BTS Releases August Passenger Airline Employment Data;
August 2011 Employment Rose 2.8 Percent from August 2010
U.S. scheduled passenger airlines employed 2.8 percent more workers in August 2011 than they did in August 2010, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported yesterday. This is the ninth consecutive increase in full-time equivalent employee (FTE) levels for the scheduled passenger carriers from 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 August FTE total of 388,523 for the scheduled passenger carriers was 10,688 more than that of August 2010 and the highest employment number since April 2009 (Table 3). This ninth consecutive monthly increase in FTE levels for the scheduled passenger carriers from the same month of the previous year follows declines that began in July 2008 (Table 2). Historic employment data can be found on the BTS web site.
Of the network airlines, only Alaska Airlines and United Airlines decreased employment from August 2010 to August 2011. Continental Airlines reported 9.2 percent more FTEs in August 2011 than in August 2010, the largest increase among the network carriers. Delta Air Lines followed Continental with a 4.0 percent increase (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.
All the low-cost carriers reported more FTEs in August 2011 than in August 2010 except for Allegiant Air, which reported a 4.7 percent decrease. The low-cost carriers with more reported FTEs are Virgin America Airlines, Spirit Airlines, Frontier Airlines, JetBlue Airways, AirTran Airways and Southwest Airlines (Table 12).
Among the regional carriers, the six carriers reporting reduced employment levels compared to last year were Mesa Airlines, Horizon Air, Mesaba Airlines, Comair, Air Wisconsin and Executive Airlines (Table 15).
Scheduled passenger airline categories include network, low-cost, regional and other airlines.
Carrier Groups: The six network airlines employed 67.7 percent of the scheduled passenger airline total in August, the seven low-cost carriers employed 17.4 percent and the 17 regional carriers employed 13.7 percent (Table 4).
Top employers by group: Delta employed the most FTEs in August among the network airlines, Southwest employed the most FTEs among low-cost airlines, and American Eagle Airlines employed the most FTEs among regional airlines. Five of the top six employers in the industry are network airlines (Table 6).
Network Airlines
Recent Trend: The network airlines employed 6,941 more FTEs in August 2011 than in August 2010. All network carriers except Alaska and United increased FTEs from August 2010 to August 2011 (Table 9).
Longer-Trend: The network airlines employed 5,702 fewer FTEs in August 2011 than in August 2007 even though America West's numbers were not combined with US Airways in the network category until October 2007. United reported the biggest percentage decline in FTE employment from 2007 to 2011, down 16.6 percent, followed by American Airlines, down 9.3 percent. August 2011 numbers for Delta and US Airways are not comparable to 2007 because of the intervening mergers (Tables 8, 9).
Low-Cost Airlines
Recent Trend: Low-cost airline FTEs were up 5.7 percent in August 2011 from August 2010, the largest year-to-year increase since September 2007 . All low-cost airlines except Allegiant reported year-to-year increases (Table 12).
Longer Trend: The seven low-cost carriers reporting employment data in both 2007 and 2011 employed 12.4 percent more FTEs in August 2011 than in August 2007. Virgin America reported the largest percentage increase, up 290.5 percent but Frontier reported a decline (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
Recent Trend: Regional airline FTEs were up 2.1 percent in August 2011 compared to August 2010. Colgan Airlines and Shuttle America reported the largest percentage increases. Comair and Mesa reported the largest percentage decreases (Table 15).
Longer Trend: The 16 regional carriers reporting employment data in both 2007 and 2011 employed 12.2 percent fewer FTEs in 2011 than in 2007. Comair reported the largest percentage decline followed by Mesa and ExpressJet Airlines (Table 15).
Compass Airlines reported the biggest four-year percentage gain followed by Republic Airlines. Effective with January 2010 reporting, Republic's employment numbers include FTEs from Midwest Airlines. Midwest employment data were formerly included in the "Other Airlines" category (Table 15).
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.
Beginning with October 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.
The Other Carrier category generally reflects those airlines that operate within specific niche markets, such as Hawaiian Airlines serving the Hawaiian Islands and the Far East.
Data are compiled from monthly reports filed with BTS by commercial air carriers as of Oct. 6. Additional airline employment data can be found on the BTS website. BTS has scheduled release of September passenger airline employment data for Nov. 16.