December 16, 2010 - U.S. scheduled passenger airlines employed 3.7 percent fewer workers in October 2009 than in October 2008, the 16th consecutive decrease 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. FTE calculations count two part-time employees as one full-time employee. 

BTS, a part of the Research and Innovative Technology Administration, reported that the October FTE total of 379,800 for the scheduled passenger carriers was 14,400 below October 2008 and the lowest total for any month since 1993.  

Six of the seven network airlines decreased employment from October 2008 to October 2009.  Delta Air Lines was the lone network carrier to increase employment. Low-cost carriers Southwest Airlines, Spirit Airlines and Frontier Airlines also reported decreases from October 2008.

FTEs at four network carriers declined during the four years from October 2005 to October 2009. The network airlines employed 15,000 fewer FTEs in October 2009 than in October 2005 even though America West's numbers were not combined with US Airways in the network category until October 2007.  The biggest percentage decline in FTE employment was at Northwest, down 19.3 percent, a reduction of 6,300 FTEs, followed by United at 17.9 percent. The other 2005 to 2009 FTE decreases were American, down 10.9 percent; and Delta, down 2.6 percent. The increases were at Alaska, 3.0 percent; Continental, 1.9 percent; and the combined US Airways, 46.7 percent. Network airlines 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 airline FTEs decreased 0.4 percent in October from October 2008. The decrease was the third following five months of increases. Four low-cost airlines reported year-to-year increases: Virgin America, 16.6 percent; Allegiant Airlines, 15.9 percent; AirTran Airways, 5.6 percent; and JetBlue Airways, 4.3 percent.  Southwest, Spirit and Frontier reported year-to-year FTE decreases. The six low-cost carriers reporting employment data in both 2005 and 2009 employed 16.2 percent more FTEs in October 2009 than in October 2005.  Allegiant reported the largest percentage increase, up 198.8 percent.  Spirit reported the only four-year decrease within the low-cost group, down 8.5 percent. Low-cost airlines are those that the industry recognizes as operating under a low-cost business model, with lower infrastructure and aircraft operating costs.  

Regional Airlines:

Regional airline FTEs were down 10.1 percent in October 2009 compared to October 2008, the 14th consecutive month with a decline from the same month of the previous year. Comair, down 50.8 percent, and Mesaba, down 33.3 percent, reported the largest decreases in the regional group. Republic Airlines, up 35.0 percent; and GoJet Airlines, up 31.9 percent, reported the largest increases in the group. 

Regional carrier FTEs declined 9.1 percent from October 2005 to October 2009. The 15 regional carriers reporting employment data in both 2005 and 2009 employed 0.8 percent fewer FTEs in October 2009 than in October 2005.  Comair reported the largest percentage decline, down 58.8 percent, followed by PSA, down 41.1 percent, and Atlantic Southeast, down 34.4 percent. Republic Airlines reported the biggest four-year gain, 1136.9 percent, followed by GoJet at 144.1 percent and Shuttle America at 72.4 percent. Regional carriers typically provide service from small cities, using primarily regional jets to support the network carriers' hub and spoke systems.  

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 serving the Hawaiian Islands.  

Data are compiled from monthly reports filed with BTS by commercial air carriers as of Dec. 7. 2009