Money is Gone: Airlines Start Layoffs Soon

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  • Опубликовано: 21 окт 2023
  • Inflation has impacted a lot of what we buy and now that most the stimulus money has moved through the system we are facing higher costs and that is going to have an impact on the airlines. This is NOT financial advice.
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Комментарии • 2,9 тыс.

  • @robertintexas
    @robertintexas 6 месяцев назад +1669

    I'm a 38 year employee of UPS (retired, not a pilot). The issue is The CEO, Carol Tome. Her hiring was the first instance of hiring a CEO at UPS that wasn't promoted from within the company. UPS has been around since 1907. If it ain't broke, don't fix it. She came from Home Depot where She did the exact same thing. She is there strictly for the stockholders, not for the employees or customers. For well over 100 years, UPS never had a layoff, except temps during peak season. For 90 years, UPS was an employee owned company. UPS paid cash for everything they bought. Their stock went public in 1997, and the company has gone downhill, IMO, ever since.

    • @owenross3468
      @owenross3468 6 месяцев назад +88

      Thanks for your info you may be right I can only tell you why i stopped shipping with UPS. USPS gives better customer support at a lower price.

    • @SlyNine
      @SlyNine 6 месяцев назад +68

      I would love to see the qualified applicants who passed up. The government gives huge tax benefits to those doing business with female ran companies.

    • @kevinmcdonald8049
      @kevinmcdonald8049 6 месяцев назад +93

      I know what you mean. I worked for china airlines in seattle and the manager transfered in from taipei from the i.t. department. I had 10+ years at the time working the ramp. He and I used to go nose-to-nose on how to load/unload thr md-11s. I would tell him what he was doing was illegal and when the plane gets to taipei they will discover it and the messages and error report will start to come. He insisted, i protested but would comply. Sure enough investigation would be triggered like i said it would. Then the manager would put the blame on me. Being from the i.t. dept he should have stuck with his office work and let flight operations work the aircraft.

    • @TheMrDrMs
      @TheMrDrMs 6 месяцев назад +131

      This is true of really any company that's public. The drive to 'increase profits for the shareholders' tends to ruin everything for the customer in the end. Wall street is broken

    • @charleshaggard4341
      @charleshaggard4341 6 месяцев назад +37

      Probably true but I knew 2 people who were older employees with UPS(route drivers not pilots) that were employed when the company went public. One had bought internal company stock when it was offered and the other did not. When it became public, one became a millionaire at that time and both still had their jobs. Unfortunately, there is a big difference between employee owned and stockholder owned because the stockholders are the new owners. I see the disappointment with the new CEO with the employees because she is a bean counter but that is what she was hired for. Good luck to you.

  • @jckdnls9292
    @jckdnls9292 6 месяцев назад +443

    Something doesn't add up, it's always we can't afford the workers, but it's never we can't afford to pay our ceos or board members or investors.

    • @josephj6521
      @josephj6521 6 месяцев назад +61

      Very true. If workers cannot afford to buy products, it’s simple to realise that companies will struggle. It’s like they’re digging their own grave. Pay workers less, complain no one is buying. What do these imbeciles in corporate expect?

    • @Suburp212
      @Suburp212 6 месяцев назад +7

      Always

    • @tolumnia
      @tolumnia 6 месяцев назад +41

      Corporations now act like shareholders are their customers, actual customers are the product, and product is their identity. Employees become pawns.

    • @snorttroll4379
      @snorttroll4379 6 месяцев назад +5

      Actually the shareholder are often not payed.

    • @idriwzrd
      @idriwzrd 6 месяцев назад +25

      The workers should take over the company and fire the CEOs, CFOs, CTOs, etc.

  • @jackfromthe60s
    @jackfromthe60s 6 месяцев назад +325

    I "took the package" during COVID at age 55 when my company mothballed the fleet I was on. It was the best move I ever made. I didn't realise how much longhaul flying was screwing with my body until I stopped.

    • @randomname9758
      @randomname9758 6 месяцев назад +39

      I think that work, in general does that.

    • @lightspeedtractor
      @lightspeedtractor 6 месяцев назад +24

      @@randomname9758 Very smart obversation. Well done. You know what, I think living in general does that.
      So, maybe, just maybe, some kinds of living and working take a little bit of a heftier toll than other kinds.

    • @KSGomez88
      @KSGomez88 6 месяцев назад +2

      Well done Sir

    • @paultoensing3126
      @paultoensing3126 6 месяцев назад +11

      My health was significantly compromised from being a long haul guy. I’m done with flying now.

    • @com-n-sense
      @com-n-sense 6 месяцев назад +36

      It took me 6 months to get my normal sleep pattern back after changing from long haul to short haul. At the age of only 33.
      Anyway, I was then fired for not taking the jab. I don't miss the part of wrecking my body.

  • @Quantum369Mechanic
    @Quantum369Mechanic 6 месяцев назад +14

    Cost of food has gone up so much. Oil and filters for the cars we drive has gone up. As a fleet mechanic, I've also seen the price of brake pads go from $32 a set to to $149 a set!

  • @diytwoincollege7079
    @diytwoincollege7079 6 месяцев назад +382

    I own a small retail store. There are several reasons I see for less shipping:
    1. Less products have been available.
    2. UPS jacked up their rates and USPS is cheaper to ship to many locations
    3. People are spending more money on basics and have less free cash

    • @richardcline1337
      @richardcline1337 6 месяцев назад +31

      UPS is also losing customers because they are so anal about how they treat the eventual end-user like you and me. Their scheduling is so screwed up that you have very little idea as to where your order is in their system and when it's going to get delivered. FedEx, on the other hand, is spot on about letting me know where my package is and when i can expect delivery. I get a text message telling me when the package is scheduled for delivery and close to what time I can expect it.

    • @RobiBue
      @RobiBue 6 месяцев назад +11

      In my experience, both, FedEx and UPS have their logistics pros and cons. We have, at our workplace, daily deliveries of both, FedEx and UPS, and both have products thrown into their delivery vans/trucks. I can see it when they pull up and open their doors… DHL has similar issues as they come by once or twice a week. We have supplier problems at our end, which causes our production to grind to a halt for a few products and when those parts finally come in, there are other parts that have been used up due to running different lines on other products and those parts now are due to be received. We’re slowly getting to pre-pandemic production, but it’s all a slow try this/try that process where we’re at the mercy of our suppliers. We were already told that one supplier was discontinuing an essential product line we use, and the replacement is not going to work for several of our products we manufacture.
      This plays exactly into reason 1. mentioned above.

    • @jonnycando
      @jonnycando 6 месяцев назад

      @@richardcline1337I can do all that with UPS, you just have to use the web and app tools, and subscribe to a few of them.

    • @aluisious
      @aluisious 6 месяцев назад +8

      USPS has always been cheaper for retail customers.

    • @nomennudum4592
      @nomennudum4592 6 месяцев назад +2

      @@richardcline1337 That is certainly true of UPS operating in the UK.

  • @normp3273
    @normp3273 6 месяцев назад +252

    I've worked at FedEx Express for over 20 years as a truck driver. I can tell you this video by Kelsey is not an exaggeration. FedEx right now is in the middle of a restructure because revenue and profits are down. They're taking the measures that Kelsey outlined here with buyouts and early retirements for the more senior people, including pilots. Definitely a time of uncertainty

    • @michaelwalker8501
      @michaelwalker8501 6 месяцев назад +7

      No FedEx pilot has been offered an early retirement. The company has specifically stated they don’t intend to offer any either.

    • @minibeefcake
      @minibeefcake 6 месяцев назад +4

      Is it coming back down to pre-pandemic level? Or coming down to below pre-pandemic levels? Package shipments soared during pandemic because we were all quarantined. Now things are slowing going back to normal people just didn’t order as much as it was when we were stuck at home. Yet, businesses do their projections like pandemic boom will last forever.

    • @mymodel6
      @mymodel6 6 месяцев назад +5

      Federal Express Express..?

    • @Weathernerd27
      @Weathernerd27 6 месяцев назад +4

      I'm mailing alot less stuff because the postal service is doing a bad job. I recently had a late mortage payment, I mailed the check on the 3rd but it didn't get to the mortgage company until the 17th. That is not acceptable I need my bills to get where they are going in a timely manner it seems I have no choice but to pay all my bills online now. It also was taking more than a week to get Netflix disks in the mail that is also unacceptable if I order a disk on Saturday/Sunday/Monday I want to have it by the next weekend.

    • @TheCatman
      @TheCatman 6 месяцев назад

      FedEx is just waiting for Amazon to offer them a deal they can't refuse, and they will sell out to them, therefore increasing Amazon's delivery capabilities even further than they do now. It's Amazon's Plan anyway to become their own delivery service even to Last-mile delivery. With FedEx equipment, dispatch, Warehousing, sort facilities, it will just make it all the better for Amazon's bottom line

  • @ClutchTrucker
    @ClutchTrucker 6 месяцев назад +129

    I’m a truck driver. And we’ve been feeling the downward turn in cargo in the last year or two. Interesting to see how it’s affecting you as a cargo pilot. Welcome to our world! Live the videos. Take care. Clutch Trucker

    • @rwsmith7638
      @rwsmith7638 6 месяцев назад +7

      Amazing how a few people can mess up a good thing for a lot of people.

