JetBlue Airways is offering early retirement packages to some of its pilots, as reported by their labor union on Friday. The carrier has been implementing cost-cutting measures and revenue-boosting strategies, such as introducing new first-class seats, while also addressing a Pratt & Whitney engine recall that has led to the grounding of some aircraft.
According to a note from the Air Line Pilots Association, the company has initiated voluntary separation bids, which are set to close on Feb. 7. The agreement between JetBlue and the union stipulates that pilots will be compensated for 55 hours of their hourly pay rate up to their mandatory retirement day or 18 months from the separation agreement, whichever is sooner. For instance, an Airbus A320 captain with 12 years of experience who will turn 65 in December 2027 would receive $416,293.02, while an Embraer E190 captain with eight years of experience reaching 65 by the end of the year would get $160,858.91.
JetBlue, scheduled to release quarterly results on Tuesday, did not provide an immediate response to CNBC’s request for comment. The agreement outlined this week specifies that eligible pilots must be 59 years old on or before March 31. It is worth noting that the mandatory retirement age for U.S. commercial airline pilots is 65.
