Starting next month, SWISS International Air Lines cabin crew might be welcomed by a salary increase. The positive news was released by the airline's CEO, who stated that the pay rise is an attempt to retain staff and offset the increased living costs induced by inflation.

Staff-shortage and increased living costs

SWISS CEO Dieter Vranckx announced that cabin crew wages will likely increase starting next month. The choice stems from two main reasons; first, staff shortages that are causing unprecedented chaos in Europe and, secondly, the increased living costs brought about by inflation.

SWISS' number of employees started to decrease with the outbreak of the Covid-19 pandemic. According to the Lufthansa Group's annual reports, by the end of 2021 the number of SWISS employees, a total of 8,743, had contracted by 13% compared to 2020 and by 17% compared to 2019. However, with the progressive relaxation of travel restrictions in 2022, airlines have been facing pent-up demand for which they were not prepared, at least in terms of workforce. To make things worse, Europe has been swept away by a wave of inflation. Living costs have therefore been increasing, with inflation reaching a record-high of 8.9% in the Eurozone in July.

Why are airlines facing staff-shortage?

In an attempt to contain costs vis-à-vis falling revenues induced by the Covid-19 outbreak, airlines immediately looked at the second most expensive voice in the income statement: staff.

However, staff shortages rapidly became a nightmare for several airlines, both legacy airlines like British Airways and low-cost carriers (LCCs) like easyJet. Trying to accommodate demand with inappropriate workforce meant airline staff were put under extreme pressure. Unions started to announce repeated strikes which caused massive flight cancellations and delays, as was the case for Lufthansa. The deadly mix of staff-shortages and strikes caused a downward pressure on airlines' service levels.

Airlines are therefore in the process of re-hiring, particularly cabin crew, who were among the first to be hit by massive lay-offs when the pandemic hit. However, the pandemic was the umpteenth proof of the uncertainty of the aviation industry, whose stability is highly dependent on a multitude of external factors. Additionally, being a cabin crew is a demanding job, both from a physical and psychological perspective. Consequently, potential applicants might prefer to secure a "regular" job in a more stable industry. To address this issue, airlines are putting in place different measures to lure new cabin crew, and attractive pay is one of them.

Currently, the starting salary for an entry-level SWISS cabin crew is $4,170 per month. Although this might sound like a lot, it should be borne in mind that Switzerland is one of the countries in Europe with the highest living costs, which are now being hit by inflation. Hence, the decision of the carrier to adjust the salary upwards.

SWISS told Simple Flying that the airline is expected to discuss the possible pay rise with the unions next September. However, no information is available regarding neither the precise timing nor the scope of the announced increase.

What do you think of SWISS's move to address cabin crew shortage? Let us know in the comment section below.