JetBlue Airways (NASDAQ: JBLU) announced that it would be trimming its summer flight schedule as it continues to deal with staffing issues. This was joined by an announcement by Alaska Air Group (NYSE: ALK) that it would be trimming its schedule to train more pilots.
Booming demand for travel as the coronavirus pandemic wanes has taken airlines by surprise, with a more significant spike expected this summer due to vaccine distribution and lower infection rates. In addition to rising demand, extreme weather has become a more pressing concern due to climate change. In the winter, holiday travelers were stranded in airports, on highways, and even on the rails due to inclement winter weather, while more recently, airlines such as Southwest Airlines (NYSE: LUV) were forced to cancel and delay flights due to spring storms.
The rush to recover has put immense strain on labor, with flight attendants, pilots, gate agents, and administrative staff in high demand at airlines. The Southwest Airlines Pilots Association noted that at least 10% of its pilots have quit and that other companies snag some undergoing training, sometimes even while being interviewed. JetBlue has hired at least 3,000 new pilots so far this year, but that it was still short on staff in some areas.
However, even training new pilots poses an issue, with flight instructors themselves in short supply. Already, some carriers like Southwest have had to dial back hiring efforts while it tries to onboard new instructors.
To help compensate in other areas, JetBlue offered current flight attendants bonuses: $1,000 per flight to attendants that don't call out and an extra $100 for those that pick up additional flights on days off. Southwest has raised the base pay of its attendants to $17 an hour and has stated that it no longer requires that airport-based employees have a high school diploma.