Facing pilot shortage, smaller airlines start giving big raises to pilots
Pilots at four U.S. airlines are now seeing significantly larger paychecks as the industry faces a pilot shortage.
Avelo Airlines on Thursday announced a significant raise for its pilots, becoming the fourth U.S. carrier in just two months to take action in an effort to attract more pilots.
Pilots at the Houston-headquartered ultra-low-cost carrier startup will now earn more than pilots at the established national ULCCs: Spirit Airlines, Frontier Airlines and Allegiant Air. The move comes two weeks after Avelo announced it had raised $42 million in a Series B funding round. The airline plans to hire 120 pilots in 2022.
First-year first officers will now earn $90 an hour, up from $70 an hour. First-year captains will now earn $200 an hour, up from $135 an hour. The new scale tops off with fifth-year first officers earning $140 and fifth-year captains earning $220.
While airline pilots are paid hourly, they are offered a monthly minimum number of hours, usually somewhere between 70 and 75 hours. Avelo's minimum is 70 hours, meaning that a first-year first officer will earn at least $75,600 a year, before sign-on bonuses, while a first-year captain will earn at least $168,000 a year, before sign-on bonuses.
“We’re committed to attracting and retaining the industry’s best pilots," Avelo CEO Andrew Levy said in a statement. “In addition to our enhanced pay scale, Avelo supports quality of life initiatives such as an additional $1,800 per month to help offset the cost of commuting. And, if a pilot chooses to live in base, they’ll keep the $1,800 per month.”
More: Startup Avelo Airlines announces new funding round as it plans to double in size
Avelo's announcement follows moves by fellow ULCC startup Breeze Airways, as well as Minnesota-based Sun Country and United Express carrier GoJet, which have all announced pilot pay increases since the beginning of December.
Breeze, which has faced criticism over low pay and a scheme to recruit pilots from Australia, raised its starting Embraer 190/195 first officer rate to $61 an hour, with first-year captains now making $129 an hour. Pilots on the carrier's Airbus A220, currently set for a May 4 entry into service, will start at $68 an hour as first officers and $131 an hour as captains.
More: Pilot shortage brings growth concerns to Breeze Airways
“There’s a limited supply of highly qualified pilots and a huge demand for highly qualified pilots,” Chris Owens, Breeze’s vice president of flight operations, said in an interview with TPG this month.
Pilots for Sun Country, which operates ultra-low-cost scheduled flights primarily out of its base at Minneapolis-St. Paul (MSP), as well as flying cargo for Amazon, also saw an increase. First-year first officers now earn $78.50 an hour, while first-year captains earn $195.89 an hour. Like Avelo, Sun Country operates flights using the Boeing 737 exclusively.
At regional airlines like GoJet, the pilot shortage is perhaps most acute. GoJet operates the CRJ-550 for United Express, a 50-seat version of the CRJ-700. Pilots there went from being among the worst paid of the regional airlines to among the best. First-year first officers went from being paid $38 an hour to $50 an hour, while first-year captains went from $71 an hour to $83.34 an hour. The best-paying regional, Endeavor Air, pays its first officers a starting wage of $52.19 an hour.
As the pilot shortage continues, it seems likely other airlines will follow suit this year and also increase pilot pay.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.