The American Airlines (AAL) - Get American Airlines Group, Inc. Report pilots union board passed a resolution calling for the company to remove operations managers, in light of massive flight delays and cancellations this year.
The resolution was passed Thursday, according to several media reports. American had to trim its schedule about 1% in early July, due to staff shortages, CNBC reports.
The Allied Pilots Association pointed to year of underwhelming performance. Flight disruptions have affected tens of thousands of customers this year, including 60,000 hurt by cancellations over Father’s Day weekend, the union said.
The board of directors “believes it is in the best interest of the American Airlines shareholders, employees, the communities it serves, and the traveling public for the management team members who control the American Airlines operation be replaced,” the resolution said, according to CNBC.
American declined to comment to CNBC, but provided a company memo sent to pilots before Labor Day that said pilot staffing improved during the summer. “We feel good about where we are today,” the memo said.
American stock recently traded at $21.33, up 2%.
Morningstar analyst Burkett Huey puts fair value on the stock at $19.
“No-moat American Airlines reported significant revenue improvement in the second quarter, as domestic leisure travel has recovered quickly and business travel begins to recover in earnest,” he wrote in July.
“We are maintaining our $19 per share fair value estimate as we increase short-term estimates for capacity and load factors, though this is partially offset by higher oil prices and a higher effective tax rate.”