DOW JONES NEWSWIRES
U.S. airlines employed 6.8% fewer workers in May than a year
earlier, the 11th straight month with a year-over-year decrease,
according to the Department of Transportation.
Steep declines in business travel during the economic downturn
have been taking a heavy toll on U.S. airlines, offsetting the
benefits of lower fuel prices and forcing them to take new steps to
control costs and boost revenue.
Several U.S. airlines, including Continental Airlines Inc.
(CAL), Southwest Airlines Inc. (LUV) and United Airlines parent UAL
Corp. (UAUA), reported second-quarter results that highlighted
cutbacks in corporate travel as a key factor weighing on their
results.
The Bureau of Transportation Statistics said all the network
airlines decreased employment in May from a year earlier, along
with discount carriers including AirTran Holdings Inc.'s (AAI)
AirTran Airways, Spirit Airlines and Frontier Airlines Holdings
Inc. (FRNTQ). Regional carriers including Comair Ltd. (COM.JO) and
Atlantic Southeast Airlines also cut back employment.
The seven network carriers employed 260,500 full-time employees
in May. AMR Corp.'s (AMR) American Airlines had the most employees
among network carriers, while Southwest had the most among low-cost
carriers.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com
