October 2008 Passenger Airline Employment Down 5.7 Percent from October 2007

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Contact BTS 62-08 Dave Smallen 202-366-5568

Tuesday, December 16, 2008 - U.S. scheduled passenger airlines employed 5.7 percent fewer workers in October 2008 than in October 2007, the fourth consecutive decrease in full-time equivalent employee (FTE) levels for the scheduled passenger carriers from the same month of the previous year and the largest year-to-year decrease since July 2006, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported today (Table 2).  The October FTE total of 394,300 for the scheduled passenger carriers was the lowest total since 1993. FTE calculations count two part-time employees as one full-time employee.

All the network airlines except for Alaska Airlines decreased employment from October 2007 to October 2008 (Table 9) as did low-cost carriers AirTran Airways and Frontier Airlines (Table 12). Regional carriers American Eagle Airlines, SkyWest Airlines, ExpressJet Airlines, Comair, Horizon Air, Mesa Airlines, Executive Airlines, Shuttle America and PSA Airlines also reported reduced employment levels compared to last year (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 266,608 FTEs in October, 67.6 percent of the passenger airline total, while low-cost carriers employed 15.6 percent and regional carriers also employed 14.7 percent (Table 4). 

American Airlines employed the most FTEs in October among the network carriers, Southwest Airlines employed the most among low-cost carriers, and American Eagle employed the most 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.  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.  The combined carrier's numbers were included in the low-cost category for October 2007 through February 2008 in the releases for those months.  The numbers for those months have been revised beginning with the March 2008 release to include the combined carrier's numbers in the network category for all months.  The revision was due to a BTS recalculation based on the airline's fourth quarter financial report released May 19.

Network Airlines

FTEs at the group of seven network carriers decreased 5.4 percent in October 2008 compared to October 2007, the second 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, six network carriers decreased FTEs from October 2007 to October 2008: United Airlines, 9.9 percent; Delta Air Lines; 5.7 percent, Northwest Airlines, 5.1 percent; US Airways, 5.0 percent; American, 3.9 percent; and Continental Airlines, 3.8 percent. Alaska was virtually unchanged, increasing FTEs by 0.2 percent (Table 9).

FTEs at four network carriers declined during the four years from October 2004 to October 2008. The exceptions were Continental with a 0.5 percent increase, Alaska Airlines a 1.8 percent increase, and the newly combined US Airways with a 23.3 percent gain (Table 9).  The biggest percentage decline was at Northwest, down 26.0 percent, a reduction of 9,720 FTEs, followed by Delta at 20.0 percent.  The other FTE decreases during that time were United, down 19.1 percent, and American, down 10.5 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 declined 1.9 percent in October from October 2007, the first decline in the group's FTEs not influenced by the US Airways-America West post-merger reporting since September 2006.  Since the America West and US Airways reports were combined last October, low-cost carrier FTEs 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: JetBlue Airways, 5.7 percent; Spirit Airlines, 4.7 percent; Virgin America, 81.0 percent; and Southwest Airlines, 5.3 percent.  AirTran and Frontier reported year-to-year FTE decreases. ATA Airlines, which reported 2,381 FTEs in October 2007, stopped operating on April 3 and ceased reporting employment data effective in April 2008. SkyBus also stopped reporting in April 2008 but had employed 316 FTEs in October 2007 (Table 12).

Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with lower infrastructure costs and higher productivity. Two new low-cost carriers, SkyBus Airlines and Virgin America, began reporting employment data in September.  SkyBus ceased operations on April 5. Virgin America reported 1,220 FTEs in October 2008 (Table 12).

Regional Airlines

Regional carrier FTEs were down 5.3 percent in October 2008 compared to October 2007 (Table 13).

Mesaba Airlines and Air Wisconsin reported the largest increases in the group.  Mesaba employed 24.8 percent more FTEs in October 2008 than October 2007, while Air Wisconsin employed 24.0 percent more (Table 15).

Regional carrier FTEs rose from 57,357 in October 2005 to 57,992 in October 2008, an increase of 1.1 percent (Table 14).  

