From CNBC: 2024-09-06 09:30:15

U.S. passenger airlines have added nearly 194,000 jobs since 2021 but are now cooling their hiring spree due to challenges such as a glut of flights, late plane arrivals, engine shortages, and rising labor costs with big raises inked in new contracts. Annual pay for a first officer has increased to $170,586.

Costs at U.S. carriers have climbed by double-digit percentages since 2019, with American Airlines, United Airlines, and Delta Air Lines seeing increases of around 20-28%. Low-cost airlines like Southwest, JetBlue, and Spirit are experiencing even higher cost rises of up to almost 39%.

Easing hiring in the U.S. airline industry was reflected in August air transportation employment figures roughly in line with July’s. Airlines like Spirit, Frontier, Southwest, and United are cutting costs through measures like furloughs, voluntary leave offers, and reduced hiring classes for pilots and flight attendants.

Airlines had initially shed tens of thousands of employees in 2020 due to pandemic losses but faced a sudden surge in travel demand in 2022. This led to an industry-wide pilot shortage that was filled with bonuses. Now, demand is waning, causing companies like FedEx and UPS to cut costs and airlines to lower hiring targets.

Despite reduced hiring targets, American Airlines CEO Robert Isom expects to continue hiring pilots at around the same levels as last year. Students are still training to become pilots, indicating a sustained interest in aviation careers despite the industry’s current hiring slowdown.



Read more at CNBC: U.S. airlines cool hiring after adding employees in post-Covid spree