Yahoo Finance Allegiant Travel's (ALGT) Contract on Dispatchers Is Ratified
Allegiant Travel Company ALGT received encouraging tidings on the labor front when the union (International Brotherhood of Teamsters or IBT) representing the airlines’ flight dispatchers ratified a new contract. The contract is pertaining to a two-year extension to the initial collective bargaining agreement.
The provisional deal, for replacing the original rate hikes scheduled for May 31, 2023, was inked on May 3. On being put to vote, 95.8% dispatchers voted in favor of the deal, thereby ratifying the agreement well ahead of schedule. Currently, 50 flight dispatchers, coordinators and instructors are employed at Allegiant.
The existing collective bargaining agreement is due for amendment on May 31, 2024. It has been in effect since Apr 25, 2019. Expressing delight at the ahead-of-schedule ratification, Greg Anderson, Allegiant’s president said, "We are pleased to see our dispatchers overwhelmingly voted to ratify the tentative agreement we presented a few weeks ago. This extension comes more than a year before the current contract's amendable date, thanks to the hard work and dedication of the negotiating teams for both Allegiant and IBT."
With U.S. airlines grappling with staff-shortage, the bargaining power of various labor groups has naturally increased as air-travel demand is bouncing back very strongly from the pandemic lows.
Zacks Rank & Other Key Picks
Allegiant Travel currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Transportation sector may also consider Copa Holdings CPA and Triton International TRTN. While Copa sports a Zacks Rank #1 (Strong Buy), Triton carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from first-quarter 2019 levels on higher cargo volumes and yields.
Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 21.26% upward over the past 60 days.
Based in Hamilton, Bermuda, Triton is the largest lessor of intermodal containers (large steel boxes that are used for transporting freight by ship/rail/truck). TRTN also focuses on leasing chassis, which are used for transporting containers. Gradual increases in trade volumes and container demand bode well for TRTN.
TRTN has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 6.29%.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
Triton International Limited (TRTN) : Free Stock Analysis Report
