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Risks and Rewards

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Across America, it used to be that regional airlines provided the bread-and-butter of domestic service, connecting small towns to large US cities, from where people could also travel the world.Today, small US airports and cities are losing air service. It's not so much that they are without the nice-to-have butter of decent frequencies to hubs; many are losing the bread of air service altogether.Underlying this trend is an acute shortage of pilots, especially captains. Oliver Wyman consultancy projects that by 2032, North America will be short by 13,305 pilots. While that's an improvement on an earlier forecast of a shortage of 17,286, the numbers would be higher if they were based on pre-pan-demic levels."You could also think about this shortage as being 19,000 pilots, if the regional industry was back where it was at the beginning of 2020," Oliver Wyman partner Geoff Murray told the Regional Airline Association's (RAA) Leaders Conference in Washington DC. He also said that 75 of US mainland pilot hiring was coming from the regional carriers.

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