JetBlue's ALPA Master Executive Council has voted to accept a letter of understanding that protects all JetBlue pilots from mandatory furloughs – in any conditions – at least until April, according to a memo from the union, which did not provide further information on the agreement.
The carrier employed around 3,600 pilots and over 21,000 workers, JetBlue's 2019 annual report showed. The company did not respond to a request for comment. The deal with the Air Line Pilots Association comes as pressure builds on airlines to cut operating expenses as the global health crisis continues to hamper demand for flights.
The JetBlue pilots' union had given its nod to short-term changes with an earlier snapback if travel demand normalizes, the memo said, but it wasn't immediately clear what that would entail. The memo pointed out that there will not be any changes to the collective bargaining contract salaries or modifications to work policies.
JetBlue, along with several other local carriers, made a pledge to maintain full employment through September 30 this year, by being granted government support under the Payroll Support Program portion of the CARES Act.
JetBlue has reached a deal with its pilots to extend that agreement through April next year, a report by CNBC disclosed. JetBlue is set to be given $936 million in federal payroll aid, which prohibits companies from slashing their headcount until Sept. 30.
Carriers have been badly hurt because of the COVID-19 pandemic, with American Airlines and other carriers in the US warning of sweeping job cuts, when the government payroll support initiative for airlines expires.
In a statement to CNBC, the union disclosed that airline pilots have been on the frontlines of this public health crisis and were part of the first wave of those directly affected by the economic fallout.
Under the CARES Act that rolled out around $32 billion assistance to cover payroll, the US airline industry cannot force any involuntary furloughs before October. Major unions have requested the US Congress to look into extending the bailout program through March 31.
Meanwhile, airline companies have been seeing an uptick in commercial traffic as many economies have slowly reopened for business. Airlines have implemented new safety and cleaning measures to attract passengers back.
JetBlue announced last month that it was opening up 30 new domestic destinations aimed at serving the leisure sector, as people start to make plans to visit relatives and friends. United Airlines disclosed on Thursday that it was adding 25,000 flights back to its schedule for August, also noting leisure travel as the source of some returning demand.
