U.S. airlines appear to have reduced hiring after amassing 194,000 new workers during a post-Covid hiring spree.

U.S. passenger airlines have added nearly 194,000 jobs since 2021 as they went on a hiring binge following months of pandemic illness, according to data provided by the Department of Transportation. Now the industry is slowing hiring. Airlines may be close to meeting their staffing requirements but have seen hiring slow due to various challenges they’re currently encountering, including oversupply in U.S. flights that has driven down prices while eating into profits, as demand growth slows down. Airplane deliveries from Boeing and Airbus have been late, prompting airlines to reconsider expansions as engines become scarce – in some cases carriers even deferring aircraft deliveries altogether. Labor costs have steadily climbed after groups like pilots and mechanics signed new contracts containing significant raises, for the first time in many years. A three-year first officer on midsized equipment at U.S. airlines on average earned an annual average annual pay of around $170,586 last month – up from an annual pay average of just under $135K according to Kit Darby’s aviation consulting specializing in pilot pay; costs at U.S. carriers have seen double digit percentage increases. Raymond James airline analyst Savanthi Syth predicts that expenses excluding fuel and net interest expenses have seen increases of about 20-28% at American Airlines from 2019 levels, and approximately 28-29% higher at United and Delta Air Lines than 2019. Low cost airlines appear particularly affected. Southwest Airlines costs are expected to increase by 32% over a four year period; JetBlue Airways expenses should jump nearly 35%; while Spirit Airlines could experience almost 39% more expenditure over this time frame according to Syth’s data that accounts for flight length variance. Hiring is expected to remain steady based on August U.S. jobs report statistics but some industries have seen job cuts recently despite an upward trend overall in employment numbers (such as air transportation employment being nearly in line with July). But some carriers have witnessed decreases. Spirit Airlines announced on Sunday, via their union, that 186 pilots have been furloughed this month due to increased losses caused by its failed acquisition by JetBlue Airways, Pratt & Whitney engine recall and oversupplied U.S. market conditions. Last year, even before its merger fell apart, Frontier Airlines provided staff buyouts. Other airlines are slowing hiring or finding other ways to cut costs; Frontier still hires pilots but said that in September and October – following summer holidays but before Thanksgiving and winter breaks – voluntary leaves of absence would be available as voluntary leave. A spokeswoman from the airline reported it offers these leaves periodically when staffing levels exceed our planned flight schedules. Southwest Airlines projects it will end 2018 with approximately 2,000 fewer employees compared to 2023 and earlier this year announced it would halt hiring classes for work groups such as pilots and flight attendants. CFO Tammy Romo stated in July during an earnings call for her company that its headcount may decline again by 2025 as attrition surpasses their “controlled hiring levels. United Airlines announced in May and June it halted pilot hiring due to delayed aircraft from Boeing, yet plans on adding 10,000 employees this year; down from 15,000 individuals added annually between 2022-2023. Plans call for hiring 1,600 pilots this year compared with 2,300 last year – marking a substantial shift away from recent years, when airlines couldn’t hire enough employees fast enough. U.S. airlines typically seek to add pilots on an ongoing basis as per federal law; those 65+ must retire by age 65. In 2020 alone, airlines laid off thousands of employees in attempts to reduce losses further and stop falling profit margins. Taxpayer aid packages totalling more than $50 billion passed in order to help the airline industry through its worst crisis prevented layoffs; many employees chose buyouts or voluntary leaves offered by carriers instead of remaining with their employers. Travel demand rebounded faster than predicted by 2022 and left many airlines short experienced staff such as customer service agents. However, it also resulted in one of the worst pilot shortages ever witnessed by airlines – leading them to offer bonuses to pilots as an attempt to lure pilots away. But now things have changed; “Demand for travel remains strong; I do not foresee a long-term slowdown. “Read on at CNBC airline news for more news.