Passenger Airline Employment Statistics

November 2005 Passenger Airline Employment
Down 6.4 Percent from November 2004

Tuesday, January 17, 2006 -
U.S. scheduled passenger airlines employed 437,014 workers in November 2005, 6.4 percent fewer than in November 2004. (Table 1).

The seven network carriers employed 290,352 total full-time and part-time workers – 9.0 percent fewer workers in November 2005 than a year earlier (Table 2).? The low-cost carriers reported 74,299 total employees, 2.0 percent fewer than November 2004 (Table 3), and the regional carriers reported 59,301 total employees, no percentage change compared to the previous year (Table 4).

November 2005 was the 11th consecutive month that full-time equivalent employee (FTE) levels for the scheduled passenger carriers declined compared to the same month of the previous year (Table 8).

Full-time employee numbers declined 7.0 percent and part-time employee numbers declined 2.0 percent in November 2005 from November 2004.

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.? Avjobs is providing pre-2003 comparisons for network and low-cost carriers, as well as pre-2003 numbers for individual regional carriers that were required to report in earlier years.

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.

Employment data for Independence Air, which changed its business model from a regional to low-cost carrier in mid-2004 but whose flights have now been discontinued, have been included with low-cost carriers for 2003, 2004 and 2005 for consistency.

Using Full-Time Equivalent Employee (FTE) calculations, employment at network carriers in November dropped 28.0 percent from 2001 to 2005.? The biggest declines were at US Airways, down 47.7 percent; and United Airlines, down 34.4 percent (Table 5).? In FTE calculations, two part-time employees are counted as one full-time employee.

The seven low-cost carriers, excluding Independence, that were required to report employment data in 2001 and 2005 employed 15.8 percent more FTEs in November 2005 than in November 2001 (Table 6).

The seven regional carriers reporting employment data in both 2001 and 2005 employed 13.8 percent more FTEs in November 2005 than in November 2001.? Of that group, Air Wisconsin reported fewer FTE employees in November 2005 than November 2001 and Horizon Air reported about the same number (Table 7).

Data for US Airways and America West Airlines, now in the process of merging operations, are separately reported – US Airways’ with network carriers, and America West’s with low-cost carriers.

In this release, Tables 1, 2, 3 and 4 use totals for full-time and part-time employees, while employee numbers in Tables 5, 6, 7 and 8 show FTEs.

The 6.7 percent drop in FTEs from November 2004 to November 2005 was the 11th consecutive month of year-over-year declines in airline employment levels for the scheduled passenger carriers.? It was the largest decrease for that period. It was also the fourth consecutive month with a decline of more than 5 percent from the same month of the previous year (Table 8).

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

Regional carriers provide service from small cities, using primarily regional jets to support the network carriers’ hub and spoke systems.

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 is compiled from monthly reports filed with BTS by commercial air carriers as of Jan. 11 2005.

Table 1: Passenger Airline Employment, November 2004-2005

* Independence Air (formerly known as Atlantic Coast Airlines) data have been included in 2004 and 2005 totals for low-cost carriers, reflecting the current change in its business model from its prior designation of regional carrier.

** 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.

Table 2: Total Number of Employees: Network Carriers, November 2001-2005
(number of current carriers in parentheses)

Table 3: Total Number of Employees: Low-cost Carriers, November 2001-2005
(number of current carriers in parentheses)

Table 4: Total Number of Employees: Regional Carriers, November 2003-2005
(number of current carriers in parentheses)

Note: Regional group numbers for years before 2003 are not included because of the limited number of regional carriers that met the requirement for filing reports.?

Table 5: Network Carrier FTE Employees, November 2001-2005*
(Ranked by November 2005 FTE Employees)

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.

**American Airlines’ statistics beginning in June 2001 reflect that carrier’s absorption of former TWA employees that were retained by AA after its April 2001 acquisition of TWA’s assets.

Table 6: Low-Cost Carrier FTE Employees, November 2001-2005*
(Ranked by November 2005 FTE Employees)

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.

*** Total numbers for carriers operating and reporting in 2005.

Table 7: Regional Carrier FTE Employees, November 2000-2004*
(Ranked by November 2005 FTE Employees)

Note: Many regional carriers were not required to report employment numbers before 2003 so year-to-year comparisons involving regional carriers as a group, or the full industry, are not appropriate for earlier years.?

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.

** Totals include only carriers operating and reporting in 2005.

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

Table 8: Change in FTE Employees from the Previous Year*
Percentage change compared to same month the previous year

* 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.

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

**** Atlantic Southeast Airlines was granted an extension for the filing of September 2005 employment numbers. For year-to-year comparison purposes, its numbers are not included in September 2004.