Southwest (LUV) & AMFA Ink Tentative Agreement for Mechanics
Southwest Airlines LUV and the Aircraft Mechanics Fraternal Association (AMFA) have reached a tentative agreement for LUV’s Mechanics & Related Employees. The agreement aims to reward employees and maintain the airline's operational efficiency. Adam Carlisle, vice president Labor Relations at Southwest Airlines, expressed satisfaction with the swift negotiations between AMFA and LUV that led to the tentative agreement.
The AMFA negotiating committee, led by national president Bret Oestreich, has also expressed its support for the agreement. If ratified by AMFA members, the agreement will provide industry-leading compensation for Southwest Airlines Aircraft Maintenance Technicians (AMTs). The primary goals of AMFA include safeguarding work, improving standards and increasing recognition for AMTs and related professionals. Oestreich emphasized the importance of members exercising their voting rights to determine the outcome.
The provisional deal covers more than 2,800 mechanics & related Employees at Southwest Airlines, including aircraft maintenance technicians, aircraft inspectors, maintenance controllers and training instructors.
It is important to note that the tentative deal will only become effective if it is approved through the voting process. The outcome of the vote will determine whether the agreement is ratified and implemented. The details of LUV’s current agreement and the voting timeline will be directly communicated to AMFA members by the association.
In view of the staff shortage in the airline industry, the bargaining power of various labor groups has naturally increased, with air travel demand bouncing back strongly from the pandemic lows.
Zacks Rank & Key Picks
Southwest Airlines currently carries a Zacks Rank #3 (Hold). Investors interested in the Zacks Airline industry may consider stocks like Copa Holdings CPA and Allegiant Travel Company ALGT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank 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 Zacks Consensus Estimate for CPA’s current-year earnings has been revised 25.08% upward over the past 60 days.
Allegiant is seeing a steady recovery in leisure air travel demand. In first-quarter 2023, this Las Vegas, NV-based company’s operating revenues grew 29.9% on a year-over-year basis. Passenger revenues, accounting for 93.7% of the top line, increased 31.3% on a year-over-year basis.
Allegiant's fleet modernization efforts are encouraging. The Zacks Consensus Estimate for ALGT's current-year earnings has been revised 30.95% upward in 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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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
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