An Air Asia Airbus A330-300. [AirlineGeeks - Hisham Qadri]
AirAsia X, Malaysia’s low-cost carrier, has announced a new flight from the Gold Coast, Australia to Auckland, New Zealand from Feb. 3, 2024. The Southwest Pacific is one of the most important markets to the carrier and the Gold Coast was the first destination back in 2007. AirAsia X is the affiliated airline of AirAsia providing long and medium haul services.
However, the airline will suspend the flight from Auckland to Sydney from January 31. The flight was launched in November 2022. The trans-Tasman flight was expected to provide another option and competitive fares to customers. AirAsia X halted its service after only one year of operation. Benyamin Ismail, the airline’s CEO, emphasized the suspension is based on a number of factors but primarily based on consumer demand.
“We understand the inconvenience for affected guests booked on the Sydney -Auckland route next year so we are doing all we can do to minimise any disruption by contacting them as soon as possible and offering a range of provisions,” Ismail said.
According to the Gold Coast Airport, about 60% of passengers traveling between the tourism hotspot and New Zealand are from Auckland. The new route could add more than 350,000 seats every year.
“This is a welcome addition to our network and exciting news for travellers – flights between the Gold Coast and Auckland are our busiest international connection.” Adam Rowe, Chief Commercial Officer of Queensland Airports, in response to the new flight operation.
Fail to Exit PN17
AirAsia X has recently increased its services to Australian cities as well, such as Sydney, Melbourne, and Perth. The airline owns a fleet of 17 aircraft.
Earlier, the no-frills airline marked its sixteenth anniversary and announced the third quarter’s remarkable operating statistics. The airline hit the mark, carrying over 800,000 passengers during the third quarter with an 80% load factor, 10 times higher than the same time in 2022. In addition, AirAsia X Thailand carried over 340,000 passengers in the third quarter, almost six times more than the same period last year.
The airline revealed that it will ramp up services to existing destinations and introduce new destinations in the future.
In the meantime, Bursa Malaysia Securities has turned down the airline’s request to exit PN17 status, which is given to financially distressed entities. AirAsia X has kept its head above water and classified as PN17 since the pandemic, it needs to regularize its finances within a set time frame. Malaysia is eager for tougher financial rules on the airlines, as a result of the Myairline chaos.
An A321 in Frontier's "Spot the Jaguar" livery on approach into Las Vegas.
(Photo: AirlineGeeks | William Derrickson)
Ultra-low-cost airline Frontier has announced that it will be opening a new crew base at Cleveland Hopkins International Airport (CLE) in March of 2024. The new base is expected to employ up to 110 pilots, 250 flight attendants, and 50 aircraft maintenance personnel within the first year, according to a press release.
Frontier says it is the fastest-growing airline in Cleveland, having increased passenger capacity by 53 percent over the past year. The carrier currently offers 17 nonstop routes from CLE, more than any other carrier in the 2023-2024 winter schedule.
The opening of the new crew base is expected to have a positive impact on the Cleveland economy. The airline estimates that the crew base will generate nearly $80 million in local wages annually.
“We’re excited to partner with the Cleveland community as we continue to expand our operation at CLE and bring meaningful economic impact to the area through new jobs,” said Barry Biffle, CEO of Frontier Airlines in a press release.
“A crew base also positively impacts customers as it helps to support smooth flight operations. Our new crew base reflects our commitment to continued growth at CLE as we bring even more of our ‘Low Fares Done Right’ to area residents,” he added.
Other Frontier crew bases include Denver, Dallas, Las Vegas, Orlando, Atlanta, Phoenix, and Miami, according to AviationPros. United still has a crew base in Cleveland with over 500 combined pilots and flight attendants.
Ryan founded AirlineGeeks.com in February 2013 and has spent more than a decade covering the airline business. His work has been featured by CNN, WJLA, CNET, and Business Insider. His aviation experience spans airport operations, Part 135 regulatory compliance, and airline crew workforce planning, along with time behind the yoke of a Cessna 172 and interviews with airline executives. Ryan now serves as Group President of Firecrown Media’s Aviation Group. He holds a B.S. in Air Transportation Management and an MBA from Arizona State University and teaches Airline Management at Embry-Riddle Aeronautical University.
Overlooking DFW Airport's Terminal B. (Photo: AirlineGeeks | William Derrickson)
Following a record Summer 2023 season, U.S. airlines are setting their sights on the upcoming Thanksgiving holiday period. Shaky third-quarter earnings for some carriers coupled with an ongoing shortage of pilots – particularly captains – have prompted some airlines to rethink Thanksgiving capacity.
Often heralded as the busiest travel period of the year in the U.S., it is not uncommon to see airlines add capacity, especially after the post-summer travel lull. With some carriers now on Wall Street’s hot seat, Thanksgiving can serve as a preview for December performance.
In 2022, the TSA screened a record-setting 2.56 million passengers at its checkpoints on the Sunday after Thanksgiving, the most since 2019. The year 2023 is on track to eclipse this record.
Busiest Travel Day
According to data from aviation analytics group Cirium, Sunday, Nov. 26, 2023 will be the year’s busiest travel day. U.S. airlines have scheduled 3,070,965 seats and a total of 22,033 flights.
