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ARE AIRLINES CUTTING BACK?

BTS Releases September Passenger Airline Employment Data;

September 2012 Employment Down 0.6 Percent from September 2011

U.S. scheduled passenger airlines employed 386,372 workers in September 2012, 0.6 percent less than in September 2011, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week. Scheduled passenger airline categories include network, low-cost, regional and other airlines. This was the first time since October 2010, a period of 22 months, that full-time equivalent (FTE) employee levels for U.S. scheduled passenger carriers have been lower than the same month of the previous year.

BTS, a part of the Research and Innovative Technology Administration, reported that the September 2012 FTE total of 386,372 for scheduled passenger carriers, 2,269 fewer than in September 2011, is the lowest monthly total since June 2011. Historical employment data can be found on the BTS web site.

The five network airlines that collectively employ two-thirds of the scheduled passenger airline FTEs reported 0.8 percent fewer FTEs in September, the second consecutive decline for the group. Delta Air Lines, eliminating positions following its merger with Northwest Airlines, reduced FTEs by 1.8 percent from September 2011. American Airlines, which filed for bankruptcy in November 2011, reduced FTEs by 4.4 percent. United Airlines reported a post-merger total of 82,137 FTEs in September 2012, 1,933 or 2.4 percent more FTEs than the 80,204 United and Continental Airlines reported separately in September 2011. 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 46,048 FTEs in September 2012 in a joint report following its merger with AirTran Airways. The combined total was 988, or 2.2 percent, more than the 45,060 FTEs the two airlines reported separately in September 2011. Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average.

See Passenger Airline Employment press release for summary tables and additional data.

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