JetBlue Airways and United Airlines are reportedly in talks to form a partnership, according to three industry sources familiar with the matter. This potential collaboration comes after a federal judge blocked JetBlue’s Northeast Alliance with American Airlines in 2023.
The partnership between JetBlue and United is said to focus on providing customers with greater connectivity and the ability to earn and redeem frequent flier miles. Unlike the previous alliance with American Airlines, the two carriers will not coordinate on schedules and pricing.
While details of the partnership are still being finalized and subject to change, JetBlue’s president, Marty St. George, hinted at the potential collaboration during a recent conference call discussing the company’s quarterly results. St. George mentioned that JetBlue was in negotiations with a domestic airline with a larger network and that an announcement could be expected in the current quarter.
United Airlines, based in Chicago, declined to comment on the speculation surrounding the potential partnership. JetBlue has been facing challenges in returning to profitability since the COVID-19 pandemic, with the company posting profits in only two of the past nine quarters. The airline’s shares have also seen a 47% decline this year, reflecting bearish investor sentiment.
JetBlue’s revenue from customer loyalty programs, aided by new partnerships, has been a bright spot for the airline. The company is looking to alliances with other airlines to enhance connectivity for customers and boost revenue. While JetBlue had also explored a partnership with American Airlines, the two carriers were unable to reach an agreement, leading to a lawsuit filed by American seeking damages.
Speculation has arisen about JetBlue potentially becoming an acquisition target due to its falling market capitalization. In January, rumors of United considering a bid for JetBlue prompted the Chicago-based airline to clarify to the Securities and Exchange Commission that it was not in discussions for a merger or acquisition.
United CEO Scott Kirby expressed interest in expanding the airline’s presence in New York, particularly at JFK airport, but acknowledged the regulatory challenges involved in such a move. Despite the potential hurdles, the partnership between JetBlue and United could offer benefits to customers in terms of connectivity and loyalty program opportunities.
