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Delta Receives a Large Turnout for Early Buyout Packages
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Per Reuters, Delta Air Lines, Inc. (DAL - Free Report) has received positive responses from more than 15,000 employees on early buyout packages. Hence, the airline might be able to avoid involuntary furloughs during fall.
With air travel demand at an unprecedented low level, U.S. airlines have warned of job cuts post Oct 1, in order to right-size its network. U.S. airlines getting financial assistance under the CARES Act are barred from laying off employees until Sep 30.
Earlier this month, United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, sent potential-furlough notices to approximately 36,000 employees, i.e, about 45% of its total workforce. The possible layoffs are expected to take place on or after Oct 1.
Meanwhile American Airlines (AAL - Free Report) , carrying a Zacks Rank #3, is also said to be planning to send potential layoff notices to its employees. To minimize involuntary exits, the airline will also be offering early-exit packages.
With air travel demand already way below year-ago levels, the recent surge in coronavirus cases in some parts of the United States and new quarantine rules add another layer of uncertainty to the airlines’ recovery. Delta has slowed down its capacity expansion plans amid a rise in COVID-19 cases in the United States.
Raising concern about the impact of the recent spike in COVID-19 cases on the already weak travel demand, Southwest Airlines’ (LUV - Free Report) chief executive officer Gary Kelly said that passenger numbers would need to triple by the end of this year to prevent job cuts. Southwest carries a Zacks Rank of 3.
In a message to employees reviewed by Reuters, Kelly said, “Although furloughs and layoffs remain our very last resort, we can’t rule them out as a possibility obviously in this very bad environment.”
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Delta Receives a Large Turnout for Early Buyout Packages
Per Reuters, Delta Air Lines, Inc. (DAL - Free Report) has received positive responses from more than 15,000 employees on early buyout packages. Hence, the airline might be able to avoid involuntary furloughs during fall.
With air travel demand at an unprecedented low level, U.S. airlines have warned of job cuts post Oct 1, in order to right-size its network. U.S. airlines getting financial assistance under the CARES Act are barred from laying off employees until Sep 30.
In order to address pilot overstaffing amid the suppressed demand scenario, Delta, carrying a Zacks Rank #3 (Hold), had sent notices to more than 2.500 pilots about potential furloughs. Simultaneously, the airline reached an agreement with the pilots’ union for early-retirement options, in order to encourage voluntary separations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote
Earlier this month, United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, sent potential-furlough notices to approximately 36,000 employees, i.e, about 45% of its total workforce. The possible layoffs are expected to take place on or after Oct 1.
Meanwhile American Airlines (AAL - Free Report) , carrying a Zacks Rank #3, is also said to be planning to send potential layoff notices to its employees. To minimize involuntary exits, the airline will also be offering early-exit packages.
With air travel demand already way below year-ago levels, the recent surge in coronavirus cases in some parts of the United States and new quarantine rules add another layer of uncertainty to the airlines’ recovery. Delta has slowed down its capacity expansion plans amid a rise in COVID-19 cases in the United States.
Raising concern about the impact of the recent spike in COVID-19 cases on the already weak travel demand, Southwest Airlines’ (LUV - Free Report) chief executive officer Gary Kelly said that passenger numbers would need to triple by the end of this year to prevent job cuts. Southwest carries a Zacks Rank of 3.
In a message to employees reviewed by Reuters, Kelly said, “Although furloughs and layoffs remain our very last resort, we can’t rule them out as a possibility obviously in this very bad environment.”
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>