BTS, a part of the Research and Innovative Technology Administration (RITA), reported that the March 2005 to March 2006 decline in FTEs was the eighth consecutive month with a decline in FTEs of more than 5 percent from the same month of the previous year. In FTE calculations, a part-time employee is counted as one-half a full-time employee.

December 2004 was the last month in which scheduled passenger airlines employed more FTEs than in the same month the previous year. December 2004 was the last of seven consecutive months of increases from the previous year. Scheduled passenger airlines include network, low-cost, regional and other airlines.

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. Using the available numbers from network, low-cost, regional and other airlines, the 405,000 FTEs employed in March 2006 were the lowest total since at least the beginning of 2003 except for February 2006 when the airlines employed 586 fewer FTEs.

The seven network carriers employed 268,000 FTEs in March, 66.2 percent of the passenger airline total. Low-cost carriers employed 17.0 percent and regional carriers employed 13.7 percent. The network carriers are the only carrier group to reduce FTEs each March from the previous year since 2002.

American Airlines employs the most FTEs among the network carriers, Southwest Airlines employs the most among low-cost carriers and American Eagle Airlines employs the most among regional carriers. Seven of the top 10 employers in the industry are network carriers.

Network carrier FTEs have declined every month since 2003 from the same month the previous year. They declined 7.4 percent in March 2006 compared to March 2005. Numbers from previous years were reported in BTS� Feb. 21 press release.

Network carrier FTEs dropped from 364,000 in March 2002 to 268,000 in March 2006, a decline of 26.3 percent. 

FTEs at all seven network carriers declined in March 2006 from March 2002. The biggest percentage declines were at US Airways, down 55.7 percent, a reduction of 25,000 FTEs, and United Airlines and Northwest Airlines, both down 30.6 percent, a reduction of 24,000 FTEs at United and 13,000 FTEs at Northwest. Collectively, the seven network carriers reduced March FTE headcount in 2006 by 106,000 since 2002.

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.

Data for US Airways and America West Airlines, now in the process of merging operations, are separately reported � US Airways� data are included in the network carriers� category and America West�s in the low-cost carriers� category.

Low-cost carrier FTEs declined 3.0 percent in March 2006 compared to March 2005, the 12th consecutive month of decreases from the previous year. The 69,000 FTEs employed by the seven low-cost carriers in March account for 17.0 percent of the passenger airline total.

Low-cost carrier FTEs were 62,000 in March 2002, 71,000 in March 2005 and 69,000 in March 2006. The increase from 2002 to 2006 was 11.2 percent. Of the airlines operating and reporting in both March 2006 and March 2002, all reported more FTEs in 2006 except Southwest Airlines, down 2.6 percent; ATA Airlines, down 55.6 percent; and Spirit Airlines, down 3.3 percent.

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

Employment data for Independence Air, which changed its business model from a regional to low-cost carrier in mid-2004, have been included with low-cost carriers for 2003, 2004 and 2005 for consistency. The airline discontinued all flights on Jan. 5.

Regional carrier FTEs were down 1.9 percent in March compared to March 2005.

Regional carrier FTEs rose from 41,000 in March 2003 to 55,000 in March 2006, an increase of 33.3 percent. 

The seven regional carriers reporting employment data in both 2002 and 2006 employed 9.2 percent more FTEs in March 2006 than in March 2002. Of that group, Air Wisconsin and Mesaba were the only carriers to report fewer FTE employees in March 2006 than March 2002.

Regional carriers 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 Aloha and Hawaiian Airlines in serving the Hawaiian Islands.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of May|9.

Additional airline employment data can be found on the BTS website. BTS has scheduled release of April airline employment data for June 20.
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