U.S. Airlines Slow Hiring Amid Industry Challenges

U.S. airlines, having ramped up hiring after the pandemic, are now easing their recruitment efforts due to various operational and financial challenges. Since 2021, the industry has added nearly 194,000 jobs, according to the U.S. Department of Transportation. However, as airlines approach their staffing goals, several factors are causing a shift in hiring dynamics.

Airlines faced a massive reduction in workforce during the pandemic, followed by a swift rebound in travel demand that necessitated rapid hiring. Now, with demand growth stabilizing, airlines are encountering new obstacles. Delivery delays from Boeing and Airbus, engine shortages, and increased labor costs are contributing to a more cautious approach to staffing.

The industry’s profitability has been impacted by an oversupply of flights, which has driven down fares. With demand growth moderating, airlines are adjusting their expansion plans. Aircraft delivery delays and engine shortages are causing some carriers to defer new aircraft deliveries, while increased labor costs are adding to financial pressures. For instance, annual pay for a three-year first officer on mid-sized equipment at U.S. airlines averaged $170,586 in March, a significant increase from $135,896 in 2019.

Cost increases have been substantial across the industry. Excluding fuel and net interest expenses, costs are expected to rise by about 20% at American Airlines, 28% at United Airlines, and 28% at Delta Air Lines compared to 2019 levels. Low-cost carriers are seeing even higher cost increases, with Southwest Airlines up 32%, JetBlue Airways up nearly 35%, and Spirit Airlines experiencing a 39% rise.

The most recent U.S. jobs report indicates that air transportation employment in August remained steady compared to July. However, some airlines have begun scaling back hiring. Spirit Airlines, for example, has furloughed 186 pilots due to increased losses and operational challenges. The airline’s difficulties include a failed acquisition attempt by JetBlue Airways, an engine recall, and an oversaturated market.

Other carriers are also adjusting their hiring strategies. Frontier Airlines is offering voluntary leaves of absence in September and October to manage staffing levels. Southwest Airlines plans to reduce its workforce by 2,000 employees by the end of the year and has halted hiring for certain positions. United Airlines, which paused pilot hiring earlier this year, now aims to add 10,000 employees in 2024, a reduction from the 15,000 added in 2022 and 2023. The airline will also decrease its pilot hiring target to 1,600, down from more than 2,300 last year.

This shift marks a departure from the frantic hiring pace of recent years. During the pandemic, airlines shed tens of thousands of employees to mitigate financial losses. Despite government aid that prevented layoffs, many workers left through buyouts and voluntary leaves. As travel demand surged, airlines struggled with staffing shortages, particularly of experienced customer service agents and pilots, leading to significant recruitment efforts and increased bonuses for pilots.

As the industry stabilizes, hiring levels are expected to normalize. American Airlines, for instance, plans to maintain hiring at current levels in the foreseeable future. Training programs for future pilots continue to be robust, indicating that while hiring may be more measured, demand for travel remains strong.

Despite current challenges, industry experts like Ken Byrnes from Embry-Riddle Aeronautical University believe that long-term demand for air travel will persist. As airlines navigate these transitions, they are likely to continue adapting their strategies to balance operational efficiency with staffing needs.