JetBlue is stopping raises and paid parental depart to chop prices in 2021
A Jet Blue plane takes off at Long Beach Airport in Long Beach, CA.
Tim Rue | Bloomberg | Getty Images
JetBlue Airways on Tuesday set a series of cost cuts slated for next year as the worsening coronavirus pandemic causes air travel to rebound.
The reduced salaries of top executives will continue through 2021, and the airline will suspend performance increases for most employees, according to a company note released by CNBC. JetBlue did not immediately respond to a request for comment.
“We are now finalizing the budget for next year and there is no doubt that it will be the greatest challenge in our history,” said Mike Elliott, JetBlue’s chief people officer, in the statement to employees.
The airline’s non-union front-line workers will escape vacation “at least” until September 30, 2021, the airline said. The airline will “discuss further options with your union leadership” for flight attendants and pilots and to secure jobs as part of a second round of federal aid if the legislature reaches an agreement.
Other changes include withholding plans to add Labor Day as a company holiday and offer paid parental leave, which JetBlue says will instead be re-examined for 2022.