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Jim Cramer: Airlines Will Be Protected by Congress and the President

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United and its pilots reached an agreement that canceled over 2,800 furloughs scheduled for this week, per the pilots union.

The Air Line Pilots Association said it voted to approve the Pandemic Recovery Letter of Agreement with United Airlines management. The accord prevents any United pilot from being furloughed at least until June.

The agreement keeps all 13,000 United pilots employed.

The deal also offers a second round of early-separation options for all pilots age 50+ with 10 years of experience. And it reduces or terminates the effect of temporary work reductions based on a recovery in passenger demand or other market factors, the union said.

The agreement was ratified by about 58% of the pilots who voted on it.

“Our members understood that in order to protect pilot jobs, we needed to approve this agreement,” Capt. Todd Insler, United ALPA Master Executive Council chairman, said in a statement. 

“We’re spreading the existing flying among our pilot group while locking in permanent contractual gains. I am proud of our pilots for showing the unity and resolve needed in the face of uncertainty.”

United executives do not expect travel to fully recover until a COVID-19 vaccine is widely available.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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