Leading the trend is Southwest Airlines, which has canceled over 20,000 flights this season. Delta Airlines already cut over 700 flights during the busy Memorial Day weekend and expects to cancel 100 flights daily from July 1 to Aug. 7 in the Western hemisphere.
The airlines have attributed these cancellations to a labor shortage of licensed pilots, but these claims are disputed by unions such as the Air Lines Pilot Association (ALPA), which allege that airlines are using an ostensible labor shortage as a pretext to collect greater profits at the expense of consumers.
One of the leading catalysts for the air travel labor shortage has been a delay in training new pilots during the CCP virus pandemic, which slowed down the rate at which pilots’ licenses were issued. Furthemore, the pandemic occasioned a wave of early retirements, which airlines offered to pilots at a time when travel demand was below normal on account of the international and interstate travel restrictions which were widespread in the first year of the pandemic and still persist in parts of East Asia.
A reflection of the unusual market dynamics at work in the air travel industry is JetBlue’s hostile takeover attempt of Spirit Airlines, in spite of a previously negotiated deal for Spirit to be acquired by Frontier. Under ordinary circumstances, Frontier would be the obvious choice to acquire Spirit because of their similar business models and the ease of integrating Spirit’s operations into Frontier.
However, the deficit of pilots and the complications in manufacturing new aircraft have incentivized JetBlue to make bolder and more costly bids to acquire Spirit, even as the former airline faces scrutiny from antitrust regulators which could derail the deal. For JetBlue, having access to Spirit’s pilots and planes would allow them to compete against the big four American airlines on a much larger scale, at a time when scarcities of both labor and aircraft limit the operations of the aviation industry.
For consumers, the consequences of these labor and material shortages in the aviation industry will be higher costs for air travel and unexpected flight cancellations. Whether attributable to a true imbalance of labor and demand, as alleged by the airlines, or to the avarice of the airlines, as suggested by the labor unions, it seems certain that the costs will be incurred on ordinary passengers, who face an increasingly costly and unreliable air travel system under the current conditions.