JetBlue and United Partnership Cleared by US Transportation Department

JetBlue and United Airlines have received approval from the US Transportation Department for their partnership, dubbed "Blue Sky," which will allow customers to book flights on both carriers' websites and interchangeably earn and use points in their frequent flyer programs. The partnership is expected to contribute $50 million in incremental operating profit. The approval comes as antitrust officials have taken a more lenient approach to corporate deals under the Trump administration.

JetBlue Airways (JBLU.O) and United Airlines (UAL.O) have received approval from the U.S. Department of Transportation (DOT) for their partnership, dubbed "Blue Sky." The approval allows the airlines to proceed with implementing the collaboration, which will enable customers to book flights on both carriers' websites and interchangeably earn and use points in their frequent flyer programs. The partnership is expected to contribute $50 million in incremental operating profit.

The Blue Sky partnership was unveiled in May and aims to offer travelers a range of new benefits. These include the ability to earn and redeem miles across both airlines' networks, as well as priority boarding and preferred seating options. The partnership also involves JetBlue providing United Airlines with access to valuable slots at John F. Kennedy International Airport (JFK) in New York, beginning as early as 2027.

The approval comes as antitrust officials under the Trump administration have taken a more lenient approach to corporate deals. This shift from the stricter stance seen under the Biden administration has led to the approval of several multibillion-dollar deals in recent months. According to the Federal Trade Commission (FTC), more than 100 transactions have been granted shorter reviews this year [4].

JetBlue's partnership with United Airlines is a significant move following a federal court ruling that blocked its alliance with American Airlines in 2023. The Blue Sky partnership stops short of some of the legal problems from the previous arrangement, covering just JFK and not an array of Northeast markets.

The partnership is set to roll out new customer benefits starting in the fall of 2025, with additional perks introduced in phases. The collaboration aims to provide customers with greater convenience and flexibility, as well as enhanced loyalty benefits and rewards.

References:
[1] https://www.reuters.com/business/jetblue-united-partnership-gets-go-ahead-us-transportation-department-2025-07-29/
[2] https://www.travelandtourworld.com/news/article/jetblue-and-united-complete-dot-review-for-blue-sky-collaboration-paving-the-way-for-enhanced-customer-benefits/
[3] https://qz.com/jetblue-united-airlines-collab-dot-approval
[4] https://www.newsmax.com/finance/streettalk/jetblue-united-airlines-partnership/2025/07/29/id/1220479/