BTS Releases July Passenger Airline Employment Data;

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BTS Releases July Passenger Airline Employment Data;
July 2012 Employment Rose 0.8 Percent from July 2011


U.S. scheduled passenger airlines employed 390,032 workers in July 2012, 0.8 percent more than in July 2011, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today. Scheduled passenger airline categories include network, low-cost, regional and other airlines. This is the 20th consecutive month that full-time equivalent (FTE) employee levels for U.S. scheduled passenger carriers have been higher than the same month of the previous year (Tables 1, 2). BTS methodology considers two part-time employees as one full-time employee.

BTS, a part of the Research and Innovative Technology Administration, reported that the July FTE for scheduled passenger carriers totaled 390,032, or 3,189 more than in July 2011 (Table 3). The 0.8 percent year-over-year improvement, although down from the annual increases seen in the last half of 2011, still reflects a gradual increase in the industry’s employment following the decline that began in July 2008 (Table 2). Historical employment data can be found on the BTS web site.

While overall annual employment for the five network airlines increased, two of the five reported fewer FTEs for the period. Delta Air Lines, eliminating positions following its merger with Northwest Airlines, reduced FTEs by 2.4 percent. American Airlines, which filed for bankruptcy in November, reduced FTEs by 3.5 percent. United Airlines reported 82,617 FTEs in July 2012, reflecting its merger with Continental Airlines. This was 5,837, or 7.6 percent, more FTEs than the 76,780 the two airlines reported separately in July 2011 (Table 9).

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 45,953 FTEs in July 2012 in a joint report following its merger with AirTran Airways. The combined report was 1,275, or 2.9 percent, more than the 44,678 FTEs the two airlines reported separately in July 2011 (Table 12). Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average.

Among the 15 regional carriers, eight carriers reported reduced employment levels compared to last year: Colgan Airlines, Mesa Airlines, Horizon Airlines, Republic Airlines, Comair, SkyWest Airlines, Pinnacle Airlines and Executive Airlines. The total number of FTEs reported by Pinnacle Airlines – which recently merged with Mesaba Airlines – was below the total number of FTEs reported individually by 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.

Carrier Groups: The five network airlines employed 67.6 percent of the total number of FTEs employed by all scheduled passenger airlines in July, the six low-cost carriers employed 17.9 percent and the 15 regional carriers employed 13.2 percent (Table 4). The three airlines with the most FTEs in July – United, Delta and American – employed 57.5 percent of the total passenger airline FTEs (Table 6).

Top employers by group: The newly-merged United employed the most FTEs (82,617) in July among the network airlines, Southwest employed the most FTEs (45,953) among low-cost airlines, and American Eagle Airlines employed the most FTEs (9,888) 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 1,975 more FTEs in July 2012 than in July 2011. Three of the five network carriers increased FTEs from July 2011 to July 2012 (Tables 8, 9).

Five-Year Trend: The network airlines employed 16,564 fewer FTEs in July 2012 than in July 2008. American reported the biggest percentage decline in FTE employment from 2008 to 2012, 12.1 percent, followed by Alaska Airlines, down 8.5 percent. July 2012 numbers for United and Delta are not directly comparable to 2008 because of the intervening mergers. United reported 5.5 percent fewer FTEs in July 2012 than United and Continental reported separately in July 2008; Delta reported 0.2 percent more FTEs in July 2012 than Delta and Northwest reported separately in July 2008 (Tables 8, 9).

Low-Cost Airlines
Recent Trend: The six low-cost airlines’ FTEs were up 3.5 percent in July 2012 from July 2011. All low-cost airlines except Frontier reported year-over-year increases (Table 12).

Five-Year Trend: The six low-cost carriers reporting employment data in both 2008 and 2012 employed 11.7 percent more FTEs in July 2012 than in July 2008. Virgin America reported the largest percentage increase (up 104.3 percent), while Frontier reported a decline. July 2012 numbers for Southwest are not directly comparable to 2008 because of the intervening merger. Southwest reported 8.2 percent more FTEs in July 2012 than Southwest and AirTran reported separately in July 2008 (Table 12).

Regional Airlines
Recent Trend: Regional airlines reported a 3.3 percent improvement in FTE employment in July 2012 compared to July 2011. GoJet Airlines and Shuttle America report the largest percentage increases in FTEs from July 2011 to July 2012 among airlines not involved in mergers. Comair and Colgan reported the largest percentage decreases. Atlantic Southeast Airlines and ExpressJet Airlines reported separately in July 2011, as did Pinnacle and Mesaba, while their reports were combined in July 2012 as a result of mergers (Table 15).

Five-Year Trend: The 15 regional carriers reporting employment data in both 2008 and 2012 employed 15.2 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).

Reporting Notes

Airlines that operate at least one aircraft with the capacity to carry combined passengers, cargo and fuel of 18,000 pounds – the payload factor – must report monthly employment statistics.

The “Other Carrier” category generally reflects those airlines that operate within specific niche markets such as Hawaiian Airlines serving the Hawaiian Islands.