U.S. airline disruptions cast a pall over holiday travel By Reuters

By Rajesh Kumar Singh

CHICAGO (Reuters) – A spate of high-profile flight cancellations has put a spotlight on worker shortages at U.S. airlines, triggering warnings of new delays over the holiday period as airlines scramble for staff.

It is a dramatic shift for an industry that was grappling with surplus labor as coronavirus hammered air travel just a year ago, and is the latest evidence of a widening labor crunch.

As demand in the United States roars back, carriers are struggling to keep up. The challenge is especially pronounced at American Airlines (NASDAQ:) and Southwest Airlines (NYSE:), which have been among the most active in adding seats to meet demand.

American canceled hundreds of flights last weekend, citing weather and staffing. It faced similar turmoil over the summer.

Southwest last month suffered an operational meltdown that resulted in around 2,000 cancellations and cost it $75 million. Similar factors in August forced Spirit Airlines (NYSE:) Inc to cancel 2,800 flights.

Days ahead of the late-November Thanksgiving travel rush, airlines are scrambling to avoid a repeat.

Meanwhile, they face a surge in holiday bookings amid declining COVID-19 cases and rising vaccinations. Southwest said last month ticket sales for November and December were in line with 2019 pre-crisis levels.

Rising demand and labor shortages have left airlines more vulnerable to bad weather, which frequently mars end-year holiday travel. Analysts say that could mean more travel disruption.

“If there’s any weather involved, you can expect flight cancellations,” said Cowen and Co analyst Helane Becker.

SCRAMBLING FOR WORKERS

In a staff memo last week, American said it expects to have 4,000 new employees in the current quarter. It is also recalling nearly 1,800 flight attendants from long-term leave.

Southwest aims to hire 5,000 employees by year-end.

The rush to hire in a tight labor market risks driving up costs at a time when soaring jet fuel prices are squeezing profits.

Southwest is offering hiring referral bonuses to employees and has raised its minimum wage to $15 an hour. Even then, it says applicant rates are below pre-pandemic levels.

“The competition for the talent and for really good talent is even tighter,” said Greg Muccio, director of talent acquisition at Southwest. “A lot of folks … are looking for a lot of flexibility.”

In the interim, both Southwest and Spirit have cut flights to prevent further outages.

Unions blame airlines for poor planning, which they say resulted in fatigue and frustration and made carriers susceptible to such disruptions.

American’s pilot union said last month it planned to picket hubs to protest work rotas, fatigue and scarce accommodation.

“We’re very concerned that management is stuffing the holiday turkey with…