    • @Praise___YaH
      @Praise___YaH 6 месяцев назад

      Guys, Here is The TRUE Savior
      YaH The Heavenly FATHER (Genesis 1) HIMSELF was Who they Crucified/Pierced for our sins and “HERE IS THE PROOF”
      From the Ancient Semitic:
      "Yad He Vav He" is what Moshe (Moses) wrote, when Moses asked YaH His Name (Exodus 3)
      Ancient Semitic Direct Translation
      Yad - "Behold The Hand"
      He - "Behold the Breath"
      Vav - "Behold The NAIL"

    • @tommorgan1291
      @tommorgan1291 6 месяцев назад +1

      I want to thank you! Truck drivers are vastly unappreciated. What would we do without them? Thank you ! Thank you!

    • @gotacallfromvishal
      @gotacallfromvishal 6 месяцев назад +1

      There isn't a downward trend in ground cargo there just is an oversupply of drivers so rates have plummeted.

    • @adamspringer2442
      @adamspringer2442 6 месяцев назад

      I am a pilot and I have always had great respect for Truck drivers and all they do, thank you for supporting our economy and supply chain! Our lives would not be the same without you guys and gals! God Bless you!

  • @reflactor
    @reflactor 6 месяцев назад +33

    I tried to ship a package from Texas to Ohio on Friday via UPS. It only weighed 9 pounds, but was a bit on the long side (15x15x48 inches). They wanted $155 for the slowest ground shipping method. So I cancelled the pickup. A relative of mine is planning to drive down next year and will take it back with them then.

    • @ahumanmerelybeing
      @ahumanmerelybeing 6 месяцев назад +7

      I was at the UPS store to use their copier last week, and this couple came in with a package maybe the size of a large book. UPS wanted more than $40 to ship it for them. The couple said "Never mind" and walked back out of the store.

    • @tommorgan1291
      @tommorgan1291 6 месяцев назад +3

      I used Greyhound. But don't know if they still ship?

    • @jasono2139
      @jasono2139 6 месяцев назад +3

      For those kind of prices, I might have to start my own shipping company! 😂
      One way, I could do half price and make nearly $5k with less than 100 boxes.

    • @gteixeira
      @gteixeira 6 месяцев назад

      ​@@jasono2139Good luck to apply for all the proper permits with only 5k USD. Let alone getting the rest of fleet and labor and comply with all road and labor regulations.

    • @jasono2139
      @jasono2139 6 месяцев назад +2

      @gteixeira yeah... you understand that McDonald's also doesn't pay for their entire building from selling a single $5 Big Mac either, right?

  • @sambolino44
    @sambolino44 6 месяцев назад +66

    Interesting to see your definition of "staycation." For most of my life, piling into the car and staying with relatives was a VACATION. A staycation was just staying at home and spending as little money as possible. Getting on a plane, flying to some exotic location, and staying in a hotel was something people on TV did.

    • @jenelaina5665
      @jenelaina5665 6 месяцев назад +6

      Same lol, although now that I'm an adult I've expanded that definition to be "camping somewhere in my home state that's a relatively easy drive". Mostly bc I don't have to do much more planning than grabbing a site online.

    • @nathanahubbard1975
      @nathanahubbard1975 6 месяцев назад +6

      When I first heard staycation, it was a reference to taking a few days off and staying home watching TV and playing video games.

    • @FamilyManMoving
      @FamilyManMoving 6 месяцев назад +2

      For us, staycation means day trips without an overnight hotel expense. So driving an hour to an amusement park and sleeping at home, after maybe having dinner on the way back.

    • @nathanahubbard1975
      @nathanahubbard1975 6 месяцев назад +1

      @@FamilyManMovingYeah, I'm pretty sure staying wasn't originally meant to refer to going. With a made up word you can't expect people to all use it the same I guess.
      I'll continue to use daytrip for what you're talking about.

    • @eekee6034
      @eekee6034 6 месяцев назад

      @@nathanahubbard1975 "Daytrip" is a good word. As for "staycation," well, "vacation" wasn't part of my mother tongue to begin with so I'm not too worried what it means. ;) My native word, "holiday," works just fine in the phrase, "holiday at home." It once had religious connotations, but I'm sure that hasn't been true for 130 years, maybe more.

  • @USS_Sentinel
    @USS_Sentinel 6 месяцев назад +131

    I'm not a pilot, but this right here is why NO company gets my loyalty. If I'm just a number in a spreadsheet somewhere, I'm going to give the company the exact same treatment.

    • @mcpr5971
      @mcpr5971 6 месяцев назад +6

      sure, but what does "get your loyalty" actually mean? That's why we have contracts, you do labor for X hours/week, they give you $Y dollars/week. You don't pretend to think that "loyalty" means giving you money "just 'cause", do you?

    • @revenniaga6249
      @revenniaga6249 6 месяцев назад +5

      It's okay, they do not want you anyways

    • @user-my5hb6gj1y
      @user-my5hb6gj1y 6 месяцев назад +5

      this is why service for customers is so bad as everyone companies owe them more than their salary, They don't, you owe it to yourself and your family name to give your all and work hard

    • @mcpr5971
      @mcpr5971 6 месяцев назад

      @@user-my5hb6gj1y also unions incentivize this "idgaf" attitude in customer service because they can't be fired for being rude.

    • @RetiredInMotion
      @RetiredInMotion 6 месяцев назад

      @@mcpr5971 "Loyalty" used to mean you work for the same company for 30-40 years and earn a good pension. You were a "company man." Nowadays that doesn't exist. Companies will lay you off rather than risk profits dipping. Pensions are long gone. And even if you did work somewhere for 30-40 years your actual earnings are less than a worker in the 1960s-1970s. In fact, one of the few ways workers can increase their income these days is by frequently switching jobs as companies only pay more when they're desperate to hire. Hence, we see a resurgence in labor unions. And we should hope to see more because when workers have money left over at the end of the month we know our economies do better.

  • @ScrillaTMU
    @ScrillaTMU 6 месяцев назад +10

    My airline said it took a loss in Q3 but I swear, that was the busiest quarter I ever remember working. It’s crazy how the airline is saying we took a lose. How if we’ve never been more busy. I’m speaking on American Airlines

    • @davidweatherbe7740
      @davidweatherbe7740 6 месяцев назад +4

      Their accountants must work in Hollywood.
      If you ask the movie studios, no movie, in history, ever, has made a profit.

    • @billybuttons4298
      @billybuttons4298 6 месяцев назад +3

      American took a loss in the quarter, despite record revenues, due to a one time incredibly high bonus paid out to pilots as part of their new contract. The bonuses cost the company nearly $1 bil. If it weren't for that huge payment, the airline would have been profitable. Same thing happened at Delta and United when paying their pilots similar bonuses related to a new contract.

  • @kidf22
    @kidf22 6 месяцев назад +12

    Was a ground crew in one of the busiest air freight operations in the world for almost 10 years. A few years before COVID I left it for an office job at a passenger airline. It didn't take me long to realize that the job security wasn't as strong in the passenger airline. Sure enough when COVID hit and I saw them starting to ask pilots to retire early, I saw the writing on the wall and went back to air cargo which was starting to go nuts. I always saw air cargo as something that was as stable as you could get in aviation. It's is crazy to see they're the ones struggling right now.

    • @gotacallfromvishal
      @gotacallfromvishal 6 месяцев назад

      You didn't take a recall from the passenger airline? Or did you resign instead of taking the furlough and having that option available to you? I worked for UPS then a *alliance airline and the pax airline was so much better of a place to work at than UPS and our union contract at the *alliance airline from ramp was significantly better.

    • @kidf22
      @kidf22 6 месяцев назад

      @@gotacallfromvishal haha I wished they those options available for the department I was in for pax. I was in maintenance at headquarters so no. For the air cargo I was an aircraft fueler for a ground support company contracted to a big cargo airline (I'm being vague because I don't want to start any conversations about those companies for various reasons). There were also personal reasons not related to the companies for why I left pax and later cargo. COVID just forced my hand at the pax airline and started the events that led to me leaving cargo as well. It was a blessing in disguise.

  • @jordanwaddell2050
    @jordanwaddell2050 6 месяцев назад +29

    Im an auditor and this is the best and easiest to understand financial breakdown done by a non financial channel I have ever seen. Kudos to you!

  • @greglevy3142
    @greglevy3142 6 месяцев назад +190

    It’s not just lack of extra money it’s also the rise of fuel and ground support costs which is also driving up costs and bringing down profits

    • @davebarrow4460
      @davebarrow4460 6 месяцев назад +3

      Wouldn't that be a reason for less extra money?

    • @greglevy3142
      @greglevy3142 6 месяцев назад +3

      @@davebarrow4460 not necessarily because companies haven’t followed the trend of raising wages so people are having to make less go further

    • @stripybread3715
      @stripybread3715 6 месяцев назад +1

      👇 Like if you think inflation is bad

    • @skinnie2838
      @skinnie2838 6 месяцев назад +21

      This is what voting democrat gets you. Good job geniuses.

    • @sledawgpilot
      @sledawgpilot 6 месяцев назад

      @@skinnie2838massive money creation to pay for unlimited spending is a tax on every penny you have. Double the money supply and make it worth half as much.

  • @user-we8mu7lf6x
    @user-we8mu7lf6x 6 месяцев назад +77

    Keep in mind, the majors will hire pilots right up to the day they furlough them. That said, passenger flying is still going very strong with a heap of retirements in the next 5-7 years so furloughs in the passenger world is probably a lot less likely, maybe just a slow down in hiring. Add to that, the majors love carrying cargo where they can to supplement their passenger income. US-Australia in particular is often payload optomized purely so they can carry more cargo.

