A passenger arrives at Ronald Reagan Washington National Airport on November 21, 2023 in Arlington, Virginia.
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JetBlue Airways is offering early retirement packages to a few of its pilots, their labor union told members on Friday.
The carrier has been working to chop costs and lift up revenue with initiatives reminiscent of latest first-class seats while coping with a Pratt & Whitney engine recall that has grounded a few of its airplanes.
The corporate has opened voluntary separation bids and they’re going to close on Feb. 7, said the Air Line Pilots Association note, which was seen by CNBC.
JetBlue and the union agreed to pay pilots out for 55 hours of their hourly pay rate to their mandatory retirement day or 18 months from the separation agreement, whichever was less. For instance, the letter of agreement said an Airbus A320 captain, 12 years in and who turns 65 in December 2027 would receive $416,293.02, while an Embraer E190 captain with eight years of experience who turns 65 at the top of the yr would get $160,858.91.
JetBlue, which reports quarterly results on Tuesday, didn’t immediately reply to a request for comment.
The letter of agreement between the corporate and union from earlier this week states eligible pilots might be 59 years old on or before March 31. The federally-mandated retirement age for U.S. industrial airline pilots is 65.
