Please ensure Javascript is enabled for purposes of website accessibility

Why Republic Airways Holdings Inc.'s Shares Are Soaring Today

By Travis Hoium - Sep 29, 2015 at 11:59AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Can a new contract with pilots save this airline?

What: Shares of regional airline company Republic Airways Holdings (NASDAQ: RJET) jumped as much as 19% in early trading today after the company reached a tentative agreement with its pilots union. Shares have settled to a 9% gain midday.

So what: The tentative agreement between the International Brotherhood of Teamsters Local 357 and Republic Airways is for a three-year contract covering 2,100 pilots who work for the company. But details weren't released and haven't even gone out to most voting members yet. According to today's release, the union will take a vote on the new contract that is planned for late October.  

Now what: More than anything, this is a reaction to the certainty a new pilots agreement provides. The market was concerned that bankruptcy was a real possibility if an agreement wasn't reached soon, and that appears to be off the table right now. But there's still a pilot shortage for the company and it may have to negotiate further concessions with its carrier partners. Still, today is an incremental positive that provides a little certainty for the company for three years.  

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.