Abhay Singh
U.S. passenger airlines have significantly bolstered their workforce, with close to 194,000 jobs being added since 2021 following a prolonged period of pandemic-induced slowdown.
This surge in hiring activity was fueled by the urgent need to replenish staff levels after the industry weathered challenging times. However, the industry is now experiencing a deceleration in hiring as airlines find themselves nearing their optimal staffing levels.
The current pause in recruitment efforts is not only a natural outcome of this normalization but is also influenced by the array of obstacles that airlines are currently contending with, contributing to a more measured approach to workforce expansion.
Demand growth has moderated
The US has experienced a surplus of flights, resulting in reduced fares and reduced profits for airlines. Demand growth has slowed, and delayed aircraft from Boeing and Airbus have led to rethinking expansions. Short supply of engines and increased labor costs have also impacted the industry.
Annual pay for a three-year first officer on midsized equipment at US airlines averaged $170,586 in March, up from $135,896 in 2019, according to Kit Darby, an aviation expert who focuses on pilot compensation.
Since 2019, US carrier expenses have risen by double-digit percentages, with American Airlines anticipated to climb by 20% this year and United Airlines and Delta Air Lines by 28%.
Low-cost carriers, such as Southwest carriers, JetBlue Airways, and Spirit Airlines, are predicted to see costs climb by 32%, 35%, and 39%, respectively, after accounting for flight length.
Airlines are easing hiring or finding other ways to cut costs
The U.S. jobs report shows air transportation employment in August is similar to July’s levels. However, Spirit Airlines has furloughed 186 pilots due to increased losses due to JetBlue Airways’ failed acquisition, Pratt & Whitney engine recall, and oversupplied market. Other airlines are easing hiring or finding other cost-cutting measures.
Frontier Airlines is still looking for pilots, but it will provide voluntary leaves of absence in September and October, when demand normally drops after the summer holidays but before Thanksgiving and winter breaks.
Southwest Airlines aims to have 2,000 fewer employees than in 2023 and will stop hiring for work groups such as pilots and flight attendants.
United Airlines intends to hire 10,000 staff this year, down from 15,000 in both 2022 and 2023, and 1,600 pilots, a decrease from more than 2,300 last year.
This is a contrast from previous years, when airlines struggled to acquire staff quickly enough, as federal law requires pilots to retire at the age of 65.
Airlines shed tens of thousands of employees in 2020
In 2020, airlines cut thousands of employees to offset record losses. Over $50 billion in taxpayer aid prevented layoffs, but many employees accepted buyouts and voluntary leaves.
In 2022, travel demand surged, leaving airlines without experienced employees and causing the worst pilot shortage in recent memory. This led to record losses and a need for better management.
Regional carriers and air freight giants have seen a decline in pilot demand, with FedEx and UPS focusing on cost-cutting measures, despite offering significant bonuses to attract pilots.
In a March investor presentation, American Airlines CEO Robert Isom stated that the airline hired over 1,300 pilots this year, up from nearly 2,300 last year.
“We will be hiring for the foreseeable future at levels like that,” he said.
According to Ken Byrnes, the chairman of the flight department at Embry-Riddle Aeronautical University, students are still cramming classrooms and cockpits to learn and accrue flight hours in order to become pilots, even with the lower targets.
He said “Demand for travel is still there, I don’t see a long-term slowdown.”
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