Airline CEOs Talk Fuel Prices and Pilot Shortage

Despite increased passenger traffic from a pent-up demand by consumers for travel, airlines are still hurting says JetBlue Airways CEO Robin Hayes said.

“The aviation ecosystem is still suffering from the same challenges we are seeing in other sectors too,” Hayes told Bloomberg News in an interview. “We have to act now … we have to do our best to make sure when we operate, we can do so reliably.”

Hayes also said now is the time for everyone to optimize their resources at a time when travel demand is up – but it’s coming at the expense of continued problems, including delays and cancellations due to airlines being stretched thin by staffing issues.

United Airlines CEO Scott Kirby also conducted an interview with Bloomberg and said airlines might have to go back to the government for help – not for an influx of money, as it received at the beginning of the pandemic in early 2020, but for government help in building a stronger air traffic system.

“We almost need the government more than we need ourselves to help … We need the help to rebuild a resilient system to support this industry,” Kirby said. “Regional airlines and low-cost airlines are going to very much struggle to hire enough pilots.”

Kirby might be careful about what he asks for – Department of Transportation Secretary Pete Buttigieg, smarting from having his own flight canceled recently and being forced to drive from Washington to New York, said he is prepared to use the power of his office to compel airlines to hire more employees.

Kirby also said rising fuel prices are killing the industry, noting that if costs per barrel stay where they are now, the cost is a “$12 billion incremental expense compared to 2019 … That’s 100 percent of what is driving inflation in our business,” he said.