Flight Attendants of Alaska Air Vote in Favor of 3-Year Labor Deal

Alaska Airlines,the wholly-owned subsidiary of Alaska Air Group ALK, received encouraging tidings on the labor front when its flight attendants, represented by the Association of Flight Attendants (“AFA”), approved a three-year deal about wage increase, boarding pay and retroactive pay.  AFA represents 7,000 pilots of Alaska Airlines. In the entire exercise, more than 90% flight attendants participated, with 95% casting their votes in favor of the deal.The ratification makes Alaska Air’s flight attendants eligible for immediate pay increases ranging from 18.6% to 28.3%, boarding pay, retroactive pay, greater flexibility and scheduling enhancements, in addition to other benefits. This new contract has taken effect from March 2, 2025.The previous contract became amendable in December 2022. The approval at Alaska Air, currently carrying a Zacks Rank #3 (Hold), has come after intense negotiations. We note that contracts in the airline industry do not expire. The current contract remains in effect until a new agreement is ratified.Expressing delight on the development, Jeffrey Peterson, president of AFA Alaska Master Executive Council, said, “This agreement marks a major milestone for Alaska Airlines Flight Attendants. It reflects their essential role in ensuring both safety and operational excellence.”You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ALK’s Impressive Price PerformanceDriven by upbeat air travel demand, shares of Alaska Air Group have rallied 96.1% in a year’s time, handsomely outperforming the Zacks Transportation-Airline industry in the timeframe.Image Source: Zacks Investment ResearchWith U.S. airlines grappling with labor shortage, the bargaining power of this group has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows.For example, in August 2023, American Airlines AAL pilots, represented by the Allied Pilots Association, approved a four-year deal pertaining to wage increases. The approval made AAL’s pilots eligible for an immediate pay raise in excess of 21% on average. Also, the deal includes provisions aimed at improving pilots’ quality of life. In September 2024, the flight attendants of AAL ratified a new five-year contract, increasing the value of their then existing agreement by $4.2 billion.In September 2023, United Airlines’ UAL pilot union ratified a $10-billion contract to increase their pay up to 40.2% over the four-year duration of the contract. In March 2023, Delta Air Lines’ DAL pilots ratified a four-year deal. This made DAL’s pilots eligible for a 34% pay hike over the next four years.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks