Per Reuters, United Airlines Holdings UAL plans to cut 13 officer jobs as part of its cost-cutting measures to deal with the coronavirus-led slump in air travel demand.
The 13 officer positions will be eliminated effective Jun 15. Eight of those removed will continue to be attached with the company through Sep 30. Due to the low-demand environment and the need to operate a smaller airline, United Airlines had warned of a 30% reduction in its administrative staff in October. To avoid furloughs, the carrier is launching programs for employees to accept voluntary leave or early retirement. The company has offered several of its flight attendants with voluntary separation packages.
With a foresight to operate a smaller airline, last week American Airlines Group AAL, carrying a Zacks Rank #3 (Hold), revealed plans to cut jobs in the management and support staff team by 30%, to cut costs and match the current demand scenario.
United Airlines Holdings Inc Price
United Airlines Holdings Inc price | United Airlines Holdings Inc Quote
U.S. airlines have been seeing some improvements in demand over the past few weeks, prompting the carriers to increase capacity. United Airlines, carrying a Zacks Rank #3, will be increasing trans-Atlantic service from Washington, D.C. and San Francisco to some of the cities in Europe, starting next month. Additionally, the carrier will resume flights to Tokyo-Haneda, Hong Kong, Singapore, and Seoul. It will also boost capacity across Latin America and the Caribbean. United Airlines’ July capacity is expected to be approximately 75% below normal. This represents an improvement over its current schedule, which is 90% below usual capacity.
Last month, Delta Air Lines DAL CEO Edward Bastian stated that he hopes to add around 200 flights in June and another 200 or 300 flights in July, amid signs of improvement in domestic travel demand. Delta carries a Zacks Rank #3.
A Key Pick
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.
Ryanair has an impressive earnings history having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 62.7%.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>
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
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.