JetBlue is struggling along with the rest of the airline industry, but the carrier has found some relief in the form of government assistance and historically low oil prices.
"The travel industry is going to be hit by this. There's no question about it," JetBlue Chairman Joel Peterson told Cheddar. "The hotel and airline industries have been hit as hard as any."
At that point, the airline could resume involuntary furloughs and pay cuts.
"We're hoping not to have to, but we're keeping our eye on that," Peterson said.
United Airlines, by comparison, has told employees that it plans to fire workers come October 1.
The $2.2 trillion federal stimulus package set aside $50 billion for the struggling airline industry, which has seen revenue plummet amid global coronavirus travel bans and lockdowns.
While the pandemic has caused a dramatic drop in revenue, some critics have pointed out that the airlines' financial behavior leading up to the crisis didn't help their case.
JetBlue, for instance, authorized an $800 million share buyback program in September 2019 — approximately 85 percent of the amount of stimulus it just received — that was supposed to run through 2021.
Major airlines, including JetBlue, have since written a letter to Congress promising a suspension of share buybacks if it approved the bailout.
As normal operations resume, Peterson said JetBlue will continue to take precautions by taking passengers' temperature, deeply sanitizing planes, and maintaining some social distancing.
He said that the airline would eventually cut back on routes, but in the short-term the federal government has denied a request from JetBlue to suspend service to other markets under the conditions of the stimulus bill.
One possible reprieve amid this difficult financial and regulatory environment is the sudden drop in U.S. oil prices, which this week saw a future contract dip into the negative.
"Oil is one of the largest expense items," Peterson said. "We spent well over a billion dollars a year on oil, so the savings there will be significant."
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