“Bring your patience. The airports will be full and while a lot of people have taken to the skies since the pandemic there will be many that are not as familiar or infrequent flyers who might take longer at security checkpoints. Arrive a touch earlier than usual,” says Mike Arnot, a spokesperson for Cirium.
Outpacing even some peak July days, the Thanksgiving 2023 plan also exceeds 2022 by the number of flights across major U.S. carriers. Not all airlines are created equal in their Thanksgiving 2023 quests though with some even trimming year-over-year capacity.
Pulling Back the Thanksgiving Throttles
While most airlines added capacity compared to Thanksgiving 2022, some bucked that trend. Ultra-low-cost startups Avelo and Breeze lead the capacity-adding charge with double-digit growth in seats, according to Cirium. Breeze has nearly 30,000 more seats in 2023, representing an 80% increase.
“A number of airlines in the lower cost end of the spectrum had a challenging third quarter and surprisingly so. They have only just began to trim their schedules to reduce capacity and therefore costs. They will be looking to reduce costs on routes that aren’t working or where capacity can be better deployed elsewhere,” shares Arnot.
All three major U.S. airlines – Delta, United, and American – have also added capacity with Delta leading at 6% growth compared to American and United’s 4%. After reporting a net loss of $157.6 million in Q3 2023, Spirit only modestly trimmed its schedule, but the airline’s Thanksgiving 2023 capacity is still 10% larger than in 2022.
“For instance, Spirit announced its exit from Denver in January 2024. There are still plenty of options to get to Denver. This will help Spirit’s margins generally and will likely increase yields for the airlines like Frontier at Denver. This is the calculus that will take place route by route, month by month, and airline by airline. It’s math and the airline revenue managers and network planners are actually adept at that,” Arnot continued.
A Spirit Airlines Airbus A319 prepares for landing. (Photo: AirlineGeeks | William Derrickson)
While most U.S. airlines added capacity during Thanksgiving when compared to 2022, JetBlue did not. The carrier trimmed its schedule by 8% year-over-year, representing a reduction of 46,718 seats. Similar to Spirit – which JetBlue is in a legal battle to acquire – the airline reported a net loss of $129 million in Q3 2023.
Operational Performance on the Watch List
Despite improved Summer 2023 operational performance, U.S. airlines are still being closely watched. Southwest’s late-December 2022 meltdown – in which the carrier canceled over 14,000 flights – has put other airlines on notice during peak holiday periods.
“At the same time, U.S. airlines have had solid operational performance so far in November, and are generally on time. This bodes well for Thanksgiving. They will be prepared for operational challenges due to weather or air traffic control reductions and IROPs. Let’s hope for smooth sailing. Nobody remembers Thanksgiving 2022 but everyone remembers late December 2022,” adds Arnot.
Cirium’s on-time performance data indicates near-perfect completion factors across the U.S. airlines, averaging at over 99% in early November.
In light of last year’s meltdown, Southwest says it is ready to brave winter weather constraints across its network. “So preparing to prevent something like that from happening again was and is an imperative,” Southwest COO Andrew Watterson said during the company’s Q3 earnings call.
“As a result, our action plan is divided into three categories: winter operations, cross-team collaboration, and accelerating operational investments, which were already on our road map, including technology,” Watterson added. “We are now so much better prepared for these extreme weather events.”
A potentially looming government shutdown could also complicate Thanksgiving plans, per Bloomberg. If the government were to shut down on November 17, thousands of FAA air traffic controllers, TSA screeners, and U.S. Customs officers would be left unpaid just days ahead of the year’s busiest travel period.
Ryan founded AirlineGeeks.com in February 2013 and has spent more than a decade covering the airline business. His work has been featured by CNN, WJLA, CNET, and Business Insider. His aviation experience spans airport operations, Part 135 regulatory compliance, and airline crew workforce planning, along with time behind the yoke of a Cessna 172 and interviews with airline executives. Ryan now serves as Group President of Firecrown Media’s Aviation Group. He holds a B.S. in Air Transportation Management and an MBA from Arizona State University and teaches Airline Management at Embry-Riddle Aeronautical University.
A Virgin Atlantic A350-1000. (Photo: AirlineGeeks | William Derrickson)
The recent announcement from Britain’s Civil Aviation Authority (CAA) granting Virgin Atlantic permission to operate a transatlantic flight using sustainable aviation fuel (SAF) marks a significant milestone in the aviation industry’s efforts to reduce its carbon footprint. This development is noteworthy not only because it involves the use of 100% SAF for a long-haul flight, which is a first of its kind, but also because it underscores the crucial role of regulatory bodies in facilitating the transition towards greener fuels.
SAF, derived from sustainable resources, is often touted as a cleaner alternative to conventional jet fuel, capable of significantly cutting down the greenhouse gas emissions associated with air travel. Virgin Atlantic’s initiative, backed by its CEO Shai Weiss’s commitment to reaching 10% SAF usage by 2030, reflects a broader industry-wide push to embrace more eco-friendly practices.
However, Weiss’s call for government support to foster a U.K.-based SAF industry underlines a critical challenge: the scaling up of SAF production requires concerted efforts not only from airlines but also from policymakers and industry stakeholders.
