BTS Releases June Passenger Airline Employment Data;

June 2012 Employment Rose 1.4 Percent from June 2011

U.S. scheduled passenger airlines employed 1.4 percent more workers in June 2012 than they did in June 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 19th consecutive month that full-time equivalent employee (FTE) levels for scheduled passenger carriers have been higher than 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 June FTE total of 390,923 for scheduled passenger carriers was 5,540 more than that in June 2011 (Table 3). The 1.4 percent year-over-year growth rate, although down from the growth rates achieved in the last half of 2011, still reflects a gradual increase in the industry's employment following declines that began in July 2008 (Table 2). Historical employment data can be found on the BTS web site.

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. The five network airlines as a group increased employment by 1.4 percent from June 2011 to June 2012 but two of the five reported fewer FTEs. Delta Air Lines, eliminating positions following its merger with Northwest Airlines, reduced FTEs by 1.0 percent. American Airlines, which filed for bankruptcy in November, reduced FTEs by 2.9 percent. United Airlines reported 82,565 FTEs in June 2012 in a joint report with Continental Airlines following the merger of the two airlines. This was 5,753, or 7.5 percent, more FTEs than the 76,812 the two airlines reported separately in June 2011 (Table 9).

Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average. 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 46,128 FTEs in June 2012 in a joint report following its merger with AirTran Airways. The combined report was 1,729 more FTEs or 3.9 percent more than the 44,399 FTEs the two airlines reported separately in June 2011 (Table 12).

Regional carriers typically provide service from small cities, using primarily regional jets to support the network carriers' hub and spoke systems. Among the 15 regional carriers, six carriers reported reduced employment levels compared to last year: Colgan Airlines, Mesa Airlines, Horizon Airlines, Republic Airlines, Comair 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).

Carrier Groups: The five network airlines employed 67.6 percent of the total number of FTEs employed by all scheduled passenger airlines in June, the six low-cost carriers employed 17.9 percent and the 14 regional carriers employed 13.2 percent (Table 4). The three airlines with the most FTEs in June - United, Delta and American - employed 63.9 percent of the total passenger airline FTEs (Table 6).

Top employers by group: The newly-merged United employed the most FTEs (82,565) in June among the network airlines, Southwest employed the most FTEs (46,128) among low-cost airlines, and American Eagle Airlines employed the most FTEs (9,839) 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 3,612 more FTEs in June 2012 than in June 2011. Three of the five network carriers increased FTEs from June 2011 to June 2012 (Tables 8, 9).

Five-Year Trend: The network airlines employed 18,498 fewer FTEs in June 2012 than in June 2008. American reported the biggest percentage decline in FTE employment from 2008 to 2012, 11.7 percent, followed by Alaska Airlines, down 8.9 percent. June 2012 numbers for United and Delta are not directly comparable to 2008 because of the intervening mergers. United reported 6.5 percent fewer FTEs in June 2012 than United and Continental reported separately in June 2008; Delta reported 1.1 percent fewer FTEs in June 2012 than Delta and Northwest reported separately in June 2008 (Tables 8, 9).

Low-Cost Airlines

Recent Trend: The six low-cost airlines' FTEs were up 4.0 percent in June 2012 from June 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 11.1 percent more FTEs in June 2012 than in June 2008. Virgin America reported the largest percentage increase (up 105.6 percent), while Frontier reported a decline. June 2012 numbers for Southwest are not directly comparable to 2008 because of the intervening merger. Southwest reported 8.4 percent more FTEs in June 2012 than Southwest and AirTran reported separately in June 2008 (Table 12).

Regional Airlines

Recent Trend: The regional airlines' FTEs were down 2.5 percent in June 2012 compared to June 2011. GoJet Airlines and Shuttle America report the largest percentage increases in FTEs from June 2011 to June 2012 among airlines not involved in mergers. Comair and Executive reported the largest percentage decreases. Atlantic Southeast Airlines and ExpressJet Airlines reported separately in June 2011 as did Pinnacle and Mesaba while their reports were combined in June 2012 as a result of mergers (Table 15).

Five-Year Trend: The 15 regional carriers reporting employment data in both 2008 and 2012 employed 15.3 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.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of Aug. 15. Additional airline employment data can be found on the BTS website. BTS has scheduled release of July 2012 passenger airline employment data for Sept. 28.

Source: Bureau of Transportation Statistics                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.                                         

** Includes network, low-cost, regional and other carriers. Other Carriers generally operate within specific niche markets. They are: Hawaiian Airlines and Sun Country Airlines.                         

Note: Percent changes based on numbers prior to rounding.                                          

Note: See Table 2 for all passenger airlines, Table 7 for Network, Table 10 for Low-Cost and Table 13 for Regional.

Source: Bureau of Transportation Statistics                                        

* Includes network, low-cost, regional and other carriers.                                    

** Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.                                        

Note: Percent changes based on numbers prior to rounding.                                            

Source: Bureau of Transportation Statistics                                                                            

* Includes network, low-cost, regional and other carriers.                                                

** Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.                                                                            

R: Revised with updated filing by Mesa Airlines.                                                            

Note: Percent changes based on numbers prior to rounding.

Source: Bureau of Transportation Statistics                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.                                                                             

** Includes network, low-cost, regional and other carriers.                                               

Source: Bureau of Transportation Statistics                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.                                         

** Includes network, low-cost, regional and other carriers.

Source: Bureau of Transportation Statistics                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.                                         

** See Table 9 for Network, Table 12 for Low-Cost and Table 15 for Regional                                            

Source: Bureau of Transportation Statistics                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Source: Bureau of Transportation Statistics                                                                            

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.                                                                             

Note: Percent changes based on numbers prior to rounding.

Source: Bureau of Transportation Statistics                                                                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee

** Delta Air Lines and Northwest Airlines merged and began reporting combined numbers in January 2010.

*** United Airlines and Continental Airlines merged and began reporting combined numbers in January 2012. Note: Percent changes based on numbers prior to rounding.

Source: Bureau of Transportation Statistics                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Source: Bureau of Transportation Statistics                                                                            

Note: Percent changes and averages based on numbers prior to rounding.                                             

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** ATA Airlines ceased operations on April 3, 2008 and stopped reporting employment data effective in March.

***SkyBus stopped reporting employment data effective in April 2008 resulting from its bankruptcy filing.

Source: Bureau of Transportation Statistics                                                                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** Southwest Airlines and AirTran Airways merged and began reporting combined numbers in April 2012. 

Note: Percent changes based on numbers prior to rounding.

Source: Bureau of Transportation Statistics                                        

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Source: Bureau of Transportation Statistics                                                                            

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** Lynx Airlines began reporting in February 2008. Colgan Airlines began reporting in April 2008. Trans States Airlines no longer met reporting requirements beginning in April 2008.

Note: Percent changes based on numbers prior to rounding.