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 some of its pilots, their labor union told members on Friday.
The carrier has been working to cut costs and raise up revenue with initiatives such as new first-class seats while dealing with a Pratt & Whitney engine recall that has grounded some of its airplanes.
The company has opened voluntary separation bids and they will 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. As an example, 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 end of the year would get $160,858.91.
JetBlue, which reports quarterly results on Tuesday, didn’t immediately respond to a request for comment.
The letter of agreement between the company and union from earlier this week states eligible pilots will be 59 years old on or before March 31. The federally-mandated retirement age for U.S. commercial airline pilots is 65.
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