Scaling Up
The significance of Virgin Atlantic’s endeavor is twofold. First, it serves as a practical demonstration of the viability of SAF in commercial aviation, providing valuable data and confidence in the fuel’s performance under the rigorous conditions of transatlantic flight. Second, it acts as a catalyst for the industry, potentially accelerating investments and innovation in SAF technologies and production capabilities.
Moreover, the spotlight on SAF comes at a time when the aviation sector is under increasing pressure to meet ambitious climate targets. The industry has been criticized for its environmental impact, and while advancements in aircraft efficiency and operations have made strides in reducing emissions, these improvements have been largely outpaced by the growth in air travel demand. SAF presents an opportunity to align the sector’s growth with environmental sustainability, but its adoption hinges on affordability, availability, and regulatory approval.
The transatlantic flight scheduled for November 28 from London Heathrow to New York-JFK, therefore, is not just a test of technology but also of international regulatory harmony. As the airline awaits permits from the U.S., Ireland, and Canadian regulators, it highlights the need for a synchronized regulatory approach to address the logistical and bureaucratic hurdles that could impede the widespread adoption of SAF.
The CAA’s approval is a commendable step forward, signaling the U.K.’s support for innovative solutions to climate challenges. Yet, for SAF to truly revolutionize the sector, there needs to be a global framework that encourages its use, a robust supply chain to produce it in sufficient quantities, and incentives to make it economically viable for widespread adoption. This pioneering flight could very well be the beacon that guides the aviation industry toward a more sustainable trajectory.
Parth Jain is a dedicated aviation enthusiast with a rich background in general and commercial aviation. Over the years, Parth has consistently demonstrated a deep fascination with the aviation industry, his interests spanning from the workings of small general aviation aircraft to the complexities of large commercial jets. Parth's interest in aviation sparked at a young age when he first set foot in an airplane. Since then, he has dedicated much of his time to gaining first hand experience, achieving his private pilot license and currently working towards his instrument rating. Parth's education and experience are a testament to his dedication and commitment to this field. As a private pilot, he has navigated complex airspace, developed an understanding of the intricate details of aircraft operations, and consistently demonstrated safe and proficient flying skills.
Royal Air Maroc Bets Big on Casablanca as Global Hub
Eyeing an order for additional narrow and widebody aircraft, Royal Air Maroc is also placing big bets on its Casablanca hub.
Royal Air Maroc's first 787-9 Dreamliner. (Photo: AirlineGeeks | Katie Bailey)
Royal Air Maroc (RAM) is gearing up for an ambitious phase of expansion, aiming to issue a request for proposals for a substantial fleet expansion by the year’s end. Abdelhamid Addou, the airline’s CEO, revealed plans to grow the fleet to 200 aircraft during the Arab Air Carriers Organization conference in Riyadh, as reported by Flightglobal.
Addou emphasized the potential of Casablanca as a key regional hub, envisioning it as a major player in the region’s aviation landscape. A third of the envisioned 200-aircraft fleet will comprise of widebody aircraft, while the remaining two-thirds will consist of narrowbodies, including regional models. The airline is also considering acquiring a number of aircraft to serve as a “bridge” before the larger fleet expansion.
Royal Air Maroc at Washington Dulles International Airport. (Photo: J. David Buerk)
Royal Air Maroc, which earlier this year announced an ambitious growth plan extending to 2037, aims for a four-fold increase in size. Addou acknowledged that the typical decision-making process for fleet expansion could take around two years but expressed a desire to expedite it, aiming for completion within a year, with an anticipated result around July 2024.
Putting Casablanca on the World Stage
Casablanca, already a regional hub, aims to establish itself as a more global hub, capitalizing on its strategic geographical position between Europe and Africa. Leveraging its ‘open skies’ relationships with both the European Union and the U.S., the airline seeks to solidify its position in the industry, directly competing against carriers such as Air France, Ethiopian Airlines, and Turkish Airlines.
Anticipating an evolution of Casablanca as a connecting facility, Addou highlighted transit traffic, which is expected to account for two-thirds of the hub’s overall traffic. The recent opening of a new arrivals zone in Casablanca’s airport, common to its terminals, is a step towards increasing passenger capacity. However, the operator ONDA has signaled broader expansion plans for Casablanca and other Moroccan airports to meet the increasing demand, aiming for a terminal capacity of around 30 million passengers.
This strategic expansion plan coincides with RAM’s recent launch of the ‘Dream Africa’ campaign, reaffirming the airline’s commitment to Africa and emphasizing its dedication to unlocking the continent’s potential. The campaign seeks to promote “south-south co-operation” and accelerate various dimensions of development, including political, economic, societal, cultural, and technological facets.
The campaign is set to unfold across 28 countries, including RAM’s primary strategic markets, utilizing impactful international media, particularly focusing on television and digital audiovisual platforms, as well as urban media like large displays and digital screens strategically positioned in key locations such as city centers, transport hubs, and shopping centers.