    • @gotacallfromvishal
      @gotacallfromvishal 6 месяцев назад +1

      Cargo for USA airlines does not "supplement the passenger income". Cargo is like 1-2% of a US Major's revenues. Yes during wuhan flu when they were printing money there was huge demand for air cargo but wuhan flu has been gone 2 years now.

    • @JarfCast
      @JarfCast 6 месяцев назад

      Wow, you're really going to go with "wuhan flu" here? @@gotacallfromvishal

    • @lalochivafan
      @lalochivafan 6 месяцев назад

      Ain’t that the truth. Airlines in general will keep hiring until the day they announce furloughs. I was hired by ExpressJet and a day later, they let me go. 2 weeks later, they bellied up due to covid.

    • @user-we8mu7lf6x
      @user-we8mu7lf6x 5 месяцев назад

      @@gotacallfromvishal Oh it very much does my friend. In many cases cargo is significantly more lucrative for the airlines than passengers and still is to this day.

    • @gotacallfromvishal
      @gotacallfromvishal 5 месяцев назад

      @@user-we8mu7lf6x HAHAHAHA no it isn't. go back to playing airport manager simulator.

  • @Goosen990
    @Goosen990 6 месяцев назад +17

    As someone who works for UPS this is very accurate even down to non drivers … hours getting cut hiring more people to work less I’ve seen more supervisors quit because hourly’s are making as much or more then supervisors it’s crazy and sad this economy has been broken on so many levels it’s hard to keep track of it all !

    • @justintrefney1083
      @justintrefney1083 5 месяцев назад +1

      Yeah I'm one of those supervisors now making less then the seasonal hires. It is insane!

  • @TexRobNC
    @TexRobNC 6 месяцев назад +16

    There is so much more to this. Look, I'm 45, I grew up flying every single summer to see my grandparents, and we were NOT rich. I've flown in small planes, I've flown for work and gotten platinum status, all that stuff. Now, I haven't flown in almost a decade. The process is horrid now, if you don't fly direct, it's almost guaranteed to miss flights, etc. They made air travel HORRIBLE, and costly, and on top of that, we're in a time where nobody can afford anything extra. A 12 pack of Coke? $1.99 on sale in the mid 90s. Now, $8.99, things are insane right now.

    • @angryaugust36
      @angryaugust36 6 месяцев назад

      12-pack of coke $9.49 here. The other day there was a sale, ONLY $7.99 if you buy 2. I know it's just Coke but I feel like it is some kind of indicator. Anyway it is at least an indicator for whether or not I will buy store brand soda lol

    • @lakeireland
      @lakeireland 6 месяцев назад +3

      I stopped buying soda at all for my house and just drink water, tea, or juice, Cheaper and tbh, healthier.
      The 6pk of Mr.Dew I did buy at my mom’s request (she’s sick and it’s the only thing she can keep down) was $4.

    • @angryaugust36
      @angryaugust36 6 месяцев назад

      @@lakeireland yeah that is what I should do. Should do. In practice I have tried for many years to give up diet soda but every time I do, it is like, really not even diet soda?
      I actually had a coworker once at welding shop, he said if he had a diet coke all his other vices would come roaring back.
      Anyway at this rate 12 pack of diet coke will be $15.99 by 2025 so maybe will be easier to stop.

    • @ibiro868
      @ibiro868 6 месяцев назад +1

      Sadly America is finished. Move to Mexico or Thailand and live like a king.

  • @kayelle8005
    @kayelle8005 6 месяцев назад +61

    Thank you for saying that about the arm rests. I typically fly in the aisle seat and think it’s just common courtesy to give one of my arm rests to the middle seat passenger as they have the worst seat in the row and I’m still left with one. On the rare occasions I’ve been in the middle I’ve been shocked how uncommon, common courtesy is when flying.

    • @alexandrumih
      @alexandrumih 6 месяцев назад +6

      i usually let my wife take the window seat, so i fly on the middle one. cannot agree more.

    • @jezziemalvada3840
      @jezziemalvada3840 6 месяцев назад +1

      I pay $50 extra for a good boarding position (SWA) so that I can have a window seat. If someone is in the middle seat it’s because they wanted to save a few bucks. I let them have the arm rest out of courtesy but they’re certainly not entitled to it. That being said, don’t let your elbow poke over onto my side of the arm rest. That’s MY space.

    • @jasono2139
      @jasono2139 6 месяцев назад +1

      ... like taking your smelly shoes off on an 8 hour flight. 🤢

    • @kayelle8005
      @kayelle8005 6 месяцев назад +2

      @@jezziemalvada3840 depends on the airline and whether you’ve had a lot of advance notice to book your flight. Sometimes travelling for work you might find it that night before or even day of flight that you’re going somewhere and if it’s a booked plane you’re stuck with what they allocate, or all that’s left is middle seats. So not always saving bucks.
      A different dilemma. Once I was offered the middle seat i the exit row with the extra legroom versus aisle seat with cramped leg space. That was a tough choice. Went with the aisle seat. Would maybe go for middle seat if offered that choice again.

  • @troybob7530
    @troybob7530 6 месяцев назад +4

    Your explanation of the current and near-term economics of air transport industry woes is excellent. You bring home the point quite well that seemingly disparate consumer and business choices can have far-reaching impacts across multiple economic sectors and impact consumers. Thank you and keep up the great work!!

  • @tuhsteh
    @tuhsteh 6 месяцев назад +5

    about a decade ago, USPS showed up with the last-mile delivery option tied to all these major "shipping carriers". That means the retailer/seller can ship it from UPS, FedEx, or even DHL, and then the local post office delivers it for them the rest of the way. "SurePost" is what UPS calls that. I wonder how much impact that really had, in either direction

  • @stephen3164
    @stephen3164 6 месяцев назад +65

    UPS shipping rates have gotten pretty crazy. I used to buy and sell guitars online - but shipping costs have increased to the point that it is no longer feasible to sell online. And shipping holiday gifts from one coast to the other is now $75+ for a box! So if I shop on Amazon and ship direct, free shipping, instead of buying locally and shipping a box cross country, my dollar can go a lot further - which is important bc prices on everything have gone up in the last few years, but my salary has not changed.

    • @getmeouttatennessee4473
      @getmeouttatennessee4473 6 месяцев назад +4

      Heck, Amazon is the Walmart of mail order and they're having a bad effect on so many other businesses struggling to survive.
      I used to sell online, Poshmark, Mercari.
      I don't anymore. When it's over $7 to ship a shirt or small box, it eats away at profits. You can't sustain any income that way.
      I no longer buy on those sites for the same reason.

    • @nickperos954
      @nickperos954 6 месяцев назад +2

      A very real problem is that the retail seller who ships via UPS or Fed Ex does not pay the same amount per lb as does the customer. For the small retailer, perhaps it is the volume shipped that controls the cost of shipping, putting the little guy at a disadvantage.

    • @charlayned
      @charlayned 6 месяцев назад

      @@getmeouttatennessee4473 Even Amazon is a pain to work with, the rates they get are going up...again. I'm an independent author and I publish through Amazon. My costs have gone up for both print and even Kindle because they're taking a bigger hunk. And I stopped trying to ship out of my house because the cost of sending books even USPS is horrendous. If I'm selling all 5 of my series (so far) and it's about 75.00, then you get the weight of all 5, plus the box, it gets expensive for readers and it's not worth it. I try to eat costs where I can but it's still hard. So I don't ship as much, airlines go on layoffs, vicious circle.

    • @eekee6034
      @eekee6034 6 месяцев назад +1

      I know a cigar-box guitar maker who quit when shipping got too expensive. Or rather, he quit selling them. His walls are covered in guitars now. ;)

  • @incremental_failure
    @incremental_failure 6 месяцев назад +42

    When I flew intercontinental Asia to Europe in 2021 during Covid, A350 had 4 passengers but they said it's 100% full of heavy cargo.

    • @billb7876
      @billb7876 6 месяцев назад

      CONvid

    • @pollyanna4468
      @pollyanna4468 6 месяцев назад +2

      That may have been true. Now though, it’s not quite the same. Inflation and overall economic uncertainty have people buying less. Cargo like you are talking about isn’t something like UPS. UPS cargo is a speedier individual package shipping service whereas legacy airline cargo tends to be large quantities of one thing, like bananas or Covid masks (possibly what was on your A350).

    • @Boujiehoodrat
      @Boujiehoodrat 6 месяцев назад +1

      I thought this was a fat joke

    • @incremental_failure
      @incremental_failure 6 месяцев назад +1

      @@Boujiehoodrat lol, nice. The other travelers weren't too fat, so I guess that just leaves me...

  • @ScubaFanatic60
    @ScubaFanatic60 6 месяцев назад +16

    I was amazed at how much a light, small package cost to ship by UPS. I usually use them because it's more convenient to where i live, but a $7 difference for a small package is going to have me heading to the post office from now on!

    • @gotacallfromvishal
      @gotacallfromvishal 6 месяцев назад +4

      Well no duh the US taxpayer subsidizes our shipping and the shipping of chinese items into USA.

    • @user-yd6ef1yo9d
      @user-yd6ef1yo9d 2 месяца назад

      @@gotacallfromvishal It's good to get something reasonably priced for the taxes we pay.

    • @gotacallfromvishal
      @gotacallfromvishal 2 месяца назад

      @@user-yd6ef1yo9d Haha true but I'd rather have that tax money in my pocket and pay more for postage.

