August 2009 Passenger Airline Employment Down 5.5 Percent from August 2008

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Contact BTS 49-09 Dave Smallen 202-366-5568

Tuesday, October 20, 2009 - U.S. scheduled passenger airlines employed 5.5 percent fewer workers in August 2009 than in August 2008, the 14th 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 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 384,396 for the scheduled passenger carriers was 22,429 below August 2008 and the lowest total for any month since 1993 (Table 3). Historical employment data can be found on the BTS web site at http://www.bts.gov/airline_employment/src/index.xml.

All the network airlines decreased employment from August 2008 to August 2009 (Table 9) as did low-cost carriers Southwest Airlines, Spirit Airlines and Frontier Airlines (Table 12). Regional carriers American Eagle Airlines, SkyWest Airlines, ExpressJet Airlines, Comair, Atlantic Southeast Airlines, Pinnacle Airlines, Horizon Air, Mesa Airlines, Air Wisconsin Airlines, Colgan 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 airlines employed 258,569 FTEs in August, 67.3 percent of the passenger airline total, while low-cost carriers employed 16.3 percent and regional carriers employed 14.6 percent (Table 4). 

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

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.

Network Airlines

FTEs at the group of seven network airlines decreased 6.4 percent in August 2009 compared to August 2008, the 12th consecutive monthly decrease from the same month of the previous year.  The network airlines employed 17,549 fewer FTEs in August 2009 than in August 2008 (Table 8).

Within the group, all network carriers decreased FTEs from August 2008 to August 2009: Northwest Airlines, 11.9 percent; United Airlines, 8.4 percent; Delta Air Lines, 2.8 percent; American, 6.5 percent; Alaska Airlines, 6.2 percent; US Airways, 5.1 percent; and Continental Airlines, 4.6 percent (Table 9).

FTEs at four network carriers declined during the four years from August 2005 to August 2009. The network airlines employed 19,204 fewer FTEs in August 2009 than in August 2005 even though America West's numbers were not combined with US Airways in the network category until October 2007 (Table 8).

The biggest percentage decline in FTE employment was at Northwest, down 23.3 percent, a reduction of 7,706 FTEs, followed by United at 15.4 percent.  The other 2005 to 2009 FTE decreases were Delta, down 11.7 percent, and American, down 10.7 percent. The increases were at Continental, 4.0 percent; Alaska, 4.5 percent; and the combined US Airways, 43.8 percent (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.

Low-Cost Airlines

Low-cost airline FTEs decreased 0.2 percent in August from August 2008. This was the first monthly decrease following six months of monthly employment increases since the America West and US Airways reports were combined in October 2007. Low-cost airline 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 airlines reported year-to-year increases: Virgin America, 26.0 percent; Allegiant Airlines, 14.6 percent; AirTran Airways, 0.9 percent; and JetBlue Airways, 5.6 percent.  Southwest, Spirit and Frontier reported year-to-year FTE decreases (Table 12).

The six low-cost carriers reporting employment data in both 2005 and 2009 employed 17.6 percent more FTEs in August 2009 than in August 2005.  Allegiant reported the largest percentage increase, up 227.1 percent.  Spirit reported the largest decrease, down 9.8 percent.  This was the only four year decrease within the low-cost group (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 6.8 percent in August 2009 compared to August 2008, the 12th consecutive month with a decline from the same month of the previous year (Table 13).

ExpressJet, down 23.5 percent, and Atlantic Southeast, down 18.4 percent, reported the largest decreases in the regional group. Republic Airlines, up 25.7 percent, and GoJet Airlines, up 31.6 percent, reported the largest increases in the group (Table 15).

Regional carrier FTEs declined 8.4 percent from August 2005 to August 2009 (Table 14).  

The 13 regional carriers reporting employment data in both 2005 and 2009 employed 8.4 percent fewer FTEs in August 2009 than in August 2005.  PSA reported the largest percentage decline, down 41.6 percent, followed by Atlantic Southeast, down 34.5 percent, and Mesa Airlines, down 20.3 percent (Table 15).

Shuttle America Airlines reported the biggest four-year gain, 134.9 percent, followed by Mesaba Airlines at 16.5 percent and SkyWest at 8.7 percent (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 Oct. 9. 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 September airline employment data for Nov. 17.

Table 1: Change from Previous Month in Passenger Airline Full-time Equivalent Employees* by Airline Group

Most recent 13 months - percent change compared to same month of the previous year

Excel | CSV

Source: Bureau of Transportation Statistics

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

** US Airways' employment numbers were included with the network airlines prior to October 2007 while America West's numbers were included with the low-cost airlines.  Beginning with October 2007, US Airways' numbers are combined with America West's numbers in the network category. 

*** Includes network, low-cost, regional and other carriers.  Other Carriers generally operate within specific niche markets.  They are: Casino Express Airlines, Continental Micronesia, Hawaiian Airlines, Midwest Airlines, Sun Country Airlines and USA3000 Airlines. 

Note: Percent changes based on numbers prior to rounding.

Table 2: Change from Previous Year in Total Passenger Airline* Full-time Equivalent Employees**

Percent change compared to same month the previous year

Excel | CSV

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.

Table 3: Total Passenger Airline* Full-time Equivalent Employees** by Month

Numbers in thousands (000's)

Excel | CSV

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 and averages based on numbers prior to rounding.

