Alaska Air Group Inc
The union, Association of Flight Attendants (AFA), put forth the deal on Friday, marking a significant milestone for the airline's workforce.
The agreement will undergo review by the union leadership, followed by a member ratification vote, according to a report from Reuters.
If approved, the new contract will establish enhanced terms and conditions for Alaska Airlines flight attendants, supporting their quality of life and career advancement.
"With our combined efforts, we've been able to reach an agreement that provides quality of life and continued career growth at Alaska," the airline stated in an email.
In contrast, American Airlines Group Inc
The flight attendants' union recently announced that it had not reached an agreement on a new contract and is moving closer to a strike.
Despite this, American Airlines has expressed its intention to continue negotiations to secure a beneficial contract for its flight attendants.
The tentative agreement for Alaska Airlines flight attendants comes as a positive development, reflecting the airline's commitment to its employees' well-being and professional growth.
This deal is expected to set a precedent for future negotiations within the industry, emphasizing the importance of collaboration and mutual benefits in labor agreements.
Alaska reported first-quarter FY24 revenue growth of 2% year-over-year to $2.232 billion, beating the consensus of $2.19 billion. Adjusted EPS of $(0.92) beat the consensus estimate of $(1.05).
Alaska Air has lost more than 17% in the last 12 months. Investors can gain exposure to the stock via U.S. Global Jets ETF
Price Action: ALK shares are trading higher by 1.75% at $41.90 at the last check on Monday.
