JetBlue puts raises, paid adult leave on hold to cut expenses in 2021

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JetBlue puts raises, paid parental leave on hold to cut costs in 2021

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A Jet Blue airplane removes from Long Beach Airport in Long Beach, CA.

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JetBlue Airways on Tuesday set out a host of expense decreases for next year as the aggravating coronavirus pandemic guarantees another hard year for airline companies.

Top executives’ lowered incomes will continue into 2021 and the airline company will stop briefly benefit raises for many staff members, according to a business memo that was seen by CNBC. JetBlue decreased to comment beyond the memo.

Airlines are having a hard time to slow their money burn as flight need has to do with a 3rd of in 2015’s levels. Executives at JetBlue, Delta, American and other airline companies have actually just recently reported a downturn in reservations as brand-new Covid cases increased and federal health authorities cautioned versus vacation travel. JetBlue recently revealed a $506 million stock sale to additional fortify money.

“We are finalizing next year’s budget now and there is no doubt it will be the most challenging in our history,” Mike Elliott, JetBlue’s primary individuals officer, stated in the note to staff members. “We are planning for revenue to be billions of dollars lower than usual, and are challenging teams across JetBlue to reduce costs and improve efficiency even further.”

The airline company’s nonunionized front-line employees will get away furloughs through “at least” Sept. 30, 2021, the memo stated. The provider will “discuss further options with your union leadership” for flight attendants and pilots and safe tasks under a 2nd round of federal help, if legislators pertain to a contract. Jetblue and its pilots’ union in July revealed a contract to prevent uncontrolled furloughs through April.

Other modifications consist of holding back on strategies to include Labor Day as a business vacation and to provide paid adult leave, which JetBlue stated will rather be reviewed for 2022.

“We remain committed to making these investments but they carry a significant cost and we are just not in a position financially to do it in 2021,” Elliot stated in the memo.

JetBlue is still preparing to bring the long-range Airbus A321 aircraft and A220 into its fleet along with service to London next year, the business stated.