US LCCs increase employee levels in Jun-2010, but overall airline employment levels weaker

US LCC year-on-year** change in FTE* levels

Month	2007	2008	2009	2010
January	4.8	-9.7	-3.1	1.4
February	5.3	-10.2	-3.0	1.4
March***	4.7	-13.3	0.1	1.2
April	6.0	-15.2	1.2	0.5
May	5.6	-14.8	1.2	0.6
June	5.6	-14.9	0.8	0.9
July	6.1	-16.1	0.9
August	5.5	-16.4	-0.2
September	6.2	-17.3	-0.1
October	-11.3	-1.5	-0.4
November	-10.3	-2.8	-0.1
December	-10.6	-3.3	0.0

Source: Centre for Asia Pacific Aviation and Bureau of Transportation Statistics
* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.
** US Airways' employment numbers were included with network airlines prior to October 2007 while America West's numbers were included with low-cost airlines. Beginning with October 2007, US Airways' numbers are combined with America West's numbers in the network category.
*** ATA Airlines ceased operating April 3, 2008 and stopped reporting employment data in March.
Note: Percent changes based on numbers prior to rounding.

Five LCCs reported year-on-year FTE increases in the month, namely: Frontier Airlines (+10.1%), Allegiant (+10.0%), Virgin America (+8.8%), Spirit (+7.8%) and JetBlue (+4.3%). Southwest and AirTran reported year-on-year FTE Reductions.

The six LCCs reporting employment data in both 2006 and 2010 employed 11.9% more FTEs in Jun-2010 than in Jun-2006, with Allegiant reporting the largest percentage increase, up 121.0%.

US LCC Full-time Equivalent Employees*: Jun-2006 to Jun-2010**

Rank		2006	2007	2008	2009	2010	Percent Change**
							2006-2010	2009-2010
1	Southwest	31,735	33,261	34,285	35,296	34,636	9.1	-1.9
2	JetBlue	9,675	9,675	10,523	10,776	11,234	16.1	4.3
3	AirTran	7,167	8,147	8,279	8,200	8,083	12.8	-1.4
4	Frontier	4,484	4,940	4,949	4,391	4,833	7.8	10.1
5	Spirit	2,039	2,191	2,453	1,905	2,053	0.7	7.8
6	Allegiant	739	951	1,299	1,485	1,633	121.0	10.0
7	Virgin America***	N/A	N/A	1,189	1,449	1,576	N/A	8.8
8	ATA****	2,650	2,405	N/A	N/A	N/A	N/A	N/A
9	America West*****	11,651	12,471	N/A	N/A	N/A	N/A	N/A
	Total	70,140	74,041	62,977	63,502	64,048	11.9	0.9

Source: Centre for Asia Pacific Aviation and Bureau of Transportation Statistics
* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.
** The Percent Change 2006-2010 is based on the six carriers reporting in both years.
*** Virgin America and SkyBus began reporting employment data in August 2007. SkyBus stopped reporting employment data effective in April 2008 resulting from its bankruptcy filing.
**** ATA Airlines ceased operating on April 3, 2008 and stopped reporting employment data effective in March.
***** Beginning with October 2007, US Airways' numbers are combined with America West Airlines' numbers in the network category. For US Airways previous year numbers and for the combined number in the network category, see Table 9.
N/A: Carrier did not meet the standard for filing, was no longer operating, merged with another operating carrier or failed to file. See previous notes.
Note: Percent changes based on numbers prior to rounding.
Note: Detail may not add to total due to rounding.

Meanwhile, US LCCs had 64,000 FTEs in Jun-2010, an 8.7% reduction from Jun-2006 levels, but the highest level since Feb-2008.

US LCC Full-time Equivalent Employees* by Month**

FTE employees (000)	2006	2007***	2008	2009	2010	Percent Change
						2006-2010	2009-2010
January	68.4	71.7	64.7	62.7	63.6	-7.0	1.4
February	68.7	72.3	64.9	63.0	63.8	-7.0	1.4
March****	69.4	72.6	62.9	63.0	63.8	-8.0	1.2
April	69.6	73.8	62.5	63.3	63.6	-8.7	0.5
May	69.8	73.7	62.8	63.5	63.9	-8.4	0.6
June	70.1	74.0	63.0	63.5	64.0	-8.7	0.9
July	70.2	74.5	62.5	63.0
August	71.3	75.2	62.9	62.8
September	71.1	75.5	62.5	62.4
October	71.7	63.6	62.7	62.4
November	71.9	64.5	62.7	62.6
December	72.5	64.8	62.6	62.6
12-Month Average	70.4	71.4	63.1	63.0
Jan-June Average	69.3	73.0	63.5	63.2	63.8	-8.0	1.0

Source: Centre for Asia Pacific Aviation and Bureau of Transportation Statistics
* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.
** US Airways' employment numbers were included with the network airlines prior to October 2007 while America West's numbers were included with the low-cost airlines. Beginning with October 2007, US Airways' numbers are combined with America West Airlines' numbers in the network category.
*** Virgin America and SkyBus began reporting employment data in August 2007. SkyBus stopped reporting employment data effective in April 2008 resulting from its bankruptcy filing.

