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American Airlines Pilots Aim for New Contract Talks in 2019
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In a bid to improve pay structure, pilots at American Airlines Group (AAL - Free Report) are planning to amend the existing contract, inked in 2015, before it becomes due for renewal in early 2020. To this end, Daniel Carey, president of the union (Allied Pilots Association) representing its 15,000 pilots, issued a letter to this Fort Worth, TX-based carrier. Exercising an eye-opener clause in the existing contract, the union asked American Airlinesto commence negotiations in January 2019 for a fresh contract.
The pilots union is hoping that the talks would be fruitful and an “industry-changing agreement” would be in place next year itself. Notably, the 2015 contract increased pilots’ wages by 23% immediately and guaranteed a subsequent 3% annual hike. Additionally, in 2017, the carrier announced mid-contract wage hikes for its pilots (8%) and flight attendants (5%).
We remind investors that American Airlines Group was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. The merger took place after a bankruptcy filing by American Airlines. In fact, American Airlines has been hugely profitable after emerging from bankruptcy, garnering total profits of $16.2 billion since 2014.
Going forward, the carrier is likely to continue its profitable run, particularly owing to strong demand for air travel. No wonder, the union believes that the existing five-year contract, "borne out of a desperate era", is “unacceptable and unsustainable.” Moreover, according to a Reuters report, the total pay of American Airlines pilots is below their counterparts at Delta Air Lines (DAL - Free Report) and United Continental Holdings (UAL - Free Report) .
Apart from seeking to improve their wages, the pilots union said that the impending talks would focus on the last-minute schedule changes for on-duty pilots as this practice often increases fatigue levels and damages the morale of the concerned pilots. Consequently, pilots often complain about rescheduling. The talks would focus on improving passenger service as well.
In fact, American Airlines’ pilots are not alone in demanding an amendment to the existing contract. The carrier’s flight attendants, through their union — Association of Professional Flight Attendants — made a request on similar lines earlier this month. The existing contract for flight attendants is due for amendment in December 2019.
With so much to look forward to, investors keenly await updates on the labor front at American Airlines.
Spirit Airlines has an impressive earnings surprise history. The carrier has outshined the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 3.2%.
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American Airlines Pilots Aim for New Contract Talks in 2019
In a bid to improve pay structure, pilots at American Airlines Group (AAL - Free Report) are planning to amend the existing contract, inked in 2015, before it becomes due for renewal in early 2020. To this end, Daniel Carey, president of the union (Allied Pilots Association) representing its 15,000 pilots, issued a letter to this Fort Worth, TX-based carrier. Exercising an eye-opener clause in the existing contract, the union asked American Airlinesto commence negotiations in January 2019 for a fresh contract.
The pilots union is hoping that the talks would be fruitful and an “industry-changing agreement” would be in place next year itself. Notably, the 2015 contract increased pilots’ wages by 23% immediately and guaranteed a subsequent 3% annual hike. Additionally, in 2017, the carrier announced mid-contract wage hikes for its pilots (8%) and flight attendants (5%).
We remind investors that American Airlines Group was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. The merger took place after a bankruptcy filing by American Airlines. In fact, American Airlines has been hugely profitable after emerging from bankruptcy, garnering total profits of $16.2 billion since 2014.
Going forward, the carrier is likely to continue its profitable run, particularly owing to strong demand for air travel. No wonder, the union believes that the existing five-year contract, "borne out of a desperate era", is “unacceptable and unsustainable.” Moreover, according to a Reuters report, the total pay of American Airlines pilots is below their counterparts at Delta Air Lines (DAL - Free Report) and United Continental Holdings (UAL - Free Report) .
Apart from seeking to improve their wages, the pilots union said that the impending talks would focus on the last-minute schedule changes for on-duty pilots as this practice often increases fatigue levels and damages the morale of the concerned pilots. Consequently, pilots often complain about rescheduling. The talks would focus on improving passenger service as well.
In fact, American Airlines’ pilots are not alone in demanding an amendment to the existing contract. The carrier’s flight attendants, through their union — Association of Professional Flight Attendants — made a request on similar lines earlier this month. The existing contract for flight attendants is due for amendment in December 2019.
With so much to look forward to, investors keenly await updates on the labor front at American Airlines.
American Airlines Group Inc. Price
American Airlines Group Inc. Price | American Airlines Group Inc. Quote
Zacks Rank & Stock to Consider
American Airlines carries a Zacks Rank #3 (Hold). A better-ranked stock in the Zacks Airline industry is Spirit Airlines (SAVE - Free Report) sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Spirit Airlines has an impressive earnings surprise history. The carrier has outshined the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 3.2%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>