Major Airline Plans Budget Cuts during Pandemic

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Manage episode 284916614 series 2530089
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Major American low-cost airline JetBlue Airways is planning budget cuts for 2021 amid the pandemic. According to a company memo, JetBlue’s top executives, who received pay cuts in 2020, will continue to have reduced salaries this year. The memo also stated that most employees will not receive any salary increase for the near future. The airline will also hold off on giving paid parental leave and adding Labor Day as a company holiday, which it originally planned to implement this year. Mike Elliot, a JetBlue executive, said that the company is in no position to offer any additional employee benefits for now. However, he assured employees that JetBlue will reconsider offering them in 2022. JetBlue’s budget cuts come as many airlines continue to struggle financially due to a significant decline in demand for air travel. In 2020, the number of people booking flights in the country dropped by about 70% from the previous year. Elliot noted that 2021 might be the company’s most challenging year yet. He expects JetBlue to lose billions of dollars in revenue, so he is encouraging every department in the company to reduce costs while improving efficiency. The company also announced the possibility of putting some of its employees on involuntary furloughs. A number of the airline's pilots might be asked to go on furlough from May, while other employees might be asked to do the same by October. Despite the company-wide budget cuts, some of the airline's programs and initiatives will remain unaffected. JetBlue will carry on with plans to add new aircraft into its fleet and include London on its route map. The company will also continue its JetBlue Scholars program, which sponsors its crewmembers’ college educations.

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