JetBlue places raises, paid parental go away on maintain to chop prices in 2021

A Jet Blue aircraft takes off from Long Beach Airport in Long Beach, CA.

Tim Rue | Bloomberg | Getty Images

JetBlue Airways on Tuesday laid out a host of cost reductions slated for next year as the worsening coronavirus pandemic upends a recovery in air travel.

Top executives’ reduced salaries will continue into 2021 and the airline will pause merit raises for most employees, according to a company memo that was seen by CNBC. JetBlue didn’t immediately respond to a request for comment.

“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 chief people officer, said in the note to employees.

The airline’s non-unionized frontline workers will escape furloughs through “at least” Sept. 30, 2021, the airline said. The carrier will “discuss further options with your union leadership” for flight attendants and pilots and secure jobs under a second round of federal aid, if lawmakers come to an agreement.

Other changes include holding off on plans to add Labor Day as a company holiday and to offer paid parental leave, which JetBlue said will instead be revisited for 2022.

Comments are closed.