Airlines' Five-Year Contract With Flight Attendants Ratified
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American Airlines (AAL - Free Report) received encouraging tidings on the labor front when the Association of Professional Flight Attendants or APFA announced that flight attendants of the airline have ratified a new five-year contract, increasing the value of their current agreement by $4.2 billion.
With 95% of eligible flight attendants casting their votes, 87% of American Airlines flight attendants voted in favor of the contract, which takes effect from Oct. 1, 2024. This contract represents a significant milestone for American Airlines flight attendants, delivering immediate wage increases of up to 20.5% and substantial retroactive pay to compensate for the time spent negotiating.
APFA National President Julie Hedrick said, “Among the many improvements, the contract includes a new sit rig for compensation for long sits between flights, and American Airlines Flight Attendants become the first unionized workgroup to lock in pay for boarding.”
In addition to offering industry-leading pay rates, the agreement provides wage increases for future years, addresses numerous quality-of-life issues and improves the rules for scheduling, rescheduling and reserving work.
The contract negotiations started in January 2020 but paused at the height of the pandemic and resumed in June 2021. The contract becomes amenable on Oct. 1, 2029.
With U.S. airlines grappling with the labor shortage, the bargaining power of various labor groups has increased as air travel demand is buoyant, having bounced back very strongly from the pandemic lows. As a result of the increased bargaining power, various labor deals have been witnessed in the airline space of late.
AAL’s Stock Price Performance
AAL is currently encountering several headwinds, ranging from high costs to escalated debt. As a result, the stock has declined 23.4% over the past six months compared to its industry’s 2.5% uptick.
Image Source: Zacks Investment Research
AAL’s Zacks Rank
American Airlines currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks for investors’ consideration in the Zacks Transportation sector include C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 14.2% in the past year.
WAB carries a Zacks Rank #2 (Buy) at present and has an expected earnings growth rate of 26% for the current year.
The company has a discouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The average beat is 11.8%. Shares of WAB have climbed 57.4% in the past year.
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American Airlines' Five-Year Contract With Flight Attendants Ratified
American Airlines (AAL - Free Report) received encouraging tidings on the labor front when the Association of Professional Flight Attendants or APFA announced that flight attendants of the airline have ratified a new five-year contract, increasing the value of their current agreement by $4.2 billion.
With 95% of eligible flight attendants casting their votes, 87% of American Airlines flight attendants voted in favor of the contract, which takes effect from Oct. 1, 2024. This contract represents a significant milestone for American Airlines flight attendants, delivering immediate wage increases of up to 20.5% and substantial retroactive pay to compensate for the time spent negotiating.
APFA National President Julie Hedrick said, “Among the many improvements, the contract includes a new sit rig for compensation for long sits between flights, and American Airlines Flight Attendants become the first unionized workgroup to lock in pay for boarding.”
In addition to offering industry-leading pay rates, the agreement provides wage increases for future years, addresses numerous quality-of-life issues and improves the rules for scheduling, rescheduling and reserving work.
The contract negotiations started in January 2020 but paused at the height of the pandemic and resumed in June 2021. The contract becomes amenable on Oct. 1, 2029.
With U.S. airlines grappling with the labor shortage, the bargaining power of various labor groups has increased as air travel demand is buoyant, having bounced back very strongly from the pandemic lows. As a result of the increased bargaining power, various labor deals have been witnessed in the airline space of late.
AAL’s Stock Price Performance
AAL is currently encountering several headwinds, ranging from high costs to escalated debt. As a result, the stock has declined 23.4% over the past six months compared to its industry’s 2.5% uptick.
Image Source: Zacks Investment Research
AAL’s Zacks Rank
American Airlines currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks for investors’ consideration in the Zacks Transportation sector include C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
C.H. Robinson Worldwide currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. CHRW has an expected earnings growth rate of 25.2% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 14.2% in the past year.
WAB carries a Zacks Rank #2 (Buy) at present and has an expected earnings growth rate of 26% for the current year.
The company has a discouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The average beat is 11.8%. Shares of WAB have climbed 57.4% in the past year.