(Chicago-AP) -- United Airlines stock soared in after-hours trading Wednesday after the carrier's machinists union announced it had agreed to $1.5 billion in cutbacks.
Shares closed down 23 cents at three dollars ten cents in regular trading on the New York Stock Exchange today. But they sold 27 percent higher at $3.95 cents in post-session activity.
United CEO Glenn Tilton says today's agreement offers compelling evidence of United's ability to transform itself through collaboration with its workers.
The more than 37,000 machinists union members will vote next Wednesday on the tentative agreement.
The carrier hopes the cuts are enough to persuade the government to grant a loan guarantee it says is needed to avoid a Chapter Eleven bankruptcy filing.