Table 4: Airline Group Full-time Equivalent Employees*, August 2005-2009

FTE numbers in thousands (000's)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** America West's employment numbers were included with the low-cost airlines prior to October 2007.  Beginning with October 2007, America West's numbers are combined with US Airways numbers in the network category.

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

Note: Percent changes based on numbers prior to rounding.

Table 5: Year-to-Year Change in Airline Group Full-time Equivalent Employees*, August 2005-2009

Percent change in FTEs from the same month of the previous year

Excel | CSV

Source: Bureau of Transportation Statistics

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

** America West's employment numbers were included with the low-cost airlines prior to October 2007.  Beginning with October 2007, America West's numbers are combined with US Airways numbers in the network category.

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

Note: Percent changes based on numbers prior to rounding.

Table 6: Top 10 Airlines, August 2009

Ranked by Number of Full-Time Equivalent Employees*

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Source: Bureau of Transportation Statistics

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

Table 7: Network Airlines - Year-to-Year Change in Full-time Equivalent Employees* from the Previous Year**

Percent change compared to same month the previous year

Excel | CSV

Source: Bureau of Transportation Statistics

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

** US Airways' employment numbers were included with the network airlines prior to October 2007 while America West's numbers were included with the low-cost airlines.  Beginning with October 2007, US Airways' numbers are combined with America West's numbers in the network category. 

Note: Percent changes based on numbers prior to rounding.

Table 8: Network Airlines Full-time Equivalent Employees* by Month**

Numbers in thousands (000's)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** US Airways' employment numbers were included with the network airlines prior to October 2007 while America West's numbers were included with the low-cost airlines.  Beginning with October 2007, US Airways' numbers are combined with America West's numbers in the network category. 

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

Table 9: By Network Airline: Full-time Equivalent Employees*, August 2005-2009**

(FTEs for August of each year.  Ranked by August 2009 FTEs)

Numbers in thousands (000's)

Excel | CSV

Source: Bureau of Transportation Statistics

Note: Detail may not add to total due to rounding

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

** Beginning with October 2007, US Airways' numbers are combined with America West Airlines' numbers in the network category.  For America West's previous year numbers in the low-cost category, see Table 12.

Note: Percent changes based on numbers prior to rounding.

Table 10: Low-Cost Airlines - Year-to-Year Change in Full-time Equivalent Employees* from the Previous Year**

Percent change compared to same month the previous year

Excel | CSV

Source: Bureau of Transportation Statistics

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

** US Airways' employment numbers were included with the network airlines prior to October 2007 while America West's numbers were included with the low-cost airlines.  Beginning with October 2007, US Airways' numbers are combined with America West's numbers in the network category. 

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

Note: Percent changes based on numbers prior to rounding.

Table 11: Low-Cost Airlines Full-time Equivalent Employees* by Month**

Numbers in thousands (000's)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** US Airways' employment numbers were included with the network airlines prior to October 2007 while America West's numbers were included with the low-cost airlines.  Beginning with October 2007, US Airways' numbers are combined with America West Airlines' numbers in the network category. 

*** Employment numbers in 2005 for Independence Air, which changed its business model from a regional to low-cost carrier in mid-2004, are included with low-cost carriers. The airline discontinued flights on Jan. 5, 2006.

**** Virgin America and SkyBus began reporting employment data in August 2007. SkyBus stopped reporting employment data effective in April 2008 resulting from its bankruptcy filing.

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

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

Note: Detail may not add to total due to rounding.

Table 12: By Low-Cost Carrier: Full-time Equivalent Employees,* August 2005-2009**

(FTEs for August of each year.  Ranked by August 2009 FTEs)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** Beginning with October 2007, US Airways' numbers are combined with America West Airlines' numbers in the network category.  For US Airways previous year numbers and for the combined number in the network category, see Table 9.

*** Employment numbers in 2005 for Independence Air, which changed its business model from a regional to low-cost carrier in mid-2004, are included with low-cost carriers. The airline discontinued flights on Jan. 5, 2006.

**** Virgin America and SkyBus began reporting employment data in August 2007. SkyBus stopped reporting employment data effective in April 2008 resulting from its bankruptcy filing.

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

N/A: Carrier did not meet the standard for filing, was no longer operating, merged with another operating carrier or failed to file.  See previous notes.

Note: Percent changes based on numbers prior to rounding.

Note: Detail may not add to total due to rounding.

Table 13: Regional Airlines - Year-to-Year Change in Full-time Equivalent Employees* from the Previous Year

Percent change compared to same month the previous year

Excel | CSV

Source: Bureau of Transportation Statistics

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

** Compass began reporting employment numbers in November 2007.

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

Note: Percent changes based on numbers prior to rounding.

Table 14: Regional Airlines Full-time Equivalent Employees* by Month

Numbers in thousands (000's)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** Republic, Shuttle America and GoJet reported for part of 2005.

*** Compass began reporting employment numbers in November 2007.

**** 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.

Table 15: By Regional Airline: Full-time Equivalent Employees*, August 2005-2009

(FTEs for August of each year.  Ranked by August 2009 FTEs)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** The Percent Change 2005-2009 is based on the 12 carriers reporting in both years.

*** Effective with April 2008 reporting, Trans States Airlines no longer met the reporting requirements for filing monthly airline employment data.

N/A: Not applicable because carriers did not meet the standard for filing.

Note: Detail may not add to total due to rounding.