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."
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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