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September 2006 Passenger Airline Employment Down 2.6 Percent from September 2005

September 2006 Passenger Airline Employment Down 2.6 Percent from September 2005

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BTS 55-06
Dave Smallen
202-366-5568

Tuesday, Nov. 21, 2006 - U.S. scheduled passenger airlines employed 2.6 percent fewer workers in September 2006 than in September 2005, the smallest drop since March 2005 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).

BTS, a part of the Research and Innovative Technology Administration (RITA), reported that after two consecutive monthly increases over the prior month's FTE total the September 2006 FTE total was below the August results (Table 3). FTE calculations count two part-time employees as one full-time employee.

All three carriers groups - network, low-cost and regional - reported fewer FTEs in September 2006 than September 2005 but all three groups reported a smaller drop from a year earlier than they did in August (Table 1).

Adding FTEs from September 2005 to September 2006 were network carriers Continental Airlines and Alaska Airlines (Table 9), low-cost carriers Southwest Airlines, America West Airlines, JetBlue Airways, AirTran Airways and Frontier Airlines (Table 12), and regional carriers SkyWest Airlines, Express Jet Airlines, Atlantic Southeast Airlines, Horizon Airlines, and Mesa 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 264,000 FTEs in September, 65.5 percent of the passenger airline total, while low-cost carriers employed 17.4 percent and regional carriers employed 13.8 percent (Table 4). The network carriers have employed fewer FTEs each September compared to the previous year since 2002, the only carrier group to do so (Table 5).

American Airlines employed the most FTEs in September among the network carriers, Southwest Airlines employed the most among low-cost carriers and American Eagle Airlines 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 declined 4.1 percent in September 2006 compared to September 2005, the smallest drop from the same month of the previous year since December 2004 (Table 7).

Two network carriers increased FTEs from September 2005 to September 2006. Continental's workforce grew 5.3 percent while Alaska's rose 4.5 percent (Table 9).

Network carrier FTEs dropped from 368,000 in September 2002 to 264,000 in September 2006, a four-year decline of 28.3 percent (Table 8).

FTEs at all seven network carriers declined in September 2006 from September 2002. The biggest percentage declines were at US Airways, down 41.0 percent, a reduction of 13,000 FTEs, and United Airlines, down 33.1 percent, a reduction of 26,000 FTEs. Collectively, the seven network carriers reduced their FTE headcount by 104,000 over the four-year period (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.

Low-Cost Airlines

Low-cost carrier FTEs declined 0.4 percent in September 2006 compared to September 2005, the 18th consecutive month of decreases from the previous year but the smallest decrease since there was no change in March 2005 (Table 10). The 70,000 FTEs employed by the seven low-cost carriers in September account for 17.4 percent of the passenger airline total (Table 11 and Table 4).

The five largest low-cost carriers combined increased FTEs by 7.1 percent from September 2005 to September 2006. JetBlue reported a 22.0 percent rise, the most of any carrier (Table 12).

Low-cost carrier FTEs were 64,000 in September 2002, 71,000 in September 2005 and 70,000 in September 2006. The increase from 2002 to 2006 was 9.1 percent (Table 12).

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

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 2003, 2004 and 2005 for consistency. The airline discontinued all flights on Jan. 5.

Regional Airlines

Regional carrier FTEs were down 1.5 percent in September compared to September 2005, the ninth consecutive month of decreases from the previous year but the smallest decrease since February 2006 (Table 13).

Express Jet reported the largest increase in the group, employing 5.1 percent more FTEs in September 2006 than September 2005 (Table 15).

Regional carrier FTEs rose from 41,000 in September 2003 to 56,000 in September 2006, an increase of 34.6 percent (Table 14).

The seven regional carriers reporting employment data in both 2002 and 2006 employed 10.9 percent more FTEs in September 2006 than in September 2002. Of that group, Air Wisconsin and Mesaba Airlines were the only carriers to report fewer FTE's in September 2006 than September 2002 (Table 15).

Regional carriers 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 and Hawaiian Airlines in serving the Hawaiian Islands.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of Nov. 13.

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 October airline employment data for Dec. 19.

