BTS, a part of the Research and Innovative Technology Administration (RITA), reported that the July 2005 to July 2006 decline in FTEs was the 11th month in the last 12 with a decline of at least 5 percent from the same month of the previous year. FTE calculations count two part-time employees as one 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 403,000 FTEs employed in July 2006 were the second lowest total since at least the beginning of 2003. Only June 2006 was lower.

The seven network carriers employed 265,000 FTEs in July, 65.7 percent of the passenger airline total, while low-cost carriers employed 17.2 percent and regional carriers employed 13.8 percent. The network carriers have employed fewer FTEs each July compared to the previous year since 2002, the only carrier group to do so.

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

Network carrier FTEs declined 8.1 percent in July 2006 compared to July 2005. It was the 17th consecutive month with a decline of at least 5 percent from the previous year. Numbers from previous years were reported in BTS� Feb. 21 press release.

Network carrier FTEs dropped from 371,000 in July 2002 to 265,000 in July 2006, a four-year decline of 28.7 percent. 

FTEs at all seven network carriers declined in July 2006 from July 2002. The biggest percentage declines were at US Airways, down 43.6 percent, a reduction of 15,000 FTEs, and United Airlines, down 33.5 percent, a reduction of 27,000 FTEs. Collectively, the seven network carriers reduced July 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 2.6 percent in July 2006 compared to July 2005, the 16th consecutive month of decreases from the previous year. The 69,000 FTEs employed by the seven low-cost carriers in July account for 17.2 percent of the passenger airline total.

Low-cost carrier FTEs were 68,000 in July 2002, 71,000 in July 2005 and 69,000 in July 2006. The increase from 2002 to 2006 was 7.2 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 2.7 percent in July compared to July 2005.

Regional carrier FTEs rose from 41,000 in July 2003 to 56,000 in July 2006, an increase of 34.3 percent.

The seven regional carriers reporting employment data in both 2002 and 2006 employed 8.8 percent more FTEs in July 2006 than in July 2002. Of that group, Air Wisconsin and Mesaba Airlines were the only carriers to report fewer FTE�s in July 2006 than July 2002 while Horizon Airlines employed virtually the same number of FTEs.

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 Sept. 11.

Additional airline employment data can be found on the BTS website. BTS has scheduled release of August airline employment data for Oct. 19.
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