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United Airlines (UAL) Pilots Reach Agreement With Union
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United Airlines’ (UAL - Free Report) pilots, represented by the Air Line Pilots Association (ALPA), have reached an agreement in principle (AIP) with the company’s management after more than four years of negotiations. This landmark agreement, on ratification, will bring significant improvements to compensation, quality of life, vacation, retirement, and other benefits for pilots of UAL. The AIP is expected to generate approximately $10 billion in value over the duration of the contract.
The agreement is seen as a significant achievement, resulting from the unwavering dedication of the 16,000 United pilots. Their steadfast resolve and solidarity played a crucial role in reaching this historic agreement, according to Captain Garth Thompson, chair of the United ALPA Master Executive Council (MEC).
The negotiators will now work on finalizing the language of the agreement. Once completed, the United MEC will review and vote on whether the AIP should become a tentative agreement. If approved, the tentative agreement will be shared with the entire pilot group for membership ratification, ensuring that all pilots have a say in shaping their future. In the coming weeks, the United MEC will continue to communicate with pilots, providing comprehensive information and addressing any questions or concerns ahead of the MEC's deliberations.
The news of the agreement in principle between United Airlines pilots and management is expected to impact the stock, as it signifies progress in labor relations and demonstrates a commitment to addressing pilot concerns. Investors and stakeholders will likely monitor the finalization and ratification of the agreement, as it sets a precedent for compensation and benefits in the industry.
This AIP follows the recent ratification of a new contract by Delta Air Lines’ (DAL - Free Report) pilots. The new deal makes DAL’s 15,0000 pilots eligible for a 34% pay raise over the next four years. This will increase DAL’s costs to the tune of about $7 billion. Delta's contract has become a benchmark for negotiations in North America, according to industry officials.
The shortage of pilots is a pressing issue faced by major airlines. The recent labor deals in the airline space are seen as necessary steps to attract and retain qualified pilots in the post-coronavirus era marked by staffing challenges.
Zacks Rank
United Airlines currently carries a Zacks Rank #3 (Hold) while Delta carries a Zacks Rank #2 (Buy).
Copa Holdings is benefiting from an improvement in air travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from the first quarter of 2019 on higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable as well.
The abovementioned tailwinds are likely to continue, aiding this Latin American carrier. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 15.3% upward over the past 60 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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United Airlines (UAL) Pilots Reach Agreement With Union
United Airlines’ (UAL - Free Report) pilots, represented by the Air Line Pilots Association (ALPA), have reached an agreement in principle (AIP) with the company’s management after more than four years of negotiations. This landmark agreement, on ratification, will bring significant improvements to compensation, quality of life, vacation, retirement, and other benefits for pilots of UAL. The AIP is expected to generate approximately $10 billion in value over the duration of the contract.
The agreement is seen as a significant achievement, resulting from the unwavering dedication of the 16,000 United pilots. Their steadfast resolve and solidarity played a crucial role in reaching this historic agreement, according to Captain Garth Thompson, chair of the United ALPA Master Executive Council (MEC).
The negotiators will now work on finalizing the language of the agreement. Once completed, the United MEC will review and vote on whether the AIP should become a tentative agreement. If approved, the tentative agreement will be shared with the entire pilot group for membership ratification, ensuring that all pilots have a say in shaping their future. In the coming weeks, the United MEC will continue to communicate with pilots, providing comprehensive information and addressing any questions or concerns ahead of the MEC's deliberations.
The news of the agreement in principle between United Airlines pilots and management is expected to impact the stock, as it signifies progress in labor relations and demonstrates a commitment to addressing pilot concerns. Investors and stakeholders will likely monitor the finalization and ratification of the agreement, as it sets a precedent for compensation and benefits in the industry.
This AIP follows the recent ratification of a new contract by Delta Air Lines’ (DAL - Free Report) pilots. The new deal makes DAL’s 15,0000 pilots eligible for a 34% pay raise over the next four years. This will increase DAL’s costs to the tune of about $7 billion. Delta's contract has become a benchmark for negotiations in North America, according to industry officials.
The shortage of pilots is a pressing issue faced by major airlines. The recent labor deals in the airline space are seen as necessary steps to attract and retain qualified pilots in the post-coronavirus era marked by staffing challenges.
Zacks Rank
United Airlines currently carries a Zacks Rank #3 (Hold) while Delta carries a Zacks Rank #2 (Buy).
Another Airline Industry Player
Investors interested in the Zacks Airline industry may consider Copa Holdings (CPA - Free Report) , currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copa Holdings is benefiting from an improvement in air travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from the first quarter of 2019 on higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable as well.
The abovementioned tailwinds are likely to continue, aiding this Latin American carrier. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 15.3% upward over the past 60 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.