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Spirit Airlines' (SAVE) Flight Attendants Vote for Pay Hike
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Spirit Airlines (SAVE - Free Report) received encouraging tidings on the labor front when the union representing its flight attendants ratified a new pay-related contract. The approval of the contract makes the concerned employees (6,000 flight attendants) eligible for base wage hikes between 10% and 27% with immediate effect.
The company's flight attendants are represented by the union — Association of Flight Attendants-CWA. The duration of the contract is two years and eight months. The agreement pertaining to the terms of the contract was reached after prolonged negotiations under Section 6 of the Railway Labor Act. On being put to vote, 75% flight attendants voted in favor of the deal.
Per Jason Kachenmeister, AFA’s president for SAVE, “This contract will make an immediate difference in Spirit Flight Attendants’ lives. Spirit Flight Attendants have locked in three raises, additional pay factor improvements, better rest on layovers, all while maintaining our healthcare insurance with no premium increases. We also achieved significant scheduling protections and additional pay when irregular operations cause cancellations or delays.”
The approval of the contract is an encouraging development for Spirit Airlines, as satisfied labor groups generally imply greater operational efficiency.
Zacks Rank & Key Picks
Spirit Airlines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Airline industry are Copa Holdings (CPA - Free Report) and American Airlines (AAL - Free Report) .
Copa Holdings is benefiting from an improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5% due to higher yields.
CPA’s focus on its cargo segment is encouraging. In fourth-quarter 2022, cargo and mail revenues grew 69% on higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable.
The above-mentioned tailwinds are likely to continue aiding this Latin American carrier, currently sporting a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s current-year earnings has been revised 10% upward over the past 60 days.
American Airlines, currently carrying a Zacks Rank #2 (Buy), 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 its bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 18.1% upward. The stock has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missed once), the average beat being 7.79%.
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Spirit Airlines' (SAVE) Flight Attendants Vote for Pay Hike
Spirit Airlines (SAVE - Free Report) received encouraging tidings on the labor front when the union representing its flight attendants ratified a new pay-related contract. The approval of the contract makes the concerned employees (6,000 flight attendants) eligible for base wage hikes between 10% and 27% with immediate effect.
The company's flight attendants are represented by the union — Association of Flight Attendants-CWA. The duration of the contract is two years and eight months. The agreement pertaining to the terms of the contract was reached after prolonged negotiations under Section 6 of the Railway Labor Act. On being put to vote, 75% flight attendants voted in favor of the deal.
Per Jason Kachenmeister, AFA’s president for SAVE, “This contract will make an immediate difference in Spirit Flight Attendants’ lives. Spirit Flight Attendants have locked in three raises, additional pay factor improvements, better rest on layovers, all while maintaining our healthcare insurance with no premium increases. We also achieved significant scheduling protections and additional pay when irregular operations cause cancellations or delays.”
The approval of the contract is an encouraging development for Spirit Airlines, as satisfied labor groups generally imply greater operational efficiency.
Zacks Rank & Key Picks
Spirit Airlines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Airline industry are Copa Holdings (CPA - Free Report) and American Airlines (AAL - Free Report) .
Copa Holdings is benefiting from an improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5% due to higher yields.
CPA’s focus on its cargo segment is encouraging. In fourth-quarter 2022, cargo and mail revenues grew 69% on higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable.
The above-mentioned tailwinds are likely to continue aiding this Latin American carrier, currently sporting a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s current-year earnings has been revised 10% upward over the past 60 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
American Airlines, currently carrying a Zacks Rank #2 (Buy), 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 its bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 18.1% upward. The stock has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missed once), the average beat being 7.79%.