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April 2007 Passenger Airline Employment Up 1.3 Percent from April 2006

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Contact BTS 30-07 Dave Smallen 202-366-5568

Tuesday, June 26, 2007 - U.S. scheduled passenger airlines employed 1.3 percent more workers in April 2007 than in April 2006, the third consecutive increase 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 (RITA), reported that only the network carrier group reported fewer FTE employees in April than in the prior year with a 0.7 percent decrease, while all other carriers combined employed 5.0 percent more FTEs than a year earlier (Tables 1, 4). 

Adding FTEs from April 2006 to April 2007 were network carriers Continental Airlines, Alaska Airlines, Delta Air Lines and US Airways (Table 9), all of the low-cost carriers except for ATA Airlines (Table 12), and regional carriers American Eagle Airlines, SkyWest Airlines, ExpressJet Airlines, Atlantic Southeast Airlines, Horizon Air, Mesa Airlines, Pinnacle Airlines, Shuttle America, Republic Airlines and GoJet Airlines (Table 15).

Scheduled passenger airlines include network, low-cost, regional and other airlines.  Many regional carriers were not required to report employment numbers before 2003, so year-to-year comparisons involving regional carriers, or the total industry, are not available for the years before 2003. 

The seven network carriers employed 264,800 FTEs in April, 64.6 percent of the passenger airline total, while low-cost carriers employed 17.8 percent and regional carriers employed 14.7 percent (Table 4).  The network carriers have employed fewer FTEs each April compared to the previous year since 2002, the only carrier group to do so (Table 5).

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

Network Airlines

Network carrier FTEs declined 0.7 percent in April 2007 compared to April 2006, the smallest drop from the same month of the previous year since at least January 2004 (Table 7).

Four network carriers increased FTEs from April 2006 to April 2007.  Continental’s workforce grew 4.9 percent while Alaska’s rose 2.6 percent, US Airways’ increased 1.0 percent and Delta barely grew at 0.1 percent. The largest FTE decreases were reported by United Airlines, 3.3 percent, and Northwest Airlines, 3.4 percent (Table 9). 

Collectively, the seven network carriers reduced their FTE headcount by 19.1 percent, or 62,400 FTEs, from April 2003 to April 2007.  Network carrier FTEs dropped from 327,200 to 264,800 during the four-year period (Table 8).  

FTEs at six of the network carriers declined in April 2007 from April 2003. The exception was Continental Airlines with a modest 0.4 percent increase over April 2003. The biggest percentage decline was at US Airways, down 27.2 percent, a reduction of 7,300 FTEs. United, Delta, and Northwest all reported cuts of more than 20 percent in the four years.  American’s FTEs were down 18.1 percent and Alaska’s were down 6.5 percent during that time (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.

Data for US Airways and America West Airlines, now in the process of merging operations, are separately reported – US Airways’ data are included in the network carriers’ category and America West’s in the low-cost carriers’ category.  US Airways will begin reporting a single number for the merged companies later this year.

Low-Cost Airlines

Low-cost carrier FTEs rose 5.7 percent in April 2007 compared to April 2006, the seventh consecutive increase after 18 consecutive monthly decreases from the previous year (Table 10). 

All the low-cost carriers had FTE increases from April 2006 to April 2007 except ATA, which reported a 15.0 percent decline. AirTran Airways, America West and Frontier Airlines all reported increases of more than 10 percent (Table 12).

Low-cost carrier FTEs were 70,600 in April 2003, 68,900 in April 2006 and 72,800 in April 2007. The rise from 2003 to 2007 was 3.2 percent (Table 11).  The 2003 to 2007 increase would be 10.1 percent if the 2003 employment data are excluded for Independence Air, which discontinued all flights on Jan. 5, 2006 (Table 12). 

Employment data for Independence Air, which changed its business model from a regional to low-cost carrier in mid-2004, have been included with low-cost carriers for 2004 and 2005 for consistency.

Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with fewer infrastructure costs and greater expectations of productivity.

Regional Airlines

Regional carrier FTEs were up 5.6 percent in April 2007 compared to April 2006, the third consecutive month with an increase in FTEs of more than 5 percent from the same month of the previous year (Table 13).

