JetBlue Sees Progress in Minimizing Layoffs With Voluntary Leave

(Bloomberg) -- JetBlue Airways Corp. expects to avoid involuntary job cuts among at least some employee groups because enough workers have accepted voluntary leave or early-out programs to match the carrier’s scaled-down operations.

More than enough volunteers have come forward in the customer support department, the airline said in a memo to workers Thursday seen by Bloomberg News. JetBlue also confirmed an agreement not to furlough any pilots involuntarily until May 1, in exchange for unspecified short-term contract concessions to help cut operating expenses.

In areas where an insufficient number of employees applied for the programs, executives “believe we can be successful in filling the gaps with additional reduced hours or short-term time off programs,” Mike Elliott, JetBlue’s chief people officer, said in the note. Those areas include airport workers and some parts of its system operations department.

U.S. carriers have slashed flying, parked aircraft and taken other steps to reduce spending since the coronavirus gutted commercial flying. Demand has improved to about 25% of year-ago levels as some consumers quarantined for months have begun booking summer vacations.

In the memo, JetBlue warned employees that it’s difficult to predict changing travel demand, “making it equally hard to plan our staffing.” The deadline for flight attendants to decide on taking the voluntary offers is July 9.

Airlines are prohibited from implementing mass layoffs through September under federal financial aid to help cover payroll costs.

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