CEO Hamid Addou stated, “The new dynamic expressed in our rebranding strategy carries our ambitions as a reference company on a continental scale, proudly expressing our Moroccan and African identity. It is part of our Kingdom’s overall vision for Africa, promoting South-South cooperation and the acceleration of our common development.” Addou further emphasized, “As an airline and with all our resources, we have an obligation to embody the best of Morocco and contribute to the continent’s progress. This is the message conveyed by this new promise: #DreamAfrica #MeetMorocco.”
Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.
A WestJet Boeing 737 MAX 8 at Harry Reid International Airport in Las Vegas. (Photo: AirlineGeeks | William Derrickson)
WestJet has announced four new routes for its Summer 2024 schedule. The Canadian budget carrier says it is enhancing connectivity into Delta’s network while also bolstering flights on the West Coast. The new service includes flights between Edmonton and Atlanta, Edmonton and Nashville, Edmonton and San Francisco, along with Vancouver and Detroit.
From Edmonton, WestJet plans to serve San Francisco five times per week and Nashville two times weekly. The airline’s new Edmonton-Atlanta and Vancouver-Detroit routes will be daily beginning in late April. According to the carrier, Edmonton-Atlanta will be the only one of the newly-announced routes to be year-round service with the other additions being only seasonal.
WestJet will be operating flights on these routes using its fleet of Boeing 737 series aircraft.
“We are thrilled to be expanding transborder connectivity from Edmonton and Vancouver, providing Western Canadians with an abundance of opportunity to fulfill their diverse travel needs,” shared John Weatherill, WestJet Group Executive Vice-President and Chief Commercial Officer in a press release. “Strong connections fostered between Canada and the United States are essential to WestJet’s growth plan and to the communities we serve as we significantly bolster options for leisure guests, business travel and cargo services.”
As routes watchdog Enilria points out, WestJet’s additional service between Vancouver and Detroit is likely to replace Delta’s previous service, which ended in August 2019, according to Cirium Diio data.
WestJet’s new routes are part of the airline’s broader growth strategy, which includes expanding its network and increasing its frequency of service on existing routes. In recent months, WestJet has also announced new service to international destinations such as Vancouver to Tokyo Narita.
Ryan founded AirlineGeeks.com in February 2013 and has spent more than a decade covering the airline business. His work has been featured by CNN, WJLA, CNET, and Business Insider. His aviation experience spans airport operations, Part 135 regulatory compliance, and airline crew workforce planning, along with time behind the yoke of a Cessna 172 and interviews with airline executives. Ryan now serves as Group President of Firecrown Media’s Aviation Group. He holds a B.S. in Air Transportation Management and an MBA from Arizona State University and teaches Airline Management at Embry-Riddle Aeronautical University.
An Air China 747-8i at San Francisco International Airport (Photo: AirlineGeeks | William Derrickson)
The United States Department of Transportation (DOT) recently approved increasing the weekly frequency of U.S.-China flights by Chinese carriers to 35 on October 26. The latest update means the total flights between the U.S. and China will grow to 70 per week based on the bilateral agreements. The new cap will take effect on November 9.
Chinese Carriers have started submitting proposals for the winter season.
Air China
The national flag carrier currently operates eight weekly flights between the U.S. and China. All its Beijing-originated flights will depart from Beijing Capital International Airport.
Beijing to Los Angeles – twice weekly
Beijing to New York JFK, New York JFK to Los Angeles, then Beijing – three times weekly
Beijing to San Francisco – twice weekly
Shenzhen to Los Angeles – once weekly
In its latest application, the airline is adding yet another circle route.
Beijing to Washington Dulles and returning via Los Angeles twice weekly on Tuesday and Saturday
An additional Thursday from Beijing to Los Angeles
The present schedule plus the proposed flights will mount to eight weekly flights from Los Angeles to Beijing. The Beijing-based carrier has a total of 11 weekly flights planned for the winter season.
China Eastern Airlines
A China Eastern 777 turns onto the runway in Los Angeles. (Photo: AirlineGeeks | William Derrickson)
China Eastern operates the second most flights of any Chinese carrier. It operates seven weekly flights to various U.S. gateways from Shanghai Pudong International Airport.
Shanghai to Los Angeles – thrice weekly
Shanghai to New York JFK – twice weekly
Shanghai to San Francisco – twice weekly
It intends to increase frequency on the Los Angeles route, according to its filing.
Two additional Shanghai to Los Angeles flights on Mondays and Saturdays
The Shanghai-based carrier will operate a total of nine flights if approved by the DOT.
China Southern Airlines
A China Southern Airlines Boeing 777-300ER departing from Los Angeles airport (Photo: AirlineGeeks | James Dinsdale)
China Southern has six weekly frequencies approved under the current regulation.
Guangzhou to Los Angeles – four times weekly
Guangzhou to New York JFK – once weekly
Wuhan to San Francisco – once weekly
The Guangzhou-based carrier plans to add one additional flight in its application.
The carrier will operate a total of seven flights if approved by the department.
Hainan Airlines
A Hainan 787 Dreamliner in Los Angeles (Photo: AirlineGeeks | William Derrickson)
Hainan Airlines has undoubtedly been anxious about restarting its U.S. routes. It had applied for twelve weekly frequencies in the last application cycle but was granted none of its proposed routes. It had only proposed one route with a limited frequency in hopes of a better chance for approval this time.
