Assessing the Economic Sustainability of Airlines in the U.S. Through Labor Efficiency

This study applies data envelopment analysis (DEA) to evaluate the economic sustainability of U.S. airlines by examining labor efficiency as a pivotal component of cost management and long-term sustainability. Focusing on five key employee categories—pilots, flight attendants, ground staff, maintenance staff, and management—the analysis uses data from the MIT Airline Data Project spanning 2007 to 2020 to calculate relative efficiency scores for fifteen major airlines. The findings reveal significant disparities in labor efficiency across different airline sectors, particularly highlighting challenges in managing cost-intensive roles, such as ground, maintenance, and management staff. Notably, Southwest Airlines consistently demonstrates strong economic sustainability through its efficient labor practices, while carriers including United, jetBlue, Alaska, and Hawaiian Airlines exhibited marked inefficiencies in 2020, indicating a critical need for operational improvements. This research contributes to the field of airline management by linking labor efficiency metrics with broader economic sustainability objectives, thereby offering strategic insights for enhancing cost-effectiveness and ensuring the long-term financial health of the industry.