The 12 regional carriers reporting employment data in both 2004 and 2008 employed 2.8 percent fewer FTEs in October 2008 than in October 2004.  Of that group, Pinnacle Airlines reported the biggest gain, 44.5 percent, followed by SkyWest at 30.9 percent and Mesaba at 11.1 percent. Atlantic Southeast Airlines, Comair, Air Wisconsin, Mesa, PSA, ExpressJet and Executive reported fewer FTEs in October 2008 than October 2004 (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 1,303 FTEs in October 2007.

Regional carrier Compass Airlines began reporting employment data in November 2007. Compass reported 754 FTEs in October (Table 15). Regional carrier Lynx Airlines began reporting employment data in February 2008.  Lynx reported 352 FTEs in October (Table 15). Regional carrier Colgan Airlines began reporting employment data in April 2008. Colgan reported 1,295 FTEs in October (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 in serving the Hawaiian Islands.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of Dec. 4. 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 November airline employment data for Jan. 16, 2009.

Table 1: Change in Passenger Airline Full-time Equivalent Employees* by Carrier Group

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

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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.

** 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.  The combined carrier's numbers were included in the low-cost category for October 2007 through February 2008 in the releases for those months.  The numbers for those months have been revised beginning with the March 2008 release to include the combined carrier's numbers in the network category for all months.  The revision was due to a BTS recalculation based on the airline's fourth quarter financial report released May 19.

*** Includes network, low-cost, regional and other carriers.  Other Carriers generally operate within specific niche markets.  They are: Allegiant Air, 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 in Total Passenger Airline* Full-time Equivalent Employees** from the Previous Year

Percent change compared to same month the previous year

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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)

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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, October 2004-2008

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.

** 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.

**** Percent change comparison for regional airlines and for all passenger airlines is for 2005 to 2008  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, October 2004-2008

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.

** 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.

*** Some regional carriers were not required to report employment numbers before 2005, so year-to-year comparisons involving regional carriers, or the total industry, are not appropriate for the years before 2005.

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

Note: Percent changes based on numbers prior to rounding.

Table 6: Top 10 Airlines, October 2008

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 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.

** 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' numbers in the network category.  The combined carrier's numbers were included in the low-cost category for October 2007 through February 2008 in the releases for those months.  The numbers for those months have been revised beginning with the March 2008 release to include the combined carrier's numbers in the network category for all months.  The revision was due to a BTS recalculation based on the airline's fourth quarter financial report released May 19.

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.

** 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.  The combined carrier's numbers were included in the low-cost category for October 2007 through February 2008 in the releases for those months.  The numbers for those months have been revised beginning with the March 2008 release to include the combined carrier's numbers in the network category for all months.  The revision was due to a BTS recalculation based on the airline's fourth quarter financial report released May 19.

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

Table 9: Network Carrier Full-time Equivalent Employees*, October 2004-2008**

(Ranked by October 2008 FTEs)

Numbers in thousands (000's)

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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: 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.

** 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.  The combined carrier's numbers were included in the low-cost category for October 2007 through February 2008 in the releases for those months.  The numbers for those months have been revised beginning with the March 2008 release to include the combined carrier's numbers in the network category for all months.  The revision was due to a BTS recalculation based on the airline's fourth quarter financial report released May 19.

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

Note: 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.

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.

** 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.  The combined carrier's numbers were included in the low-cost category for October 2007 through February 2008 in the releases for those months.  The numbers for those months have been revised beginning with the March 2008 release to include the combined carrier's numbers in the network category for all months.  The revision was due to a BTS recalculation based on the airline's fourth quarter financial report released May 19.

***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.

**** 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: Low-Cost Carrier Full-time Equivalent Employees,* October 2004-2008**

(Ranked by October 2008 FTEs)

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.  The combined carrier's numbers were included in the low-cost category for October 2007 through February 2008 in the releases for those months.  The numbers for those months have been revised beginning with the March 2008 release to include the combined carrier's numbers in the network category for all months.  The revision was due to a BTS recalculation based on the airline's fourth quarter financial report released May 19.

***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.

**** 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: 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.

** 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 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.

**** 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: Regional Carrier Full-time Equivalent Employees*, October 2004-2008

(Ranked by October 2008 FTEs)

Excel | CSV

Source: Bureau of Transportation Statistics

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

** Some regional carriers were not required to report employment numbers before 2005, so year-to-year comparisons involving regional carriers, or the total industry, are not appropriate for the years before 2005. The Percent Change 2004-2008 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.