Pilot Pay Is Starting To Hurt Airline Profit. One Carrier Is Using An Unusual Strategy To Gain An Advantage
Raymond James analyst Savanthi Syth downgraded Mesa Air Group Inc (NASDAQ: MESA ) and SkyWest Inc (NASDAQ: SKYW ) to Underperform as she believes the pilot rates being established across the regional industry will diminish the earnings power of regional airlines. American Airlines Group Inc (NASDAQ: AAL ), which has about 55% of regional lift at in-house regional airlines, thought there was a cost advantage due to the lack of a margin that could significantly improve pilot pay at these entities, driving operational stability and resulting in market share gains in a lucrative market segment. This led to junior pilot pay moving closer to and, in some cases, above that of the lowest-paid mainline carriers. Also Read : Full story available on Benzinga.com
Pilot Pay Is Starting To Hurt Airline Profit. One Carrier Is Using An Unusual Strategy To Gain An Advantage
Raymond James analyst Savanthi Syth downgraded Mesa Air Group Inc (NASDAQ: MESA ) and SkyWest Inc (NASDAQ: SKYW ) to Underperform as she believes the pilot rates being established across the regional industry will diminish the earnings power of regional airlines. American Airlines Group Inc (NASDAQ: AAL ), which has about 55% of regional lift at in-house regional airlines, thought there was a cost advantage due to the lack of a margin that could significantly improve pilot pay at these entities, driving operational stability and resulting in market share gains in a lucrative market segment. This led to junior pilot pay moving closer to and, in some cases, above that of the lowest-paid mainline carriers. Also Read : Full story available on Benzinga.com