U.S. airline jobs hit post-recession high, traffic at Arkansas airports off to a slow start

The number of people employed in the airline industry through March reached its highest total in nearly eight years just ahead of the Memorial Day holiday weekend, the traditional start of the U.S. vacation season, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported Thursday (May 19).

According to the BTS, U.S. scheduled passenger airlines employed 406,113 in March 2016, 3.9% more than a year ago and the highest monthly total since August 2008.  It was also the 28th consecutive month that full-time employment grew year-over-year for the schedule passenger airline carriers, which include network, low-cost, regional and other airlines. Month-to-month, the number of full time equivalents (FTEs) rose 0.5% from February to March.

ARKANSAS ENPLANEMENTS
Travel out of Arkansas’ three largest commercial airports has slowed in the first four months of 2016, with two of the three reporting an enplanement decline during the period, according to the recent Arkansas Transportation Report.

The Clinton National Airport in Little Rock posted January-April enplanements of 295,121, up 1.85% compared to the same period in 2015. April enplanements totaled 80,050, up 0.74%. For 2015, enplanements totaled 996,837, down 4.29%. Roughly 1.9 million people flew in and out of Little Rock last year. It was the first time enplanements dropped below the million mark since 1991.

Northwest Arkansas Regional Airport (XNA) had 190,450 enplanements in the January-April period, down 1.56% com- pared to the same period in 2015. However, the 2016 comparisons are up against a record number of enplanements in 2015. For 2015 the airport had 647,530 enplanements, up 1.09% for the year. April enplanements out of XNA totaled 50,736, down 2.07% compared to April 2015. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

Enplanements at the smaller Fort Smith Regional Airport totaled 25,017 in the January-April period, down 11.8% compared to the same period in 2015. April enplanements were 6,892, down 7.68% compared to April 2015. Fort Smith enplanements totaled 86,704 in 2015, down 7.1% compared to 2014. The 2014 traffic was 92,869, the first time the airport had topped the 90,000 mark since 2007.

U.S. enplanements in the March 2015-February 2016 period (the most recent data available through the U.S. Department of Transportation) totaled 810.866 million, up 5.06% compared to the same period in the previous year.

AIRLINE EMPLOYMENT
The four network airlines (Alaska Airlines, Delta Air Lines, United Airlines and American Airlines) that collectively employ two-thirds of the scheduled passenger airline FTEs reported 2.9% more FTEs in March 2016 compared to the same month in 2015.
Alaska Airlines, Delta Air Lines and United Airlines increased FTEs from March 2015. The fourth network airline, American Airlines, which has merged with US Airways, reported 3.3% more FTEs in March 2016 than American and US Airways reported separately in March 2015.

July 2015 was the first month for which the two merged airlines submitted a combined report. Month-to-month, the number of network airline FTEs rose 0.5% from February to March. Network airlines operate a significant portion of their flights using at least one hub where connections are made for flights to down-line destinations or spoke cities.

The six low-cost carriers reported 9.6% more full-time employees in March than the previous year. Allegiant Airlines, Spirit Airlines, Virgin America, JetBlue Airways and Southwest Airlines reported increases while Frontier Airlines reported reduced FTEs. Month-to-month, the number of low-cost airline FTEs rose 4.2% from February to March, rising for the 12th consecutive month. Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average.

The 12 regional carriers reported 0.4% more full-time employees in March 2016 than a year ago. Eight regional airlines – PSA Airlines, Mesa Airlines, Compass Airlines, Horizon Air, SkyWest Airlines, GoJet Airlines, Republic Airlines and Endeavor Air – each reported increased employment levels. The others reported decreases. Month-to-month, the number of regional airline FTEs rose 0.3% from February to March. Regional carriers typically provide service from small cities, using primarily regional jets to support the network carriers’ hub and spoke systems.

38 MILLION EXPECTED FOR MEMORIAL DAY TRAVEL
U.S. airlines traditionally ramp up employment levels ahead of the Memorial Day weekend, which officials kicks off a week from now on Thursday, May 27. Today, AAA projected that more than 38 million Americans will travel this Memorial Day weekend, the second-highest travel volume for the spring holiday on record and the most since 2005.

Spurred by the lowest gas prices in more than a decade, about 700,000 more people will travel compared to last year, AAA said.

“Americans are eagerly awaiting the start of summer and are ready to travel in numbers not seen in more than a decade,” said AAA President and CEO Marshall Doney. “The great American road trip is officially back thanks to low gas prices, and millions of people from coast to coast are ready to kick off summer with a Memorial Day getaway.”

Air travel is expected to increase 1.6% over last year, with 2.6 million Americans taking to the skies this Memorial Day, AAA projects. Average airfares for the top 40 domestic flight routes will be 26% cheaper this Memorial Day, with an average roundtrip ticket costing $165.