Tentative Agreement Between UAL and AFA: Flight Attendants “Have a Nice Day”

According to an announcement by United Continental Holdings Inc (NYSE:UAL), a tentative, mediated wage agreement between UAL and its Association of Flight Attendants (AFA) has been approved by the Executive Council of the AFA and also recommended to the flight attendants for their ‘consideration and ratification’.

The agreement provides wage improvements and also a signing bonus for the flight attendants, and is the outcome of an expedited mediation process, which commenced last September under the aegis of the National Mediation Board.

“I am pleased that we were able to reach this agreement following an intense mediation process. We appreciate the hard work of both negotiating teams in reaching an agreement that is fair to United flight attendants and fair to the company, and recognizes the great work by our flight attendants,” said Sam Risoli, senior vice president of in-flight services for United.

About 15,000 flight attendants in the U.S. and some international bases would be covered by this agreement.

Here’s how airline stocks are reacting to the news:

United Continental Holdings (NYSE:UAL): UAL shares recently traded at $17.72, down $0.21, or 1.17%. They have traded in a 52-week range of $15.51 to $27.72. Volume today was 2,266,028 shares versus a 3-month average volume of 5,557,220 shares. The company’s trailing P/E is 10.18, while trailing earnings are $1.74 per share.

JetBlue Airways Corporation (NASDAQ:JBLU): JBLU shares recently traded at $5.74, up $0.21, or 3.8%. They have traded in a 52-week range of $3.40 to $6.98. Volume today was 2,991,351 shares versus a 3-month average volume of 5,377,270 shares. The company’s trailing P/E is 24.02, while trailing earnings are $0.24 per share.

Southwest Airlines Co. (NYSE:LUV): LUV shares recently traded at $8.65, up $0.06, or 0.7%. They have traded in a 52-week range of $7.15 to $13.33. Volume today was 930,231 shares versus a 3-month average volume of 7,908,630 shares. The company’s trailing P/E is 44.13, while trailing earnings are $0.20 per share.

Spirit Airlines Incorporated (NASDAQ:SAVE): SAVE shares recently traded at $15.12, up $0.19, or 1.27%. They have traded in a 52-week range of $10.18 to $17.48. Volume today was 19,373 shares versus a 3-month average volume of 196,884 shares. The company’s trailing P/E is 10.26, while trailing earnings are $1.47 per share.

Delta Air Lines Inc. (NYSE:DAL): DAL shares recently traded at $8.29, up $0.01, or 0.12%. They have traded in a 52-week range of $6.41 to $12.81. Volume today was 1,787,541 shares versus a 3-month average volume of 11,303,400 shares. The company’s trailing P/E is 15.64, while trailing earnings are $0.53 per share.