24th month of FTE reduction; airline staff levels reach record lows

Overall, US scheduled passenger airlines employed 2.4% fewer workers in the month, marking the 24th consecutive reduction in FTE levels for the scheduled passenger carriers from the same month of the previous year.

While the June FTE number was the highest since Jan-2010, the overall trend is that airline employment in the US is now at its lowest point in 13 years, with one in four airline employees being shed in the last decade.

Reducing labour costs has helped most US carriers return to profitability in the Jun-2010 quarter, with the quarter being the best three-month period for US airlines in three years. The trend to reduce labour expenses is set to continue, with airline consolidation, outsourcing and the increased reliance on IT - for such functions as online reservations and check-in and self baggage scanners - likely to continue to reduce the need for as many airline employees.

Meanwhile, the Jun-2010 level represents the second lowest level in 20 years, despite annual passenger traffic increasing approximately 65% over the same timeframe.

US Total Passenger Airline* Full-time Equivalent Employees** by Month

Month (000s)	2006	2007	2008	2009	2010	Percent Change
						2006-2010	2009-2010
January	405.6	404.1	418.7	390.6	379.4	-6.5	-2.9
February	404.3	405.8	419.0	391.6	378.0	-6.5	-3.5
March	404.9	407.9	415.5	392.1	377.3	-6.8	-3.8
April	404.4	410.0	415.4	392.1	376.2	-7.0	-4.1
May	403.5	412.3	415.5	387.4	377.0	-6.6	-2.7
June	403.7	413.9	414.4	387.7	378.3	-6.3	-2.4
July	403.2	414.4	411.1	386.8
August	404.6	415.2	406.7	384.3
September	403.6	416.1	397.3	379.9
October	403.4	417.9	394.2	379.7
November	404.3	419.5	392.1	379.4
December	404.8	419.7	391.8	379.1
12-Month Average	404.2	413.1	407.6	386.0
Jan-June Average	404.4	409.0	416.4	390.2	377.7	-6.6	-3.2

Source: Centre for Asia Pacific Aviation and Bureau of Transportation Statistics
* Includes network, low-cost, regional and other carriers.
** Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.
Note: Percent changes and averages based on numbers prior to rounding.
Note: Employment numbers for Casino Express Airlines through March 2010 were previously included in this table. Casino Express, a scheduled passenger carrier, changed to charter operations in July 2005. Its employment data are no longer included in this table. Data for Casino Express have been removed on this press release from all months from July 2005 through March 2010 and will not be included in future press releases.

Aircraft manufacturing job levels also down in Jun-2010

Meanwhile, earlier this month, the Bureau of Labor Statistics reported that aircraft manufacturing jobs fell to 226,500 in Jun-2010, down from 233,800 in Jun-2009, with total airline related employment (airline carriers and manufacturing) rose by 1,100 to 604,800.

US aircraft manufacturing employment levels: Dec-2009 to Jun-2010

Employment (000s)	Dec-2009	Jan-2010	Feb-2010	Mar-2010	Apr-2010	May-2010	Jun-2010
Aircraft manufacturing	231.4	230.7	229.0	228.2	227.7	226.7	226.5
Monthly % Change	-0.1%	-0.3%	-0.7%	-0.3%	-0.2%	-0.4%	-0.1%
Level Change	-0.2	-0.7	-1.7	-0.8	-0.5	-1.0	-0.2
Carrier and manufacturing	610.5	610.1	607.0	605.5	603.9	603.7	604.8
Monthly % Change	-0.1%	-0.1%	-0.5%	-0.2%	-0.3%	0.0%	+2.0%
Level Change	-0.5	-0.4	-3.1	-1.5	-1.6	-0.2	+1.1

Source: Centre for Asia Pacific Aviation and Bureau of Labor Statistics

US unemployment jumps to highest level in six months

This is reflective of the overall trend in the US, with the US Department of Labor stating, in its Unemployment Insurance Weekly Claims Report that, in the week ending 07-Aug-2010, the advance figure for seasonally adjusted initial jobless benefits claims was 484,000, an increase of 2,000 from the previous week's revised figure of 482,000. The four-week moving average was 473,500, an increase of 14,250 from the previous week's revised average of 459,250. The data reveals that the number of Americans filing new claims for jobless benefits reached the highest level in six months in the week, adding to US recovery concerns.

Despite US airlines returning to profitability in the second quarter - as traffic demand improves, with passenger levels, load factors and yields increasing accordingly - the nation's airlines as a whole have not yet resumed hiring. The nation's LCCs have, however, been more inclined to boost employee levels, as they add capacity back into the market to capitalise on improved demand levels.