U.S. Airlines Face Unexpected Hiring Slowdown After Post-Covid Boom: What It Means for Your Future Travel
U.S. Airlines Slow Down Hiring Amid Industry Challenges
U.S. passenger airlines have ramped up employment since 2021, adding nearly 194,000 jobs as they recovered from the pandemic slump, reports the U.S. Department of Transportation. However, the hiring spree is now decelerating due to several industry challenges.
While airlines are almost meeting their staffing needs, an oversupply of flights in the U.S. has reduced fares, impacting profits. Demand growth has also moderated, and delays in airplane deliveries from Boeing and Airbus have forced airlines to rethink expansion plans. Additionally, there is a shortage of engines, and some carriers have deferred airplane deliveries. Labor costs have surged due to new contracts with significant pay raises for groups like pilots and mechanics.
For instance, the annual pay for a three-year first officer on midsized equipment has risen to $170,586 as of March, up from $135,896 in 2019, according to aviation consultant Kit Darby.
From a cost perspective, stripping out fuel and net interest expenses, costs at U.S. carriers are up considerably since 2019. American Airlines’ costs have risen by 20%, with United Airlines and Delta Air Lines reporting increases of around 28%. The situation is worse for low-cost carriers like Southwest Airlines, JetBlue Airways, and Spirit Airlines, which have seen even steeper cost hikes.
Some airlines have begun to ease hiring or explore other ways to trim costs. Notably, Spirit Airlines has furloughed 186 pilots due to growing losses after a failed acquisition by JetBlue Airways. Frontier Airlines is offering voluntary leaves of absence to balance staffing levels with anticipated lower demand in the fall.
Major carriers are also adjusting their hiring plans. Southwest Airlines expects to end the year with 2,000 fewer employees compared to 2023 and has paused hiring classes for several roles. United Airlines, which paused pilot hiring in May and June due to late aircraft arrivals, plans to hire fewer staff this year compared to the previous two years.
Despite these adjustments, airlines are still hiring to meet long-term needs. For example, American Airlines’ CEO Robert Isom indicated plans to hire about 1,300 pilots this year, maintaining steady recruitment levels.
Training programs for new pilots remain robust, driven by sustained travel demand. Ken Byrnes, chairman of the flight department at Embry-Riddle Aeronautical University, notes that classrooms and cockpits continue to fill with aspiring pilots.
Travel demand persists, suggesting that while hiring targets may have adjusted, the need for pilots will continue in the foreseeable future.
Original Story https://www.cnbc.com/2024/09/06/us-airlines-cool-hiring-after-adding-employees-post-pandemic.html
Category :
Tags:
