Will All United Airlines' Pilots be on Payroll October Onward?
Per a Reuters report, leaders of United Airlines UAL pilots’ union (Air Line Pilots Association) voted in favor of approving a tentative deal. Terms of the deal though are kept undisclosed. Notably, the Air Line Pilots Association represents roughly 13,000 pilots of this Chicago-based carrier.
By backing the deal, the union moved a inched closer to protecting jobs of nearly 2,850 pilots at United Airlines until June 2021. Following the support of union leaders, the provisional deal will be put to a full vote by union members from Sep 21.
We remind investors that earlier this month, United Airlines, which currently carries a Zacks Rank #3 (Hold), had warned that it will have to furlough about 16,370 employees including 2, 850 pilots starting next month.
Notably, airline companies, which accepted the financial assistance under the Coronavirus Aid, Relief and Economic Security (CARES) Act in April, are prohibited from laying off employees through Sep 30.Notably, Delta Air Lines DAL is also hoping to avoid involuntary furloughs for its frontline employees, except for pilots, on Oct 1.
The entire scenario of job cuts can, however, be avoided if another round of federal help comes through. Many airline companies including American Airlines AAL are lobbying for another $25-billion worth federal aid to protect jobs through March 2021. However, nothing has materialized yet
Zacks Rank & Key Pick
United Airlines carries a Zacks Rank #3 (Hold), currently. A better-ranked stock in the Zacks Transportation sector is Knight-Swift Transportation Holdings KNX,which presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share (three to five years) growth rate for Knight-Swift is expected at 15%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.