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Delta Air Lines, Inc. (DAL) - $25 value - yours FREE >>
JetBlue Airways Corporation (JBLU) - $25 value - yours FREE >>
Canadian Pacific Kansas City Limited (CP) - $25 value - yours FREE >>
American Airlines Group Inc. (AAL) - $25 value - yours FREE >>
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Jetblues'(JBLU) Pilots Union Inks Agreement to Avoid Furloughs
JetBlue Airways Corporation (JBLU - Free Report) and its pilots union inked an agreement to avoid involuntary furloughs until May 1, 2021 according to a CNBC report. The union did not disclose the details of the agreement but agreed on not changing any pay rates.
According to a 2019 annual report, JetBlue has 3600 pilots and more than 21,000 employees in total. Notably, U.S. airlines, including JetBlue, who accepted the $25 billion federal aid to combat the global health peril, cannot layoff or cut pay rates for its workers through Sep 30. Naturally, all carriers are aiming to reduce costs as COVID-19 continues to hurt air travel demand severely.
However, following the re-opening of the economy many carriers are boosting their capacity as air-travel demand is rising gradually. JetBlue recently announced plans of adding 30 new domestic routes to meet the gradually increasing demand for leisure and VRF (visiting friends and relatives) travel.
JetBlue Airways Corporation Price
JetBlue Airways Corporation price | JetBlue Airways Corporation Quote
Moreover, American Airlines (AAL - Free Report) has started to book its flights to full capacity from Jul 1. Similarly, in response to the recent rise in demand, Delta Air Lines (DAL - Free Report) expects to expand capacity by about 1,000 flights in both July and August. Both American Airlines and Delta carry a Zacks Rank #3 (Hold).
Zacks Rank & A Key Pick
JetBlue currently carries a Zacks Rank #3 (Hold).
A better-ranked stocks in the Zacks Transportation sector is Canadian Pacific Railway Limited (CP - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for Canadian Pacific is estimated at 7.5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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