While the first step in getting on a better financial path is usually to cut unprofitable routes or introduce new fees and quietly raise prices, a more dramatic step for airlines is to bring down workforce.
Two weeks before it officially announced that it was filing for Chapter 11 protection on Nov. 18, Spirit Airlines (SAVE) said that it would place an additional 330 of its pilots on furlough at the end of January.
This was another cost-cutting measure after the airline had already furloughed 130 pilots and downgraded 120 captains to first officers in September 2024.
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Related: These flights are the victims of JetBlue’s cost-cutting measures
A JetBlue Airways aircraft and a Spirit Airlines aircraft are seen in the air.
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JetBlue to reportedly downgrade over 300 pilots to avoid furloughs
JetBlue Airways (JBLU) , which was at one point hoping to acquire Spirit for $3.8 billion before a federal judge blocked the attempt last January, is generally considered to be on much more solid financial ground than bankruptcy-filing Spirit.
At the end of July, it reported its first profit after more than a year of losses before its expenses caught up with it again in a $60 million loss in the third quarter.
The airline has generally been looking to trim costs amid an industry plagued by challenges such as Pratt & Whitney engine recalls, high fuel costs and competition from multiple airlines flying to the same places.
JetBlue’s efforts to trim expenses over the last year include entirely exiting markets such as Kansas City and several South American capitals, deferring deliveries of new Airbus (EADSF) planes until 2029 and cracking down on perks such as hot food menu options in economy.
The latest and more drastic change will reportedly involve JetBlue’s workforce. As first reported by aviation watchdog social media account @JonNYC, JetBlue Vice President of Flight Operations Jeff Winter told the airline’s employees that it would either downgrade or move around up to 343 captain positions in order to avoid furloughs.
“During a Friday meeting with its pilots, Winter said the airline will cut 343 captain positions across its system late next year, according to a source familiar with the discussion,” writes industry website AirlineGeeks.com. “Downgraded captains will presumably be placed into first officer positions.”
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These are the other cost-cutting measures being made by JetBlue
The airline’s Los Angeles base will take the brunt of the cuts with either downgrades or displacements slated for 85 captains and 65 first officers.
As part of the same efforts to trim workforce while avoiding layoffs, JetBlue will also reportedly offer pilots nearing it early retirement as well as other buyout packages for managers and other types of crew members excluding pilots, flight attendants and airline mechanics.
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“We are aiming to reduce our fixed costs through voluntary measures by giving people who work in a number of corporate functions, in our airports, and in our customer support center the opportunity to leave JetBlue with a departing pay and benefits package,” JetBlue said in a statement at the start of 2024.
This time, the airline has not been responding to requests to comment on the leaked information regarding pilot downgrades communicated to staff internally.
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