June 2013 Employment Down 2.4 Percent From June 2012

U.S. scheduled passenger airlines employed 381,441 workers in June 2013, 2.4 percent fewer than in June 2012, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported Tuesday. June was the 10th consecutive month that full-time equivalent (FTE) employment for U.S. scheduled passenger carriers was below that of the same month of the previous year.

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that the June 2013 FTE total for scheduled passenger carriers was 9,482 fewer than in June 2012. Scheduled passenger airline categories include network, low-cost, regional and other airlines.

The 2.4 percent decline in FTEs in June 2013 from June 2012 was primarily due to two factors.  First, American Airlines, the industry’s third largest employer, filed for bankruptcy and reduced FTEs by 8.4 percent year-to-year. Second, network carriers have responded to increased fuel costs by reducing contracts with the regional airlines that operate less fuel-efficient regional jets.  Regional airline employment is down 4.4 percent year-to-year.

The five network airlines that collectively employ two-thirds of the scheduled passenger airline FTEs reported 2.8 percent fewer FTEs in June 2013 than in June 2012, the 11th consecutive month with a decline from the same month of the previous year. Delta Air Lines reduced FTEs by 3.9 percent from June 2012, American Airlines by 8.4 percent, and United Airlines by 0.1 percent. US Airways reported 2.1 percent more FTEs, while Alaska Airlines increased FTEs by 3.7 percent from June 2012. Network airlines operate a significant portion of flights using at least one hub where connections are made for flights to down-line destinations or spoke cities.

Three of the six low-cost carriers - Allegiant Airlines, Spirit Airlines and JetBlue Airways - reported an increase in FTEs from June 2012.  Southwest Airlines, Virgin America and Frontier Airlines reported FTEs declined from a year earlier. Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average.

(Chart provided by BTS)

FMI: www.rita.dot.gov/bts