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U.S. Airlines Slow Hiring Amid Rising Costs and Market Challenges

BusinessU.S. Airlines Slow Hiring Amid Rising Costs and Market Challenges

After a massive hiring spree that added nearly 194,000 jobs since 2021, U.S. airlines are now cooling their recruitment efforts. The industry, which faced a severe downturn during the pandemic, is grappling with a range of new challenges that are slowing its expansion plans. Airlines are nearing their staffing needs, but rising labor costs, delayed aircraft deliveries, and a glut of flights in the U.S. market are pressuring profits.

One key factor affecting the industry is the rising cost of labor. Since 2019, pilot salaries have increased significantly, with annual pay for a three-year first officer on midsized equipment now averaging $170,586, up from $135,896 in 2019. Additionally, labor costs for mechanics and other staff have surged due to new contracts with substantial raises. Costs at major carriers like American Airlines, United Airlines, and Delta Air Lines have risen by 20-28% compared to 2019. At low-cost airlines, the increase is even more pronounced, with Southwest Airlines, JetBlue, and Spirit Airlines seeing cost hikes of up to 39%.

The hiring slowdown comes as some airlines scale back their operations. Spirit Airlines recently furloughed 186 pilots due to growing losses after a failed acquisition by JetBlue and other operational challenges, including an engine recall. Other carriers, like Frontier Airlines, are offering voluntary leaves of absence to manage excess staff during periods of lower demand. Southwest Airlines expects to end 2024 with 2,000 fewer employees than the previous year and has paused hiring for certain work groups. United Airlines has also reduced its hiring targets, aiming to add 10,000 employees this year, down from 15,000 in both 2022 and 2023.

Despite these cutbacks, the demand for air travel remains strong, and airlines continue to hire pilots, though at a slower pace. Airlines are required to regularly hire pilots due to mandatory retirement at age 65. Though the pace has slowed, industry leaders remain optimistic about long-term demand. Ken Byrnes, chairman of the flight department at Embry-Riddle Aeronautical University, said that students are still filling classrooms and cockpits, preparing for careers as pilots. He believes that while there may be short-term challenges, the demand for travel will sustain the need for skilled aviation professionals in the long run.

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