JetBlue meltdown could cost $30M, CEO says

NEW YORK, Feb. 20 (UPI) -- JetBlue Airways' operational meltdown that canceled more than 1,100 flights could cost the airline $30 million, its chief executive officer said Tuesday.

The figure includes $10 million for passenger refunds, $16 million in travel vouchers for future bookings and $4 million in incremental costs such as hiring overtime crews, CEO David Neeleman said in a media conference call.

The carrier said it was flying a full schedule Tuesday after nearly a week of storm-related cancellations that stranded thousands of passengers.

JetBlue also launched a wide-ranging "bill of rights" to compensate passengers for travel delays.

Under the program, passengers who experience delays and other problems defined as within JetBlue's control will receive refunds or credit for future travel, with the value determined by the delay's length.

Covered problems include crew shortages, maintenance problems and, significantly, the airline's failure to recover from weather and air traffic problems by the second day, assuming a given airport is open to flights.

Customers may also request a refund or voucher if JetBlue cancels a flight within 12 hours of its departure.

The program applies to customers affected this past week, the airline said.