  • @803mastiff9
    @803mastiff9 6 месяцев назад +4

    A couple weeks ago I was talking to retired 787 Captain with a wife that is a international flight attendant. His wife's airlines was starting to look more critically at the flight crews individual weight. He thought it was odd but I guess it offsets the amount of cargo the plane can carry

  • @ekaftan
    @ekaftan 6 месяцев назад +125

    A long time ago, when it was a thing, I was in the cockpit of a 767 as a jump seat passenger because I was both an employee of the airline and a friend of the captain, on a flight that had at most 80 passengers...
    Captain shows me the planes weight... it was 1000lbs short of of its max takeoff weight. We were a cargo plane with some passengers.

    • @philipjamesparsons
      @philipjamesparsons 6 месяцев назад +13

      I've flown cargo flights as a pilot with very light loads. But, in actual fact the plane is bulked out. That is to say lots of large boxes with small, likely valuable loads. High value electronics for example. Often happens in the Far East.

    • @MS-37
      @MS-37 6 месяцев назад +2

      A cargo plane with 80 seats?

    • @oadka
      @oadka 6 месяцев назад +22

      @@MS-37No, its a 767, capacity of about 300. He meant that only 80 were occupied.

    • @philipjamesparsons
      @philipjamesparsons 6 месяцев назад +8

      @@MS-37 I flew as a passenger on a KLM 747 combi. Must have been around 80 seats. Wonder if any are still out there?

    • @MS-37
      @MS-37 6 месяцев назад

      @@oadka Thanks.

  • @mmason92
    @mmason92 6 месяцев назад +13

    I work for UPS Air at a gateway in Missouri. We’ve seen a huge drop off in volume the last few months. Used to get a full Airbus A300 everyday. Now we’ve just been moving volume out of a 757.

  • @ryanboutr7756
    @ryanboutr7756 6 месяцев назад +2

    Its hard out here, for everyone. Prices for everything have skyrocketed and corporate greed and monopolization is at an all time high. What do we all expect to happen in these conditions across all jobs for the 99%

  • @bradfigiel2203
    @bradfigiel2203 6 месяцев назад +1

    Used to work for a small air cargo company that flew overflow for Ups and fedex. Back in the early 2000s when they stood by guaranteed next day we flew one of our jets on xmas eve to support overflow. All they had for us was one box of exercise equipment. We flew that to California for about $18,000. As time progressed you could tell they would rather wait and see if customer would push next day guarantee and if so pay the penalty. Didn't make sense for that California flight but that was a different time when reputation mattered.

  • @Bum_Hip
    @Bum_Hip 6 месяцев назад +41

    The compensation for the CEO of UPS is still at about $19,000,000 up from $15,000,000 in previous years. How she can have an income like that, and still report financial issues with a straight face is beyond me. Cut her pay by 75% first, before touching anyone else’s livelihood.

    • @Saml01
      @Saml01 6 месяцев назад

      Probably because it's not entirely in cash but in a few forms of stock, options and bonuses based on performance. They aren't giving her 19 mil in cash over 26 paychecks.

    • @rf159a
      @rf159a 6 месяцев назад +10

      Why is it when the average person who wants a raise when things cost more are the bad guys? BUT, when CEO's get a raise it's the cost of doing business??????

    • @Eternal_Tech
      @Eternal_Tech 6 месяцев назад +11

      If this CEO took a 75% pay cut, then she would _only_ earn *$4,750,000.00.* How can you expect the poor thing to survive on that. 😊

    • @jonathanparks207
      @jonathanparks207 6 месяцев назад +2

      Okay so cut the pay (assuming their contract is coming up for renegotiation) and when they decide they are going to go elsewhere to make more money, what then are you going to do?

    • @EdOeuna
      @EdOeuna 6 месяцев назад

      Socialists on here hey? If you want a world class business run by world class CEO’s then you pay top dollar. Obviously top dollar for a cargo airline CEO is around $15-19M.

  • @TBrady
    @TBrady 6 месяцев назад +62

    We were just having a conversation about this yesterday. People are not flying as much as they used to. I'm fairly well off and chose to drive more now than fly lately. The airlines treat people like cattle anymore and it's not worth it. Even if you fly buisness or first class, it doesn't have the same shine that it used to and just doesn't feel like it's worth the money spent. I'd rather drive somewhere than deal with the airlines, and I'll never fly the cheap-o's like Allegiant ever again.

    • @jimarcher5255
      @jimarcher5255 6 месяцев назад +14

      I’d rather take a trip to the dentist than to the airport and get on an airliner.

    • @DrBlood-cq2cm
      @DrBlood-cq2cm 6 месяцев назад

      Its because the legacy carriers are de facto owned by the government because of bailouts. And the govt has turned the airlines into the Amtrak and Greyhound bus of the air. They let anyone on, mentally ill, people with companion horses, and everything in between.

    • @rickwhite3757
      @rickwhite3757 6 месяцев назад +10

      Great for a staycation, but hardly viable if you want to travel our amazing world. I'll put up with some inconvenience for the incredible experiences out there beyond our shores.

    • @dmimcg
      @dmimcg 6 месяцев назад

      AMAZING WORLD< ROFL. Have you been to the amazing world recently? ROFL. IT SUCKS. Paris and most major cool cities are now Muslim. slums.@@rickwhite3757

    • @vomitkermit3446
      @vomitkermit3446 6 месяцев назад

      This is because the airline industry no longer uses its flights for its main source of income. I think it was 74Gear that highlighted this, the interest from the credit cards/ rewards programs are the airlines main source of income. They have essentially become banks that also shuttle people with planes as a side hustle pretty much.

  • @creedonjm
    @creedonjm 6 месяцев назад

    Thanks for the info on that middle seater getting the arm rests.

  • @SteveTsaionplanetearth
    @SteveTsaionplanetearth 6 месяцев назад +3

    Australia seems to be doing well as Qantas has unveiled its latest A330-200, which converted from a passenger aircraft into a freighter. The A330’s arrival forms part of a major overhaul of Qantas Freight’s aircraft that will create nine new A321 P2Fs, taking its final fleet to 12. It’s also planning to receive one more A330 P2F.

  • @cessnaN123HA
    @cessnaN123HA 6 месяцев назад +144

    I have an A&P as well as a Private Pilot. I got out of aviation for two reasons. This is one of them. I despise how shaky the industry is. The second reason is the "Leave me alone" of older mechanics that despise the younger generation and want them to stay away. Then everyone wonders why there is such a shortage of mechanics. People don't want to get into an industry where their job is hanging in the balance every day even by no fault of their own, not to mention feeling unwelcome.

    • @trentcarlson4857
      @trentcarlson4857 6 месяцев назад +14

      Yep A&P and R&E and private pilot. I haven’t wrenched on aircraft ever since the days at Northwest Airlines. 9/11 was the beginning of the end for me. It was always something and listening to the old guys talking about going from PanAm, Eastern, then thinking they were safe at Northwest. 🤦‍♂️ Also why would you ever go back for a 5 year top out. Need a restructuring for Aircraft Technicians so they can get paid for their knowledge, I guess we have the IAM to thank for having a A&P classified as a unskilled worker with the department of Labor.

    • @jamesburns2232
      @jamesburns2232 6 месяцев назад +5

      My friend graduated from the University of Illinois Institute of Aviation. He had his A&P license as well as his Commercial pilot Single and Multiengine land. He worked at a Cessna dealer 6 days a week and did that for 3 years. Then, he went into the Air Force and didn't have to worry about layoffs. That makes me wonder why more aviation enthusiasts don't join the military? 🪖

    • @gavingross2174
      @gavingross2174 6 месяцев назад

      ​@@jamesburns2232I can speak for the Air Force side of things. Mechanics are enlisted, and we get crap pay compared to civilian equivalents. We get shit on non stop by leadership and by planes, and military aircraft are awful to work on. If you are already enlisted, commissioning to become an officer (pilots) is a huge PITA. The Air Force is incredibly picky, and you either have to have a degree to get a spot in OTS, which is gonna come down to luck. Or you have to join the academy, which is about equivalent of getting into an Ivy League not to mention the senator's endorsement requirement. Or, ROTC. You can make it all the way through, and they might not even have a spot to make you an officer. Let's assume you beat those odds and become commissioned. Well now you are a military member AND a pilot. So you have to deal with the rank structure and military training, then your job, and then further you have additional responsibilities. You might be in charge of everyone's training. That means if Joe bob didn't do a single computer based training course, you have to explain why to someone above you. Then you have to be on Joe Bob's ass to do that course. But Joe Bob doesn't have time, because his responsibility is to ensure everyone is deployment ready, and has to do a multitude of tasks for each member. See where I'm going here? If you are a Pilot, load master, or mechanic in the military, it is highly unlikely that you are just a pilot, load, or mechanic (exception for the lowest enlisted group. E-3's and below extra duty is to learn their main job). Add this to the fact that military life is unpredictable and at times quite scary and it's not a career path for most people.

    • @jonasbaine3538
      @jonasbaine3538 6 месяцев назад +12

      Pilots and mechanics both give the unwelcome feeling in aviation. I worked at an FBO. Once the excitement and glamour of aviation wears off you realize how unfun it all is.

    • @trentcarlson4857
      @trentcarlson4857 6 месяцев назад +6

      I think GA is probably the most fun I had in aviation, the problem is it didn’t get called general starvation for nothing!!

