Facing a revenue drop measured in billions of dollars for 2021 JetBlue is planning major budget cuts. First tipped last week, further details are now emerging on what will be changing for the company.
Helping to offset the challenges, JetBlue raised just over half a billion dollars last week with a share offering to boost liquidity. But the company still must cut spending further. Among the targets, pay raises and holiday time.
And while management remains committed to avoid furlough for non-union crewmembers through 30 September 2021, a similar commitment was not explicitly stated for the pilot and cabin crew work groups. Instead JetBlue says it “will ensure we are compliant with any future payroll support legislation, and discuss further options union leadership.”
Support through government payroll efforts would help address the payroll challenges and the company is “hearing that there is some positive momentum…which could be decided later this month.” That is only expected to last through March, should it happen.
Also being cut from the 2021 budget are the addition of Labor Day as a company holiday and the paid parental leave program. The company “remains committed to making these investments” but says it cannot afford the financial hit of adding them next year.
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Most pay raises will also be suspended in 2021. Merit-eligible crewmembers will not see any increases in 2021 while the senior leadership team continues to work at its reduced pay rate.
Key programs not being cut
Some key efforts for JetBlue escaped the budgetary guillotine for 2021. These include the JetBlue Scholars program, as well as introduction of the A220 and A321LR into the fleet and London on to the route map.
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