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United Airlines Extends Exit Package Application Deadline
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Per Reuters, United Airlines Holdings, Inc. (UAL - Free Report) has extended the deadline to apply for voluntary exit packages. The exit package benefits have also been enhanced.
In order to avoid involuntary layoffs in October (job cuts until Sep 30 are prohibited under the CARES Act), the carrier needs "a lot more people to sign up" for the voluntary exit packages now. Hence the deadline has been extended to Jul 8 from Jun 18. “Thousands” of flight attendants have already signed up.
As for the package benefits, apart from medical, retirement and travel benefits already offered, flight attendants will receive $1,500 health credit — to pay for health care, including prescriptions — for every year worked, up to $45,000.
Although United Airlines has been seeing a gradual rise in passenger numbers, it is way below the year-ago levels. With coronavirus concerns continuing, a rebound may be a couple of years from now. Considering this, the company expects to operate a “significantly smaller airline” in the future, and that would mean reducing workforce as well.
With significant reduction in capacity due to low demand, the company’s operations have already shrunk. In April and May, the airline’s scheduled capacity was down approximately 88% from the year-ago period. The same is expected to be down approximately 85% and 75% in June and July respectively. Given this significantly reduced schedule, last month, the airline stated that it needs only about 3,000 of its 25,000 flight attendants in June.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised 35.6% upward in the past 60 days.
The Zacks Consensus Estimate for Frontline’s current-year earnings has been revised 17.1% upward in the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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United Airlines Extends Exit Package Application Deadline
Per Reuters, United Airlines Holdings, Inc. (UAL - Free Report) has extended the deadline to apply for voluntary exit packages. The exit package benefits have also been enhanced.
In order to avoid involuntary layoffs in October (job cuts until Sep 30 are prohibited under the CARES Act), the carrier needs "a lot more people to sign up" for the voluntary exit packages now. Hence the deadline has been extended to Jul 8 from Jun 18. “Thousands” of flight attendants have already signed up.
As for the package benefits, apart from medical, retirement and travel benefits already offered, flight attendants will receive $1,500 health credit — to pay for health care, including prescriptions — for every year worked, up to $45,000.
United Airlines Holdings Inc Price
United Airlines Holdings Inc price | United Airlines Holdings Inc Quote
Although United Airlines has been seeing a gradual rise in passenger numbers, it is way below the year-ago levels. With coronavirus concerns continuing, a rebound may be a couple of years from now. Considering this, the company expects to operate a “significantly smaller airline” in the future, and that would mean reducing workforce as well.
With significant reduction in capacity due to low demand, the company’s operations have already shrunk. In April and May, the airline’s scheduled capacity was down approximately 88% from the year-ago period. The same is expected to be down approximately 85% and 75% in June and July respectively. Given this significantly reduced schedule, last month, the airline stated that it needs only about 3,000 of its 25,000 flight attendants in June.
Zacks Rank & Key Picks
United Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Scorpio Tankers Inc. (STNG - Free Report) , Teekay Tankers Ltd. (TNK - Free Report) and Frontline Ltd (FRO - Free Report) . While Frontline sports a Zacks Rank #1 (Strong Buy), Scorpio Tankers and Teekay Tankers carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised 35.6% upward in the past 60 days.
The Zacks Consensus Estimate for Frontline’s current-year earnings has been revised 17.1% upward in the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>