  • @johnpatrick1588
    @johnpatrick1588 6 месяцев назад +11

    My flying started in the 1980s corporate (loved it but the base relocated) and flying stopped in the 1990s in cargo ops because I used the money to buy and start businesses while flying . I know all about furloughs, strikes, downgrades, bankruptcies, mergers, pay cuts... Remember in the airline world your career is based on the hire date with a seniority number so jumping from company to company means starting at the bottom each time. Pick your airline wisely.

  • @rogerrees9845
    @rogerrees9845 6 месяцев назад

    Well done Kelsey for highlighting a problem in the industry... Always enjoy your lively videos... I can't wait for the next one.... Roger.... Pembrokeshire UK..

  • @computersales
    @computersales 6 месяцев назад +5

    Something worth adding from my experience doing e-commerce. I'm finding with the high shipping rates these days it's more profitable to throw stuff away than it is to sell it and pay for shipping. There's plenty of people out there willing to sell stuff for $9 that cost $10 a ship but I like making money so stuff like that doesn't make sense.

    • @jasono2139
      @jasono2139 6 месяцев назад +1

      Yup... that's why people are selling stuff on Facebook locally.

  • @FlashGardin
    @FlashGardin 6 месяцев назад +154

    Another factor to consider is the number of regional distribution hubs that have come online for big retailers like Amazon. They generally stock these through large rail and truck delivery, and build them just outside big population markets. Having the product on hand in a closer area means they can use delivery systems more economical than air and still get customer orders filled in a short window.

    • @dragons_red
      @dragons_red 6 месяцев назад +3

      True. Where I live in a major metropolitan area of the southwest, Amazon built a distribution warehouse a mile down the road from me, and it is just a few miles off the interstate. They have been building their own network for years.

    • @nate6045
      @nate6045 6 месяцев назад +5

      Also Amazon used to contract UPS to do their deliveries. Now they don't unless it doesn't make sense to do it (i.e. rural areas)

    • @mauriciopr3
      @mauriciopr3 6 месяцев назад +8

      Amazon has its own airplanes, it still uses UPS but at a smaller rate than before, and because they don’t have an airline certification they use a small cargo airline with about 500 pilots.

    • @_PatrickO
      @_PatrickO 6 месяцев назад +8

      @@mauriciopr3 This means UPS charged too much. This is terrible management that focused on destroying the US postal service via politics instead of worrying about big players like amazon and walmart simply doing it all in house to avoid the gouge by UPS and fedex.
      The worst part of companies like UPS and fedex charging too much is that it is all to support ever increasing executive pay. The workers who do all the work to make the company money are not the problem. The problem is highly paid execs that do almost nothing to contribute to the company, they instead cut quality and jobs so execs can be paid more and it creates a death spiral as revenue drops, but executive pay never does. This is obvious class warfare by an executive class. Blame the normal worker, while ignoring that it is overpaid execs causing all the problems.

    • @Dexter037S4
      @Dexter037S4 6 месяцев назад

      @@mauriciopr3 Amazon uses multiple airlines, even Passenger-Only companies like Sun Country got involved.

  • @chrisstromberg6527
    @chrisstromberg6527 6 месяцев назад +9

    If there is one thing I have learned after being in this business for over 24 years, there is no safe place! There are periods of growth and periods of retraction, your timing and luck will determine how it all plays out!

  • @hotelmikekilo5326
    @hotelmikekilo5326 6 месяцев назад

    Love the channel. Went into the DHL report on the global state of the Air Freight industry. To summarize demand is lack luster and capacity has increased, Air cargo rates are still 29% lower than last year levels (but trend is increasing). So short term it is not a stellar outlook but long term e-commerce will continue to drive demand. So perhaps UPS has excess capacity and is matching it to what it thinks market demand will be. I think most companies can handle this by stopping hiring and going through normal attrition.

  • @Axelsmom
    @Axelsmom 6 месяцев назад

    I just watched this video and my first thought was, how ironic! Just 3 weeks ago I went to my local UPS store to return Amazon products, send a small package (less than 7 pounds) just 2 states away and also a package to an APO address (military address).
    They could not take my Amazon returns and I have to go to Staples or a Whole Foods.
    The state side package was going to be $45.00.
    They could not take the APO package at all.
    This has never, ever happened before. I was dumbfounded but now I know why!
    Thank you so much for this information

  • @eclectichoosier5474
    @eclectichoosier5474 6 месяцев назад +11

    Can confirm; it isn't just the pilots who suffer. I'm an A&P, and was fired (along with about 3/4 of the other mechanics) when the airlines parked their fleets in 2020.
    The more senior mechanics were re-hired later, but the newer guys (like me) never got re-hired as business picked up again.
    I'm back to working as an A&P, but spent almost 3 years doing other jobs that I hated, before finding the one I have now.

    • @arthurbrumagem3844
      @arthurbrumagem3844 6 месяцев назад +2

      As a private pilot we need you guys and you are worth every dollar we pay you if you are a good A&P or IA 👍👍👍

    • @eclectichoosier5474
      @eclectichoosier5474 6 месяцев назад

      @arthurbrumagem3844 all but one of our A&Ps are also pilots, and the ones who aren't are student pilots. We all have a vested interest in doing a good job.
      The IAs here are very good.
      Management is just as important. They tell stories around here of past administrations. All I can say is: "yikes."
      But the guy we have now has been a professional pilot and mechanic, and won't tolerate sloppy work. We won't, either, so all is good. A bad administrator would pressure the mechanics to get the job done quickly. Our guy just wants us to do the job right. (We have a plane that's been sitting in the hangar for months waiting for parts and time to do major work on it. (We could make it fly in a week, but none of us would want to fly it.)

    • @arthurbrumagem3844
      @arthurbrumagem3844 6 месяцев назад +1

      @@eclectichoosier5474 i totally understand. My IA is the head guy at a flight school and the owner routinely wants him to take short cuts in order to save money. If anything happens he knows she will throw him under the bus so he walks a tight path. In the meantime I have a great IA and he is one of my best friends. When I was injured this year he flew my plane for me while I was SIC. His son is also a pilot and A&P

  • @bearzlla
    @bearzlla 6 месяцев назад +17

    On the point about UPS, I used to ship sooo many packages for my business with them. In the last year or so the prices to ship even a small box are just extremely absurd. UPS squeezed too much blood out of the rock and now I'm using other options.

    • @Nightenstaff
      @Nightenstaff 6 месяцев назад +7

      Our business uses UPS and yeah, I agree, the price increase as of late is substantial. They're also needlessly devious with their new web design. The default shipping choice is always overkill ($150 vs $60 with the same estimated arrival time, but different shipment method for example) and you have to put in a promo code on every, single, stupid, shipment to bring the price down to a more realistic level. It's all set up as a 'gotcha' to folks who either aren't paying attention or just don't care.

    • @richardcline1337
      @richardcline1337 6 месяцев назад +3

      @@Nightenstaff I have one simple rule I go by when ordering on-line. If they are planning on shipping by UPS, I get them to use another carrier or I just cancel the order and look elsewhere. UPS, even for the end user like myself, really sucks!

  • @frankmutz7929
    @frankmutz7929 6 месяцев назад +1

    Your videos are informative and unbiased. I wish all reporters were like you.

  • @raatti
    @raatti 6 месяцев назад +3

    Maybe this is related 5d ago news: Lidl at least in Finland (others to follow) stops bringing in produce in air cargo. This is bound to hit airlines and especially since others are looking for similar options, and maybe if this will spread to other countries and companies as well. Lots of daily grocerie-companies are looking to appear positive to environment and air shipped foods is a image problem these days.

  • @jeromethiel4323
    @jeromethiel4323 6 месяцев назад +58

    So glad to see someone address the middle of the row seat armrest issue. Of course it's the middle seat. The window seat gets the window. The isle seat gets more shoulder room (when the carts aren't in the isle). The middle seat always gets the armrests.
    That being said, when i am middle row seated, i tend to try to keep my elbows in as much as possible, as i am a large guy.

    • @MaryK4242
      @MaryK4242 6 месяцев назад +2

      ^^^^^This

    • @BritishRail47
      @BritishRail47 6 месяцев назад +2

      Window seat gets less legroom though, so it's reasonable to argue that they get the armrest, or at least the legroom level with it

    • @snorttroll4379
      @snorttroll4379 6 месяцев назад +2

      One can share the armrest. Front and back end of the thing.

    • @toddsmith8608
      @toddsmith8608 6 месяцев назад +2

      ​@@BritishRail47depends on the layout and seating configuration of the aircraft. I've been in aisle & window seats where my bag wouldn't quite fit under the seat in front of me, but the middle seat had way more room. Either way, middle still gets both armrests, regardless of legroom situation.

    • @Sonny_McMacsson
      @Sonny_McMacsson 6 месяцев назад +5

      Will there ever be peace in the middle seat?

  • @zone2Ironman
    @zone2Ironman 6 месяцев назад +2

    I'm in the pool at UPS after a successful interview in November 2022. Word on the UPS street is no pilot hiring in 2023 and likely no pilot hiring in 2024 either. Meanwhile, I've landed with in an outstanding position at a legacy airline. Keep the blue side up!

  • @Mkluthe
    @Mkluthe 6 месяцев назад

    Perfect timing... Retiring in December from 20yrs of Military Aviation. Was just extended a CJO from a Major Airline. 😮

  • @nickhart5332
    @nickhart5332 6 месяцев назад +1

    Thanks for the info Kelsy! As a Louisville, KY resident and living close to SDF will be interesting to see how this all plays out. I know they just spent a ton of money bukiding a new 747 hanger too.

