As Airlines Fly Less, They're Employing Fewer People

The tide has finally turned. After reporting 17 consecutive months of increased employee ranks at the nation's airlines, the US Department of Transportation's Bureau of Transportation Statistics announced Tuesday scheduled passenger airlines employed 0.8 percent fewer workers in July 2008 than in July 2007.

That's the first decrease in full-time equivalent employee (FTE) levels for US scheduled passenger carriers from the same month of the previous year since January 2007... and as more carriers slash unprofitable routes and furlough a commensurate number of employees, it's likely the first of many declining months we're going to see for awhile.

Of the network airlines, United Airlines, Delta Air Lines and Northwest Airlines decreased employment from July 2007 to July 2008, as did low-cost carriers AirTran Airways and Frontier Airlines. Regional carriers SkyWest Airlines, ExpressJet Airlines, Horizon Air, Mesa Airlines, Executive Airlines, and PSA Airlines also reported reduced employment levels compared to last year.

Scheduled passenger airlines include network, low-cost, regional and other airlines.

The seven network carriers employed 280,293 FTEs in July, 68.2 percent of the passenger airline total, while low-cost carriers employed 14.9 percent and regional carriers also employed 14.8 percent. American Airlines employed the most FTEs in July among the network carriers, Southwest Airlines employed the most among low-cost carriers, and American Eagle employed the most among regional carriers.

In better news, FTEs at the seven network carriers increased 4.3 percent in July 2008 compared to July 2007, the 15th consecutive monthly gain from the same month of the previous year. Prior to an increase in July 2007, the network group had reduced FTEs from the previous year every month since September 2001... but that trend is not likely to last, either.

Three network carriers decreased FTEs from July 2007 to July 2008: Delta, 1.6 percent, United, 1.5 percent, and Northwest, 0.4 percent. The year-to-year increases were US Airways 59.9 percent, Alaska Airlines 2.0 percent, Continental Airlines 1.9 percent, and American Airlines 0.3 percent. US Airways' July 2007 FTE number was reported prior to joint reporting with America West.

Among low-cost airlines, AirTran and Frontier Airlines reported FTE decreases in 2008 from July 2007, while three low-cost carriers reported year-to-year increases: JetBlue Airways, 8.5 percent, Spirit Airlines 5.8 percent and Southwest Airlines, 2.2 percent.

Regional carrier FTEs were up 1.4 percent in July 2008 compared to July 2007.

FMI: www.bts.gov/programs/airline_information/number_of_employees