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BTS Releases March Passenger Airline Employment Data

[May 20, 2009]

BTS Releases March Passenger Airline Employment Data

May 20, 2009 (Transportation Department Documents and Publications/ContentWorks via COMTEX) -- BTS 25-09 Contact: Dave Smallen Tuesday, May 19, 2009 Tel.: (202) 366-5568 BTS Releases March Passenger Airline Employment Data U.S. scheduled passenger airlines employed 5.7 percent fewer workers in March 2009 than in March 2008, the ninth consecutive decrease 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 today (Table 1). FTE calculations count two part-time employees as one full-time employee.

All the network airlines decreased employment from March 2008 to March 2009 (Table 9) as did low-cost carriers AirTran Airways, Frontier Airlines and Spirit Airlines (Table 12). Regional carriers American Eagle Airlines, SkyWest Airlines, ExpressJet Airlines, Comair, Atlantic Southeast Airlines, Pinnacle Airlines, Horizon Air, Mesa Airlines, Executive Airlines, and PSA Airlines also reported reduced employment levels compared to last year (Table 15).

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

The seven network carriers employed 264,800 FTEs in March, 67.5 percent of the passenger airline total, while low-cost carriers employed 16.1 percent and regional carriers employed 14.6 percent (Table 4).

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

America West Airlines and US Airways now operate under a single certificate. Joint reporting began with October 2007 data. Before October 2007, US Airways' employment numbers were included with the network airlines, while America West's numbers were included with the low-cost airlines. Beginning with October 2007 data, US Airways' numbers are combined with America West's numbers in the network airlines category.

Network Airlines FTEs at the group of seven network carriers decreased 6.7 percent in March 2009 compared to March 2008, the seventh monthly decrease from the same month of the previous year after 16 consecutive months of year-over-year growth. Prior to an increase in May 2007, the network group had reduced FTEs from the previous year every month since September 2001 (Table 7).

Within the group, all network carriers decreased FTEs from March 2008 to March 2009: United Airlines, 13.4 percent; Delta Air Lines, 7.0 percent; Northwest Airlines, 6.8 percent; Alaska Airlines, 5.7 percent; US Airways, 4.9 percent; American, 4.3 percent; and Continental Airlines, 3.5 percent (Table 9).

FTEs at four network carriers declined during the four years from March 2005 to March 2009. The biggest percentage decline was at Northwest, down 27.7 percent, a reduction of 10,600 FTEs, followed by United at 18.2 percent. The other FTE decreases during that time were Delta, down 16.0 percent, and American, down 7.6 percent. The increases were at Continental, 9.1 percent; Alaska, 2.6 percent; and the recently combined US Airways, 31.7 percent (Table 9).

Network carriers 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.

Low-Cost Airlines Low-cost carrier FTEs increased 0.1 percent in March from March 2008. This was the first month over month employment increase since the America West and US Airways reports were combined in October 2007 following five consecutive monthly decreases. Low-cost carrier FTEs had decreased each month for 12 consecutive months through September compared to the same month of the previous year, but the previous year numbers included America West while the recent data did not (Tables 10, 11).

Four low-cost carriers reported year-to-year increases: Virgin America, 56.5 percent; Allegiant Airlines, 13.6 percent; Southwest, 4.8 percent and JetBlue Airways, 0.1 percent. AirTran, Spirit and Frontier reported year-to-year FTE decreases. SkyBus stopped reporting in April 2008 but employed 445 FTEs in March 2008 (Table 12).

Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with lower infrastructure and aircraft operating costs.

Regional Airlines Regional carrier FTEs were down 4.9 percent in March 2009 compared to March 2008 (Table 13).

ExpressJet, down 29.2 percent, and PSA, down 15.6 percent, reported the largest decreases in the regional group. Compass Airlines, up 77.2 percent, and GoJet Airlines, up 36.1 percent, reported the largest increases in the group (Table 15).

Regional carrier FTEs rose from 56,400 in March 2005 to 57,300 in March 2009, an increase of 1.7 percent (Table 14).

The 12 regional carriers reporting employment data in both 2005 and 2009 employed 6.1 percent fewer FTEs in March 2009 than in March 2005. PSA reported the largest percentage decline, down 43.6 percent, followed by Air Wisconsin, down 31.1 percent, and Atlantic Southeast, down 23.6 percent. American Eagle, ExpressJet, Comair, Mesa and Executive also reported fewer FTEs in March 2009 than March 2005 (Table 15).

Pinnacle Airlines reported the biggest four-year gain, 22.1 percent, followed by SkyWest Airlines at 21.3 percent and Mesaba Airlines at 18.8 percent. Horizon also reported more FTEs in March 2009 than March 2005 (Table 15).

Effective with April 2008 reporting, Trans States Airlines no longer met the reporting requirements for filing monthly airline employment data. Trans States reported 1,326 FTEs in March 2008.

Regional carrier Colgan Airlines began reporting employment data in April 2008. Colgan reported 1,271 FTEs in March (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.

The Other Carrier category generally reflects those airlines that operate within specific niche markets, such as Continental Micronesia and Hawaiian Airlines serving the Hawaiian Islands.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of May 13. Additional airline employment data can be found on the BTS website at http://www.bts.gov/programs/airlineinformation/numberofemployees/. BTS has scheduled release of April airline employment data for June 16.

-end- U.S. Department of Transportation * 1200 New Jersey Avenue, SE * Washington DC 20590 * 202-385-HELP (4357)

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