Asia FX rises; US-Japan trade deal boosts yen, won to 2-week highs
Investing.com -- On Tuesday, Reuters reported that JetBlue Airways (NASDAQ:JBLU) and United Airlines (NASDAQ:UAL) have been in discussions about forming a partnership, according to three industry sources. This move comes as JetBlue looks for new alliances after its Northeast Alliance (NEA) with American Airlines (NASDAQ:AAL) was blocked by a federal judge in 2023.
The potential collaboration with United Airlines is reported to be distinct from the thwarted NEA with American Airlines. The sources indicated that the focus of this new alliance would be on enhancing customer connectivity and the ability for passengers to earn and redeem frequent-flier miles. Unlike the NEA, however, the two airlines do not plan to coordinate on schedules and pricing.
JetBlue has been facing challenges with its profitability, with its shares declining by 47% since the beginning of the year. The airline’s search for new partnerships reflects an effort to recover and improve its market position.
Details of the partnership are still being discussed, and the sources have advised that the terms of the agreement are not yet final. They also noted that plans could change as the negotiations progress.
The partnership, if finalized, could represent a strategic shift for JetBlue as it aims to overcome the setback from the blocked deal with American Airlines and navigate through its current financial difficulties. The collaboration with United Airlines could offer JetBlue a new path to bolster its network and offer more options to its customers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.