Beijing Capital to Boston – three times weekly
Interestingly, the application stated the return flight will have a technical stop in Seattle. Its previous schedules did not include a technical stop for the Boston flight. It’s unclear what caused the addition of a tech stop or if the Haikou, China-based airline will follow Air China’s footsteps and apply for an exemption to tag along traffic from Seattle to Beijing.
Other Chinese Airlines
A Xiamen 787 taxis in Amsterdam. (Photo: AirlineGeeks | Fabian Behr)
Xiamen Airlines currently operates three times weekly between Xiamen and Los Angeles. It has yet to file for new routes at the time of writing. The last two airlines authorized to fly to the U.S. are Beijing Capital Airlines and Sichuan Airlines. Neither has filed to restart U.S. service for recent rounds of bidding.
As it stands, the proposed schedule will fill 33 of the 35 slots.
Editor’s Note: AirlineGeeks will update the post as more details enter the docket before November 9.
Fangzhong grew up near an OEM airport in northeastern China, where he developed his enthusiasm for aviation. Taking upon his passion, he's now working as an aircraft interior design engineer. Besides working in the aerospace industry, Fangzhong enjoys trying out different types of airplanes and seeing how airplane interiors have evolved. So far, he's flown on over 80 types of aircraft. He also planespots in his spare time. His rarest catches included the 747 Shuttle Carrier Aircraft and AN-225.
New Report Shines Lights on Air Travel Behaviors
New Skyscanner Horizons report shines lights on travel behaviors and booking data, with travel predicted to grow in 2024 and travelers planning on spending more.
Skyscanner has published its yearly Horizons report, which includes data such as traveler behavior while booking, preferences when traveling, booking window, trending destinations and more. The report uses data from over 18,000 consumers in 15 markets across different regions and has a particular focus on leisure travelers on vacation trips. The full report has been published publicly this week and can be found on Skyscanner.
Here are a few interesting takeaways:
Overview
Overall, the report includes four key areas: planning trends, destination trends, booking windows and trending destinations. Horizons points out that leisure travelers will vacation more in 2024 across the studied regions. They are also planning on spending more on their travels, with the data varying across the countries. The report also gives insights on the factors that go into travelers’ decision-making on their destination and valuable booking window data that details the period leading up to booking trips, divided up by regions and types of flights.
More Trips Across Markets
The report paints a positive picture in line with what has happened in the market in the post-COVID years. Globally, the vast majority (81%) of travelers surveyed will either travel abroad more (42%) or the same in 2024. Leisure travel in 2023 has already exceeded the pre-pandemic 2019 level in many markets, and the recovery is significantly faster than business travel.
Average number of international trips planned (Photo: Skyscanner)
For airlines and other industry players, this means they will have to prepare for the projected growth in travel by increasing capacity amid the supply chain issues and airport capacity records. Most airlines intentionally dumped capacity during the pandemic in response to the drop in demand, which was predicted to last for years by experts, and to ease their financial burden. The result is the massive shortage and inability to respond to the pumped-up demand during the summer peak season of 2023. With the growth in sight for 2024, it will be a test for major carriers to meet demand and ensure smooth operation.
Cost of Flights is the Biggest Decision Factor
Horizons suggests that the main deciding factor for travelers is the cost of flights, followed closely by the cost of hotels. Price-sensitive travelers will always take price as the main decision factor, and with leisure travel taking a greater share of the market, airlines will need to take steps to ensure that their pricing models remain competitive.
Stabilized Booking Windows
From a planning perspective, it is key for airlines to understand when travelers are booking their flights. This can impact the capacity that the airlines schedule as well as the marketing approach. Horizons suggests that, across the regions, long-haul travels are mostly booked weeks in advance, while short-haul and domestic are more volatile and are mostly booked between 7 and 29 days before. The exception is APEC travelers, with almost one-third of travelers booking within a month before traveling.
This can pose a challenge for APEC airlines, as advanced capacity planning is especially vital for long-haul flying. With almost a third of passengers booking less than 29 days ahead, it is difficult to predict the actual demand, and a higher level of versatility from an operational standpoint is required.
Over the years, airlines are becoming increasingly forward-looking. Instead of relying on past booking data, airlines can use search data and other means to project demand and plan their networks. Skyscanner works with airlines as well as airports to paint a better picture of where the demand lies and creates a smarter network planning process.
Anthony is an aviation enthusiast who grew up around the world from St. Louis to Singapore, and now lives in Amsterdam. He loves long-haul flying and finds peace in the sound of engine cruising. He aspires to share his passion for the sky though writing and providing another angle on the stories.
FedEx Advises Pilots to Fly at Regional Airline
A downturn in demand has prompted Fedex to tell its pilots to go fly at a regional airline, which is offering lucrative signing bonuses.
A Fedex 767 in Las Vegas (Photo: AirlineGeeks | William Derrickson)
FedEx Express is encouraging pilots at its cargo airline to take jobs at a regional passenger carrier because there isn’t enough shipping demand to fill everyone’s flying schedules. It’s the latest step over the past 12 months to align FedEx’s air network with a sharp decline in package volumes and improve efficiency as the parcel sector settles to a lower post-pandemic baseline that could last years.
