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The United States Department of Transportation’s (DOT) Bureau of Transportation Statistics (BTS) has issued its latest job data, revealing that cargo and passenger airlines had 5,000 fewer employees on their payrolls in January.
Job losses
On March 18, the BTS released its job report for US cargo and passenger airlines for January, indicating that during the month, the country’s airlines had eliminated or reduced their staffing levels by 5,188 people.
As a result, the combined workforce of US-based freight and passenger transportation carriers was 1.009 million, or 0.5% lower than in December 2024 when the two types of airlines had 1.014 million employees.
BTS noted that scheduled service airlines in the US had 543,887 employees in January, or 54% of the industry-wide total, losing 411 employees during the month—a figure which could represent natural turnover.
United Airlines, Southwest Airlines, and Envoy Air—a subsidiary of American Airlines Group—increased their employee counts by adding jobs during this period. United Airlines added 791 positions; Southwest Airlines added 194; and Envoy Air added98.
Meanwhile, cargo airlines reported having461029employeesinJanuarybutlost5018employeesduringthemonthwithFedExalone reducing its headcount by4966workers
Below record-breaking levels
BTS data also showed that full-time equivalents (FTE), which include part-time employees—with part-timers counted as half—reached514975morethanthe509745FTEsatendofJanuary2024DuringthatmonthUSbasedairlinesalsoreducedheadcountby1159withpassengerairlinesadding744employeesyetcargocarriersprimarilyFedExremovedatotalof1787jobsFedExcut2177jobsjustafterbusyholidayseasonincludingdeliveringChristmasgiftsthroughoutcountryNeverthelessJanuary2025staffinglevelsUSpassengerairlinesshortrecordbreaking2001whenscheduledpassengercarrierscountryover532000FTEaccordingBTSdata
Incoming layoffs and economic uncertainty
The data comes shortly after Southwest Airlines announced its first-ever layoffs on February17statingitwouldbereducingworkforceby1750employeesfocuscorporateoverheadleadershippositionsaround15corporatepositionscompletedendQ2resultlayoffsSouthwestAirlinesestimatedsavingaround210million300million20252026respectivelyexcludesonetimechargebetween60million80millionQ1FurthermoreUSairlineexecutivesexpressedsofar2025Q1resultscouldworseexpectedincludedbutnotexclusivetoupdatesinvestorsAmericanAirlinesDeltaAirLinesJetBlueThelargestUScarrierschiefexecutivesspokeJPMorganIndustrialsConferenceMarch11indirectlyadmittingdecisionsmadeDonaldTrumpadministrationincludingillegaldeemedfederaljudgesDepartmentGovernmentEfficiencyDOGEjobcutsthroughoutfederalagenciesunprovokedtradeconflictshaveaffectedconsumersentimentScottKirbyChiefExecutiveOfficerCEOUnitedAirlinessaidgovernmentgovernmentadjacenttravel downaround50airlineaccountsaround45totalbusinessresponsecarrieraccelerateretirements21aircraftbecomecashpositivedevelopmentdueupcomingmaintenanceeventsRelatedUSBigDetailChallengesAheadAirlinesJPMorganIndustrialsConferenceThreefourairlineswarnedworseningeconomicenvironmentamidsttariffswideranginggovernmentlayoffsUSPosts5
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