This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Airline pilot shortage? Not clear, report says

By JOAN LOWY

WASHINGTON (AP) a¿¿ It's not clear there is a shortage of airline pilots even though regional airlines report difficulty over the past year in finding enough pilots to hire, according to a draft report by a government watchdog obtained by The Associated Press.

The U.S. airline industry will need to hire 1,900 to 4,500 new pilots annually over the next 10 years due to an expected surge in retirements of pilots reaching age 65 and increased demand for air travel, the Government Accountability Office said in the report obtained late Thursday.

Eleven out of 12 regional airlines failed to meet their hiring targets for entry-level pilots last year, the report said. However, no major airlines were experiencing problems finding pilots. Some airline officials did express concern that service to some cities might have to be cut back if their regional partners cannot hire enough pilots, the report said.

Major airlines generally pay significantly higher salaries than regional carriers. The average starting salary for first officers at regional airlines is $22,400, according to the Air Line Pilots Association.

"Data indicate that a large pool of qualified pilots exists relative to the projected demand, but whether such pilots are willing or available to work at wages being offered is unknown," the report, which is being released Friday, said. And, the size of these pools of pilots has remained steady since 2000, the report said.

There are currently 66,000 pilots working for U.S. airlines, but there are 109,465 currently active pilots with a first class medical certificate that are licensed to fly passengers, the report said. Plus, there are more than 100,000 other pilots with commercial licenses that might at some point choose to pursue an airline career, the report found.

The unemployment rate for professional pilots is very low, only 2.7 percent. That would normally indicate a shortage, but there are other reasons to believe that may not be the case, according to the report. Average professional pilot salaries went down 9.5 percent from 2000 to 2012, while the number of pilots employed went up 12 percent. Both trends are inconsistent with a shortage, the report said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs