June 2007 Passenger Airline: Employment Up 2.3 Percent from June 2006
Washington, DC – August 2007 – U.S. scheduled passenger airlines employed 2.3 percent more workers in June 2007 than in June 2006, the fifth consecutive increase in full-time equivalent employee (FTE) levels for the scheduled passenger carriers from the same month of the previous year, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported Tuesday (August 21). FTE calculations count two part-time employees as one full-time employee. (related tables are linked here)
BTS, a part of the Research and Innovative Technology Administration (RITA), reported that the network airlines, a group that includes most of the industry’s largest passenger carriers, reported more FTEs than the prior year for the second consecutive month after having reduced FTEs continuously since 9/11.
Adding FTEs from June 2006 to June 2007 were network carriers Continental Airlines, Alaska Airlines, Delta Air Lines and US Airways, all of the low-cost carriers except for ATA Airlines, and regional carriers American Eagle Airlines, SkyWest Airlines, ExpressJet Airlines, Horizon Air, Mesa Airlines, Pinnacle Airlines, Shuttle America, Republic Airlines and GoJet Airlines.
Scheduled passenger airlines include network, low-cost, regional and other airlines. Many regional carriers were not required to report employment numbers before 2003, so year-to-year comparisons involving regional carriers, or the total industry, are not available for the years before 2003.
The 413,500 FTEs employed by the industry in June was the most in any month since September 2005. The seven network carriers employed 268,600 FTEs in June, 65.0 percent of the passenger airline total, while low-cost carriers employed 17.7 percent and regional carriers employed 14.5 percent.
American Airlines employed the most FTEs in June among the network carriers, Southwest Airlines employed the most among low-cost carriers, and SkyWest employed the most among regional carriers. Six of the top 10 employers in the industry are network carriers.
Network Airlines
Network carrier FTEs increased 1.3 percent in June 2007 compared to June 2006, the second consecutive monthly gain from the same month of the previous year. Prior to the May increase, the network group had reduced FTEs from the previous year every month since August 2001.
Four network carriers increased FTEs from June 2006 to June 2007. They were: Delta up 8.3 percent, US Airways up 6.0 percent, Continental up 4.5 percent, and Alaska up 1.5 percent. The largest FTE decreases were reported by Northwest Airlines, down 4.4 percent and United Airlines, down 2.6 percent.
Collectively, the seven network carriers reduced their FTE headcount by 15.4 percent, or 48,900 FTEs, from June 2003 to June 2007. Network carrier FTEs dropped from 317,500 to 268,600 during the four-year period.
FTEs at six of the network carriers declined in June 2007 from June 2003. The exception was Continental with a 3.4 percent increase over June 2003. The biggest percentage decline was at Northwest, down 24.6 percent, a reduction of 9,500 FTEs, followed by US Airways at 22.7 percent. The other FTE decreases during that time were United, down 18.6 percent; Delta, down 16.3 percent; American, down 14.7 percent; and Alaska, down 6.1 percent.
Data for US Airways and America West Airlines, now in the process of merging operations, are separately reported – US Airways’ data are included in the network carriers’ category and America West’s in the low-cost carriers’ category. US Airways will begin reporting a single number for the merged companies later this year.
Low-Cost Airlines
Low-cost carrier FTEs rose 5.3 percent in June 2007 compared to June 2006, the ninth consecutive increase after 18 consecutive monthly decreases from the previous year and the third consecutive increase of more than 5 percent.
All the low-cost carriers had FTE increases from June 2006 to June 2007 except ATA, which reported a decline of 9.2 percent. AirTran Airways and Frontier Airlines reported increases of more than 10 percent. For the first time since it began reporting employment data in February 2000, JetBlue Airways did not report a year-over-year increase in its FTE headcount as the number remained unchanged.
Low-cost carrier FTEs were 70,600 in June 2003, 69,400 in June 2006 and 73,100 in June 2007. The rise from 2003 to 2007 was 3.5 percent. The 2003 to 2007 increase would be 10.1 percent if the 2003 employment data are excluded for Independence Air, which discontinued all flights on Jan. 5, 2006.
Employment data for Independence, which changed its business model from a regional to low-cost carrier in mid-2004, have been included with low-cost carriers for 2004 and 2005 for consistency.
Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with fewer infrastructure costs and greater expectations of productivity.
Regional Airlines
Regional carrier FTEs were up 5.1 percent in June 2007 compared to June 2006, the fifth consecutive month with an increase in FTEs of more than 5 percent from the same month of the previous year.
Sky West and Republic reported the largest increases in the group. Sky West, the regional carrier with the most FTEs, employed 23.2 percent more FTEs in June 2007 than June 2006, while Republic employed 82.0 percent more.
Regional carrier FTEs rose from 51,900 in June 2004 to 59,900 in June 2007, an increase of 15.3 percent.
The 10 regional carriers reporting employment data in both 2003 and 2007 employed 19.6 percent more FTEs in June 2007 than in June 2003. Of that group, SkyWest reported the biggest gain, 94.8 percent, followed by ExpressJet at 37.2 percent. Mesaba Airlines, Air Wisconsin, Atlantic Southeast Airlines and Executive Airlines reported fewer FTEs in June 2007 than June 2003.
Regional carriers typically provide service from small cities, using primarily regional jets to support the network carriers’ hub and spoke systems.
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 Aloha Airlines and Hawaiian Airlines in serving the Hawaiian Islands.
