The tentative labor agreement would increase the base pay of pilots and add a revision in the airline's profit sharing formula, according to Reuters. The Delta Master Executive Council, a part of the Air Line Pilots Association, will present the tentative agreements to pilots who will then vote to ratify the agreement.
If the pilots ratify the agreement it will have an amendable date of Dec. 31, 2018. The current agreement between the union and the airline can be officially amended on Dec. 31, 2015.
Separately, Delta said it will buy 20 Embraer SA E190 aircraft held by Boeing (BA) and 40 new Boeing 737-900ERs if the new agreement is ratified.
TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."