DOW JONES NEWSWIRES
U.S. passenger airlines employed 6.9% fewer workers in January
than they did a year earlier, the seventh-consecutive decline and
biggest fall since December 2003, according to the Department of
Transportation.
That string of cutbacks put January's total at 390,000 workers,
the lowest since 1993, the department's Bureau of Transportation
Statistics said. The calculations count two part-time employees as
one full-time employee.
Airlines are slashing capacity as consumers cutting back their
spending take fewer trips. Delta Air Lines Inc. (DAL) said earlier
this month it would cut international capacity another 10%, likely
the opening salvo of future similar announcements from other
carriers.
The bureau said all the legacy airlines' employment numbers
fell, as did low-cost carriers including AirTran Holdings Inc.'s
(AAI) AirTran Airways and regional carriers including AMR Corp.'s
(AMR) American Eagle Airlines.
The employment cuts come as airlines are slashing capacity as
consumers cutting back their spending take fewer trips. Delta Air
Lines Inc. (DAL) said earlier this month it would cut international
capacity another 10% amid the worsening economy, likely the opening
salvo of future similar announcements from other carriers.
The seven network carriers' employment decreased 6.3%, its fifth
straight decrease after 16 consecutive months of year-over-year
growth. The category includes Delta and its recent merger partner
Northwest Airlines, UAL Corp.'s (UAUA) United Airlines, AMR's
American Airlines, US Airways Group Inc. (LCC), Continental
Airlines Inc. (CAL) and Alaska Air Group Inc.'s (ALK) Alaska
Airlines.
Low-cost carriers' employment fell 3.1%, although a few, such as
Southwest Airlines Co. (LUV) reported increases. Regional carriers
reduced employment by 7.1%.
The BTS reported earlier this month that U.S. airlines' on-time
and baggage-handling performance improved in January as
cancellations fell.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com