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Cockpit Lufthansa Airbus airplane
Cockpit of Lufthansa Airbus airplane at Berlin Tegel airport in Germany, September 11, 2018 (Getty Images)
WHO’S FLYING THE PLANE?

Pilot shortages might only get worse for airlines in years to come

Even with the IATA projecting record sector profits, more pilots reaching retirement age could cause turbulence.

Millie Giles

As the International Air Transport Association released its global outlook for air travel on Tuesday, a pitfall mentioned in the report was unfolding on the ground in real time.

The trade body projected some blue-sky results for 2026, with industry revenue forecast to rise 4.5% to ~$1.05 trillion and net profit margins staying at 3.9%. Despite ongoing supply chain issues with jet makers Airbus and Boeing leading to slower aircraft deliveries, stabilized fuel prices and passenger growth have bolstered forecasts for record profits next year.

However, the IATA also pointed toward a rise in labor and maintenance costs due to “pilot shortages, wage inflation, and aging fleets.”

Air Travel Industry
Sherwood News

Indeed, India’s biggest airline has been grappling with a stack of flight cancellations just this month after adapting its pilot duty roster to new government “resting hours” rules — since, like many other countries, India is facing a severe pilot shortfall.

Prepare for landing

Concerns about a pilot shortage have mounted in recent years, after the pandemic put training on hold and saw many existing pilots opt to retire early or take voluntary redundancy, The Economist noted back in 2022.

But, as detailed in the IATA report, the labor deficit might only intensify as many holders of active pilot licenses in the US are now approaching 65 — the mandatory retirement age for international commercial pilots.

Pilot age distribution
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Mayday heyday

It’s worth noting that the 14.9% share of those 65 years and older reported as active license holders in 2024 (vs. 4.2% in 1999) is likely to include a significant number of private pilots, for which there is no official age cap.

Though the report found that employment in the industry is estimated to exceed prepandemic levels (~3.3 million workers) at the end of this year, shrinking younger cohorts have weakened the replenishment rate. But, despite the swath of pilots required to retire in the coming year, the International Civil Aviation Organization rejected a proposal made by the IATA to raise the retirement age to 67 in October, citing safety concerns.

Still, the demand for pilots is expected to continue soaring, with Boeing forecasting that we might need approximately 660,000 new pilots in the next two decades to keep pace with the growth of air travel. One solution? Autonomous planes, which Merlin, a Boston-based startup, is hoping to provide in place of professionals.

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Tesla Will Open Up Its Chargers To Other Brands, In Order To Receive Federal Subsidies

After a big pullback for EVs, climbing gas prices are causing drivers to eye them again

Still, the market is much different than it was the last time oil prices were this high.

business
Rani Molla

How Tesla quietly wound up owning a small piece of SpaceX

Tesla is converting its recent $2 billion investment in Elon Musk’s AI company, xAI, into a small ownership stake in SpaceX — just months before the rocket maker’s highly anticipated IPO.

Here’s what happened: Tesla announced its xAI investment in late January, after a shareholder proposal to invest fell short last year. Several days later, xAI merged with SpaceX. All three companies are headed by Musk.

Now, regulatory filings with the Federal Trade Commission show Tesla converting that investment into a small stake in SpaceX, formalizing the financial link between the companies ahead of the rocket maker’s IPO. SpaceX is expected to go public this year at a valuation some speculate could top $1.75 trillion, potentially making it the biggest company to ever go public. (The current record holder, Saudi Aramco, went public at a more than $1.7 trillion valuation in 2020.)

While the size of Tesla’s stake wasn’t available, Bloomberg reports that the investment would equate to ownership of less than 1%.

While SpaceX and Tesla have engaged in related-party transactions over the years, Tesla had not previously disclosed an equity investment in SpaceX.

Now, regulatory filings with the Federal Trade Commission show Tesla converting that investment into a small stake in SpaceX, formalizing the financial link between the companies ahead of the rocket maker’s IPO. SpaceX is expected to go public this year at a valuation some speculate could top $1.75 trillion, potentially making it the biggest company to ever go public. (The current record holder, Saudi Aramco, went public at a more than $1.7 trillion valuation in 2020.)

While the size of Tesla’s stake wasn’t available, Bloomberg reports that the investment would equate to ownership of less than 1%.

While SpaceX and Tesla have engaged in related-party transactions over the years, Tesla had not previously disclosed an equity investment in SpaceX.

Southwest Airlines At San Diego International Airport

Southwest stopped fuel hedging a year ago. Whoops.

It’s been a year since Southwest said it would end its fuel-hedging program. Oil’s moves this year make that decision look like a mistake.

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