Per Reuters, Delta Air Lines Inc DAL is working with its pilots’ union to avoid involuntary furloughs of more than 2,300 pilots.
Over the weekend, the airline carried out a reshuffling process to align its staff size to flying plans for summer 2021. In a "surplus" bid, Delta asked employees to petition available positions at one of its U.S. pilot bases. Following the results, the carrier will transfer approximately 7,000 pilots to different locations or aircraft types, per Delta's Master Executive Council (“MEC”) of the Air Line Pilots Association (“ALPA”). However, 2,327 pilots remained unassigned.
Delta, carrying a Zacks Rank #3 (Hold), stated that the bid is "to better align our staffing with our future flying demand." The carrier is "looking at all options to mitigate or minimize furloughs and will continue working with ALPA in the coming weeks to explore those options."
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote
Last week, the airline furnished details of early-out options for non-union employees. Employees availing these options will be provided with cash severance, full healthcare coverage and travel benefits.
The airlines’ need to reduce workforce to match the current demand scenario has become pronounced lately. Last week, United Airlines Holdings UAL revealed plans to cut 13 officer jobs as part of its cost-cutting measures to deal with the coronavirus-led slump in air travel demand. Earlier, American Airlines Group AAL notified that it would cut jobs in the management and support staff team by 30%.
Both United Airlines and American Airlines carry a Zacks Rank #3.
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A better-ranked stock in the same space is Ryanair Holdings RYAAY carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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