Yahoo Finance Airline Stock Roundup: JBLU to Drop a Few Non-Profitable Routes, LUV, ALK in Focus
JetBlue Airways JBLU has decided to stop operating on some non-profitable routes in a bid to improve its financial performance. Alaska Airlines, the wholly-owned subsidiary of Alaska Air Group ALK, received encouraging tidings on the labor front when its aircraft maintenance technicians, maintenance controllers and supporting staff, represented by the Aircraft Mechanics Fraternal Association or AMFA, approved a new five-year contract.
Southwest Airlines LUV inked a provisional deal with its flight attendants. Delta Air Lines DAL announced that it will resume flying to Tel Aviv from New York-JFK this summer.
Read the last Airline Roundup here.
Recap of the Recent Most Important Stories
1 JetBlue currently has a limited fleet at its disposal following a snag with RTX's Pratt & Whitney geared turbofan that powers Airbus A320neo jets. Due to this incident, JetBlue had to pull seven planes out of service. The number of planes withdrawn from service is expected to reach 15 by the year-end. Given the shrunken fleet size, the decision to drop some non-profitable routes and trim its network appears prudent. Apart from eliminating certain routes and markets, JetBlue has decided to reduce services in Los Angeles.
Currently, JBLU carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Southwest Airlines inked a provisional deal with Transport Workers Union Local 556 or TWU556, which represents its flight attendants. The union covers about 20,000 attendants at LUV. Now the provisional deal will be voted upon by flight attendants. The deal will materialize only if the voting outcome is favorable. The deal, on becoming effective, will make flight attendants eligible for significant gains in compensation. We remind investors that flight attendants at LUV had rejected a deal in December 2023. The company would be hoping that the tentative deal gets approved this time around. On a separate note, Southwest Airlines’ ramp, operations, provisioning and cargo agents approved a new five-year pay-related contract.
3. Alaska Air’s technicians approved a five-year labor deal. The deal was negotiated for 12 months before being approved. Apart from increased pay, the approval of the deal makes the technicians eligible for better retirement benefits, improving their quality of life in general. This marks the seventh ratified contract across six represented groups since 2022, underscoring Alaska Air’s labor-friendly attitude.
4. Delta intends to resume daily nonstop flights to Tel Aviv from New York-JFK starting Jun 7 using Airbus A330-900neo jets. The route was temporarily suspended in October 2023 post the Hamas terror attack and war in Gaza. DAL’s decision to resume flights to Tel Aviv gives additional travel choices to customers when it comes to flights between North America and Israel.
Performance
The following table shows the price movement of the major airline players over the past week and the past six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks traded in the green over the past week. The NYSE ARCA Airline Index has risen 2.9% to reach $67.08. Over the course of the past six months, the NYSE ARCA Airline Index has gained 24.6%.
What’s Next in the Airline Space?
Stay tuned for further news updates in the space.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