Pat DiMento, FedEx’s vice president of flight operations and training, said in a Friday memo to flight crews that the airline is “significantly overstaffed” and can’t guarantee pilots more than the minimum number of hours set in their contracts.
He urged pilots to consider taking a job with American Airlines subsidiary PSA Airlines, which is offering FedEx pilots an expedited interview process for a captain position, a $250,000 signing bonus, and a direct path to flying for American. Mainline U.S. passenger airlines have successfully replenished cockpit crews after the COVID crisis at the expense of feeder airlines, many of which have curtailed operations because of the shortfall in qualified pilots.
“While I understand this is not something that will appeal to every pilot, for those of you who are frustrated with current flight hours, career progression, or have just been on on the fence about available options, you may consider this unique opportunity enough of an incentive to make a move,” DiMento wrote. He said American Airlines has enjoyed good relations with FedEx for several years and understands the quality of FedEx pilots.
The memo was published on X, formerly known as Twitter, by aviation insider JonNYC:
FedEx has about 5,800 pilots on its payroll. DiMento told Express crew members in July that the company has a surplus of about 700 pilots, according to reporting by the Wall Street Journal and confirmed by FreightWaves. The number of excess pilots is likely more than that now given the continued deterioration in the parcel and freight markets.
The effort to trim the pilot workforce follows UPS in August offering voluntary severance packages to senior pilots to eliminate nearly 170 positions. Many UPS pilots (NYSE: UPS) are working the lowest amount of hours allowed.
A FedEx pilot, speaking on condition of anonymity, called DiMento’s letter “incredibly insulting” to veteran crew members who can go straight to a large airline.
“For those of us who have been with the company before COVID, we are shocked at the level of mismanagement we see and management’s disdain for their pilots. Pat DiMnto’s letter suggesting that pilots at the-once pinnacle of airline pilot jobs go to a regional airline for five years speaks volumes to their tone deafness about the situation they created. Someone flying for FedEx could go to a legacy flying job — Delta, United, American — and have a much higher quality of life and pay and benefits,” he said in an email exchange.
The source said pilots are making less money because flying hours have been drastically reduced in the face of lower volumes, with available flying slots spread thin among the pilot group. His regular pay has been cut back by 30% this year and pilots no longer can secure trips that pay a premium for working on a scheduled day off. The captain said he knows colleagues who have left for other airlines.
Under the existing contract, FedEx pilots are paid between $81 and $336 an hour based on factors such as the type of plane they fly and their seniority. Pilots typically have a minimum guaranteed 68 hours of work a month. A junior first officer will earn nearly $102,000 per year while a senior captain collects more than $363,000 in pay and benefits per year flying an average number of hours.
A captain who works 40 years at FedEx can expect to make slightly more than $20 million in pay, benefits and retirement over his or her career compared to the industry average of about $18.8 million, according to analysis by aviation analyst Kit Darby. But the total compensation now lags Alaska Airlines, Hawaiian Airlines, Delta Air LInes, American Airlines, United Airlines and UPS, where a pilot can make $24 million. The career value at FedEx for 30 years of service is better than Alaska, Delta and Hawaiian, but still behind the others.
Freight Correction
The FedEx memo underscores how financially difficult the market has become for freighter operators in the past 18 months, with volumes and rates hovering at or below 2019 levels. Global air cargo volumes are down more than 8% since the first quarter of 2022 and rates were 40% to 50% lower for most of the year versus 2022 — a function of weak manufacturing, a slow drawdown of excess inventories, retailers’ reluctance to restock because of uncertainty about consumer behavior and macroeconomic crosswinds.
Lufthansa Cargo on Thursday reported cargo revenues were down 43% in the third quarter and that it broke even after a $352 million operating profit during the same period in 2022. Other publicly listed passenger airlines, many of which don’t operate freighters as does Lufthansa, have seen logistics revenues decline 30% to 40% so far this year. The global cooling in freight transportation, including airfreight, led Air Canada to cancel an order with Boeing for two 777 freighters.
The squeeze is especially acute for many smaller all-cargo operators that don’t have the massive customer base, diversified business lines and strong balance sheet of a FedEx or UPS. Many small and mid-tier cargo airlines are coping with attrition as pilots switch to major passenger airlines.
A FedEx 767 rolls out of the hangar (Photo: Boeing)
FedEx management is prioritizing stringent cost controls across the company, with a goal of eliminating $4 billion in structural costs by June 2025, including $700 million in annual savings from flight operations. The cost initiative includes accelerating the retirement of aging MD11 freighters, reducing main deck cargo capacity flown by its purple tail fleet and outsourcing more activity to third parties, increasing point-to-point flying, downgauging aircraft size on certain routes and diverting more volume to the ground network. FedEx plans to phase out another 29 aircraft in the fiscal year ending May 31.
The combined moves are intended to give FedEx more operational flexibility and allow it to densify its hub-and-spoke system.
FedEx pilots picket earlier this year outside a company office in Memphis, Tennessee. (Photo: Air Line Pilots Association)
In April, FreightWaves reported that FedEx will close pilot bases in Cologne, Germany; Anchorage, Alaska; and Los Angeles as well as its heavy maintenance hangar at Los Angeles Airport. It will shift the maintenance functions to its Indianapolis regional hub because the transition to a more modern fleet requires less maintenance capacity.