Data are compiled from monthly reports filed with BTS by commercial air carriers as of Aug. 10.
Additional airline employment data can be found on the BTS website. BTS has scheduled release of July airline employment data for Sept. 18.
BTS, a part of the Research and Innovative Technology Administration (RITA), reported that the network airlines, a group that includes most of the industry’s largest passenger carriers, reported more FTEs than the prior year for the second consecutive month after having reduced FTEs continuously since 9/11.
Adding FTEs from June 2006 to June 2007 were network carriers Continental Airlines, Alaska Airlines, Delta Air Lines and US Airways, all of the low-cost carriers except for ATA Airlines, and regional carriers American Eagle Airlines, SkyWest Airlines, ExpressJet Airlines, Horizon Air, Mesa Airlines, Pinnacle Airlines, Shuttle America, Republic Airlines and GoJet Airlines.
Scheduled passenger airlines include network, low-cost, regional and other airlines. Many regional carriers were not required to report employment numbers before 2003, so year-to-year comparisons involving regional carriers, or the total industry, are not available for the years before 2003.
The 413,500 FTEs employed by the industry in June was the most in any month since September 2005. The seven network carriers employed 268,600 FTEs in June, 65.0 percent of the passenger airline total, while low-cost carriers employed 17.7 percent and regional carriers employed 14.5 percent.
American Airlines employed the most FTEs in June among the network carriers, Southwest Airlines employed the most among low-cost carriers, and SkyWest employed the most among regional carriers. Six of the top 10 employers in the industry are network carriers.
Network Airlines
Network carrier FTEs increased 1.3 percent in June 2007 compared to June 2006, the second consecutive monthly gain from the same month of the previous year. Prior to the May increase, the network group had reduced FTEs from the previous year every month since August 2001.
Four network carriers increased FTEs from June 2006 to June 2007. They were: Delta up 8.3 percent, US Airways up 6.0 percent, Continental up 4.5 percent, and Alaska up 1.5 percent. The largest FTE decreases were reported by Northwest Airlines, down 4.4 percent and United Airlines, down 2.6 percent.
Collectively, the seven network carriers reduced their FTE headcount by 15.4 percent, or 48,900 FTEs, from June 2003 to June 2007. Network carrier FTEs dropped from 317,500 to 268,600 during the four-year period.
FTEs at six of the network carriers declined in June 2007 from June 2003. The exception was Continental with a 3.4 percent increase over June 2003. The biggest percentage decline was at Northwest, down 24.6 percent, a reduction of 9,500 FTEs, followed by US Airways at 22.7 percent. The other FTE decreases during that time were United, down 18.6 percent; Delta, down 16.3 percent; American, down 14.7 percent; and Alaska, down 6.1 percent.
Data for US Airways and America West Airlines, now in the process of merging operations, are separately reported – US Airways’ data are included in the network carriers’ category and America West’s in the low-cost carriers’ category. US Airways will begin reporting a single number for the merged companies later this year.
Low-Cost Airlines
Low-cost carrier FTEs rose 5.3 percent in June 2007 compared to June 2006, the ninth consecutive increase after 18 consecutive monthly decreases from the previous year and the third consecutive increase of more than 5 percent.
All the low-cost carriers had FTE increases from June 2006 to June 2007 except ATA, which reported a decline of 9.2 percent. AirTran Airways and Frontier Airlines reported increases of more than 10 percent. For the first time since it began reporting employment data in February 2000, JetBlue Airways did not report a year-over-year increase in its FTE headcount as the number remained unchanged.
Low-cost carrier FTEs were 70,600 in June 2003, 69,400 in June 2006 and 73,100 in June 2007. The rise from 2003 to 2007 was 3.5 percent. The 2003 to 2007 increase would be 10.1 percent if the 2003 employment data are excluded for Independence Air, which discontinued all flights on Jan. 5, 2006.
Employment data for Independence, which changed its business model from a regional to low-cost carrier in mid-2004, have been included with low-cost carriers for 2004 and 2005 for consistency.
Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with fewer infrastructure costs and greater expectations of productivity.
Regional Airlines
Regional carrier FTEs were up 5.1 percent in June 2007 compared to June 2006, the fifth consecutive month with an increase in FTEs of more than 5 percent from the same month of the previous year.
Sky West and Republic reported the largest increases in the group. Sky West, the regional carrier with the most FTEs, employed 23.2 percent more FTEs in June 2007 than June 2006, while Republic employed 82.0 percent more.
Regional carrier FTEs rose from 51,900 in June 2004 to 59,900 in June 2007, an increase of 15.3 percent.
The 10 regional carriers reporting employment data in both 2003 and 2007 employed 19.6 percent more FTEs in June 2007 than in June 2003. Of that group, SkyWest reported the biggest gain, 94.8 percent, followed by ExpressJet at 37.2 percent. Mesaba Airlines, Air Wisconsin, Atlantic Southeast Airlines and Executive Airlines reported fewer FTEs in June 2007 than June 2003.
Regional carriers typically provide service from small cities, using primarily regional jets to support the network carriers’ hub and spoke systems.
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 Aloha Airlines and Hawaiian Airlines in serving the Hawaiian Islands.
Data are compiled from monthly reports filed with BTS by commercial air carriers as of Aug. 10.
Additional airline employment data can be found on the BTS website. BTS has scheduled release of July airline employment data for Sept. 18.
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