    • @BadThetan
      @BadThetan 6 месяцев назад

      Hey! I live in a Louisville Ky too. Always seeing those UPS planes flying over 264. Oh and at Thunder because it’s like I’ve never seen a UPS plane before 🤣😂

  • @nicholasperusina6849
    @nicholasperusina6849 6 месяцев назад +8

    Your spot on Kelsey....... this is also happening in the trucking industry also. Shipping rates are tanking and operating costs are soaring. Stand by for some hard times.

  • @leeleigh1970
    @leeleigh1970 6 месяцев назад +11

    Really interesting topic this week! My guess is that when people think of big cargo transport it's usually container ships, tractor trailers, trains. People think of USPS, UPS, FedEx, and DHL flying smaller 'personal' packages. You've said before that you fly flowers from South America to the US, but I never really considered the produce aspect, and probably lots of other perishable food. Not really sure how I thought it got here... 🤔 I hope - because of the nature of the cargo and passengers you fly - that your job security remains pretty solid. I love the variety of your content and seeing your videos pop up every Sunday! 🤩

  • @kylestokes4501
    @kylestokes4501 6 месяцев назад +2

    I’m so confused, I thought there was extreme Pilot Shortage???? Cutting flight routes, cancellations, delays, and staff time-outs after long delays.
    The longer I live, the more I realize I don’t know.

  • @davidbeise7385
    @davidbeise7385 6 месяцев назад +206

    It's so refreshing to hear a pilot who gets the economics of business and has the where with all to check on the numbers. Being business literate is not as common as it should be but then again when it effects one's job some how it can become important. Thanks Kelsey for your perspective on the industry as one that works and lives in it.

    • @rogueninja1685
      @rogueninja1685 6 месяцев назад +10

      You ever hear what about half of the country parrots regarding economics? It's 100 percent fox news talking points. We have an education crisis

    • @theBestElliephant
      @theBestElliephant 6 месяцев назад +16

      Lord have mercy, he does not get the economics of business, only thing he talked about was the economics of greed. You wanna talk numbers, let's talk numbers. Kelsey pulled the headlines from the UPS financial reports, cuz he wanted snappy headlines, but I pulled the historical Excel files, cuz I want the numbers. The data for the last 10 years (revenue / profit / ratio of profit:revenue) is as follows:
      2013 - $55.438B / $4.362B / 7.89%
      2014 - $58.232B / $3.032B / 5.21%
      2015 - $59.186B / $4.840B / 8.18%
      2016 - $61.610B / $3.422B / 5.55%
      2017 - $66.585B / $4.905B / 7.37%
      2018 - $71.861B / $4.791B / 6.67%
      2019 - $74.094B / $4.256B / 5.74%
      2020 - $84.628B / $1.343B / 1.59%
      2021 - $97.287B / $12.890B / 13.25%
      2022 - $100.338B / $11.548B / 11.51%
      2023 - $44.980B / $3.976B / 8.84% (first two quarters only)
      So you wanna talk numbers? UPS got greedy, they stopped putting money back into the business and took home stupidly high profits, knowing that wasn't a sustainable plan, and now they're complaining that they can't keep rolling in money at the expense of their workers now that profitability is going back to the higher end of pre-pandemic levels. Ignoring the last two years of pandemic induced madness, the first half of this year is the most profitable in the last decade, so why on earth are we talking about furloughs other than the people don't want to go back to normal single digit profits? It's just greed, nothing more.
      Go do the actual math instead of parroting what other people say, you absolute sheep.

    • @KingoftheJuice18
      @KingoftheJuice18 6 месяцев назад +4

      @@theBestElliephant Awesome comment (except for the name-calling at the end; not necessary). Thank you for bringing more clarity to corporate greed!

    • @theBestElliephant
      @theBestElliephant 6 месяцев назад +2

      @@KingoftheJuice18 Sheep is hardly that bad of a name, but I will admit my frustration got the better of me.
      To be fair, though, the implication made in the original comment is that by virtue of which party aligns more with my opinion alone, I am financially/economically illiterate and ignorant to the financial dealings of UPS, which even if it isn't direct name calling is kinda more insulting than being called a sheep imo.
      So point taken, but I'm not going to police my tone if the other side comes outta the gate swinging.

    • @KingoftheJuice18
      @KingoftheJuice18 6 месяцев назад +2

      @@theBestElliephant I'm just letting you know that I was so impressed by your analysis, but when I saw the name-calling at the end, it detracted from the luster of the comment for me. Civil discourse is almost always more persuasive, I believe. By the way, I think you mixed up the original comment with the first reply to it. It was the first reply that got political, not the OP.

  • @hotshotjcb3798
    @hotshotjcb3798 6 месяцев назад +31

    Also, Amazon is doing more of their own shipping, on ground and by air, using their own aircraft and trucks. This is taking market share form all other freight carriers as well. I think this is a key factor not weighed highly into you analysis :-).

    • @sirmonkey1985
      @sirmonkey1985 6 месяцев назад +4

      Yes and no.. it's more net neutral then anything for the companies themselves. Anyone that had contracts with Amazon were making very little profit but we're forced to over hire to meet the contract demands. It bit both FedEx and UPS in the butts which is why FedEx dumped the Amazon contract and UPS didn't renew the contract with Amazon forcing them to accelerate their air service going online. Now the problem is both companies have/had an excess amount of employees they no longer need so the cheapest option is to try to push the early retirement options and keep the cheaper newer employees.

    • @AtomicBuffalo
      @AtomicBuffalo 6 месяцев назад +2

      Yes! Amazon has the volume and the data to selectively internalize, or “subcontract” to “local businesses,” wherever they see fertile crops they can plunder. I wonder how Amazon treats its pilots relative to UPS, FedEx, DHL, and other cargo companies.

    • @philipjamesparsons
      @philipjamesparsons 6 месяцев назад +2

      Amazon uses contract airlines. A pilot I know works for one; told me load reductions and pilot job cuts.

    • @burncycle4621
      @burncycle4621 6 месяцев назад

      Amazon has no aircraft. They contract all of their flying.

    • @toddsmith8608
      @toddsmith8608 6 месяцев назад

      ​@@burncycle4621Amazon does own aircraft that they lease to contract carriers.

  • @rhalld
    @rhalld 5 месяцев назад

    I'm a quality technician that inspects airplane parts at a factory where i live, not at the factory , for GE, Rolls Royce, Pratt and Whitney etc. I enjoy watching your videos and really enjoy my job and getting to know what kind of parts that i inspect goes to what kind of aircraft. I know my comment doesn't have to do with this video but i sure hope that things do turn around soon.

  • @Acc0rd79
    @Acc0rd79 6 месяцев назад +1

    I work for UPS but in the package division side, not the aircraft side. They shut down excess sorts all over the nation laying off hourlies and managers who had been there for a decade or more. Volume is definitely down because no one is scared to go outside anymore and the big thing, inflation has killed people's wallets. I was at UPS in 08/09 and our volume dropped by half!!! They were laying off 10 drivers a day and making them load semis again like they were some new guy off the street! The recession is here, you just are seeing the tip of the iceberg. A commercial instructor I had was on a 8 months wait to begin his First officer training at the airlines, he told me weeks ago no one was hiring FO anymore, just captains. By this time next year it will be a blood bath, homes,cars etc will come crashing down. Just be ready!

  • @tedstriker754
    @tedstriker754 6 месяцев назад +25

    Well the thing that kept me out of freight haulers was the night aspect. Otherwise I'd much prefer to pull up to the freight terminal than the hassle of dealing with the passenger terminal. Getting on and off the plane on a set of maintenance stairs suits me just fine. Freight terminals are low key places, quiet, relaxing.

    • @22nlatitude
      @22nlatitude 6 месяцев назад +3

      The thing that kept me away from passengers was parking away from the terminal, waiting for a shuttle then walking through the terminal to the gate.
      As a cargo pilot, I leave my house 30 minutes before showtime and park about 100 yards from the plane. Easy peasy. Night flying can be challenging so we rotate and take naps.

    • @GuitarTimeWithBillyC
      @GuitarTimeWithBillyC 6 месяцев назад

      Love the name!

  • @jennic2251
    @jennic2251 6 месяцев назад +24

    Being a pilot is a lifelong dream and it would be sad to see it cut short for a lot of people.Thank you for your insight and inside view. I remember when DAL went through those multiple bankruptcies and all the furloughs and suggestions to "take the package" and retire early after 9-11. How TWA was supposed to get absorbed by American then got dropped and all those people had to scramble for jobs in a depressed industry. Let's hope something changes swiftly, you're able to feel secure again soon Kelsey and you're all able to hang in there.

    • @dfwplanespotters_yt
      @dfwplanespotters_yt 6 месяцев назад +1

      DAL like Dallas-Love Field?

    • @Steve-rm6gx
      @Steve-rm6gx 6 месяцев назад +3

      The problem with dreams is “you wake up” and yes I’m a pilot.

