Over the course of several years, Australia has witnessed a gradual decline in pilot wages and quality of life, leading to significant concerns and discussions within the aviation industry - albeit
not in the corporate C Suites.
Today, pilots in Australia are facing an even more challenging environment characterised by stagnant or declining incomes in the face of record corporate profits, prompting debates about the
sustainability of the profession and its potential long-term implications. The ongoing discussion surrounding pilot wages reflect the complex interplay between market forces, industry dynamics,
corporate greed and the aspirations of those who play a crucial role in ensuring safe and efficient air travel across the country and abroad.
As expected, the ATO just released a scathing insight into the state of the profession while releasing their 2020-2021 % Payrise data:
‘Noose around your neck’: ATO data reveals Australian jobs with the biggest pay rises
"But if you’re a pilot (19 per cent pay cut) or a cleaner (0.5 per cent pay cut), your situation is much worse. The rising price of rent, groceries and fuel probably feel like a noose around your neck."
"Pilots and aircraft mechanics had a shocking year because of course the airline industry was profoundly disrupted by Covid lockdowns."
"Sportspeople also had a bad year, accepting Covid-driven pay cuts. They have bounced back since, while some other types of jobs are in more of a long-term downward spiral."
Covid was especially tough on the airline industry worldwide, but as noticed from our peers, they are all catching up now with most exceeding where they would've been - this as they get to share in the successes and prosperity of the airlines they work for. Some will say it is market forces, but most operators in Australia, except for Qantas mainline, are already looking outside our borders to fill operating seats.
The US majors are signing significant multi-year Pilot Annual Pay Increases, this while they themselves are not (yet) recruiting from outside their borders - the smaller airlines and regionals are already doing this yes.
With EBA's currently under negotiation and others soon to be commenced, it is prudent to understand the state of play here - Is it financial survival or mere corporate (read C Suite) greed, this while simultaneously destroying the most regulated profession in the world.
To answer this, let's compare the financial situation of some of those US airlines listed above to those closer to home - then decide for yourself if your profession is respected, or a 'Noose around your Neck' as the article infers.
Net Income: The amount an individual or business makes after deducting costs, allowances and taxes
. Net income is what the business has left over after all expenses, including salary and wages, cost of goods or raw material and taxes.
Forecasted Figures 2023
American Airlines: Revenue 52.7bn USD vs Net Income 1.89bn USD = Net Profit Margin 3.59%
United Airlines: Revenue 52.7bn USD vs Net Income 2.98bn USD = Net Profit Margin 5.65%
Delta Airlines: Revenue 54.4bn USD vs 3.27bn USD = Net Profit Margin 6.01%
Southwest Airlines: Revenue 26.6bn USD vs Net Income 1.70bn USD = Net Profit Margin 6.39%
Air New Zealand: Revenue 6.34bn NZD vs Net Income 426mn NZD = Net Profit Margin 6.72%
Qantas Airways*: Revenue 19.6bn AUD vs Net Income 1.72bn AUD = Net Profit Margin 8.78%
(*) Figures not updated for the 2.48bn AUD revised Net Income as reported
