In the last few weeks, Fort Worth-based American Airlines cut thousands of flights over the next three months after Chicago-based United Airlines said it is putting growth on hold into 2023. This week United cut another 3,900 flights from its October plans.
The airlines need to capitalize on high ticket prices to make up for more than $37 billion in losses over the last two and a half years, even with $50 billion in government aid. Even so, airline executives are deciding that restraint is now the only option, even with strong customer demand.Several factors are contributing to those decisions. Carriers and airports face labor shortages, heightened by logjams in training. Outbreaks and new variants of COVID-19 are emerging. Supply chain issues and airplane delivery delays loom, which particularly affect the rebounding international travel market.
Most of those factors have covid in common.
Some of Europe’s biggest airports in London, Frankfurt and Amsterdam are adding capacity caps that are straining the international travel system at some of its most critical connecting points.
Meanwhile, a pilot shortage that has loomed over airlines for more than a decade likely won’t resolve itself for two or three years. Labor unions say workers are fed up with long hours, forced overtime and rebooked flights even as they fight for higher pay to make up for historic inflation.
Related to pilot reductions due to covid vaccine mandates. Sensing a theme?
The biggest logjam in the airline industry right now is in training. American and Southwest have each hired more than 10,000 employees during the last year. But it takes weeks or months of training before those new hires are ready to work. And it takes months or years before they’re running at full speed, said Kenneth Quinn, a former counsel for the Federal Aviation Administration.For airlines and airports, the staffing shortage has spread from restaurant workers and janitors to baggage handlers and ticket agents.
Isom said it could be two or three years before one labor shortage is worked out — the need for regional airline pilots. The training pipeline for pilots is long and expensive, leading airlines to fight for the limited number of pilots already certified.
For airline travelers, the mix of labor shortages, high fuel prices and strong demand mean ticket prices will remain stubbornly high and flights will continue to be scarce, Grant said. "That means maybe less production coming online." "It also means the consumer is going to have to be willing to pay more."
Pay more for less - another measure of Joeflation.