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

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

Excel | CSV

Month Network Carriers (Pct. Change) Low-Cost Carriers** (Pct. Change) Regional Carriers (Pct. Change) All Passenger Airlines*** (Pct. Change)
Sept. 2004-Sept. 2005 -8.9 -1.0 R2.5 -5.8
Oct. 2004-Oct. 2005 -8.9 -1.0 2.4 -5.8
Nov. 2004-Nov. 2005 -9.3 -2.3 0.1 -6.5
Dec. 2004-Dec. 2005 -8.5 -1.4 0.0 -5.9
Jan. 2005-Jan. 2006 -7.8 -5.3 -1.8 -6.1
Feb. 2005-Feb. 2006 -7.8 -4.1 -1.2 -5.8
Mar. 2005-Mar. 2006 -7.4 -3.0 -1.9 -5.4
Apr. 2005-Apr. 2006 -6.7 -2.2 -1.6 -4.8
May 2005-May 2006 -7.0 -2.1 -3.5 -5.0
June 2005-June 2006 -6.9 -2.0 -3.6 -5.0
July 2005-July 2006 -8.1 -2.6 -2.7 -5.9
Aug. 2005-Aug. 2006 -4.7 -0.8 -2.8 -3.1
Sept. 2005-Sept. 2006 -4.1 -0.4 -1.5 -2.6

Source: Bureau of Transportation Statistics

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

**Employment numbers in 2003, 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.

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

R: Atlantic Southeast Airlines was granted an extension for the filing of September 2005 employment numbers. The numbers were revised from the last release to include the late filing.

Note: Percent changes based on numbers prior to rounding.

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

Percent change compared to same month the previous year

Excel | CSV

Month 2003 2004 2005 2006
January -1.0 -6.0 -1.2 -6.1
February -1.7 -5.3 -1.4 -5.8
March -2.8 -4.1 -1.9 -5.4
April -4.4 -2.3 -3.1 -4.8
May -6.7 -0.8 -3.5 -5.0
June -8.3 0.5 -3.8 -5.0
July -9.6 2.5 -3.5 -5.9
August -9.5 2.2 -5.8 -3.1
September -9.3 2.4 -5.8 -2.6
October -10.4 2.5 -6.1  
November -9.2 2.2 -6.5  
December -8.3 0.9 -5.9  

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

Month 2003 2004 2005 2006 Percentage Change 2003-2006
January 465 437 432 405 -12.9
February 459 435 429 404 -12.0
March 454 436 428 405 -10.9
April 445 435 421 404 -9.9
May 443 440 424 403 -9.1
June 439 441 424 403 -8.2
July 433 444 428 403 -7.0
August 433 443 418 404 -6.7
September 430 440 414 403 -6.1
October 428 439 413    
November 430 439 411    
December 430 434 409    
Monthly Average 441 439 421    
Jan.-Sep. Average 445 439 425 404 -9.2

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* by Carrier Group, September 2002-2006

FTE Numbers in thousands (000's)

Excel | CSV

  Network Low-Cost Regional* All Passenger Airlines**
2002 368 65 31 474
2003 308 71 42 430
2004 302 71 55 440
2005 275 71 57 414
2006 264 70 56 403
Pct. Change 2002-2006*** -28.3% 8.2% 33.7% -14.9%
Percent of Total Passenger Airline Employees in 2006 65.5% 17.4% 13.8%  

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 2003 to 2006 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, September 2002-2006

Percent Change from the previous year

Excel | CSV

  Network Low-Cost Regional** All Passenger Airlines***
2002 -12.3 3.8 20.8 -8.3
2003 -16.5 8.9 36.3 -9.3
2004 -1.7 0.7 32.4 2.4
2005 -8.9 -1.0 2.5 -5.8
2006 -4.1 -0.4 -1.5 -2.6

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.

Note: Percent changes based on numbers prior to rounding.

