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August 2007 Passenger Airline Employment Up 2.4 Percent from August 2006

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Contact BTS 48-07 Dave Smallen 202-366-5568

Thursday, October 18, 2007 - U.S. scheduled passenger airlines employed 2.4 percent more workers in August 2007 than in August 2006, the seventh 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 the network airlines, a group that includes most of the industry's largest passenger carriers, reported more FTEs than the prior year for the fourth consecutive month after having reduced FTEs continuously since 9/11 (Table 1). 

Adding FTEs from August 2006 to August 2007 were network carriers Continental Airlines, Alaska Airlines, Delta Air Lines and US Airways (Table 9), all of the low-cost carriers except America West Airlines and ATA Airlines (Table 12), and regional carriers American Eagle Airlines, SkyWest Airlines, ExpressJet Airlines, Comair, Horizon Air, Pinnacle Airlines, Trans States 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 414,600 FTEs employed by the industry in August was the most in any month since August 2005 (Table 3).  The seven network carriers employed 268,800 FTEs in August, 64.8 percent of the passenger airline total, while low-cost carriers employed 17.9 percent and regional carriers employed 14.5 percent (Table 4). 

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

Network Airlines

Network carrier FTEs increased 1.5 percent in August 2007 compared to August 2006, the fourth consecutive monthly gain from the same month of the previous year.  Prior to the May increase, the network group had reduced FTEs from the previous year every month since August 2001 (Table 7).

Four network carriers increased FTEs from August 2006 to August 2007.  They were: Delta up 7.8 percent, US Airways up 6.8 percent, Continental up 4.0 percent, and Alaska up 3.3 percent. The largest FTE decrease was reported by Northwest Airlines, down 3.3 percent (Table 9). 

Collectively, the seven network carriers reduced their FTE headcount by 13.5 percent, or 41,800 FTEs, from August 2003 to August 2007.  Network carrier FTEs dropped from 310,600 to 268,800 during the four-year period (Table 8).  

FTEs at six network carriers declined in August 2007 from August 2003. The exception was Continental with a 2.9 percent increase over August 2003. The biggest percentage decline was at Northwest, down 24.1 percent, a reduction of 9,300 FTEs, followed by US Airways at 22.6 percent.  The other FTE decreases during that time were Delta, down 17.8 percent; United, down 13.4 percent; American, down 10.7 percent; and Alaska, down 2.8 percent (Table 9).

America West Airlines and US Airways reported employment data separately in August because the carriers held two operating certificates despite their merged business operations.  They are now operating under a single certificate and will begin reporting data jointly later this year.

Low-Cost Airlines

Low-cost carrier FTEs rose 5.3 percent in August 2007 compared to August 2006, the 11th consecutive increase after 18 consecutive monthly decreases from the previous year and the fifth consecutive increase of more than 5 percent (Table 10). 

All the low-cost carriers had FTE increases from August 2006 to August 2007 except ATA, down 6.1 percent, and America West down 1.5 percent.  AirTran Airways, Spirit Airlines and Frontier Airlines reported increases of more than 10 percent (Table 12).

Low-cost carrier FTEs were 70,800 in August 2003, 70,500 in August 2006 and 74,200 in August 2007. The rise from 2003 to 2007 was 4.8 percent (Table 11).  The 2003 to 2007 increase would be 9.8 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, 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. Two new low-cost carriers, SkyBus and Virgin America, began reporting employment data in August.  SkyBus reported 280 FTEs in August and Virgin America reported 507 FTEs (Table 12).

Regional Airlines

Regional carrier FTEs were up 4.9 percent in August 2007 compared to August 2006 (Table 13).

SkyWest and Republic reported the largest increases in the group.  SkyWest, with 9,793 FTEs, the most of any regional carrier, employed 17.9 percent more FTEs in August 2007 than August 2006, while Republic employed 79.9 percent more (Table 15).

Regional carrier FTEs rose from 55,000 in August 2004 to 60,000 in August 2007, an increase of 9.1 percent (Table 14).  

The 10 regional carriers reporting employment data in both 2003 and 2007 employed 19.1 percent more FTEs in August 2007 than in August 2003.  Of that group, SkyWest reported the biggest gain, 87.3 percent, followed by ExpressJet at 37.6 percent and American Eagle at 27.1 percent. Atlantic Southeast Airlines, Air Wisconsin, Mesaba Airlines, and Executive Airlines reported fewer FTEs in August 2007 than August 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 Oct. 15.

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. 16. 

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, August 2003-2007

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.

** 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, August 2003-2007

Percent Change from 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.

** 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, August 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*, August 2003-2007

(Ranked by August 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,* August 2003-2007

(Ranked by August 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.

**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*, August 2003-2007

(Ranked by August 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.