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American Airlines' (AAL) Regional Pilots to Get 50% Pay Hike
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Amid continued rise in air-travel demand, airlines are struggling with pilot shortages. To tackle this situation, two American Airlines (AAL - Free Report) -owned regional carriers — Piedmont Airlines and Envoy Air — will hike their pilot pays by 50% through the end of August 2024, a CNBC report stated. This would make pilots of these two airlines the highest paid among U.S. regional airlines.
At Piedmont Airlines, hourly wages for first officers in their first year would be increased to $90 an hour from $51. For first-year captains, pay will be raised to $146 an hour from $78. Piedmont’s CEO said that the airline could even extend temporary hikes if needed.
Piedmont CEO, Eric Morgan, told CNBC, “Attrition of the regional pilots, particularly the captains, has really spiked to the point where we’re not able to put our fleet in the air.”
Piedmont’s pilots are moving to America Airlines’ mainline operations, leaving the carrier with a shortage of 25 pilots each month. Piedmont is also falling short of its target of hiring 40 pilots each month. Piedmont had approached the union for pay increases that were not within normal contract negotiations.
Envoy Air has reached a similar agreement with its pilots’ union to offer a 50% premium to pilots’ hourly rates through the end of August 2024. The CNBC report stated that Envoy has been seeing about 80 of its pilots leave in a year to take up work in other airlines. The regional carrier has been hiring about 60 pilots in a year.
During the peak of the pandemic in 2020, when air-travel demand dropped dramatically, airlines had urged their employees to take up early retirement packages. As a result, once demand started rebounding in 2021, they fell short of workers. Amid continued recovery in air-travel demand, airlines are now aggressively hiring staff.
Major U.S. carriers have lately been in talks with their labor unions regarding pay enhancements and other benefits. Recently Southwest Airlines (LUV - Free Report) , sporting a Zacks Rank #1, announced that it has reached a tentative agreement for its Aircraft Appearance Technicians with the Aircraft Mechanics Fraternal Association , the union representing the company’s appearance technicians.
Southwest Airlines has approximately 170 Appearance Technicians. Per Adam Carlisle, vice president, LABOR Relations at Southwest Airlines, “This agreement rewards our Appearance Technicians for the contributions they make to our Company’s success. It’s also a result of the hard work exemplified by both Negotiating Committees, and we appreciate all of their efforts.”
Key Picks
Some stocks apart from the aforementioned LUV within the broader Transportation sector that investors can consider are as follows:
Star Bulk Carriers (SBLK - Free Report) sports a Zacks Rank #1. The company's earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 7.1%.
Shares of Star Bulk have gained more than 14% in a year.
Golar LNG Limited (GLNG - Free Report) carries a Zacks Rank #2 (Buy). The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 42.1%.
Shares of Golar LNG have rallied more than 65% in a year.
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American Airlines' (AAL) Regional Pilots to Get 50% Pay Hike
Amid continued rise in air-travel demand, airlines are struggling with pilot shortages. To tackle this situation, two American Airlines (AAL - Free Report) -owned regional carriers — Piedmont Airlines and Envoy Air — will hike their pilot pays by 50% through the end of August 2024, a CNBC report stated. This would make pilots of these two airlines the highest paid among U.S. regional airlines.
American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
At Piedmont Airlines, hourly wages for first officers in their first year would be increased to $90 an hour from $51. For first-year captains, pay will be raised to $146 an hour from $78. Piedmont’s CEO said that the airline could even extend temporary hikes if needed.
American Airlines Group Inc. Price
American Airlines Group Inc. price | American Airlines Group Inc. Quote
Piedmont CEO, Eric Morgan, told CNBC, “Attrition of the regional pilots, particularly the captains, has really spiked to the point where we’re not able to put our fleet in the air.”
Piedmont’s pilots are moving to America Airlines’ mainline operations, leaving the carrier with a shortage of 25 pilots each month. Piedmont is also falling short of its target of hiring 40 pilots each month. Piedmont had approached the union for pay increases that were not within normal contract negotiations.
Envoy Air has reached a similar agreement with its pilots’ union to offer a 50% premium to pilots’ hourly rates through the end of August 2024. The CNBC report stated that Envoy has been seeing about 80 of its pilots leave in a year to take up work in other airlines. The regional carrier has been hiring about 60 pilots in a year.
During the peak of the pandemic in 2020, when air-travel demand dropped dramatically, airlines had urged their employees to take up early retirement packages. As a result, once demand started rebounding in 2021, they fell short of workers. Amid continued recovery in air-travel demand, airlines are now aggressively hiring staff.
Major U.S. carriers have lately been in talks with their labor unions regarding pay enhancements and other benefits. Recently Southwest Airlines (LUV - Free Report) , sporting a Zacks Rank #1, announced that it has reached a tentative agreement for its Aircraft Appearance Technicians with the Aircraft Mechanics Fraternal Association , the union representing the company’s appearance technicians.
Southwest Airlines has approximately 170 Appearance Technicians. Per Adam Carlisle, vice president, LABOR Relations at Southwest Airlines, “This agreement rewards our Appearance Technicians for the contributions they make to our Company’s success. It’s also a result of the hard work exemplified by both Negotiating Committees, and we appreciate all of their efforts.”
Key Picks
Some stocks apart from the aforementioned LUV within the broader Transportation sector that investors can consider are as follows:
Star Bulk Carriers (SBLK - Free Report) sports a Zacks Rank #1. The company's earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 7.1%.
Shares of Star Bulk have gained more than 14% in a year.
Golar LNG Limited (GLNG - Free Report) carries a Zacks Rank #2 (Buy). The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 42.1%.
Shares of Golar LNG have rallied more than 65% in a year.