Why American Airlines (AAL) Stock Is Gaining Today

Tickers in this article: AAL

NEW YORK (TheStreet) -- American Airlines was gaining 1.5% to $40.98 Monday after reaching tentative agreements with the International Association of Machinists union.

The airline reached agreements with three bargaining groups of US Airways employees represented by the unions. A majority of the 11,000 ramp workers, mechanics, and maintenance instructors have to ratify the three-year agreements.

The new agreements give substantial wage increases and improvements to job security according to the union.

American Airlines is starting to work on reaching joint-labor agreements with American and US Airways employees. Joint agreements will let the company move employees between American and US Airways after it receives a single operating certificate from the Federal Aviation Administration.

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