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Southwest (LUV) Flight Attendants Vote to Authorize Strike
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Southwest Airlines (LUV - Free Report) received disappointing tidings on the labor front, with its flight attendants making history with a resounding vote to authorize a strike. The Dallas-based carrier’s flight attendants are represented by the Transport Workers Union of America Local 556. With more than 98% of the union members in favor, this marks a historic moment as it is the first time in the union's history that flight attendants have sanctioned a strike against Southwest Airlines.
The catalyst for this unprecedented action is rooted in flight attendants' persistent demands for higher pay and an improved work-life balance within their new contracts. LUV’s flight attendants are not alone in their pursuit of better compensation and working conditions. Labor unions across diverse industries, including aerospace, construction, airlines and rail, have been advocating for increased wages and enhanced benefits, capitalizing on a labor market characterized by scarcity and competition for skilled workers.
The recent approval of a labor agreement between Southwest Airlines and its pilots adds a layer to the unfolding narrative. The agreement, backed by the carrier and its pilots, promises a substantial pay raise of approximately 50% over a five-year period. This development, though seemingly positive for pilots, raises questions about the distribution of benefits within the airline and may have indirectly fueled flight attendants' resolve to push for their demands.
The decision by LUV’s flight attendants to authorize a strike underscores a larger trend within the industry. The combination of a labor shortage and robust air travel demand has shifted the balance of power toward the workforce. Airlines are navigating a delicate dance between meeting the demands of their employees and sustaining operations in a highly competitive environment.
As the aviation landscape continues to evolve, the resounding mandate from LUV’s flight attendants signals a pivotal moment in the ongoing negotiations between labor and management. This serves as a strong reminder of the changing dynamics in the airline industry.
Zacks Rank & Key Picks
LUV currently carries a Zacks Rank #3 (Hold). Investors interested in the Zacks Airline industry may consider American Airlines (AAL - Free Report) and Copa Holdings (CPA - Free Report) . Copa currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is also gaining from the improved air-travel-demand scenario. We are encouraged by the company’s initiatives to modernize its fleet. CPA's focus on its cargo segment is also impressive.
For 2023, CPA’s earnings are expected to register an 95.7% increase on a year-over-year basis. Copa has outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters. The average surprise is 16.81%.
American Airlines is witnessing improvements on an improved air-travel-demand scenario, particularly on the domestic front. The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end.
The Zacks Consensus Estimate for 2024 earnings has been revised 11% upward over the past 60 days. AAL has surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters. The average beat is 23.83%.
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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Southwest (LUV) Flight Attendants Vote to Authorize Strike
Southwest Airlines (LUV - Free Report) received disappointing tidings on the labor front, with its flight attendants making history with a resounding vote to authorize a strike. The Dallas-based carrier’s flight attendants are represented by the Transport Workers Union of America Local 556. With more than 98% of the union members in favor, this marks a historic moment as it is the first time in the union's history that flight attendants have sanctioned a strike against Southwest Airlines.
The catalyst for this unprecedented action is rooted in flight attendants' persistent demands for higher pay and an improved work-life balance within their new contracts. LUV’s flight attendants are not alone in their pursuit of better compensation and working conditions. Labor unions across diverse industries, including aerospace, construction, airlines and rail, have been advocating for increased wages and enhanced benefits, capitalizing on a labor market characterized by scarcity and competition for skilled workers.
The recent approval of a labor agreement between Southwest Airlines and its pilots adds a layer to the unfolding narrative. The agreement, backed by the carrier and its pilots, promises a substantial pay raise of approximately 50% over a five-year period. This development, though seemingly positive for pilots, raises questions about the distribution of benefits within the airline and may have indirectly fueled flight attendants' resolve to push for their demands.
The decision by LUV’s flight attendants to authorize a strike underscores a larger trend within the industry. The combination of a labor shortage and robust air travel demand has shifted the balance of power toward the workforce. Airlines are navigating a delicate dance between meeting the demands of their employees and sustaining operations in a highly competitive environment.
As the aviation landscape continues to evolve, the resounding mandate from LUV’s flight attendants signals a pivotal moment in the ongoing negotiations between labor and management. This serves as a strong reminder of the changing dynamics in the airline industry.
Zacks Rank & Key Picks
LUV currently carries a Zacks Rank #3 (Hold). Investors interested in the Zacks Airline industry may consider American Airlines (AAL - Free Report) and Copa Holdings (CPA - Free Report) . Copa currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is also gaining from the improved air-travel-demand scenario. We are encouraged by the company’s initiatives to modernize its fleet. CPA's focus on its cargo segment is also impressive.
For 2023, CPA’s earnings are expected to register an 95.7% increase on a year-over-year basis. Copa has outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters. The average surprise is 16.81%.
American Airlines is witnessing improvements on an improved air-travel-demand scenario, particularly on the domestic front. The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end.
The Zacks Consensus Estimate for 2024 earnings has been revised 11% upward over the past 60 days. AAL has surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters. The average beat is 23.83%.
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.