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JetBlue and United Airlines Explore New Partnership Amid Financial Challenges

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Jetblue United Airlines Partnership Negotiations

CHICAGO, April 29 (Reuters) – JetBlue Airways and United Airlines are currently in talks for a potential partnership, according to three industry sources familiar with the discussions. The New York-based JetBlue is eager to establish this alliance following the dissolution of its Northeast Alliance with American Airlines, which a federal judge mandated in 2023.

The proposed partnership aims to enhance connectivity for customers and allow them to earn and redeem frequent-flier miles across both airlines. However, unlike the NEA, JetBlue and United will not coordinate their schedules or pricing, which could help them avoid regulatory scrutiny.

JetBlue President Marty St. George mentioned in a conference call that an announcement regarding the partnership is expected in the current quarter. He noted that the partnership would significantly expand the network opportunities for JetBlue customers, particularly for those traveling to destinations where they can’t currently earn TrueBlue points.

Despite the potential benefits, the details of the partnership have yet to be finalized, and some sources caution that changes may still occur. JetBlue has been striving to regain financial stability after the impact of the COVID-19 pandemic, showing a profit in only two of its last nine quarters. Recently, JetBlue’s shares have fallen about 47% this year, leading to a heightened short interest among investors.

The financial struggles have been compounded by decreased travel demand stemming from economic uncertainties and concerns over rising prices due to the earlier alliance with American Airlines. JetBlue is focused on increasing revenue from its customer loyalty programs, which has become one of its few bright spots.

Meanwhile, united Airlines has expressed interest in expanding its presence at New York’s John F. Kennedy Airport but has also indicated reluctance to pursue mergers or acquisitions due to regulatory hurdles. United’s CEO, Scott Kirby, stated, “I would like to have a presence on the other side of the river at JFK. But man, all the headache, all the brain damage of buying a whole airline to get there. That’s a lot to do.”

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