Pilot shortage spurs six-figure bonus offers and poaching of personnel
Pilot shortage spurs six-figure bonus offers and poaching of personnel
The shortage of commercial pilots has become so bad that an American Airlines subsidiary is offering experienced aviators bonuses of up to a quarter-million dollars to fly for them. That unit, PSA Airlines, operates shuttle flights throughout the Midwest, Northeast and South but has reduced service due to a lack of pilots with the skills to fill the captain’s seat.
The problem has been decades in the making, said analyst Christopher Raite at Third Bridge. The rise of drones disrupted the military pilot pipeline, and nonmilitary training can cost upward of $100,000. Then came COVID and a wave of early retirements.
“It’s quite clear that demand is outstripping supply today,” Raite said.
North America is short more than 10,000 pilots, he added. But not everyone feels the pinch equally.
“The mainline carriers — think United, Delta, American — they’re advantaged. They pay the most of all the carriers, they also fly the newest aircraft,” Raite said.
They’ve been able to poach pilots from regional carriers like PSA. Now, PSA is hoping to poach from cargo carriers like FedEx.
“It will be a win-win for the passenger airlines and for FedEx,” said shipping consultant Satish Jindel.
He said demand for air freight has fallen as ground operations have become more efficient. As a result, cargo companies have ended up with more pilots than they need.
Fedex estimates it has about 700 excess pilots, and in a memo last week it actually encouraged them to take flight for PSA.
But $250,000 notwithstanding, making that move could be a hard sell, said Robert Mann Jr., an airline consultant and former executive.
“It’s not going to be the most desirable flying,” he said. “And it won’t be anything like what you’re doing at FedEx or UPS.”
For one thing, despite the bonuses, regional carriers generally pay less. And pilots might fly multiple short legs a day, meaning more traffic, weather and crying babies — or other wailing passengers.
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