AIRLINES ARE HIRING

BTS Releases December Passenger Airline Employment Data

December 2010 Employment Rose 0.2 Percent from December 2009

U.S. scheduled passenger airlines employed 0.2 percent more workers in December 2010 than they did in December 2009, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported last week. Prior to November, during which no change in employment was reported, there were 28 consecutive months of decreases in full-time equivalent employee (FTE) levels for the scheduled passenger carriers from the same month of the previous year. 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 December FTE total of 379,651 for the scheduled passenger carriers was 698 more than that of December 2009 (Table 3). Historic employment data can be found on the BTS web site.

Five network airlines - American Airlines, US Airways, Alaska Airlines, Continental Airlines and United Airlines - decreased employment from December 2009 to December 2010.  The sixth network carrier, Delta Air Lines, after completing its merger with Northwest Airlines, is reporting combined employment numbers in 2010 and reported 1.7 percent more FTEs in December 2010 than the combined totals of both carriers for December 2009 (Table 9). Network airlines operate a significant portion of their flights using at least one hub where connections are made for flights to down-line destinations or spoke cities.

All seven low-cost carriers reported more FTEs in December 2010 than in December 2009. They are Virgin America Airlines; Frontier Airlines; Spirit Airlines; Allegiant Air; JetBlue Airways; AirTran Airways; and Southwest Airlines (Table 12).

Regional carriers Lynx Airlines, Republic Airlines, Mesa Airlines, Horizon Air, Mesaba Airlines, Comair, and GoJet Airlines reported reduced employment levels compared to last year (Table 15).

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

The six network airlines employed 256,834 FTEs in December, 67.7 percent of the passenger airline total, while seven low-cost carriers employed 17.0 percent and 18 regional carriers employed 13.8 percent (Table 4). 

Delta employed the most FTEs in December among the network airlines, Southwest employed the most FTEs among low-cost airlines, and American Eagle Airlines employed the most FTEs among regional airlines. Six of the top 10 employers in the industry are network airlines (Table 6).

Beginning with December 2007 data, US Airways' numbers are combined with numbers for America West Airlines in the network category.  For previous months, America West's numbers were included with the low-cost airlines.

Network Airlines

FTEs at the group of six network airlines decreased 0.5 percent in December 2010 compared to December 2009 (Table 7). The network airlines employed 1,314 fewer FTEs in December 2010 than in December 2009 (Table 8). Delta and Northwest reported separately in December 2009 while their reports were combined in December 2010.

Within the group, all network carriers except Delta decreased FTEs from December 2009 to December 2010: Alaska, 3.4 percent; Continental, 2.2 percent; American, 1.4 percent; US Airways, 1.1 percent; and United, 0.8 percent. Delta increased FTEs by 1.7 percent compared to total Delta and Northwest FTEs for December 2009 (Table 9).

The network airlines employed 6,062 fewer FTEs in December 2010 than in 2006 even though America West's numbers were not combined with US Airways in the network category until December 2007 (Table 8).

The biggest percentage decline in FTE employment from 2006 to 2010 was at United, down 16.7 percent, a reduction of 8,731 FTEs, followed by American, down 9.9 percent. December 2010 numbers for Delta and US Airways are not comparable to 2006 because of the intervening mergers (Table 9).

Low-Cost Airlines

Low-cost airline FTEs were up 3.3 percent in December 2010 from December 2009 (Tables 10, 11).

All seven low-cost airlines reported year-to-year increases: Virgin America, 24.6 percent; Spirit, 14.5 percent; Frontier, 14.3 percent; JetBlue, 4.0 percent; Allegiant, 2.8 percent; AirTran, 1.9 percent and Southwest, 0.5 percent (Table 12).

The six low-cost carriers reporting employment data in both 2006 and 2010 employed 10.3 percent more FTEs in December 2010 than in December 2006.  Allegiant reported the largest percentage increase, up 90.2 percent (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.

Regional Airlines

Regional airline FTEs were down 0.3 percent in December 2010 compared to December 2009 (Table 13).

Lynx, down 71.2 percent and Republic, down 21.3 percent, reported the largest decreases in the regional group. Colgan Airlines, up 22.3 percent; and Compass Airlines, up 7.0 percent, reported the largest increases in the group (Table 15).

The 15 regional carriers reporting employment data in both 2006 and 2010 employed 12.0 percent fewer FTEs in 2010 than in 2006. Comair reported the largest percentage decline, down 60.0 percent, followed by Mesa, down 36.9 percent, and Atlantic Southeast Airlines, down 34.4 percent (Table 15).

Republic reported the biggest four-year gain, 214.2 percent, followed by GoJet at 77.6 percent (Table 15). Effective with December 2009 reporting, Republic's employment numbers include FTE's from Midwest Airlines. Midwest employment data were formerly included in the "Other Airlines" category.

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 Continental Micronesia in the Southwest Pacific and Hawaiian Airlines serving the Hawaiian Islands.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of Feb. 14. Additional airline employment data can be found on the BTS website at

http://www.bts.gov/programs/airline_information/number_of_employees/ . 

BTS has scheduled release of January passenger airline employment data for March 15.

For data tables, see Passenger Airline Employment