Per a CNBC report, Delta Air Lines (DAL - Free Report) pilots have agreed to pay cuts to avoid furloughs until 2022. The carrier is making consistent efforts to reduce costs as it grapples with coronavirus-induced weak air-travel demand.
As per the deal, the carrier can cut pilots’ guaranteed hours by as much 5%. Additionally, more than 1,700 pilots will get partial pay of 30 hours a month even without having to fly. These pilots would have otherwise been furloughed at the end of the month without a deal. The Air Line Pilots Association, representing nearly 13,000 Delta pilots, said that the deal was favored by 74% of the voters.
CNBC reported that Delta has so far been able to avoid involuntary furloughs thanks to a large number of employees having accepted buyouts and voluntary leaves of absence. This is unlike its peers American Airlines (AAL - Free Report) and United Airlines (UAL - Free Report) . Together both these airlines have furloughed 30,000 employees following the expiration of the federal aid on Sep 30, 2020.
Separately, Delta’s chief of operations, John Laughter gave a heads up that the spike in coronavirus cases is affecting the airline’s bookings for the holiday season.
Shares of Delta have declined more than 29% so far this year primarily due to the coronavirus-led travel demand woes on its operations. Due to tepid travel demand, passenger revenues have plunged 68% in the first nine months of 2020. Revenues are likely to remain under pressure unless coronavirus concerns fade.
Delta, United Airlines and American Airlines each carry a Zacks Rank #4 (Sell).
A Key Pick
A better ranked stock in the broader Transportation sector is FedEx Corporation (FDX - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of FedEx have rallied more than 90% so far this year.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Per a CNBC report, Delta Air Lines (DAL - Free Report) pilots have agreed to pay cuts to avoid furloughs until 2022. The carrier is making consistent efforts to reduce costs as it grapples with coronavirus-induced weak air-travel demand.
As per the deal, the carrier can cut pilots’ guaranteed hours by as much 5%. Additionally, more than 1,700 pilots will get partial pay of 30 hours a month even without having to fly. These pilots would have otherwise been furloughed at the end of the month without a deal. The Air Line Pilots Association, representing nearly 13,000 Delta pilots, said that the deal was favored by 74% of the voters.
CNBC reported that Delta has so far been able to avoid involuntary furloughs thanks to a large number of employees having accepted buyouts and voluntary leaves of absence. This is unlike its peers American Airlines (AAL - Free Report) and United Airlines (UAL - Free Report) . Together both these airlines have furloughed 30,000 employees following the expiration of the federal aid on Sep 30, 2020.
Separately, Delta’s chief of operations, John Laughter gave a heads up that the spike in coronavirus cases is affecting the airline’s bookings for the holiday season.
Shares of Delta have declined more than 29% so far this year primarily due to the coronavirus-led travel demand woes on its operations. Due to tepid travel demand, passenger revenues have plunged 68% in the first nine months of 2020. Revenues are likely to remain under pressure unless coronavirus concerns fade.
Delta, United Airlines and American Airlines each carry a Zacks Rank #4 (Sell).
A Key Pick
A better ranked stock in the broader Transportation sector is FedEx Corporation (FDX - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of FedEx have rallied more than 90% so far this year.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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