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Pilots at Alaska Air Group (ALK) Vote to Approve Strike
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Highlighting the labor trouble, which has been hurting the U.S. Airline industry of late, Alaska Air Group’s (ALK - Free Report) pilots voted overwhelmingly to authorize a strike if an agreement on a new employment contract is not reached. This development was confirmed by the Air Line Pilots Association (ALPA).
Evidently, ALPA represents the 3,000 plus pilots at Alaska Air. 96% of pilots participated in the voting procedure with 99% of them supporting the call of a strike by union leaders if the talks with the airline, which have been dragging for more than three years, eventually fail. The vote came after almost 50% of ALK’s pilots resorted to informational picketing last month.
Expressing his frustration over the contract dialogue going on for such a long time, Captain Will McQuillen, chairman of the Alaska Airlines ALPA Master Executive Council, said, “For three years, Alaska pilots have been resolved in their commitment to reach a new agreement and today, we spoke with one unified voice, just like we did with our recent informational picketing event.”
However, the vote to authorize a strike does not imply that passengers of Alaska Air will be inconvenienced. The pilots can halt work and go on a strike only if the National Mediation Board permits them to take this extreme measure. So, ALK’s operations are currently in no way impacted.
ALK is not the only U.S. airline facing such labor crisis. With airlines trimming their labor force substantially during the peak of the pandemic, the industry is now grappling with staffing issue as demand bounces back. Most airlines are therefore facing pilot protests, demanding higher pay and better work conditions to cope with the fatigue due to overwork following labor inadequacy.
In this context, it is worth mentioning that United Airlines (UAL - Free Report) scored a major victory on the labor front when UAL reached an agreement in principle with ALPA, on new terms of their collective bargaining deal.
Even though the terms of the deal are not yet disclosed, the same is believed to be related to higher pay and better working conditions. However, the provisional deal is not yet effective and will be voted upon by the union members. It will be implemented only if the voting result is favorable. United Airlines like Alaska Air, currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Zacks Airline industry are as follows:
Delta Air Lines (DAL - Free Report) : Improved air-travel demand, particularly on the domestic front, is aiding Delta. Anticipating travel-demand to increase further, DAL provided a bullish outlook for the second quarter. DAL expects revenue recovery to accelerate to 93-97% in the second quarter, with unit revenues likely to rise in double digits from the second-quarter 2019 tally.
Delta expects to generate a strong free cash flow in the June quarter. DAL currently sports a Zacks Rank #1 (Strong Buy). The positivity surrounding the stock is evident from the Zacks Consensus Estimate for current-year earnings being revised 71.4% upward over the past 60 days.
Southwest Airlines (LUV - Free Report) : Continued recovery in air-travel demand bodes well for LUV. Anticipating a steady improvement in bookings, the carrier expects to reap profits in the remaining three quarters of 2022 as well as for the full year. LUV's management predicts operating revenues to increase 8-12% in the second quarter of 2022 from the comparable period’s level in 2019. LUV is seeing strong bookings for both spring and summer travel.
Southwest Airlines currently sports a Zacks Rank of 1. The optimism surrounding the stock is evident from the Zacks Consensus Estimate for current-year earnings being skyrocketed in excess of 100% over the past 60 days.
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Pilots at Alaska Air Group (ALK) Vote to Approve Strike
Highlighting the labor trouble, which has been hurting the U.S. Airline industry of late, Alaska Air Group’s (ALK - Free Report) pilots voted overwhelmingly to authorize a strike if an agreement on a new employment contract is not reached. This development was confirmed by the Air Line Pilots Association (ALPA).
Evidently, ALPA represents the 3,000 plus pilots at Alaska Air. 96% of pilots participated in the voting procedure with 99% of them supporting the call of a strike by union leaders if the talks with the airline, which have been dragging for more than three years, eventually fail. The vote came after almost 50% of ALK’s pilots resorted to informational picketing last month.
Expressing his frustration over the contract dialogue going on for such a long time, Captain Will McQuillen, chairman of the Alaska Airlines ALPA Master Executive Council, said, “For three years, Alaska pilots have been resolved in their commitment to reach a new agreement and today, we spoke with one unified voice, just like we did with our recent informational picketing event.”
However, the vote to authorize a strike does not imply that passengers of Alaska Air will be inconvenienced. The pilots can halt work and go on a strike only if the National Mediation Board permits them to take this extreme measure. So, ALK’s operations are currently in no way impacted.
ALK is not the only U.S. airline facing such labor crisis. With airlines trimming their labor force substantially during the peak of the pandemic, the industry is now grappling with staffing issue as demand bounces back. Most airlines are therefore facing pilot protests, demanding higher pay and better work conditions to cope with the fatigue due to overwork following labor inadequacy.
In this context, it is worth mentioning that United Airlines (UAL - Free Report) scored a major victory on the labor front when UAL reached an agreement in principle with ALPA, on new terms of their collective bargaining deal.
Even though the terms of the deal are not yet disclosed, the same is believed to be related to higher pay and better working conditions. However, the provisional deal is not yet effective and will be voted upon by the union members. It will be implemented only if the voting result is favorable. United Airlines like Alaska Air, currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Zacks Airline industry are as follows:
Delta Air Lines (DAL - Free Report) : Improved air-travel demand, particularly on the domestic front, is aiding Delta. Anticipating travel-demand to increase further, DAL provided a bullish outlook for the second quarter. DAL expects revenue recovery to accelerate to 93-97% in the second quarter, with unit revenues likely to rise in double digits from the second-quarter 2019 tally.
Delta expects to generate a strong free cash flow in the June quarter. DAL currently sports a Zacks Rank #1 (Strong Buy). The positivity surrounding the stock is evident from the Zacks Consensus Estimate for current-year earnings being revised 71.4% upward over the past 60 days.
You can see the complete list of today’s Zacks #1 Rank stocks here
Southwest Airlines (LUV - Free Report) : Continued recovery in air-travel demand bodes well for LUV. Anticipating a steady improvement in bookings, the carrier expects to reap profits in the remaining three quarters of 2022 as well as for the full year. LUV's management predicts operating revenues to increase 8-12% in the second quarter of 2022 from the comparable period’s level in 2019. LUV is seeing strong bookings for both spring and summer travel.
Southwest Airlines currently sports a Zacks Rank of 1. The optimism surrounding the stock is evident from the Zacks Consensus Estimate for current-year earnings being skyrocketed in excess of 100% over the past 60 days.