Two Years of COVID-19: Airlines and Airports Conduct Massive Layoffs
Flight Cancellations and Reductions Continue Due to Inability to Meet Travel Demand
The pent-up travel demand due to COVID-19 has exploded, causing a global aviation crisis.
Bloomberg News and others reported on the 19th (local time) that flight cancellations and delays are occurring due to an imbalance between airline demand and supply.
According to the travel application Hopper, the number of airline passengers in the United States this month increased by 50% compared to the same period last year. It also rose by 25% compared to the same period in 2019, before the COVID-19 pandemic. The U.S. Transportation Security Administration (TSA) said that over 2 million passengers passed through airports on the 17th, ahead of the Juneteenth holiday. This is 100,000 more than the previous peak travel period, Memorial Day (May 30).
Airlines and airports are unable to keep up with the exploding demand. The U.S. aviation industry expected that it would take a considerable amount of time for travel demand to recover after the initial outbreak of COVID-19, so they implemented large-scale staff reductions. Airports also cut a significant number of employees over two years to reduce costs.
Although airlines and airports have rushed to secure personnel, many employees have switched to other professions, making it difficult to fill the workforce gap in the short term. Regional U.S. airlines Piedmont and Envoy have offered pilots a temporary 50% wage increase until August 2024. American Airlines promised to raise the wages of 14,000 pilots flying major routes. Alaska Airlines and United Airlines have opened flight training schools earlier this year and are providing financial support for aspiring pilots.
However, the labor shortage persists, leading to flight cancellations. CNN reported that 9,000 flights were canceled in the U.S. on the 17th due to staff shortages and other reasons. Delta Air Lines canceled 248 flights on the 19th alone.
The industry expects the hiring difficulties to extend beyond next year. Scott Kirby, CEO of United Airlines, expressed concern, saying, "The pilot shortage is real, and most airlines do not know how many flights they will be able to operate because of the lack of pilots. This could last at least five years." Akbar Al Baker, CEO of Qatar Airways, also said "The global shortage of airport personnel will be a major issue for the coming months."
However, they expect performance to improve next year. Willie Walsh, Secretary General of the International Air Transport Association (IATA), forecasted that the mismatch between airline supply and demand will continue until the first quarter of this year, but the aviation industry will return to profitability next year.
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