JetBlue, United Airlines Announce Major Consumer Cooperation Plan

JetBlue Airways and United Airlines have announced a significant consumer cooperation plan that allows passengers to book flights on each other's websites and accumulate and use points in their respective frequent flyer programs. This agreement, named the "Blue Sky" plan, is subject to approval by U.S. regulatory authorities. Under the terms of the agreement, JetBlue will open up its takeoff and landing slots at New York's Kennedy Airport to United from 2027, allowing United to operate up to 7 daily round-trip flights. This move is expected to enhance connectivity and convenience for travelers.

The two airlines will recognize each other's frequent flyer membership levels, providing passengers with benefits such as seat upgrades and the ability to rebook on other flights. This mutual recognition of loyalty programs is a key aspect of the agreement, aimed at enhancing the overall travel experience for frequent flyers. Additionally, JetBlue and United will exchange 8 flight slots at Newark Airport. This exchange will increase JetBlue's presence in the New Jersey airport near New York, while United will transfer some of its holiday and tourism services to JetBlue's Paisly platform. This strategic move is designed to optimize the use of airport resources and improve service offerings for passengers.

If approved by U.S. regulators, parts of the agreement could take effect as early as this fall. JetBlue CEO Joanna Geraghty highlighted the significance of this cooperation, stating, "The cooperation with United is a bold breakthrough... Two customer-focused airlines working together will provide passengers with more choices and create more value through our network." This partnership underscores the growing importance of loyalty programs as a significant source of profit for large airlines. Since a federal judge blocked JetBlue's "Northeast Alliance" plan with American Airlines in 2023, JetBlue has been actively seeking new partnership opportunities to enhance its market position and service offerings.

Since the pandemic, JetBlue has faced challenges in returning to sustained profitability, achieving profits in only two of the past nine quarters. The airline has been navigating through various obstacles, including technical issues, air traffic control personnel shortages, and runway construction challenges. United, as the world's largest airline by fleet size, has also encountered difficulties. In 2022, United had to stop its limited operations at Kennedy Airport due to its inability to obtain approval from the Federal Aviation Administration to increase flights. In March of this year, United CEO Scott Kirby expressed his desire to strengthen the company's presence in New York but hesitated due to the complexities involved in acquiring an airline to ensure its presence at Kennedy Airport.

On Thursday, Kirby described the cooperation agreement as providing frequent flyer members with a "new and unique way to use the miles they have worked hard to accumulate and find options that fit their travel schedule." The cooperation between the two companies is not a merger but includes an interline agreement rather than code-sharing. This means both parties will continue to independently publish, market, manage flights, and set prices, ensuring that each airline maintains its operational autonomy while benefiting from the enhanced connectivity and service offerings provided by the partnership.