Airline employees have a very powerful
negotiating tool in order to get better pay, hours, and quality of life. They
can, after clearing a lot of hurdles, strike, which essentially paralyzes the
At an all-company meeting after the airline reported earnings, flight
attendants union President Julie Hedrick appeared with other flight attendants
wearing red union shirts "meant to signify 'We Are Ready'.
She spoke during the open question and answer portion of the meeting and
noted that flight attendants had not had a raise in five years.
CEO Robert Isom addressed the issue, without being too specific, in answer to
"You are going
to receive compensation and benefits that are best in the industry. You may say
it’s not enough to match Delta or to match whoever it is. I understand. That’s
why we negotiate,” he said,
flight attendants voted to authorize a strike with 99% of members approving a
work stoppage. The union wants a 50% increase in wages.
"American Airlines has offered
Delta-level wages including boarding pay along with increased profit sharing,
increased training pay, and increased retirement contributions. The initial
wage increase would be 11%, followed by 2% increases in each of the remaining
years of the 5-year agreement."
The union has revised its demands to a 35%
initial increase with 6% increases each year after.
Why the AAL Weekly
Options Trade was Originally Executed!
US carriers like American Airlines Group Inc (NASDAQ: AAL) are
sputtering into the fourth quarter after losing the gains from the first half
of the year — when shares were flying high on "revenge travel."
"The tide has shifted," Chris Raite, sector analyst at Third
Bridge, said. "We are seeing a divergence. International travel is a lot
more profitable, so it gives them a bit more leeway to be competitive."
Third quarter results shows the industry is facing choppiness amid labor
negotiations and higher jet fuel costs.
The AAL Weekly
Options Trade Explained.....
** OPTION TRADE: Buy AAL NOV
10 2023 11.000 PUTS - price at last close was $0.42 - adjust accordingly
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the AAL Weekly Options (PUT) Trade on Monday, October 23, 2023, for $0.29.
Sold HALF the AAL weekly options contracts on Friday, October 27, 2023 for $0.42; a potential profit of45%.
Don’t miss out on further trades – become a
About American Airlines Group.....
Airlines Group Inc, through its subsidiaries, operates as a network air
carrier. The company provides scheduled air transportation services for
passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth,
Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC, as
well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma,
Sydney, and Tokyo.
Further Catalysts for the AAL Weekly Options Trade…..
American Airlines said third-quarter cargo revenue fell 31% to $193
million, following a similar trajectory as its U.S. peers that are also dealing
with a prolonged contraction in cross-border shipping volumes driven by
economic uncertainty and improved ocean shipping reliability.
The downbeat cargo figures came against record corporate revenue of
$13.5 billion and adjusted net income of $263 million during the three-month
period, in which a nearly $1 billion one-time payout related to a new pilot labor
deal was not recognized. The company has posted six consecutive quarters of
profits and paid down 70% of its of its total $15 billion in debt coming out of
American Airlines received $613 million in cargo revenue for the
nine-month period through September, a drop of 36.8% from a year prior.
The results were expected in an air cargo market that has seen overall
volumes fall by 8% to 10% since March 2022, finally hitting bottom in late
summer. Airfreight shipping prices have been 40% to 50% lower than last year
for most of 2023 and have only recently seen marginal seasonal improvement.
Cargo was a rare silver lining for airlines after the pandemic disrupted ocean
supply chains and caused carriers to halt passenger flights, resulting in a huge
loss of belly capacity.
American’s cargo results lagged 2019 levels of $208 million for the
third quarter and $647 million for the first three quarters.
Fewer large jets in the fleet and a smaller Asia-Pacific network have
constrained the cargo business and partly explain the difference. The airline
retired all of its Boeing 767 medium widebody aircraft at the beginning of the
pandemic, as well as its Airbus A330s, and has about 30 fewer widebodies flying
today, American Airlines Cargo President Greg Schwendinger said on a recent
episode of the Cargo Masters podcast.Summary.....
stocks often decline during times of war due to several factors, including
security concerns and uncertainty about safety. That's particularly true of
regions affected by war, which explains cancellations of flights to Tel Aviv.
wars can disrupt transportation infrastructure, causing wider cancellations and
delays. Wars can also result in economic instability and higher fuel costs.
This was a factor in early 2022 when Russia invaded Ukraine and appears to be a
those reasons, investors often sell off travel stocks in times of geopolitical
On Thursday American’s stock rebounded from
a three-month low after the carrier's profit solidly beat Wall Street
expectations, but its forecast came in soft due to higher fuel costs and demand
Higher labor costs are also an overarching
challenge this year, as carriers negotiated contracts amid an industry pilot