Spirit Airlines’ SAVE Aircraft Maintenance Technicians and Maintenance Controllers have elected the Aircraft Mechanics Fraternal Association (AMFA) as their collective bargaining agent. The majority of the votes were polled in favor of unionization, per the National Mediation Board (NMB).
In May 2022, SAVE’s mechanics submitted a document to the AMFA, signed by 82% of the workgroup. They requested its authorities to file an application with NMB to represent the group.
Prior to the current announcement on unionization, SAVE’s technicians were never represented by a labor union since the airline was founded. However, most of SAVE’s — currently carrying a Zacks Rank #3 (Hold) — workforce is currently union-represented.
Now, with the mechanics also agreeing to be represented by a labor union, AMFA is expected to engage in talks with SAVE for higher pay, better working conditions and other related factors for the mechanics. This might elevate costs in turn. The prevalent situation may take an interesting turn as SAVE is likely to be acquired by JetBlue Airways JBLU.
In July, JBLU agreed to buy SAVE for $3.8 billion. The deal on materialization will create the fifth largest airline in the United States. Per the terms of the deal, JetBlue will pay $33.5 in cash for each share of SAVE.
Stocks to Consider
Some better-ranked stocks in the Zacks Transportation sector are SkyWest SKYW and C.H. Robinson CHRW.
Continued recovery in air-travel demand bodes well for SkyWest. With an improvement in air-travel demand, SKYW carried 32.7% more passengers in first-half 2022 than the year-ago level. As a result, the passenger load factor (percentage of seats filled by passengers) expanded 1450 basis points to 82.1% in first-half 2022.
SKYW’s fleet-modernization efforts are commendable as well. The positivity surrounding the stock is evident from the Zacks Consensus Estimate for current-year earnings being revised above 100% upward over the past 60 days. SkyWest has a Momentum Style Score of B. SKYW currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
C.H. Robinson is being aided by an improving freight scenario in the United States. Efforts to control costs also bode well. Measures to reward CHRW's shareholders instill confidence in the stock further.
CHRW has a pleasant earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 17.6% upward over the past 60 days. C.H. Robinson currently carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research