    • @bracedgod4505
      @bracedgod4505 6 месяцев назад

      @@dfwplanespotters_yt Delta AirLines

    • @pkarandi
      @pkarandi 6 месяцев назад +2

      @@dfwplanespotters_yt I think DAL is Delta Airlines

  • @FamilyManMoving
    @FamilyManMoving 6 месяцев назад +83

    Factors not covered in this video: Amazon Air has an annual cubic cargo volume that is about 1/4 the size of UPS worldwide, and growing; they set the goal years ago to scale back UPS/FEDEX use because of rising costs. Amazon has a contract with Atlas Air (among others) for cargo at better rates than UPS. All shippers are contracting more cargo to second and third-tier airlines, including regionals (Hawaiin, Silver, etc but not the big airlines whose costs are too high due to labor). UPS cannot compete with non-unionized airlines (or at least those with lower unionized labor cost). Added to this, the annual imports of product from China dropped 16.4% in 2023, and is going to recover...many years from now, if ever (that issue is due to Chinese economics, not the global economy). Oh, and the USPS is shipping cargo at a loss, in a desperate move to stay relevant past 2024.
    Point is: UPS and FEDEX are being squeezed by lowered international trade volume (mainly from China), and increasing labor costs. Domestic transport is more competitive, with even the US gov't willing to take a loss to beat UPS. UPS's prime customer built their own airline for the specific purpose of scaling back UPS/FEDEX. It's all working to squeeze them hard. It will probably get much worse.
    I'm not happy that UPS people are also going to get squeezed. Just pointing out the data, good and bad.

    • @dvandkq
      @dvandkq 6 месяцев назад +4

      Kelsey commenting on UPS is like a Ford salesman telling you about Chevy.

    • @jasono2139
      @jasono2139 6 месяцев назад +4

      Correct... USPS can ship many things "cheaper"... because you've already paid for their crummy service through tax dollars, whether you like it or not.
      ...and surprise, surprise ridiculous labor unions and union rules are artificially driving the cost to operate these companies through the roof with idiotic seniority rules and non-merit based pay.
      If you can make $170k/yr driving A TRUCK for USPS... why in the F would anyone with a brain go into engineering or medical when you can get better pay with a job that requires little education and minimal responsibilities.

    • @TheGuruStud
      @TheGuruStud 6 месяцев назад

      Hahahah, no, it IS the world economy. China is desperate to produce, but there's no new orders due to no demand from a collapsing world economy.

    • @joutoob9
      @joutoob9 6 месяцев назад

      This is what I was thinking of while watching the video.

    • @JeffreyAllanBackowski
      @JeffreyAllanBackowski 6 месяцев назад

      Lol, looked like pubic cargo at first.

  • @MCO2ATL2DTWby777
    @MCO2ATL2DTWby777 6 месяцев назад

    UPS did most of the shipping for Amazon, but when Amazon got their own trucks and planes that had to factor in too

  • @CanadaMatt
    @CanadaMatt 6 месяцев назад +5

    Cargo is down worldwide. I'm in middle management for a major road carrier and we are down almost 30% in volume year over year.
    Look at the recent yellow freight bankruptcy. That was an enormous carrier in an admittedly crowded market segment, but the amount of transborder volume they lost was really significant.

  • @PrinceAlhorian
    @PrinceAlhorian 6 месяцев назад +6

    Flying round the world with my hoodie on...
    Sounds like my dream job! Office with an ever changing glorious view, comfort clothes while airborne, all the coffee you want and the cargo is always in love with their seats.
    Be presentable before the doors open on the ground and don't fluff around with procedure and you'll get to see the worlds and get paid for it!

    • @windwatcher11
      @windwatcher11 6 месяцев назад +4

      Don't forget the snax!!!😂

    • @PrinceAlhorian
      @PrinceAlhorian 6 месяцев назад +1

      @@windwatcher11 oh yes! The snax!

  • @dbird29
    @dbird29 6 месяцев назад

    My hometown of Hays. KS has Amazon switched to USPS and not UPS for home delivery

  • @bermuge1
    @bermuge1 6 месяцев назад

    man I think you have a knack for explaining dry stuff in an interesting yet concise way.

  • @arasb3258
    @arasb3258 6 месяцев назад +3

    "The middle seat gets both armrests." Good to know.

  • @kallen8279
    @kallen8279 6 месяцев назад +16

    This is really informative, Kelsey. As an investor who handles all our personal accounts, and an informed, frugal consumer who is in touch with market prices (unlike some folks in Washington!), the tea leaves are waiting to be read, loud and clear: people just don't have much disposable income. I think personal travel (passenger flying) is also going to decrease by a substantial amount. Many people have already maxxed out their credit cards, and now they've even blown through their Affirm/Klarma/Pay-in-4 limits. Gonna be time to tighten our belts.

  • @milkman2916
    @milkman2916 6 месяцев назад +1

    Thank You for all the info🙏🏽🙏🏽💪🏽💪🏽🤙🏽🤙🏽

  • @Sapper201D
    @Sapper201D 6 месяцев назад

    Lol! Thanks for clearing up the arm rest contest. Been fightin' for them twin sticks for years.

  • @Zaral7
    @Zaral7 6 месяцев назад +19

    Something to note from a corporate perspective, is that companies anticipate x amount of profitability for the next year. Sometimes, these expectations in no way match the real world, they just get made so that the appearance is that the company will match previous years. That may be a 15% projected increase in profits, so they plan on that. Then, the real world number for that year is 10% (gasp, only 10% *more* than last year), it's the end of the world and they compensate by laying off employees to get that extra 5%.

    • @beepbop6697
      @beepbop6697 6 месяцев назад

      CEO's golden parachute is funded by laying off the real workers.

    • @Zyo117
      @Zyo117 6 месяцев назад

      This, right here, is the cause of inflation, low wages, anti-union practices by companies, and even a factor in the housing crisis. People go to business school to learn how to fuck everyone else for the benefit of their shareholders.

    • @AzzySunfire
      @AzzySunfire 6 месяцев назад +6

      So disgusting. Why has corporate become so disgusting? So much power and effort in business speak, corporate crap. If we used that energy for other things instead...

    • @skinnie2838
      @skinnie2838 6 месяцев назад +2

      This is what voting democrat gets you. Good job geniuses.

    • @DefinitiveToast
      @DefinitiveToast 6 месяцев назад +4

      @@skinnie2838 Both sides net this, it's not just "one is guilty" situation.

  • @SirCarlosMusicBMI
    @SirCarlosMusicBMI 6 месяцев назад +41

    Thank you Kelsey for talking about economics today. I’ve been watching a lot of economic channels and have been wondering how airlines play into the picture.
    Blessings, Carlos ✝️🙏❤️😊🇺🇸

  • @tomjacobs3433
    @tomjacobs3433 6 месяцев назад

    Thank you for your personal insight. I appreciate your honesty. Good job.

  • @EllieODaire
    @EllieODaire 6 месяцев назад

    Freight has been getting tighter all around. I was making bank on general freight as an independent trucker early last year and now the spot market is in the gutter and I'm back to hauling food with a bigger fleet for the consistency. People always gotta eat.

  • @tritontransport
    @tritontransport 6 месяцев назад +4

    We had quite few UPS shippers switch from UPS to us when the the strike was looming but most of them went right back to UPS when their contract was approved. We are a regional carrier though so we couldn’t really fill all their shipping needs anyhow

  • @carlozippi2569
    @carlozippi2569 6 месяцев назад +28

    Excellent insight Kelsey, much appreciated! I would like to see more content about the business of air freight and passenger business models.
    Don’t get me wrong, love all your content! Cheers

  • @Subscriberfromwayback
    @Subscriberfromwayback 6 месяцев назад

    It's a hard in Australia because the cost of our international shipping has increased astronomically where shipping is often more expensive than whatever we are buying!

  • @SuperSaiyanX-0014
    @SuperSaiyanX-0014 6 месяцев назад

    I worked on UPS planes (Ramp position) at DFW for UPS for a while, until I started as a full-time UPS driver. That was definitely my coolest job ever lol.

  • @lccjesterable
    @lccjesterable 6 месяцев назад +6

    Freight has slowed down for the trucking industry as well. With higher fuel costs and slow freight market a lot of trucking companies are shutting down. Most of them small except Yellow Road Way.

  • @ID10TSrule
    @ID10TSrule 6 месяцев назад +3

    Good luck, brother. Been laid off 4 times in the last 10 yeatrs. Makes planning really hard. This holiday season is going to be rough in my industry. Just have to hang in there.

  • @CC-bq7wk
    @CC-bq7wk 6 месяцев назад +1

    With all the cancellations and crazy hours for connections it’s actually about the same time and actually costs less to drive. My drive time from Alabama to Indiana is 8.5 hours. Compared to getting up three hours before a flight, drive an hour, sit for an hour, fly an hour to Atlanta, sit three hours, fly two hours. Same arrival time.

    • @davidweatherbe7740
      @davidweatherbe7740 6 месяцев назад

      Another bonus, my F-150 allows our dogs to travel with us (my wife and I), and as much luggage as we need to carry. And my F-150 never yelled at me for not wearing a face diaper.

  • @lesleymorgan01
    @lesleymorgan01 6 месяцев назад

    Hi Kelsey - The media outlet is pronounced "Royters" in case you ever have to refer to them again. Love you and your videos - long may you fly and vlog!

  • @Abbecskin
    @Abbecskin 6 месяцев назад +6

    UPS didn't lose amazon, they decided not to bid on the fulfillment part of the Amazon contract. Where they were getting $6 a package now the USPS has it at approximately $2 a package. Since I work for the usps, I can tell you that in our little town they laid off at 5 UPS employees and the same amount of people in the USPS are handling that extra backlog with no additional employees. We are working our butts off at the influx of Amazon to the USPS facilities. Apparently UPS did not want the fulfillment contract from Amazon because they were losing their butts on it.

