The discussions come amid ongoing acquisition reports.
A JetBlue A320 aircraft. (Photo: Shutterstock | Markus Mainka)
JetBlue and United are reportedly working toward a partnership.
Three industry sources familiar with the matter told Reuters that the alliance could “provide greater connectivity to customers” and allow them to “earn and burn frequent-flier miles,” but so far, the carriers do not envision coordinating on pricing and schedules.
The deal has not been finalized, the sources added.
United declined to comment on Reuters’ report, while JetBlue referred back to comments made by JetBlue President Marty St. George on a quarterly earnings call on Tuesday. St. George said JetBlue is negotiating with a “domestic carrier with a broader network,” and that an announcement would likely be made in the current quarter. He did not provide further details.
JetBlue, which is based in New York City, has struggled to rebound after the COVID-19 pandemic, posting a profit in just two of the last nine quarters.
The carrier attempted to expand its reach and revitalize its business with a partnership with American Airlines, billed as the “Northeast Alliance.” The arrangement would have allowed the two companies to share passengers and coordinate on routes, but a federal judge ruled against it, finding the partnership would harm competition in the industry.
American is now suing JetBlue over the failed alliance and seeking to recoup damages.
JetBlue also attempted to buy Spirit, but that deal was also blocked by a federal court ruling after a trial last year.
Meanwhile, Italian newspaper Corriere della Sera reported Wednesday that United sees a partnership with JetBlue as a way to expand its reach and challenge rival Delta at one of its major hubs, John F. Kennedy International Airport in New York. United currently flies out of LaGuardia Airport and Newark Liberty International Airport, but not JFK.
Unlike Reuters, Corriere reported that United is exploring options ranging from an alliance to a full acquisition of JetBlue. The leading proposal, according to the newspaper, is a three-step plan starting with a commercial alliance and progressing to a strategic partnership, followed by a full acquisition. Corriere said United leadership would seek to coordinate the buyout with the Trump administration to avoid regulatory hurdles.
A United Airbus A320 (Photo: Shutterstock | Wenjie Zheng)
That narrative goes against the outlook offered by United CEO Scott Kirby last month. According to Reuters, Kirby said that while he would like to have a presence at JFK, the “headache” of “buying a whole airline to get there” was a nonstarter.
In January, United wrote to the Securities and Exchange Commission denying that it was pursuing any acquisitions.
Receive a daily dose of the airline industry's top stories along with market insights right in your inbox.
American Airlines has filed a lawsuit against JetBlue, seeking to recover funds it claims are owed following the termination of…
Alaska Airlines has unveiled a new commemorative set of trading cards in recognition of World Pilots’ Day, which took place…
The family of John William Cannon has filed a wrongful death lawsuit against American Airlines and its subsidiary, Envoy Air,…