Table 6: Top 10 Airlines, September 2006

Ranked by Number of Full-Time Equivalent Employees*

Excel | CSV

Rank Airline Total FTE Employees (000) Carrier Group Sept. 2005 Rank Sept. 2004 Rank
1 American 72 Network 1 1
2 United 53 Network 2 2
3 Delta 44 Network 3 3
4 Continental 34 Network 5 5
5 Southwest 32 Low-Cost 6 6
6 Northwest 31 Network 4 4
7 US Airways 19 Network 7 7
8 America West 12 Low-Cost 8 8
9 JetBlue 10 Low-Cost 12 12
10 Alaska 9 Network 10 9

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

Month 2003 2004 2005 2006
January -5.3 -12.5 -4.3 -7.8
February -10.7 -11.0 -4.7 -7.8
March -8.2 -8.7 -5.0 -7.4
April -10.0 -6.6 -6.5 -6.7
May -12.7 -4.9 -6.6 -7.0
June -14.4 -3.6 -7.0 -6.9
July -15.8 -2.0 -5.6 -8.1
August -16.4 -1.7 -9.0 -4.7
September -16.6 -1.7 -8.9 -4.1
October -16.6 -1.7 -8.9  
November -15.4 -1.7 -9.3  
December -14.1 -3.4 -8.5  

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

  2002 2003 2004 2005 2006 Percent Change 2002-2006
January 368 349 305 293 270 -26.8
February 364 342 305 290 268 -26.4
March 364 334 305 289 268 -26.3
April 363 327 306 286 267 -26.7
May 369 322 306 286 266 -27.9
June 371 318 306 285 265 -28.6
July 371 313 306 289 265 -28.7
August 372 311 305 278 265 -28.8
September 369 308 302 275 264 -28.3
October 369 308 302 275    
November 361 305 300 272    
December 356 306 296 271    
Monthly Average 366 320 304 282    
Jan.-Sep. Average 368 325 305 286 266 -27.6

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*, September 2002-2006

(Ranked by September 2006 FTE Employees)

Numbers in thousands (000's)

Excel | CSV

Rank   2002 2003 2004 2005 2006 Percent Change 2002-2006 Percent Change 2005-2006
1 American 99 81 79 75 73 -26.7 -3.4
2 United 79 60 58 54 53 -33.1 -1.9
3 Delta 66 58 57 51 44 -32.3 -12.5
4 Continental 37 35 35 33 34 -6.8 5.3
5 Northwest 45 38 38 33 31 -30.6 -6.3
6 US Airways 32 26 26 21 19 -41.0 -7.2
7 Alaska 10 10 10 9 9 -8.4 4.5
  Total 368 308 302 275 264 -28.3 -4.1

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

Month 2003 2004 2005 2006
January 9.2 8.5 0.4 -5.3
February 8.5 6.9 0.6 -4.1
March 14.1 0.5 0.0 -3.0
April 12.4 0.6 -0.7 -2.2
May 11.7 0.8 -1.0 -2.1
June 10.0 1.5 -1.1 -2.0
July 4.2 2.3 -1.5 -2.6
August 9.6 1.1 -0.7 -0.8
September 9.8 0.7 -1.0 -0.4
October 9.8 0.7 -1.0  
November 9.0 0.6 -2.5  
December 1.7 0.5 -1.4  

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 2003, 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

  2002 2003** 2004** 2005** 2006 Percent Change 2002-2006
January 60 66 71 72 68 12.8
February 61 66 70 71 68 11.9
March 62 70 71 71 69 11.2
April 63 70 71 70 69 9.8
May 63 71 71 71 69 9.2
June 64 71 72 71 69 8.1
July 68 71 72 71 69 2.3
August 65 71 72 71 71 6.0
September 64 71 71 71 70 8.2
October 64 71 71 70    
November 66 72 72 70    
December 66 67 72 71    
Monthly Average 64 70 71 71    
Jan.-Sep. Average 64 70 71 71 69 8.7

Source: Bureau of Transportation Statistics

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

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.

** Employment numbers in 2003, 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.

Table 12: Low-Cost Carrier Full-time Equivalent Employees* September 2002-2006

(Ranked by September 2006 FTE Employees)

Numbers in thousands (000's)

Excel | CSV

Rank   2002 2003** 2004** 2005** 2006 Percent Change 2002-2006 Percent Change 2005-2006
1 Southwest 34 33 31 31 32 -4.4 2.4
2 America West 12 11 11 12 12 5.8 5.1
3 JetBlue 3 5 6 8 10 196.1 22.0
4 AirTran 5 5 6 6 7 59.5 13.9
5 Frontier 3 3 4 4 5 71.3 10.3
6 ATA 6 8 7 4 3 -61.2 -39.0
7 Spirit 2 2 2 2 2 -13.5 -1.7
8 Independence N/A 4 4 3 N/A N/A N/A
  Total**** 64 71 71 71 70 9.1 -0.4

Source: Bureau of Transportation Statistics

Note: Percent changes based on numbers prior to rounding.

