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Alaska Air (ALK) Announces Tentative Deal With Pilots Union

Alaska Air Group, Inc. ALK recently announced that it has successfully proceeded with a tentative deal with its pilots’ union.

The new agreement includes substantial wage increases, working hours flexibility and other related benefits. Per the new contract, Alaska captains are expected to enjoy pay raises ranging between 15% and 23%, based on their seniority. The first officer pay raise would be between 8% and 23%. The contract also includes regulations to protect Alaska from outsourcing routes to other airlines, apart from other benefits.

This new contract has now been forwarded to the airline's more than 3,000 pilots for approval. If it gets approved by Nov 1, 2022, the raises would be retroactive from Sep 1.

Will McQuillen, chairman of the Alaska Airlines Master Executive Council for the Air Line Pilots Association, stated, "Not only does this agreement recognize the crucial role pilots have played in the success of Alaska Airlines, it will also help our airline remain competitive in the industry."

Considering the ongoing airline industry issues of pilot shortages, wage increases, surge in air travel demand and related disruptions to flight schedules, the latest announcement looks encouraging for this Zacks Rank #3 (Hold) company and will help it to stay competitive in attracting and retaining pilots.

We remind investors that earlier this week, Alaska Air’s subsidiary Horizon Air confirmed that its team of more than 700 pilots (represented by the International Brotherhood of Teamsters) voted on a new agreement. The new deal is aimed at helping the company’s pilots and holding back talent as mainline airlines continue to recruit pilots (at record levels) away from regional airlines. The deal also includes issues related to wage increases, retirement benefits plans, commuter policies and instructor benefits. The deal passed by 99% after receiving more than 91% of votes from Horizon pilots. A tentative deal was inked with the IBT on Sep 2, effective immediately upon this latest vote.

Alaska Air Group, Inc. Price

Alaska Air Group, Inc. Price
Alaska Air Group, Inc. Price

Alaska Air Group, Inc. price | Alaska Air Group, Inc. Quote

Stocks to Consider

Some better-ranked stocks from the broader Zacks Transportation sector are GATX Corporation GATX, Ryder System, Inc. R and Teekay Tankers Ltd. TNK, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.

The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days.

Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. The company has a long-term expected growth rate of 10%.

Ryder has an expected earnings growth rate of 56.3% for the current year. R delivered a trailing four-quarter earnings surprise of 30.2%, on average.

The Zacks Consensus Estimate for Ryder’s current-year earnings has improved 4.2% over the past 90 days.

Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 142% over the past year.

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