The Pilot unions at American Airlines have decided to put up for vote a 5 year contract proposal that would boost wages by 26 percent and offer smaller proportionate increase in consequent years. The Board of the Allied Pilot Association decided to take the offer just before the deadline that was given to them by the company before the offer was pulled and the matter moved into arbitration. The association in a statement said that the goal was to conclude negotiations promptly and deliver the best possible solution to all the pilots. It is imperative to state that American Airlines Group Inc (NASDAQ:AAL) has been trying to reach agreements with its labour unions over the last 14-months to be able to complete the merger with US Airways, forming the biggest Airline conglomerate in the world.
Profits for companies like American Airlines Group Inc (NASDAQ:AAL) have soared over the past year as crude prices have plummeted which form the largest part of the airline expense chart. The company in a statement said that it was pleased that the association had put to vote the proposal which would provide an immediate 23 percent increase in pay and is glad that it has chosen to work alongside management at the current juncture.
When looking at the daily charts for American Airlines Group Inc (NASDAQ:AAL), the stock has been in a strong uptrend over the last couple of months, coinciding with the plunge in crude oil prices. The momentum indicators for American Airlines Group Inc (NASDAQ:AAL) are trending higher and show no signs of a reversal which is indicative of the strong buying interest at present levels. The stock has been forming higher highs and higher lows which is a bullish sign. Analysts on the street have a consensus buy rating on the stock for the near term.