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Hawaiian Holdings (HA) Arm Gets Encouraging Labor Tidings

Hawaiian Holdings’ HA wholly-owned subsidiary Hawaiian Airlines received encouraging news on the labor front when its pilots cleared a four-year pay-related deal. Pilots of this carrier are represented by the Air Line Pilots Association (ALPA). Following the approval, the pilots are eligible for pay hikes, average of which will be more than 32% over the four-year period.

In the voting procedure, 93% pilots cast their votes with 65% favoring the deal. The agreement, which will take effect on Mar 2, includes industry-leading rates for HA’s future Airbus A330F cargo fleet.

Pilots at HA are now eligible for an immediate 16.6% pay raise, on average. Other benefits include presence of a $10 million ratification bonus and creation of a new $2,500 health reimbursement account. The deal will also result in improvement in quality of life of pilots by providing more scheduled flexibility apart from raising company’s retirement contributions.

Expressing delight on the development, captain Larry Payne, chair of ALPA’s Hawaiian Master Executive Council said,“This new industry-standard agreement brings us into line with our peers and cements our status as one of the nation’s leading airlines”.

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The agreement comes at a time when labor trouble has emerged as a major sore point for the U.S. aviation industry. The pilot scarcity induced delays and cancellations of many flights have disrupted air-travel that rebounded from the pandemic lows. Naturally the development is a huge positive for HA.

Zacks Rank & Stocks to Consider

Currently, Hawaiian Holdings holds Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader Zacks Transportation sector are American Airlines AAL and Gol Linhas Aereas Inteligentes GOL, both carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Airlines has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 29.3% over the past 60 days.

Improved air-travel demand, particularly on the domestic front, is aiding American Airlines. Owing to upbeat air-travel demand, operating revenues in fourth-quarter 2022 increased 39.3% year over year.

Continued recovery in air-travel demand in Brazil bodes well for Gol Linhas which is likely to get reflected in fourth-quarter results as well. GOL predicts fourth-quarter passenger unit revenues to be up 20% year over year, backed by a continued recovery in leisure travel demand and a rise in international travel.

Gol Linhas’ acquisition of domestic airline MAP Transportes Aéreos Ltd, a Brazilian domestic airline, for R$28 million is a prudent move. The acquisition is likely to boost the company's top line by attracting additional traffic. GOL has an expected earnings growth rate of 46.9% for 2023.

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Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report

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