  • @beverlyweber4122
    @beverlyweber4122 6 месяцев назад +15

    Helpful tip:
    Put aside money during busy times, sock it away, because life happens, things change.
    Corporations should do the same, of course. Instead they do stock buy-backs. They never seem to learn the lesson....
    And Kelsey has a good point with FedEx taking their customers from UPS, courtesy of the labor issue. Again, UPS could have planned ahead, but didn't.

  • @v1rot81
    @v1rot81 6 месяцев назад

    Thanks for reiterating the Center Seat Armrest Law.

  • @eholby
    @eholby 6 месяцев назад

    I believe you are right. Every time costs have increased this rapidly, a major downturn follows. It takes some time but once the costs lead to higher prices, demand drops. The same thing is about to happen in corporate aviation. Aviation is a cyclical business.

  • @FunWithBits
    @FunWithBits 6 месяцев назад +7

    I like the rule where the center person gets both arm rests. That seat has the least amount of room and is the most uncomfortable seat. I would put an asterisk on that though and if the seat is free on either side then they would only get the arm rest on that one side... or move over.

  • @davidr.williams5693
    @davidr.williams5693 6 месяцев назад +8

    I've flown several times since covid and have yet to get on a plane that took off or arrived on time. Service and flight availability has been garbage since the end of covid. The industry needs a major overhaul.

    • @merlesmith6794
      @merlesmith6794 6 месяцев назад

      It’s your fault you live in Newark 😂

    • @the_expidition427
      @the_expidition427 6 месяцев назад

      No one threw Newarks name out here where did that come from

    • @merlesmith6794
      @merlesmith6794 6 месяцев назад

      @@the_expidition427
      I say, I say, It’s a joke son. See you missed it. It went right by ya.

  • @johnmorris7815
    @johnmorris7815 6 месяцев назад

    We do about 20t of freight per flight, particularly from Africa and South America and that’s with a full cabin.

  • @Sonny_McMacsson
    @Sonny_McMacsson 6 месяцев назад

    I recently spent 3x normal rate to ship something UPS next business day and they immediately lost the package in the system for a time and the service I got was no faster than if I just did ground. It was the one and only time I ever ordered expedited shipping like that and they couldn't even do it right once.

  • @AusNetFan13
    @AusNetFan13 6 месяцев назад +19

    Hope you’re safe in your job Kelsey. Yes, it’s going to take a miracle to get the economy going good again.

    • @moltderenou
      @moltderenou 6 месяцев назад

      It’s going to take an even bigger miracle to stop the world blowing up in our faces. In Europe, things are pretty scary, no need to say why.

    • @toddclean547
      @toddclean547 6 месяцев назад

      I am sure he is secure. His skills are at the top.

    • @davecasey4341
      @davecasey4341 6 месяцев назад

      First thing we need to do is get rid of the moron in the White House. President Trump may have said some mean things now and then, but he did get the job done. Well, he got as much done as he could, while the moronic left fought him ever step of the way.

    • @vernonsmithee792
      @vernonsmithee792 6 месяцев назад +2

      ​@@toddclean547It's his seniority that needs to be at the top. Skill is secondary at most established union airlines.
      Seriously.🤗

    • @Ma_Deuce_338
      @Ma_Deuce_338 6 месяцев назад

      It not going to take good leadership. Not Biden and not Trump. We need a real President and real congresspeople in a hurry. It won’t matter what party they are if they are good enough.

  • @Westernmoron756
    @Westernmoron756 6 месяцев назад +61

    Unfortunately the freight shortages have hit all of us. We're feeling it alot in trucking at the moment. I imagine it's only going to get worse.

    • @Nareimooncatt
      @Nareimooncatt 6 месяцев назад +14

      I'm in trucking and this is part of why I went specialized several years ago. I'm now dedicated to hauling chemicals for a company that supplies mostly paper mills and water treatment plants. Even during the Covid downturn, we were still hopping because everyone still needed to use the toilet. Lol

    • @vixxxenfoxxx3660
      @vixxxenfoxxx3660 6 месяцев назад +7

      ❤ A very big thank you to all you truckers ❤

    • @renneedwards9826
      @renneedwards9826 6 месяцев назад +6

      @@NareimooncattI wish you all the success of BEING SAFE, especially with your specialized work of trucking chemicals. 😯💙💯

    • @Nightenstaff
      @Nightenstaff 6 месяцев назад +1

      Really? I've heard the opposite is happening -- too much to ship, not enough folks to drive (especially the last leg stuff). I'll admit I'm hearing second hand info from acquaintances in the business, but none of them have to look far to find loads to haul. If anything, their companies are pressuring them to haul more, not less.

    • @sydneyspyder3140
      @sydneyspyder3140 6 месяцев назад

      I agree. It’s going to get much worse before it gets better. I work for a small trucking company and my son is currently in ground school. What a fun time we live in.

  • @jaytowne8016
    @jaytowne8016 6 месяцев назад

    Flew for a major airline that had a cargo division... I always preferred cargo.less drama.

  • @jesusjacir1613
    @jesusjacir1613 6 месяцев назад

    You are great with the 3 stripes and vid making K. A new begining when that goes away. Be aware of the drones that will take the stripes from you sitting on the Left seat

  • @RMUNOZ1963
    @RMUNOZ1963 6 месяцев назад +66

    Sorry about this, people taking pilots for granted. They worked hard for their position.

  • @charleshaggard4341
    @charleshaggard4341 6 месяцев назад +46

    Some of those pilots could go to the airlines but most would have to start somewhere at the bottom of the pay scale and salary and risk getting layed off again. I talked to an old Brantiff 747 Captain who lost his job when they went bankrupt back in the 80s that went into an industrial career. When I asked him why he didn't go to work for United or American he said he would have to start at the bottom and work his way back up and since he had an aeronautical engineering degree he decided to change jobs. He said there is quite a lifestyle change going from the left seat to the right seat and didn't want to go through that again.

    • @samuelhowie4543
      @samuelhowie4543 6 месяцев назад +5

      I've got a sister that looks like she might be going through the same thing with a trucking company. She's been driving for them for close to 20 years and it seems the son is running the company like he wants it to go under. Going to another company just puts her at the bottom of the seniority.

    • @Kandralla
      @Kandralla 6 месяцев назад +11

      I think you're missing the point if you don't realize that those jobs are going to go away too.
      People paid for their flights 6 months ago, they've stopped buying stuff because they can't afford it now.
      Tbis is stagflation in action.

    • @rocqitmon
      @rocqitmon 6 месяцев назад +3

      just for the story it was Braniff - that's a while ago!

    • @aluisious
      @aluisious 6 месяцев назад

      The airline industry is asinine and relies on people's desperation to fly. In regular industry, when you change jobs, you don't drop all your seniority. I have changed jobs repeatedly and my benefits, perks, and pay always get better. I like flying, but I'm not going to compete with thousands of other smart people who want to fly for the favor of a few asshole executives who think they can do anything they want.

    • @scottcol23
      @scottcol23 6 месяцев назад

      @@samuelhowie4543 My uncle was in the same boat years ago. He drove for GM moving parts for 20 years. after the whole bankruptcy debacle he was looking at a layoff and all the other companies had crappy offers due to loosing his seniority. He decided to go owner operator and contracted with the large companies making a great rate per mile. Some even pay for fuel on top. He owns his truck and is essentially a 1099 contractor. He said the best thing he ever did was to get all his HASMAT certs and started moving propane. He has a regular haul from Mississippi to New Jersey. On his off time he snipes loads off U ship when he can.

  • @deepsea631
    @deepsea631 6 месяцев назад

    UPS has lost it's mind for consumer shipping. I needed to ship a package from Florida to California last year. I was OK with ground or whatever was cheapest. When I took it to the UPS store they wanted almost $100 - for a box weighing about 15 pounds and being an average size. I know that big corporate shippers are their bread and butter, but the prices they want to charge consumers are insane.

  • @stephenshoihet2590
    @stephenshoihet2590 6 месяцев назад +1

    The last 5 years i was ordering something (usually from Amazon) at least once a week but this year I'm probably down to less than once a month. I'm buying more stuff used and my living expenses have gone up about $700/mo. in the last 18 mos.

  • @lotsoflotty2703
    @lotsoflotty2703 6 месяцев назад +5

    Being a Brit in Australia- family / friends all agreed to stop posting since the pandemic. Imagine how many family’s that also stopped. I’m not surprised at all! Plus the cost is too much. Great video Kelsey

    • @sirrathersplendid4825
      @sirrathersplendid4825 6 месяцев назад

      International shipping rates for parcels more or less doubled during the pandemic. As a result, I’ve just about stopped buying fairly cheap things like books from overseas.

  • @wharris123184
    @wharris123184 6 месяцев назад +21

    I see the increase in video quality, Kelsey! Keep up the great work!

  • @garybaldwin1061
    @garybaldwin1061 6 месяцев назад

    I enjoyed this video. You have the ability to make a complicated issue easy to understand. I have a family member who works for a freight company so it makes it even more interesting.

  • @Miner-dyne
    @Miner-dyne 6 месяцев назад

    Thanks for educating people on the business.

  • @jonflyhigh
    @jonflyhigh 6 месяцев назад +3

    YES, the middle seat does get both armrests. From another pilot, thank you. So many don't get this easy and courteous concept.