Aviation Industry Updates: September 5, 2023

UPS Announces Early Out’s As Cargo Demand Falls

KEY POINTS:

• UPS Inc. is offering pilots an early retirement package to reduce payroll amid declining package volumes.
• The integrated parcel and logistics giant confirmed Thursday it wants to trim senior pilots from its ranks, a day after communicating with the pilot group.
• “At UPS, we regularly assess our operations and make adjustments to better serve our customers. As part of our effort to efficiently manage our airline, we are offering a voluntary separation benefit to eligible UPS pilots,” UPS (NYSE: UPS) said in an emailed statement. “Those who choose to accept the offer will receive a comprehensive compensation package that includes cash and healthcare benefits.”
• UPS did not disclose specific details of the offer.
• UPS reduced its flight activity in July by 14% from the prior month, and flight hours were down 13% year over year, according to tracking data compiled by Morgan Stanley. 
• UPS reported second-quarter domestic next-day air revenue fell 9.4% on a 12% drop in volume. Management attributed a large chunk of the domestic decline to customers trading down to UPS’ lower-cost ground network.

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Alaska Pilots Get 11.2% Pay Increase

KEY POINTS:

• Seattle-based Alaska Airlines pilots will soon receive an increase in wages to compete with other airlines.
• The pay increase follows last year's announcement that the pilots ratified a new contract and a historic informational picket organized by the pilots' union.
• The pilots are satisfied with the outcome, which reflects the airline's commitment to attract and retain pilots.

Simple Flying

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Frontier Unveils 7 New Routes to Florida and the Caribbean

KEY POINTS:

• Frontier has rolled out a slew of routes to warm-weather destinations this winter.
• Cancun and Fort Myers received the lion's share of the new service in the latest announcement, which included 14 routes — seven new and seven routes returning after the pandemic.
• Frontier's service to the Dominican Republic's capital, Santo Domingo, will also get a boost. There is also a new service from Philadelphia to Santo Domingo and returning service from Miami.
• Most new and resuming routes aim to connect travelers from cold-weather destinations like Detroit, Chicago and Minneapolis to snowbird hotspots in Florida and the Caribbean.
• Along with more routes to Florida, new service to Mexico and the Dominican Republic is also on the horizon," Daniel Shurz, Frontier's senior vice president of commercial, said in a statement. "As we get closer to winter, now is the time to start planning those tropical getaways."

The Points Guy

Southwest & American Facing Potential Labor Issues

KEY POINTS:

• There are problems at two of the nation’s top five airlines. Labor problems.
• Southwest Airlines has yet to reach an agreement with its pilots, and neither has American Airlines with its flight attendants.
• Experts, and the flying public, are both concerned about the two carriers. Both groups have authorized a strike.
• In fact, Google searches for ‘American Airlines flight attendants’ shot up more than 1,300 percent since August 31. Clearly, people are interested as the winter holidays loom. The country simply can’t afford to have 40 percent of its major airlines sidelined.
• Southwest is facing a double whammy.
• It not only has to come to an agreement with its pilots but with its flight attendants as well. But somebody has to fly the planes so it will likely focus on its problems with its pilots’ union first.
  Southwest pilots and American Airlines flight attendants are currently in federal mediation. It is of some solace that neither group can go on strike while in federal mediation. Both groups have been seen picketing at airports.
• "Southwest pilots are ready to strike," the Southwest Airlines Pilots Association wrote on its X (formerly Twitter) page.

Travel Pulse

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2023 HIRING EVENTS

LPA | SEP 14-16 | ISM

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