Per Reuters, United Airlines Holdings (UAL Quick QuoteUAL - Free Report) is closing three out of its four international bases for flight attendants in the face of low demand.

The Chicago, IL-based airline, which carries a Zacks Rank #3 (Hold), is shutting down bases at Frankfurt, Hong Kong and Tokyo with effect from Oct 1, while maintaining operations at its London base, per its head of in-flight services John Slater.

The closures will impact around 840 flight attendants, who would need to be transferred to the airline’s U.S. bases for the October flying schedule, but that would depend on their eligibility to work there.

United Airlines Holdings Inc Price

 

United Airlines Holdings Inc price | United Airlines Holdings Inc Quote

Coronavirus concerns have ravaged the air travel industry with demand stooping to an unprecedented low level, especially on the international front amid government travel restrictions. Evidently, United Airlines’ June capacity is expected to be down approximately 90% year over year.

Anticipating a slow recovery process as coronavirus concerns continue, airlines are taking measures to reduce the size of their overall operations. To this end, United Airlines had earlier revealed plans to cut 13 officer jobs as part of its cost-cutting measures. Prior to that, American Airlines Group (AAL Quick QuoteAAL - Free Report) , carrying a Zacks Rank #3, had announced plans to cut jobs in the management and support staff team by 30%.

Key Picks

A few better-ranked stocks in the broader Transportation sector are Ryanair Holdings (RYAAY Quick QuoteRYAAY - Free Report) and Frontline Ltd (FRO Quick QuoteFRO - Free Report) . While Frontline sports a Zacks Rank #1 (Strong Buy), Ryanair carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Frontline’s current-year earnings has been revised upward by 17.1% in the past 60 days.

Ryanair has an impressive earnings history having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 62.7%.

5 Stocks Set to Double

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