Southwest Airlines Co. (LUV Quick QuoteLUV - Free Report) declared that its Material Specialists, represented by International Brotherhood of Teamsters, approved a collective bargaining contract.

Vice president labor relations at Southwest Airlines, Adam Carlisle, stated, “Our Material Specialists support the Safety and integrity of our fleet and ground equipment by providing the tools and parts needed for maintenance. We're glad to reward their work, and I thank both parties for delivering this contract six months before the amendable date.”

The deal covers LUV’s more than 480 material specialists, who oversee technical operation inventory management across the airlines network. The new contract means material specialists will receive pay increase for the next five years. The deal becomes amendable in April 2026.

Zacks Rank

LUV currently carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Some better-ranked stocks for investors interested in the Zacks Transportation sector are FedEx Corporation (FDX Quick QuoteFDX - Free Report) and Ryder System (R Quick QuoteR - Free Report) .

FDX’s consistent efforts to reward shareholders through dividends and buybacks are encouraging. It presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FedEx's liquidity position is also impressive. To navigate the weaker-than-expected business environment, FDX is cutting costs.

Ryder, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.

Despite weak market conditions, Ryder reported better-than-expected earnings in second-quarter 2023. In fact, the company has an impressive earnings surprise history. R has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark once), the average beat being 11.2%.