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NEW YORK and CHICAGO - JetBlue (NASDAQ: JBLU), currently trading near InvestingPro’s Fair Value estimate with a market capitalization of $1.85 billion, and United Airlines (NASDAQ: UAL) have announced a collaboration that will link their loyalty programs, providing customers with expanded flight options and benefits. The partnership, named Blue Sky, allows MileagePlus and TrueBlue members to earn and redeem points or miles across both airlines’ networks. This strategic move comes as JetBlue, with annual revenues of $9.21 billion, seeks to strengthen its market position.
Starting this fall, pending regulatory approval, MileagePlus members can use their miles on JetBlue flights, including 90 daily flights between the Northeast and Caribbean destinations like Aruba, Barbados, and Jamaica. Conversely, TrueBlue members will gain access to United’s extensive domestic and international routes. According to InvestingPro analysis, this partnership could be crucial for JetBlue, which currently operates with a significant debt burden of $9.4 billion and faces challenging cash flow conditions. (Unlock 10+ additional ProTips about JBLU’s financial health with InvestingPro.)
The collaboration will also see each airline offering flights on the other’s website and app, simplifying the booking process for customers. Loyalty program benefits such as priority boarding, complimentary access to preferred seating, and same-day standby will be reciprocal when flying on either airline.
In addition, JetBlue will provide United with slots at JFK International Airport for up to seven daily round-trip flights starting in 2027. The airlines will also exchange eight flight timings at Newark Liberty International Airport in a net-neutral swap.
United will integrate its holiday and travel services with JetBlue’s Paisly platform, enhancing the customer experience for booking hotels, rental cars, cruises, and travel insurance.
Both airlines will maintain independent management and pricing of their networks, including new routes and promotions. Loyalty program members can look forward to enjoying similar benefits over time, such as priority check-in, security, and baggage handling, as well as access to extra legroom seats and free first checked bags.
The collaboration is expected to provide advantages for business travelers and corporate programs, potentially extending negotiated discounts to flights operated by the partner airline. Additionally, JetBlue is set to become the first airline to deploy United’s Kinective Media technology, which personalizes advertising and offers to travelers.
This partnership is based on a press release statement and reflects forward-looking statements that involve risks and uncertainties. As such, the anticipated benefits and services are subject to change. With JetBlue’s next earnings report due on August 5, 2025, investors can access comprehensive analysis and forward-looking metrics through InvestingPro’s detailed research reports, which provide deep-dive analysis of the company’s financial health and growth prospects among 1,400+ US equities covered.
In other recent news, JetBlue Airways has been active with several key developments. The company announced the appointment of Vijay Raman as the new vice president of sales and revenue management, bringing over 20 years of experience to the role. In addition, SKY Leasing acquired JetBlue Ventures, allowing JetBlue to focus on its core operations while maintaining a strategic partnership with its former subsidiary. Meanwhile, Citi analyst Stephen Trent raised the price target for JetBlue stock to $5.00 from $4.25, although the firm kept a Neutral rating due to ongoing financial challenges.
Raymond James downgraded JetBlue’s stock rating from Outperform to Market Perform, citing a balanced risk/reward scenario. The airline is also exploring a potential partnership with United Airlines, following the block of its Northeast Alliance with American Airlines. This potential collaboration aims to enhance customer connectivity and frequent-flier benefits, although no official agreement has been reached. The series of strategic moves and evaluations reflects JetBlue’s efforts to navigate industry challenges and optimize its financial and operational strategies.
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