United Airlines and JetBlue Partnership Faces Competition Concerns Amid Analyst Optimism

United Airlines and JetBlue's partnership is under scrutiny for potential competition reduction and fare hikes. Analysts have optimistic price targets for United Airlines, with a consensus of "Outperform." However, GuruFocus estimates suggest a substantial downside of 29.7% from the current stock price.

The proposed partnership between United Airlines and JetBlue Airways, dubbed "Blue Sky," has sparked concerns among lawmakers and analysts. Democratic Senator Richard Blumenthal has raised concerns about the potential impact on competition and consumer options [1, 2]. The partnership, which allows travelers to book flights on both carriers' websites and use their frequent flyer programs interchangeably, has been criticized for its potential to reduce competition and lead to higher fares.

Blumenthal, who chairs the Senate Committee on Commerce, Science, and Transportation, has asked United CEO Scott Kirby and JetBlue CEO Joanna Geraghty to provide detailed information about the partnership and its future plans. He is particularly concerned about the deal's potential to harm competition, especially in the New York City area [1, 2].

United and JetBlue have defended the partnership, stating that it will maintain JetBlue's independence and enhance its competitiveness. They argue that the partnership will not lead to reduced competition and that it will allow both airlines to grow and compete as independent carriers [1, 2].

However, the partnership has faced criticism from other airlines and industry experts. Spirit Airlines has urged the U.S. Transportation Department to reject the partnership, arguing that it is anticompetitive and will prompt large carriers to pursue similar deals [1]. Additionally, GuruFocus estimates suggest a substantial downside of 29.7% from the current stock price for United Airlines, indicating potential risks associated with the partnership [3].

Despite the concerns, United Airlines' stock has shown positive sentiment, with analysts adjusting their price targets upwards. TD Cowen and Deutsche Bank have raised their price targets for United Airlines, reflecting a renewed sense of optimism in the market [3]. However, the partnership's future remains uncertain, and its potential impact on competition and consumer options will continue to be closely watched.

References:

[1] https://ca.finance.yahoo.com/news/us-senator-says-united-jetblue-142232128.html
[2] https://seekingalpha.com/news/4466901-senator-blumenthal-voices-concern-over-jetblue-uniteds-blue-sky-partnership
[3] https://stockstotrade.com/news/united-airlines-holdings-inc-ual-news-2025_07_10-2/