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JetBlue (JBLU) Pilots Reject Tentative Deal on AAL Pact

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JetBlue Airways (JBLU - Free Report) suffered a setback on the labor front when its pilots, represented by the Air Line Pilots Association (ALPA), voted down a provision deal pertaining to the Long Island City, NYork-based agreement with American Airlines (AAL - Free Report) .

Per the ALPA, the voting procedure saw more than 92% eligible pilots participate with 53.7% voting against the deal. Notably, the tentative deal was aimed at providing JetBlue a contractual relief for implementing its partnership with American Airlines, which was inked in July 2020.

The pilots sought more job security from the company while turning down the provisional deal. Per Captain Chris Kenney, chairman of the JetBlue unit of ALPA, “For any agreement to proceed, JetBlue management must provide acceptable assurances that our jobs are safe and valued for years to come.” He further stated that for the successful implementation of the partnership with American Airlines, JetBlue has to offer meaningful career improvements to its pilots apart from the above assurances on job protection.

On a more hopeful note, Kenney said that the employees were, however, “ready to work toward an acceptable resolution of these issues”. Consequently, we expect investor focus to remain on the further updates on this key issue.

Zacks Rank & Key Picks

JetBlue currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks Transportation sector are FedEx Corporation (FDX - Free Report) and Kansas City Southern (KSU - Free Report) , both carrying a Zacks Rank #2 (Buy) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected earnings per share (three to five years) growth rate for FedEx and Kansas City Southern is currently pegged at 12% and 15%, respectively.

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