In all, American has expanded its work power by 12,000 workers, or 10 %, since final summer time. Delta mentioned final week that it had added about 15,000 employees because the begin of final yr. United has employed 6,000 this yr.
However as of February, not one of the main carriers had returned to prepandemic employment ranges, in line with federal knowledge. Industrywide, airways employed greater than 739,000 part-time or full-time employees in February, down about 2 % from the identical month in 2020. And airways could wrestle to employees up additional.
“It’s a aggressive market on the market,” mentioned Peter McNally, a vice chairman who oversees analysis on the industrials, supplies and power industries at Third Bridge, a consulting agency. “The airways are pressured to compete in a broader financial system.”
Airways face different challenges, too, together with rising gas costs.
American expects gas costs within the second quarter to be about 30 % greater than within the first, whereas United and Delta have mentioned costs might rise as a lot as 20 %. Final week, the worth of jet gas in North America was 20 % greater than it was a month earlier and up 141 % from a yr in the past, according to the Platts Jet Fuel Price Index.
Regardless of the challenges, the business stays broadly optimistic, largely as a result of skyrocketing fares don’t appear to have curbed the urge for food for journey.
For the second quarter of this yr, American expects income to be about 6 to eight % greater than in the identical quarter of 2019 — despite the fact that it expects capability to be down 6 to eight % from the 2019 quarter.
Airways say clients aren’t simply prepared to pay greater fares — many are additionally shelling out much more cash for premium upgrades like seats with extra legroom.
