JetBlue Airways is taking steps to reduce expenses as it navigates through a challenging financial period.
The airline plans to offer flight attendants unpaid leave options and adjust crew numbers on certain routes, according to recent communications from the Transport Workers Union (TWU).
As the airline industry enters its traditionally slower winter season from October to March, JetBlue anticipates a significant reduction in flight schedules. To address this, the carrier is offering flight attendants the opportunity to take unpaid leaves of absence ranging from one to six months, starting in September 2024.
In addition to the leave program, JetBlue intends to decrease the number of flight attendants on transatlantic flights from five to four "for the foreseeable future." This move follows the airline's recent decision to disable personal privacy doors in its Mint Business Class on some aircraft, allowing for a reduction in crew numbers without violating Federal Aviation Administration (FAA) safety regulations.
These measures come in the wake of JetBlue's substantial financial losses. In the first quarter of 2024, the airline reported a loss of $716 million, with operating revenue declining by 5.1% year-on-year while expenses rose by 14% to $2.9 billion.
JetBlue's CEO, Joanna Geraghty, has indicated that the company is pursuing additional revenue initiatives, including a new peak pricing policy for checked luggage. The airline has already implemented $100 million in cost savings and is extending unpaid leave offers to other employee groups as well.
As JetBlue continues to navigate these financial headwinds, the impact on both employees and passengers remains to be seen. The airline industry will be watching closely to see how these cost-cutting measures affect JetBlue's operations and competitive position in the market.
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