U.S. airlines employed 6.8% fewer workers in May 2009 than a year earlier, the 11th straight month with a year-over-year decrease, according to the Department of Transportation.

A steep drop in business travel during the worldwide economic downturn has taken a heavy toll on U.S. air carriers, offsetting the benefits of lower fuel prices and forcing them to take new steps, including voluntary furloughs and layoffs, to control costs and boost revenue.

Earlier this month, United Airlines said it needed to furlough 2,150 flight attendants this fall. The union representing United’s cabin crew -- the Association of Flight Attendants (AFA) -- said the air carrier got enough flight attendants to take voluntary furloughs, eliminating the need for layoffs. Those who participate in the voluntary program keep their medical insurance and travel benefits during their furloughs but don’t get paid.

United’s furlough announcement prompted the union to put pressure on the DOT to consider job losses when mulling over the anti-trust immunity filing to join Continental with United Airlines and the Star Alliance, which DOT ultimately approved.

“More than ever it is clear American jobs are an integral part of our American economy. Our government has a responsibility to ensure business ventures protect access to good American jobs,” stated Greg Davidowitch, president of the AFA-CWA at United Airlines.

“Our country’s antitrust laws exist for a reason, including consumer protections as recently highlighted by the Department of Justice as well as job protections that take on even greater meaning in today’s economic climate,” he added.

The flight attendant union members lobbied Congress and the Obama Administration for weeks in a campaign to apply greater scrutiny of airline alliances and help stem further job loss. Flight attendants connected consumer concerns to worker concerns within airline alliances as they pressed the Obama Administration to look more closely at the Continental and United venture.

In mid-July, US Airways said it would reduce airport staffing by 600 jobs this fall because of weak demand for business travel and declining revenue.

In a note to employees, the company's Chief Operating Officer Robert Isom said the cuts would occur in various airport-based operations. Isom said previous efforts to reduce US Airway's work force were possible through attrition. "In today's economy, however, this is no longer the case with attrition hovering in the low single digits," he said. "So, we find ourselves with more employees than our operation requires."

Meanwhile, American Airlines announced it will close its reservation center in Windsor, CT, by September, affecting as many as 500 employees.

The air carrier announced the move to employees this month, but said it was too soon to know how many workers might lose their jobs since an undetermined number of workers will be given the chance to work from home or transfer to one of the three remaining U.S. reservation centers in Dallas, TX, Tucson, AZ, and Raleigh, NC, the airline said. American shuttered its reservation center in Cincinnati, OH, in 2008.

What has been taking place at United, US Airways and American in recent months is mirrored at rival U.S. airlines.

According to the DOT, all the legacy airlines lost full-time jobs from May 2008 to May 2009 as did low-cost carriers AirTran Airways, Spirit Airlines and Frontier Airlines.

Regional carriers American Eagle, SkyWest Airlines, ExpressJet Airlines, Comair, Atlantic Southeast Airlines, Pinnacle Airlines, Horizon Air, Mesa Airlines, Air Wisconsin Airlines, Republic Airlines, Colgan Airlines and PSA Airlines also reported reduced employment levels compared to last year.

The seven legacy carriers employed 260,500 workers in May, 67.2 percent of the passenger airline total, while low-cost carriers employed 16.4 percent and regional carriers employed 14.6 percent.

American Airlines employed the most in May among the network carriers, Southwest Airlines employed the most among low-cost carriers, and American Eagle had the largest payroll roster among regional carriers. As would be expected, seven of the top 10 employers in the industry are the legacy carriers.

The full-time workforce at the group of seven legacy carriers decreased 8.2 percent in May 2009 compared to May 2008, the ninth monthly decrease from the same month of the previous year after 16 consecutive months of year-over-year growth.

Within the group, all network carriers decreased their payroll from May 2008 to May 2009: Northwest Airlines (14.7 percent); United Airlines (12.6 percent); Delta Air Lines (6.9 percent); American (6.6 percent); Alaska Airlines (6.2 percent); US Airways (5.8 percent); and Continental Airlines (4.1 percent).

Low-cost carrier full-time employment increased 1.2 percent in May from May 2008. Four low-cost airlines reported year-to-year increases: Virgin America (26.7 percent); Allegiant Airlines (12.4 percent); Southwest (4.4 percent); and JetBlue Airways (1.5 percent) On the other hand, AirTran, Spirit and Frontier reported year-to-year decreases.

The overall regional carrier payroll roster was down 7.7 percent in May 2009 compared to May 2008, the ninth consecutive month with a decline from the same month of the previous year.

ExpressJet, down 26.8 percent, and Horizon, down 13.7 percent, reported the largest decreases in the regional group. Compass Airlines, up 49.7 percent, and GoJet Airlines, up 35.6 percent, reported the largest increases in the group.

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