DOW JONES NEWSWIRES 
 

U.S. airlines employed 6.8% fewer workers in May than a year earlier, the 11th straight month with a year-over-year decrease, according to the Department of Transportation.

Steep declines in business travel during the economic downturn have been taking a heavy toll on U.S. airlines, offsetting the benefits of lower fuel prices and forcing them to take new steps to control costs and boost revenue.

Several U.S. airlines, including Continental Airlines Inc. (CAL), Southwest Airlines Inc. (LUV) and United Airlines parent UAL Corp. (UAUA), reported second-quarter results that highlighted cutbacks in corporate travel as a key factor weighing on their results.

The Bureau of Transportation Statistics said all the network airlines decreased employment in May from a year earlier, along with discount carriers including AirTran Holdings Inc.'s (AAI) AirTran Airways, Spirit Airlines and Frontier Airlines Holdings Inc. (FRNTQ). Regional carriers including Comair Ltd. (COM.JO) and Atlantic Southeast Airlines also cut back employment.

The seven network carriers employed 260,500 full-time employees in May. AMR Corp.'s (AMR) American Airlines had the most employees among network carriers, while Southwest had the most among low-cost carriers.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com