On Thursday, Scott Kirby, CEO of United Airlines (NASDAQ:UAL), said that his company and the mechanics union had tentatively agreed upon a deal.
“I’m thrilled to report that, even before the deal was amendable, we and our technicians have tentatively agreed upon a settlement. On LinkedIn, he said, “That’s how you do it!! “Our technicians did a great job through the pandemic even with the unusual additional hurdle of our Pratt & Whitney powered 777s to deal with right in the middle of the recovery — arguably their biggest workload in history,” said one technician.
The agreement was made public just a few days after the airline company announced a big deal with Boeing to buy planes. To finish the fleet overhaul, which will take a lot of work, thousands of new mechanics will need to be hired in the coming year. These are the people who work hard to keep you safe and make sure your flights depart on time for our United Airlines customers.
United Airlines Stock Outlook
United Airlines’ (NASDAQ:UAL) stock fell another 4% on Thursday, adding to the 10% drops since the announcement on Tuesday.
Zacks says that United Airlines’ passenger revenue for the third quarter of 2022 was up by a lot (by nearly 75%) compared to the same time last year. The company anticipates that the adjusted operating margin will surpass the 2019 levels (pre-coronavirus) for the first time in the December quarter, hovering around 10%. Due to high demand, UAL’s management thinks that total revenue per available seat mile (TRASM) will go up by between 24% and 25% in the December quarter compared to what actually happened in the fourth quarter of 2019.
Also, its focus on cargo operations is making it earn more money from cargo, which helps to partially make up for the drop in passenger income from 2019 levels. In the first nine months of 2022, the carrier made 5% more money from cargo than it did the year before.
UAL Stock Forecast: Why United Airlines Might Become A Huge Financial Success In 2023
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