BTS Releases May Passenger Airline Employment Data;

[admin]

BTS Releases May Passenger Airline Employment Data;
May 2012 Employment Rose 1.6 Percent from May 2011

U.S. scheduled passenger airlines employed 1.6 percent more workers in May 2012 than they did in May 2011, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today. This is the 18th consecutive month that full-time equivalent employee (FTE) levels for the scheduled passenger carriers have been higher than the same month of the previous year (Tables 1, 2). FTE calculations count two part-time employees as one full-time employee.

BTS, a part of the Research and Innovative Technology Administration, reported that the May FTE total of 390,957 for the scheduled passenger carriers was 5,983 more than that of May 2011 (Table 3). The 1.6 percent year-to-year growth rate, although down from the growth rate in the last half of 2011, still reflects the gradual improvement in the industry’s employment following declines that began in July 2008 (Table 2). Historical employment data can be found on the BTS web site.

The five network airlines increased employment by 1.3 percent from May 2011 to May 2012 but two of the five reported fewer FTEs. Delta Air Lines, eliminating redundant positions following its merger with Northwest Airlines, reduced FTEs by 1.6 percent. American Airlines, which filed for bankruptcy in November, reduced FTEs by 2.1 percent. United Airlines reported 82,488 FTEs in May 2012 in a joint report following the merger with Continental Airlines. The combined report was 5,352 more FTEs or 6.9 percent more than the 77,136 FTEs the two airlines reported separately in May 2011 (Table 9). 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.

Among the six low-cost carriers, Allegiant Airlines, Virgin America Airlines, Spirit Airlines and JetBlue Airways reported an increase in FTEs. Frontier Airlines was the only low-cost carrier reporting fewer FTEs. Southwest Airlines reported 46,176 FTEs in May 2012 in a joint report following its merger with AirTran Airways. The combined report was 2,221 more FTEs or 5.1 percent more than the 43,955 FTEs the two airlines reported separately in May 2011 (Table 12). Low-cost airlines are those that the industry recognizes as operating under a low-cost business model, with lower infrastructure and aircraft operating costs.

Among the 15 regional carriers, the six carriers reporting reduced employment levels compared to last year were Colgan Airlines, Mesa Airlines, Horizon Airlines, Republic Airlines, Comair and Executive Airlines. Pinnacle Airlines, after its merger with Mesaba Airlines, also reduced FTEs from the levels of the two airlines prior to the merger (Table 15). Regional carriers typically provide service from small cities, using primarily regional jets to support the network carriers’ hub and spoke systems.

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

Carrier Groups: The five network airlines employed 67.6 percent of the scheduled passenger airline total in May, the six low-cost carriers employed 17.9 percent and the 14 regional carriers employed 13.2 percent (Table 4). The three airlines with the most FTEs in May – United, Delta and American – employed 57.4 percent of the total passenger airline FTEs (Table 6). The 2011 to 2012 increases for the network and low-cost carrier groups result from the relatively consistent profits for most of the industry.

Top employers by group: The newly-merged United employed the most FTEs (82,488) in May among the network airlines, Southwest employed the most FTEs (46,176) among low-cost airlines, and American Eagle Airlines employed the most FTEs (9,415) among regional airlines. Four of the top five employers in the industry are network airlines (Table 6).


Network Airlines
Recent Trend: The network airlines employed 3,351 more FTEs in May 2012 than in May 2011. Three of the five network carriers increased FTEs from May 2011 to May 2012 (Tables 8, 9).

Five-Year Trend: The network airlines employed 19,445 fewer FTEs in May 2012 than in May 2008. American reported the biggest percentage decline in FTE employment from 2008 to 2012, down 11.3 percent, followed by Alaska Airlines down 9.2 percent. May 2012 numbers for United and Delta are not directly comparable to 2008 because of the intervening mergers. United reported 7.3 percent fewer FTEs in May 2012 than United and Continental reported separately in May 2008; Delta reported 1.4 percent fewer FTEs in May 2012 than Delta and Northwest reported separately in May 2008 (Tables 8, 9).

Low-Cost Airlines
Recent Trend: The six low-cost airlines’ FTEs were up 5.3 percent in May 2012 from May 2011. All low-cost airlines except Frontier reported year-to-year increases (Table 12).

Five-Year Trend: The six low-cost carriers reporting employment data in both 2008 and 2012 employed 11.5 percent more FTEs in May 2012 than in May 2008. Virgin America reported the largest percentage increase, up 117.5 percent but Frontier reported a decline. May 2012 numbers for Southwest are not directly comparable to 2008 because of the intervening merger. Southwest reported 9.5 percent more FTEs in May 2012 than Southwest and AirTran reported separately in May 2008 (Table 12).

Regional Airlines
Recent Trend: The regional airlines’ FTEs were down 2.2 percent in May 2012 compared to May 2011. GoJet Airlines and Shuttle America report the largest percentage increases in FTEs from May 2011 to May 2012 among airlines not involved in mergers. Comair and Executive reported the largest percentage decreases. Atlantic Southeast Airlines and ExpressJet Airlines reported separately in May 2011 as did Pinnacle and Mesaba while their reports were combined in May 2012 (Table 15).

Five-Year Trend: The 15 regional carriers reporting employment data in both 2008 and 2012 employed 15.7 percent fewer FTEs in 2012 than in 2008. Comair reported the largest percentage decline followed by Mesa. GoJet Airlines reported the biggest four-year percentage gain. Effective with January 2011 reporting, Republic’s employment numbers include FTEs from Midwest Airlines. Midwest employment data were formerly included in the "Other Airlines" category (Table 15).