The FedEx flight inhabited by Terry Eidson and Nicole McCallister on their record-breaking trip. FedEx,Thank you for reading this post, don't forget to subscribe!
- FedEx is urging its pilots to submit applications for positions with PSA Airlines, a subsidiary of American Airlines.
- The decision is a response to the decline in demand for air freight.
- In the meantime, pilot shortages are posing challenges for US passenger airlines.
While the COVID-19 pandemic caused shipping disruptions and significantly reduced passenger travel, the aviation industry found a shining star in the form of air freight demand. However, the situation has now changed.
Currently, the demand for air cargo has decelerated to such an extent that the logistics behemoth FedEx is encouraging its pilots to seek employment with PSA Airlines – a regional carrier owned by American Airlines.
“Considering the sluggishness in air cargo demand throughout the industry and our current staffing levels for FedEx flight operations, we have provided our pilots with information about this exceptional opportunity,” reported an insider from FedEx. The company has approximately 5,800 pilots worldwide, while PSA Airlines employs roughly 1,900 pilots.
Enthusiastic FedEx pilots are qualified for an accelerated interview process for the role of Captain at PSA Airlines, as stated on the PSA Airlines online recruitment page. Additionally, PSA Airlines is offering sign-on bonuses of $250,000 to FedEx pilots.
Above all, trade publication FreightWaves reported on Sunday that in a memo to employees on Friday, Pat Demento, the vice president of flight operations and training at FedEx, indicated that the cargo airline is “significantly overstaffed.” FreightWaves was the first media outlet to break this story.
FedEx’s message to its pilots follows a year of cost-cutting measures, including job reductions and office closures.
According to FreightWaves, global air cargo volume has dropped by more than 8% year-on-year since the first quarter of 2022, resulting in a 40% to 50% decrease in cargo rates for most of this year compared to 2022. There has been a decline of %.
The decline in demand for air cargo is attributable to the slump in ocean freight rates and the resurgence of travel following the pandemic, which enables passenger flights to carry both passengers and cargo.
In the meantime, US passenger airlines are grappling with a pilot shortage, which is particularly untimely given the surge in travel following the pandemic.
A spokesperson for FedEx stated, “FedEx and American Airlines have maintained a strong relationship for many years, and their recognition of the caliber of our crew is evident in this recruitment campaign that offers FedEx pilots an additional career path.”
On Monday, FedEx shares closed 0.7% lower at $245.33. The stock has experienced a 42% increase so far this year.
WATCH NOW: Insider Inc’s most popular videos.