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Delta Plans to Cut More Than 1,900 Pilot Jobs in October
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Per a CNBC report, Delta Air Lines Inc (DAL - Free Report) plans to furlough 1,941 pilots in October as part of its cost-cutting measures to combat the coronavirus-induced low travel demand. Pilots hired on or after Jul 17, 2017 will receive notices regarding the same this week itself.
Notably, U.S. airlines, including Delta, which have taken government aid under the CARES Act are prohibited from laying off employees through Sep 30. With a massively reduced flying schedule due to coronavirus-led weak air-travel demand, airlines are seeing overstaffing. In a memo to pilots, Delta’s senior vice president of flight operations, John Laughter, stated that the airline would need about 9,450 pilots for summer 2021, which is expected to be the peak flying period for the next 12-18 months, whereas there are approximately 11,200 active pilots on the roster.
In June, Delta had warned 2,558 pilots about potential furloughs. Meanwhile, the carrier has offered several voluntary separation options such as early-retirement programs to limit furloughs. Although it received a good response for the voluntary options, the carrier had intimated that it wasn’t enough to avoid furloughs altogether.
In July, the Atlanta, GA-based airline proposed a 15% cut to pilots’ minimum pays in order to avoid furloughs for a year. This proposal wasn’t well received by the pilots’ union, which wanted the carrier to first offer partially paid leaves of absence instead. Ever since then, Delta and the pilots’ union could not agree on a deal.
COO to Retire
In a SEC filing, Delta announced its senior executive vice president and chief operating officer W. Gil West’s decision to retire from the company, effective Oct 2, 2020. Having joined the company in 2008, West led the merger of Delta and Northwest. He has also been pivotal in Delta’s portfolio of ancillary businesses and growth opportunities like Delta Hangar and Delta Flight Products among others.
Zacks Rank & Key Picks
Delta carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader Transportation sector are Canadian Pacific Railway Limited (CP - Free Report) , Knight-Swift Transportation Holdings Inc (KNX - Free Report) and Werner Enterprises Inc (WERN - Free Report) . While Knight-Swift sports a Zacks Rank #1 (Strong Buy), Canadian Pacific and Werner Enterprises carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Canadian Pacific, Knight-Swift and Werner Enterprises have rallied 17%, 29% and 28% so far this year respectively.
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.
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Delta Plans to Cut More Than 1,900 Pilot Jobs in October
Per a CNBC report, Delta Air Lines Inc (DAL - Free Report) plans to furlough 1,941 pilots in October as part of its cost-cutting measures to combat the coronavirus-induced low travel demand. Pilots hired on or after Jul 17, 2017 will receive notices regarding the same this week itself.
Notably, U.S. airlines, including Delta, which have taken government aid under the CARES Act are prohibited from laying off employees through Sep 30. With a massively reduced flying schedule due to coronavirus-led weak air-travel demand, airlines are seeing overstaffing. In a memo to pilots, Delta’s senior vice president of flight operations, John Laughter, stated that the airline would need about 9,450 pilots for summer 2021, which is expected to be the peak flying period for the next 12-18 months, whereas there are approximately 11,200 active pilots on the roster.
In June, Delta had warned 2,558 pilots about potential furloughs. Meanwhile, the carrier has offered several voluntary separation options such as early-retirement programs to limit furloughs. Although it received a good response for the voluntary options, the carrier had intimated that it wasn’t enough to avoid furloughs altogether.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote
In July, the Atlanta, GA-based airline proposed a 15% cut to pilots’ minimum pays in order to avoid furloughs for a year. This proposal wasn’t well received by the pilots’ union, which wanted the carrier to first offer partially paid leaves of absence instead. Ever since then, Delta and the pilots’ union could not agree on a deal.
COO to Retire
In a SEC filing, Delta announced its senior executive vice president and chief operating officer W. Gil West’s decision to retire from the company, effective Oct 2, 2020. Having joined the company in 2008, West led the merger of Delta and Northwest. He has also been pivotal in Delta’s portfolio of ancillary businesses and growth opportunities like Delta Hangar and Delta Flight Products among others.
Zacks Rank & Key Picks
Delta carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader Transportation sector are Canadian Pacific Railway Limited (CP - Free Report) , Knight-Swift Transportation Holdings Inc (KNX - Free Report) and Werner Enterprises Inc (WERN - Free Report) . While Knight-Swift sports a Zacks Rank #1 (Strong Buy), Canadian Pacific and Werner Enterprises carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Canadian Pacific, Knight-Swift and Werner Enterprises have rallied 17%, 29% and 28% so far this year respectively.
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 >>