afterlife2009
Superstar
American Airlines is giving pay raises to its pilots and flight attendants, who have complained they are paid less than peers at other airlines. Wall Street isn't happy.
The raises come about two years before contract negotiations. Assuming they approve the increases, pilots and flight attendants will receive additional pay totaling close to $1 billion over three years.
At a time when American and other airlines are seeing higher costs for labor, fuel and maintenance while finding it difficult to raise airfares, this goodwill gesture didn't sit well with investors.
“This is frustrating. Labor is being paid first again. Shareholders get leftovers,” Citi analyst Kevin Crissey wrote in a note to clients. Investors showed their displeasure by sending American Airlines Group Inc.’s stock down 5.2% to $43.98 on Thursday.
Southwest Airlines Co., which also reported earnings Thursday, said profit dropped 31%; its shares fell 2.1% to $55.75.
The higher expenses have alarmed investors because airlines have struggled to raise airfares — although there recently have been signs that fares are heading higher after falling for about two years. American said revenue for each seat flown one mile, a proxy for average fares, rose 2% in the first quarter and expects it to rise again in the second quarter. United, Delta and Southwest all predict an increase in the revenue measures, known as PRASM, for the current quarter.
http://www.latimes.com/business/la-fi-united-david-dao-20170427-story.html
of all the dumbest shyt i've heard...