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.

**Employment numbers in 2003, 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.

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

  2004** 2005 2006
January 16.9 15.8 -1.8
February 18.0 13.8 -1.2
March 20.0 13.3 -1.9
April 22.1 12.2 -1.6
May 23.5 10.9 -3.5
June 25.8 10.0 -3.6
July 31.4 4.9 -2.7
August 31.8 3.9 -2.8
September 36.9 3.4 -1.5
October 32.6 2.4  
November 32.3 0.1  
December 18.7 0.0  

Source: Bureau of Transportation Statistics

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

** Four regional airlines, Mesa, Pinnacle, GoJet and PSA, did not meet the reporting standard in 2003. Mesa and Pinnacle began reporting employment numbers in 2004, Pinnacle began reporting in 2005 while GoJet began reporting in 2006.

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

  2003** 2004 2005 2006 Percent Change 2003-2006
January 41 48 58 55 33.7
February 41 49 56 55 33.3
March 41 50 56 55 33.3
April 41 50 57 55 36.8
May 42 51 57 55 32.1
June 41 52 57 55 33.6
July 41 54 57 56 34.3
August 42 55 57 56 33.2
September 42 55 R57 56 33.7
October 42 56 56    
November 42 56 56    
December 43 55 55    
Monthly Average 42 53 57 55 32.8
Jan.-Sep. Average 41 52 57 55 33.5

Source: Bureau of Transportation Statistics

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

** Note: Four regional airlines, Mesa, Pinnacle, GoJet and PSA, did not meet the reporting standard in 2003. Mesa and Pinnacle began reporting employment numbers in 2004, Pinnacle began reporting in 2005 while GoJet began reporting in 2006.

R: Atlantic Southeast Airlines was granted an extension for the filing of September 2005 employment numbers. The numbers were revised from the last release to include the late filing.

Note: Percent changes based on numbers prior to rounding.

Table 15: Regional Carrier Full-time Equivalent Employees*, September 2002-2006

(Ranked by September 2006 FTE Employees)

Excel | CSV

Rank   2002 2003 2004 2005 2006 Percent Change 2002-2006 Percent Change 2005-2006
1 American Eagle 8,616 7,478 8,942 9,448 9,227 7.1 -2.3
2 SkyWest N/A 5,343 6,716 8,132 8,491 N/A 4.4
3 Express Jet 4,694 5,653 6,223 6,492 6,826 45.4 5.1
4 Comair N/A 5,648 5,907 6,589 6,061 N/A -8.0
5 Atlantic Southeast 4,901 5,365 5,857 R5,510 5,601 14.3 1.7
6 Horizon 3,436 3,329 3,318 3,450 3,619 5.3 4.9
7 Mesa N/A N/A 3,866 3,343 3,389 N/A 1.4
8 Pinnacle N/A N/A 2,418 3,080 3,063 N/A -0.6
9 Mesaba 3,150 3,001 3,130 3,371 2,585 -17.9 -23.3
10 Air Wisconsin 2,769 2,634 3,766 2,388 2,229 -19.5 -6.7
11 Executive 1,141 1,808 1,864 1,746 1,669 46.3 -4.4
12 PSA N/A N/A 1,797 1,660 1,473 N/A -11.3
13 Trans States 1,050 1,176 1,436 1,428 1,238 17.9 -13.3
14 GoJet N/A N/A N/A N/A 310 N/A N/A
  Total** 29,757 41,435 55,240 56,637 55,781 10.9 -1.5

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.

** 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 2002-2006 is based on the seven carriers reporting in both years.

R: Atlantic Southeast Airlines was granted an extension for the filing of September 2005 employment numbers. The numbers were revised from the September 2005 release to include the late filing.

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