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Southwest (LUV) Receives Encouraging Tidings on Labor Front
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Southwest Airlines’ (LUV - Free Report) management announced that while its flight instructors approved a new contract, its facilities maintenance technicians inked a provisional deal. The twin agreements with its two different labor groups brings some relief to the low-cost airline at a time when it is grabbing headlines for wrong reasons --- massive flight cancellations.
Southwest Airlines has 200 plus flight instructors who provide classroom instruction for flight operations and simulator training to pilots (current as well as newly hired ones). The flight instructors are represented by Transport Workers Union Local 557. They reached a tentative agreement with LUV last month.
On being put to vote, a high majority of the instructors voted in favor of the deal. Expressing delight at the development, LUV’s Vice President Labor Relations Adam Carlisle said, "I'm very pleased we're able to acknowledge the important work of our Flight Instructors and implement pay increases and quality of life enhancements" .
The other positive labor-related update at LUV came when the union (Aircraft Mechanics Fraternal Association or AMFA) representing its facilities maintenance technicians, reached a tentative pay-related agreement with the Dallas-based carrier. The fifty facilities maintenance technicians help to maintain, modify and repair all facilities across the system. Per Carlisle "Our Facilities Maintenance Technicians play an integral role in Southwest's ability to provide great Customer Service".
However, the new contract still has a long way to go before it becomes effective. The tentative agreement does not necessarily mean that the deal will be operational. AMFA will now inform the members about its details and the ratification process, which will follow in the coming days. The provisional deal will become effective only after successful ratification (i.e. the outcome of the voting procedure is favorable).
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are affecting the bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 13.1% upward. AAL has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missing the mark in one). The average beat is 8.62%.
The gradual improvement in air-travel demand in Brazil is a huge boon for Gol Linhas. Upbeat air-travel demand is boosting GOL’s traffic.
Over the past 60 days, the Zacks Consensus Estimate for GOL’s 2023 earnings has been revised 14.1% upward. GOL has outpaced the Zacks Consensus Estimate for earnings in two of the last four quarters (missing the mark twice).
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Southwest (LUV) Receives Encouraging Tidings on Labor Front
Southwest Airlines’ (LUV - Free Report) management announced that while its flight instructors approved a new contract, its facilities maintenance technicians inked a provisional deal. The twin agreements with its two different labor groups brings some relief to the low-cost airline at a time when it is grabbing headlines for wrong reasons --- massive flight cancellations.
Southwest Airlines has 200 plus flight instructors who provide classroom instruction for flight operations and simulator training to pilots (current as well as newly hired ones). The flight instructors are represented by Transport Workers Union Local 557. They reached a tentative agreement with LUV last month.
On being put to vote, a high majority of the instructors voted in favor of the deal. Expressing delight at the development, LUV’s Vice President Labor Relations Adam Carlisle said, "I'm very pleased we're able to acknowledge the important work of our Flight Instructors and implement pay increases and quality of life enhancements" .
The other positive labor-related update at LUV came when the union (Aircraft Mechanics Fraternal Association or AMFA) representing its facilities maintenance technicians, reached a tentative pay-related agreement with the Dallas-based carrier. The fifty facilities maintenance technicians help to maintain, modify and repair all facilities across the system. Per Carlisle "Our Facilities Maintenance Technicians play an integral role in Southwest's ability to provide great Customer Service".
However, the new contract still has a long way to go before it becomes effective. The tentative agreement does not necessarily mean that the deal will be operational. AMFA will now inform the members about its details and the ratification process, which will follow in the coming days. The provisional deal will become effective only after successful ratification (i.e. the outcome of the voting procedure is favorable).
Zacks Rank & Key Picks
Southwest Airlines currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Zacks Airline industry are American Airlines (AAL - Free Report) and Gol Linhas , both currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are affecting the bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 13.1% upward. AAL has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missing the mark in one). The average beat is 8.62%.
The gradual improvement in air-travel demand in Brazil is a huge boon for Gol Linhas. Upbeat air-travel demand is boosting GOL’s traffic.
Over the past 60 days, the Zacks Consensus Estimate for GOL’s 2023 earnings has been revised 14.1% upward. GOL has outpaced the Zacks Consensus Estimate for earnings in two of the last four quarters (missing the mark twice).