Jet2 has this week confirmed that it will cut 35% of it’s workforce in Spain. Is the airline taking a leaner approach to it’s operations?
Such news has come as a shock, especially given the company’s strong financial performance over the last 12 months.
Are they taking a leaner approach to enhance profitability further? Without further ado, let’s get into it…
Jet2 Job Cuts in Spain…
As per Travel Gossip, local media in the Canary Islands first broke the story regarding the Jet2 job cuts in Spain.
Furthermore, it is understood that 996 staff have been told that the carrier is consulting unions on cutting the workforce by 35%.
A spokesperson for the company said the following to the media outlet:
“We have recently reviewed our operations in Spain.”
“As a result, we must sadly propose a number of colleague redundancies across Resort Flight Check-in, Flight Deck and Cabin Crew roles.”
“We deeply regret these proposed redundancies, and we will be consulting with appropriate representatives of the affected colleagues to ensure that all options are fully considered.”
This will no doubt come as sad news for those who work in Spain for Jet2.
Announcement Comes Despite Strong Financials…
Another element of this being seen as a shock in Spain is because of the positive financial performance of Jet2.
In their interim results for the September half-year 2023, Jet2 reported a post-tax profit of £496m.
That represented a rise of 39% compared to the same period in 2022, with revenues of £4.4bn.
Furthermore, in their trading update, Winter seat capacity rose by 20.5%, with Summer 2024 capacity up 12.5%.
CEO Steve Heapy even mentioned in his trading update that he was encouraged by the early bookings as well:
“We are pleased with how the 2024 financial year is ending and are encouraged by early bookings for Summer 2024.”
“Whilst recognising that there are many demands on consumer discretionary incomes, we believe that our Customers cherish their time away from our Rainy Island and want to be properly looked after throughout their holiday experience.”
“As a customer focused and much trusted holiday provider, we remain confident they will continue to travel with us to the sun spots of the Mediterranean, the Canary Islands and to European Leisure Cities.”
Furthermore, it could very well be the fact that despite higher capacity, the loads may not be as full as they would like yet.
But again, only time will tell as the consultation process of job cuts in Spain continue.
Adopting A Leaner Approach?
It could very well be the fact that Jet2 wants to adopt a more leaner approach to it’s operations in Spain.
They may have too many staff, which would require such a need for cuts.
Such a leaner approach could maximize profitability for the carrier, especially in times of macro-economic & geo-political events.
Even so, to many outside of the industry, as well as to those in Spain facing job cuts, the financial justification could be confusing.
Either way, it will be interesting to see what happens next from this.
Overall…
In conclusion, the job cuts in Spain by Jet2 will no doubt provide a more leaner approach to their operation.
However, the downside is that people will lose jobs, which is never great in the aviation industry.
Looking ahead, all eyes will be on how this maximizes profitability for the carrier, as this will save them money.
But for now, let’s see how they progress over the Summer 2024 season as well, particularly in Spain.
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