United Airlines Extends Exit Package Application Deadline
According to Reuters, United Airlines Holdings, Inc. UAL has extended the deadline for applying for voluntary exit packages. The benefits of the exit package have also been improved.
In order to avoid involuntary layoffs in October (job cuts until September 30 are prohibited under the CARES Act), the airline now needs "a lot more people to sign up for the voluntary exit packages". Therefore, the period from June 18 to July 8 was extended. "Thousands" flight attendants have already registered.
In addition to the medical, retirement, and travel benefits already offered, cabin crew members receive a $ 1,500 health credit for every year worked up to $ 45 to pay for health care, including prescriptions.
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Although United Airlines has seen a gradual increase in passenger numbers, it is far below the previous year's level. Given the ongoing concerns about the corona virus, a recovery may occur in a few years. In view of this, the company expects to operate a "significantly smaller airline" in the future, which would also mean a reduction in personnel.
Due to the low demand, the company's capacity has already shrunk considerably. In April and May, the airline's planned capacity decreased by around 88% compared to the same period in the previous year. This is expected to decrease by approximately 85% and 75% respectively in June and July. Given this significantly reduced flight schedule, the airline said last month that it only needed about 3,000 of its 25,000 flight attendants in June.
Zack's Rank & Key Picks
United Airlines has a Zacks Rank 3 (Hold). Some of the better ranked stocks in the wider transportation sector are Scorpio Tankers Inc.STNG, Teekay Tankers Ltd. TNK and Frontline Ltd FRO. While Frontline has a Zacks rank 1 (strong buy), Scorpio tankers and Teekay tankers have a Zacks rank 2 (buy). The full list of today's Zacks # 1 Rank stocks can be found here.
The Zacks consensus estimate for Scorpio Tankers' profits this year has been revised up by more than 100% over the past 60 days.
The Zacks consensus estimate for Teekay Tanker's current year has been revised up 35.6% over the past 60 days.
The Zacks consensus estimate for Frontline's earnings this year has been revised up 17.1% over the past 60 days.
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