Unions push airlines to promise they’ll avoid stock buybacks

DALLAS — Labor unions are pressuring U.S. airlines not to buy back their own stock but instead spend the money on hiring more workers and fixing problems that caused widespread flight delays and cancellations this summer. The unions said Thursday that the four largest U.S. airlines spent more than $39 billion on stock buybacks from 2014 through 2019 rather than making investments to help employees and passengers. The unions asked airlines to pledge to forgo buybacks until until airlines fix their “operational meltdowns” and reach new labor contracts — unions are seeking substantial wage increases. Asked about share repurchases last month, Delta Air Lines CEO Ed Bastian did not answer directly because of the prohibition, but he said the airline has a responsibility to customers, employees, “and importantly to our owners.” A Delta spokesman said Thursday that the company has raised base pay 4% and made profit-sharing payments to employees. When companies approve buybacks, “it does look like I’m choosing to serve shareholders instead of employees,” he said, “but that assumes you would give the raise to employees if you didn’t buy back shares, which probably isn’t the case.” Tharp said if companies believe they need to raise pay to be competitive, they will make that decision regardless of whether they buy back shares.