Career Pilot

Financial advice for would-be first officers and captains

The carrot was put on a stick for everyone to consider in “Age-Old, Old-Age Question” (March 2012 Flight Training). The airline industry prognosticators are quite confident that it will become a buyer’s market for anyone of any age under 60 lusting after a flight deck chair in an airliner. The promise of a comfortable salary after a few years on the line, the prestige of being an airline pilot (although many flying veterans will warn that the luster and status have eroded), and a jet-setter lifestyle all add up to a wow factor that seems irresistible to many aviators.

Based upon 2011 estimated pay rates, a first-year first officer at Southwest was earning about $56-plus per flying hour. A first-year captain would cash in about $180 per hour and change.

With a 75-hour monthly flying guarantee usually afforded by the airlines, a first-year FO could survive fairly well at $50,000 annually. That first-year captain cashes in at $162,000 with just 75 hours of flying in a month.

FAR 121.471 will allow up to 100 hours per month of flying so many pilots do exceed their monthly guarantees. Add additional compensation for per diems, dead-heads, and international flying.

On the other end of the spectrum, as just one example of estimated 2011 pay rates at a regional airline, a first-year captain at Pinnacle would take home about $67 an hour. So, the brand-new RJ captain can enjoy life at nearly $60,000 per year flying 75 hours monthly. Not bad. But, a first-year FO pulls in just $26.70 an hour. Flying a guaranteed 75 hours per month puts that pilot at $24,030 annually. After five years, FO gross income gets up to about $42 per hour or nearly $38,000 annually. Of course, things look better when flying the 100-hour maximum per month if you can get it.

Senior captains at the regionals can make $100,000 annually. Spend a couple of decades in the left seat at a major airline and the salary can top $200,000 per year for minimal flying time monthly.

Here’s the point. Much ado is made about the dismally low pay for regional airline first officers. That is a fact. But, that carrot is there for anyone who can make it past those first five years. The first year can be the toughest. Here are some real-life stories from those who made it—and those who did not.

Sam is a late-life career changer. He spent 10 years as an Air Force air traffic controller and another 20 with the FAA. He retired from government service with 30 years under his belt. So, at age 52, what did he do? He went to fly for Tran States. He says, “The government retirement made it reasonably easy for me to make the transition to regional airline pay. The kids were on their own, and the wife has a decent job. Frankly, I am retired with pay. For the first time in my life I am doing something that I really want to do. No matter what they say about the regional airline lifestyle, I am enjoying it. Not having to rely solely on a first officer’s pay is the key. Having the supplemental income and support of a loving spouse is making life comfortable.”

Bill inherited the family publishing business and ran it for more than 10 years. Along comes a major publishing house, offers $1.2 million for the business, and he takes the cash and runs right to Mesa where he began to fly Beech 1900s. The annual pay that barely made $19,000 was merely “petty cash” to Bill. He was having a ball.

On the flip side, Jack went to a pricey Florida academy. He married while in training, relied solely on his wife’s income, bought a condo, and saddled himself with debt. He got a job with a regional airline that transferred him to Corpus Christi. There, he bought another condo while unable to sell the other property. Shortly thereafter, the airline closed the base, and he found himself in Ohio. Despite help from mom and dad, the two unsold homes, and nearly $100,000 in flight training debt, he was compelled to file bankruptcy in his first year on the line.

Patrice came out of a flight academy with $120,000 in debt, got a job flying for a Republic company, and was on the edge financially. She barely had $300 a month to live on after making loan payments and expenses. Mom and dad came to the rescue by selling some real estate to bring down the loans. Finally, she met and married someone who was able to help her pay down the debt.

What are the lessons to be learned from these stories? Pilots are easily blinded by the stars in their eyes formed by fantasies of an airline career. Yes, long range, flying for the air carriers can be a very good gig—but financial survival in the first year and the four thereafter is critical. One or more of these strategies is essential:

1. Save up an extra $15,000 before the first year on the line. The $22,000 airline pay plus the $15,000 saved should support you through the first 12 months. But, if you have flight training loans, better save an additional $10,000.
2. Develop a reliable source of supplemental income, things you can do on your day off. Work part-time in construction; house painting; professional services such as a CPA; restoration; real estate agent.
3. Have a serious talk with your life partner. Can that loved one carry you through that first year and meet all of the family’s financial obligations?
4. Budget! Plan it out well in advance. Be realistic in your calculations: $24,000 in annual salary is not that far away from the poverty level.

Truly, there are rewards for those who persevere in the airline game. Making $80,000 annually for 15 days of work per month is not all bad 10 years down the road at a regional airline. If you can make it to the majors, then doubling that salary is really good.

But, you’ve got to get beyond year one.