The pilot shortage crisis, which became glaringly evident during the surge of post-pandemic travel, has roots extending back well before COVID-19. The aviation industry has struggled for years with hiring challenges, primarily due to the high costs of training—often exceeding $100,000—and mandatory retirement at age 65. This ongoing issue has left North American airlines short by at least 12,000 pilots as of 2023.
In response, major airlines such as Delta Air Lines (DAL), American Airlines (AAL), and United Airlines (UAL) have launched various pilot training programs aimed at reducing the financial burden on trainees. United Airlines, for example, introduced a program offering conditional jobs to active-duty U.S. military pilots, facilitating their transition to commercial aviation by completing training post-retirement. Despite these efforts, many of these initiatives have not met expectations.
Recently, Bloomberg reported that American Airlines is suspending its new pilot training program from September through the end of the year. Pilots who were scheduled to begin training with the airline will now have to wait until 2025. “This decision allows us to optimize our capacity and tailor our talent growth plans to best serve the current needs of our airline,” stated American Airlines in a press release.
The situation is not unique to American Airlines. United, Delta, and Spirit Airlines (SAVE) have also paused or halted their training programs at various times throughout the year. The reasons for these suspensions vary. United Airlines is significantly affected by the federal investigation into Boeing (BA) airplane safety, leading to delivery delays that mean even newly hired pilots have no planes to fly.
Financial pressures also play a role. While some airlines have thrived in the post-pandemic travel boom, others face rising costs and inconsistent demand. American Airlines, in particular, has seen its stock price drop by 17% since the beginning of 2024. In an attempt to manage growth and reassess its financial health, the airline has lowered its capacity growth outlook from 8% in the first half of the year to 3.5% by mid-2024.
In communications with pilots holding conditional job offers, American Airlines emphasized the temporary nature of the pause. “Though you continue to have a CJO [conditional job offer] with American, we’ve paused new-hire pilot class dates for the remainder of the year as part of the ongoing evaluation of our commercial and talent needs,” read an email from VP of Flight Operations Captain Russ Moore. “We expect to make decisions about pilot class dates for the first quarter of 2025 later this year and will provide you with an update as soon as possible.”
The persistent pilot shortage, coupled with industry-wide training program suspensions, highlights the complex challenges airlines face in navigating both economic pressures and operational constraints. As airlines continue to seek solutions, the long-term resolution of this issue remains uncertain.