The Transport Workers Union (TWU), representing the more than 400 U.S.-based dispatchers and operations specialists at American Airlines Group Inc (NASDAQ:AAL) announced that its members approved a new five-year contract, which includes immediate and significant pay increases.
“We rely on our flight dispatchers every single day to ensure safe, reliable and on-time operations for all American Airlines flights,” said Lorne Cass, American’s Vice President – Integrated Operations Center. “We are pleased to provide compensation that reflects their contributions toward the airline’s success. We thank the TWU for their professionalism in advocating for their members and thank both negotiating teams for their commitment to the bargaining process.”
“We are pleased to sign a contract that brings our members to industry-leading pay,” said Danny Persuit, president of TWU Local 549. “The contract could not have been accomplished without significant compromises between the American Airlines and US Airways dispatchers. This is another step in the combining of two experienced, professional and dedicated workgroups that will continue to move forward as the best and biggest airline in the world.”
The contract includes industry-leading pay for dispatchers along with improved longevity pay, higher override premiums and an increase in vacation, sick days and holidays.
The dispatchers and operations specialists are the 12th unionized workgroup at American to ratify a post-merger contract. American has also reached agreements with unions for passenger service employees, pilots, flight attendants and wholly owned regional carrier workgroups. (Original Source)
Shares of American Airlines Group Inc opened today at $41.17. AAL has a 1-year high of $53.47 and a 1-year low of $34.10. The stock’s 50-day moving average is $41.05 and its 200-day moving average is $41.49.
On the ratings front, American Airlines Group has been the subject of a number of recent research reports. In a report issued on April 12, Credit Suisse analyst Julie Yates maintained a Buy rating on AAL, with a price target of $49, which represents a potential upside of 19.0% from where the stock is currently trading. Separately, on April 11, Deutsche Bank’s Michael Linenberg maintained a Hold rating on the stock and has a price target of $45.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Julie Yates and Michael Linenberg have a total average return of 3.9% and 19.6% respectively. Yates has a success rate of 61.9% and is ranked #1061 out of 3798 analysts, while Linenberg has a success rate of 66.7% and is ranked #36.
The street is mostly Bullish on AAL stock. Out of 12 analysts who cover the stock, 9 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $50.80, which represents a potential upside of 23.4% from where the stock is currently trading.
American Airlines Group, Inc. is a holding company whose business activity is the operation of a network carrier through its principal wholly-owned mainline operating subsidiary, American. The company provides air transportation for passengers and cargo. It cargo division provides a range of freight and mail services, with facilities and interline connections available across the globe. The company was founded on December 9, 2013 and is headquartered in Fort Worth, TX.