JetBlue Airways Corporation JBLU 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 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 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, 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%.
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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
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