Shuttle America and Republic reported the largest increases in the group.  Shuttle America employed 29.7 percent more FTEs in April 2007 than April 2006 while Republic employed 101.1 percent more (Table 15).

Regional carrier FTEs rose from 50,300 in April 2004 to 60,100 in April 2007, an increase of 19.6 percent (Table 14).   

The 10 regional carriers reporting employment data in both 2003 and 2007 employed 21.3 percent more FTEs in April 2007 than in April 2003.  Of that group, Mesaba Airlines, Air Wisconsin Airlines and Executive Airlines were the only carriers to report fewer FTEs in April 2007 than April 2003 (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 Aloha Airlines and Hawaiian Airlines in serving the Hawaiian Islands.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of June 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 May airline employment data for July 17.

Table 1: Change in Passenger Airline Full-time Equivalent Employees* from the Previous Year

Percent change compared to same month the previous year for the most recent 13 months

Excel | CSV

Source: Bureau of Transportation Statistics

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

**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.

*** Includes network, low-cost, regional and other carriers. Other Carriers generally operate within specific niche markets. They are: Allegiant Air, Aloha Airlines, Boston-Maine Airways, Casino Express Airlines, Continental Micronesia, Eos Airlines, Hawaiian Airlines, Midwest Airlines, Sun Country Airlines and USA3000 Airlines. USA3000 did not report in December 2006 and subsequent months.

Note: Percent changes based on numbers prior to rounding.

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

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: Total Number of Full-time Equivalent Employees* (FTEs) by Carrier Group, April 2003-2007

FTE Numbers in thousands (000's)

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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.

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

*** Percent change comparison for regional airlines and for all passenger airlines is for 2004 to 2007 because of the number of airlines in these categories that did not meet the standard for reporting monthly employment numbers.

Note: Percent changes based on numbers prior to rounding.

Table 5: Full-time Equivalent Employees* by Carrier Group, Year-to-Year Change, April 2003-2007

Percent Change from the previous year

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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.

** Many regional carriers were not required to report employment numbers before 2003, so year-to-year comparisons involving regional carriers, or the total industry, are not appropriate for the years before 2003.

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

Note: Percent changes based on numbers prior to rounding.

Table 6: Top 10 Airlines, April 2007

Ranked by Number of Full-Time Equivalent Employees*

Excel | CSV

Source: Bureau of Transportation Statistics

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

Table 7: Network Airline Full-time Equivalent Employees* Change 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.

Note: Percent changes based on numbers prior to rounding.

Table 8: Network Carrier 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.

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

Table 9: Network Carrier Full-time Equivalent Employees*, April 2003-2007

(Ranked by April 2007 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.

Note: Percent changes based on numbers prior to rounding.

Table 10: Change in Low-Cost Airline 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.

Note: Employment numbers in 2004 and 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.

Note: Percent changes based on numbers prior to rounding.

Table 11: Low-Cost Carrier 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.

** Employment numbers in 2004 and 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.

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

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

Table 12: Low-Cost Carrier Full-time Equivalent Employees,* April 2003-2007

(Ranked by April 2007 FTEs)

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.

**Employment numbers in 2004 and 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 carrier did not meet the standard for filing in previous years. The airline discontinued flights on Jan. 5, 2006.

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

Note: Percent changes based on numbers prior to rounding.

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

Table 13: Change in Regional Airline 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.

** Mesa, Pinnacle and PSA began reporting employment numbers in 2004.

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

Note: Percent changes based on numbers prior to rounding.

Table 14: Regional Carrier 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.

** Mesa, Pinnacle and PSA began reporting employment numbers in 2004.

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

Note: Percent changes based on numbers prior to rounding.

Table 15: Regional Carrier Full-time Equivalent Employees*, April 2003-2007

(Ranked by April 2007 FTEs)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** Many regional carriers were not required to report employment numbers before 2003, so year-to-year comparisons involving regional carriers, or the total industry, are not appropriate for the years before 2003. The Percent Change 2003-2007 is based on the 10 carriers reporting in both years.

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

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