JetBlue and United Airlines Plans New Partnership After Split with American

Published May 3, 2025 by Alfie
U.S. News
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JetBlue Airways is in talks with United Airlines in secret about starting a new partnership following the untimely collapse of its Northeast Alliance agreement (NEA) with American Airlines. It is a big shift in the airline’s strategy to seek to rebuild its network of reach and loyalty programs after its major partnership was terminated by federal regulators.

The U.S. Department of Justice (DOJ) had already stopped the previous alliance with American Airlines, contending that it hurt competition, particularly competition in the Northeast. American Airlines won that fight, and the airline ended its alliance with JetBlue earlier this year. JetBlue now seems inclined to try to see if it can use another big carrier as the basis for a new partnership.

Why the American Airlines Deal Failed

In 2021, between JetBlue and American Airlines, the DOJ filed a lawsuit against the NEA, claiming the deal was a ‘de facto merger’ in Boston and New York City. The court concluded that the alliance would significantly weaken competition, potentially increasing fares and decreasing the travel options for those travelers.

JetBlue and American recently sued each other in a dispute over $1 million in expenses for ending the alliance. JetBlue CEO Joanna Geraghty suggested the legal consequence was no bombshell and that it was to be expected, and to close the book. However the legal and financial disputes underscored the rough ending of what had been sold as a groundbreaking joint venture for both carriers.

Talks with United Airlines Gain Momentum

Multiple industry sources quoted by Forbes and Reuters say JetBlue is deep in negotiations with United Airlines. Specific terms of the deal have not been disclosed; however, both companies are apparently looking to work together toward a strategic alliance meant to expand network connectivity and link loyalty programs.

JetBlue executives have alluded that a statement will be made in this quarter. ‘We have reached out to a number of partners and United offered us the most value,’ CFO Ursula Hurley confirmed. Anything new has to be about JetBlue TrueBlue as it pertains to the customer benefit, and has to fit on JetBlue TrueBlue, she said.

Customers will also be able to earn and subsequently redeem ‘significantly higher network opportunities’ for TrueBlue points, particularly in the Midwest and West, where JetBlue’s network remains underdeveloped, said JetBlue President Marty St. George.

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United’s Cautious but Strategic Interest

The public remarks from United Airlines have been more cautious. Prior to that, United denied any interest in acquiring JetBlue in a prior statement to the U.S. Securities and Exchange Commission. Buying another airline to buttress the airline’s domestic presence—especially at busy hubs such as JFK—would get complicated by too many regulatory headaches, CEO Scott Kirby also noted.

However, it could still be worth a partnership rather than a full acquisition for United. JetBlue can facilitate route access, expand frequent flyer program options and out compete Delta, which is stillFetching by far the highest domestic traffic share at JFK Airport.

A Customer-Centric Approach

This possible deal seems to be based on the customer value as the bedrock for both airlines. The dream is to provide more travel options, less friction in travel, and better loyalty benefits without the kind of regulatory eyes drawn to the NEA.

Conclusion

JetBlue’s alliance with United Airlines is a major strategic move after the collapse of its alliance with American. JetBlue benefits from broader route access and United from accessing new segments of the customer base. This partnership, if it goes through, would change how parts of the U.S. domestic air market operate and get around the legal wrangling that doomed the past deal. Now people across the industry and even travelers are watching for the official announcement that was due later.

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