July 28 (Bloomberg) -- JetBlue Airways Corp. said Chief Executive Officer Dave Barger voluntarily took a 50 percent cut in 2008 base pay as the discount airline struggles to stem three consecutive quarterly losses.

The reduction will be in effect through Dec. 31, and puts Barger's salary at an annual rate of $250,000, JetBlue said today in a U.S. regulatory filing. His 2007 base salary was $200,000, according to the company's proxy statement.

Barger becomes at least the third CEO at one of the 10 largest U.S. airlines to cede pay as record fuel bills spur industrywide cuts of almost 26,000 jobs. Continental Airlines Inc. said in June that CEO Larry Kellner would give up salary and bonuses for the rest of 2008, and AirTran Holdings Inc.'s Bob Fornaro will take a 15 percent pay cut starting in August.

Barger, 50, took the step ``in recognition of the challenges faced by the company and its employees in the current industry environment,'' New York-based JetBlue said.

Jet fuel prices have jumped 83 percent since he was named to replace David Neeleman on May 7, 2007. JetBlue said last week it will shrink seating capacity by as much as 9 percent in the fourth quarter and cut an unspecified number of jobs.

Barger didn't receive a bonus in 2007. His total pay package last year of $514,642 consisted of a base salary of $200,000, stock options valued at $257,372, non-equity incentives of $50,000, and $7,270 in other compensation.

JetBlue fell 14 cents to $4.90 at 5:20 p.m. New York time in Nasdaq Stock Market composite trading. The shares have dropped 17 percent this year.

To contact the reporters on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net; Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net

Last Updated: July 28, 2008 17:59 EDT