FedEx’s mainline jet fleet grew from 385 in 2018 to 417 in 2022 and now stands at 413, according to the latest company statistics. The airline continues to receive new 767 and 777 widebody freighters under a long-standing order with Boeing.
The pilot source blamed FedEx for taking on too many contracts during the pandemic boom and rapidly expanding infrastructure when it couldn’t maintain high service levels, a situation previously echoed by equity analysts.
FedEx and UPS domestic flight utilization underperformed against seasonal comparisons for September, according to research by Morgan Stanley transportation analyst Ravi Shanker. FedEx’s flight count tumbled 9% month over month vs. minus 7% on average and is down 11% year over year. UPS domestic flight activity fell 12%, double the normal September dip from August, and remains down 19% against 2022.
“A slowing economy, large customer contract negotiations and slowing pilot retirements with an already overmanned crew force have forced me to accept the fact that I might be seeing more folks that I once personally called to offer a position at FedEx accept offers elsewhere,” DiMento said in the memo. “I have no doubt that FedEx will continue to navigate the turbulent market conditions that are inherent in this business and will remain a great place to work for pilots and others in the long term.”
Contract Talks Restart
FedEx pilots in July rejected a tentative agreement on a new contract that would have increased pay by 30% over five years. Many pilots complained the deal offered weaker job protections, insufficient back pay, bad alternative pension options and pay increases below those recently achieved by pilots at American, Delta, Hawaiian and United airlines.
FedEx, for its part, has said the agreement addressed some quality-of-life issues and offered protections, including making it harder for the company to furlough pilots.
In late October, the FedEx Master Executive Council of the Air Line Pilots Association (ALPA) elected Capt. Billy Wilson as chairman through March 2025. He replaces Chris Norman, who stepped down after failing to push through the new labor agreement.
Norman, in a Sept. 14 letter to members, alluded to the poor state of relations between pilots and management.
“FedEx pilots do not trust FedEx when it comes to their job security due to a combination of factors, particularly management’s public statements concerning greater reliance on third-party lift. This concern will need to be addressed by developing new contractual language, the negotiation of which may be highly contentious. Beyond that, the FedEx pilots are very concerned about management’s attempt to drift away from providing a compensation and quality-of-life package that is competitive with those contracts reached this year at other major U.S. carriers,” he said.
Upon taking over as head of the governing body for FedEx’s unionized pilots, Wilson said a statement, “Our compensation should be commensurate with our peers while including excellent quality of life with our work rules and a retirement that will provide for pilots in the future. During COVID, FedEx pilots stood tall delivering for the company and the world while many of our pilots suffered in inhumane and substandard living conditions including lockdowns and exposure to unknown chemicals. We paid a heavy price for this while the company made historic profits.
“I am committed to bringing all of our pilots together as we reestablish negotiations capitalizing on our diverse views, which only make us stronger, as we move toward a contract we have earned.”
ALPA and FedEx are scheduled to hold an initial bargaining session Nov. 6-7 in Memphis, Tennessee, under the auspices of the National Mediation Board, said union spokeswoman Courtney Bland.
Scott Struminger, CEO of Aviation at FedEx, said in September at a freighter forum for aircraft buyers and sellers in Seattle, that FedEx offers better work conditions than commercial passenger airlines because they typically fly to a destination, rest for a few hours, and return instead of making multiple stops throughout the day.
The FedEx pilot who did not want to be identified said colleagues who were hired during the COVID boom feel misled about job perks and never needing to look for another job.
“They realize the hype surrounding this job wasn’t true and the quality of life and pay are not what they were sold. And because the process of switching airline jobs and dealing with the loss of seniority at the next airline is so onerous, many feel trapped and that they made a mistake coming to FedEx. I believe there’s a lot of regret, but many are keeping it to themselves because they don’t want to admit they made a career mistake,” he told FreightWaves.
Editor’s Note: A version of this post was originally published on AirlineGeeks’ sister publication FreightWaves.
AirlineGeeks.com was founded in February 2013 as a one-person blog in Washington D.C. Since then, we’ve grown to have 25+ active team members scattered across the globe. We are all here for the same reason: we love deep-diving into the fascinating realm of the airline industry.
Landing in New York aboard a Tailwind Air Cessna 208B. (Photo: AirlineGeeks | Katie Bailey)
I flew my first night cross country as a private pilot a couple months after passing my private pilot checkride. I took two friends with me from the Chicagoland area down to Purdue University Airport in Indiana, up to South Bend, and back to Chicago. It was among the first times I got to share flying with friends, and the fact they were both student pilots who could appreciate the trip made it all the more special for me.
My biggest challenge in the flight proved to be the approaches. Both were safe, but I noticed each time that visually finding the airports was more challenging than I would have hoped. In retrospect, I should not have been surprised; I had only the minimum amount of night time for certification, I had flown only one night cross country (to familiar airports that I knew how to find with an instructor familiar with the area also onboard), and that flight had been nearly six months ago that spring.
As I was fresh into instrument training, I was not very familiar with the instrument approaches that could have guided me to the runway centerline. I had flown probably only a few in my life, and I was at the time still much more familiar with visual flying.
Learning From Experiences
Both approaches proved challenging. In Lafayette, by the time I visually identified the airport, I was closer to the airport than I was used to in training. I still had plenty of room, but, at the time, the surprise of recognizing just where I was added some stress to the situation It was another trick I had learned in training – using the G1000’s OBS mode to turn the airport into a waypoint, as my instructors would say, and marking the centerline of the main intersecting runway – that helped me locate position in relation to the airport.
A Pilatus PC-12. (Photo: AirlineGeeks | Fabian Behr)
In South Bend, I was able to join the traffic pattern safely and come in for a smooth landing. However, a band of bright lights a few miles from the airport momentarily disoriented me, and it took one of my copilots pointing out the airport lights in front of me to make a correction (the power of having two crewmembers…perhaps a future article for the series).
In my confusion, I delayed my final descent longer than I otherwise would have, leading to a higher traffic pattern than normal; luckily, South Bend’s main runway is over 8,000 feet long, so a slightly longer downwind leg and a surprisingly-well-executed slip ensured a stable, safe landing with more than enough room to spare.
A Smart Use of Automation
There was a trick that I at the time did not know (nor quite how to use) that would have made managing these approaches much easier for that fresh VFR-only private pilot: backing up visual approaches by programming instrument procedures into the airplane’s flight management system (FMS). All airlines have policies mandating that pilots do just that: activate instrument approaches into the airplane’s systems so they can confirm with their instruments what their eyes are telling them.
This policy makes sense. The biggest airport in my hometown, O’Hare International Airport, has eight runways. Six of those runways are all parallel to each other running from east to west: 10R/28L, 10C/28C, and 10L/28R make up what is known as the “South Airfield,” and 09R/27L, 09C/27C, and 09L/27R make up what is known as the “North Airfield.” Jets sometimes join long straight-in finals over Lake Michigan, and with the high traffic volume that O’Hare gets, it is easy to believe that, every once in a while, some of the runways can morph together in the pilots’ views. Having an instrument procedure to back up pilots’ decision-making can help them ensure they are on the right path sooner and guarantee a safe approach with standard separation between other arriving and departing aircraft.
A PenAir Saab 340B on approach to Denver International Airport. (Photo: AirliineGeeks | William Derrickson)
Hundreds of airports across the United States and around the world also have parallel runways. Los Angeles International Airport is comprised only of parallel runways (they have four in two pairs), Denver International Airport has three sets of two pairs, and so on.
But having the extra backup does not only work for parallel runways. As I learned on that first flight, the added backup is really helpful for orientation to the airports in the first place. I was going into new airports in an environment I was still quite unfamiliar with, and around the work of trying to run checklists, transferring from approach to tower controllers, trying to manage the passengers admiring the Purdue University campus, and marveling over what those weird lights (oddly in the same layout as the runways in South Bend), finding the airport I wanted to land at proved a more difficult task than I cared to admit.
Applying Old Lessons to New Concepts
I did, in fact, end up using a very similar tactic landing in West Lafayette. While I didn’t load an instrument approach to the runway, I did rely on my navigation instrumentation to find my position in relation to the airport. The method was less precise than prepping an actual approach to the airport – I found an extra way to emphasize some of the features of what I was looking for – but it did the trick; I managed to find a way to make my instrumentation work for me to facilitate a visual approach.
It is important to know the difference between using these instrument systems as a tool and as a crutch. I am not advocating to rely solely on instrumentation and instrument approaches in visual conditions. Visual and instrument approaches have some key differences, after all, and pilots must not forget their duty to see and avoid other traffic when conditions allow.
An Alborg Airtaxi North Fairchild Swearingen Metroliner climbing out on departure. (Photo: AirlineGeeks | William Derrickson)
But these approaches are a good tool. They do not replace our eyes, but they aid us and guide us in the right direction. The instruments support pilots’ abilities to manage information and task saturation; they act as a failsafe in the moments that we as pilots need a little extra support. Again, the instruments are not a replacement, and they should not guide our decision-making. Knowing how, and when, to use them can give us a great advantage to maintain safe flight.
I feel lucky to know that my training and experience has guided me to another tool I can use today in my flying. I am glad for the experiences that that second-ever night flight provided me and the lessons I was able to learn from it.
Editor’s Note: Welcome back to the Private to Professional series. Each week, we will take time to break down a new regulation written for professional pilots in Part 121 and Part 135 flying, and we will consider different ways to apply those regulations to general aviation. Some regulations have straightforward applications to general aviation, but there is usually more that meets the eye. Thus, we will take time to explore a wide variety of ways general aviation pilots can apply even simple things, like minimum rest requirements, to their own flying. Check back in next week for the next installment of the series. Read the previous article here.
John McDermott is a commercial pilot pursuing a career in professional flight. His passion for aviation began in an Ann Arbor bookstore with a tale of enemy pilots during World War 2, and he hasn't looked back. Besides flying and writing for AirlineGeeks, John volunteers with Professional Pilots of Tomorrow and travels whenever he gets the chance.
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