United, JetBlue in partnership to share routes and slots at JKF, Newark

By Mary Schlangenstein

 

United Airlines Holdings Inc. and JetBlue Airways Corp. agreed to a far-reaching partnership that will allow travelers to use loyalty points and book flights across the two carriers. 

The tie-up will integrate the airlines’ operations in the New York City area, giving United a long-sought return to John F. Kennedy International Airport. It will also grant JetBlue access to some of United’s favored flight times at its nearby Newark Liberty International hub, the companies said in a statement Thursday. 

The agreement fulfills United Chief Executive Officer Scott Kirby’s desire to secure flights at JFK at a time when air traffic control problems are hampering operations in Newark, the carrier’s primary connection to the crucial New York market. Called the Blue Sky alliance, the partnership will give United access to JetBlue’s JFK flight slots for up to seven daily round trips starting in 2027. 

United shares rose 2.1% as of 7:05 a.m. before regular trading in New York, while JetBlue climbed 3.3%. Both carriers were down at least 20% this year through Wednesday’s close as the industry faced with demand concerns amid economic volatility.

Operations at the congested airport are limited, and so-called slots for takeoffs and landings are highly prized and difficult to obtain. United had a small presence several years ago at JFK, a major international hub, but walked away from the airport in 2022 after efforts to expand failed. 

The new agreement, which is subject to regulatory review, could also give JetBlue what it’s been after for years: a partner to help boost revenue and to strengthen its presence in the competitive industry. The carrier will gain access to eight of United’s flight times daily at Newark during favored hours.  

Following a failed growth plan built around acquisitions and partnerships, JetBlue has been rebuilding operations and retrenching to its original core markets in the northeast and along the East Coast. 

Some elements of the venture could begin as early as this fall. JetBlue and United will continue to manage and price their networks independently, including the launch of new routes, frequencies and promotions. 

Newark Snarls 

A presence at JFK would be particularly valuable to United now, with flights at its Newark hub being disrupted by a series of telecommunications and technology outages that twice left controllers unable to see or communicate with planes headed into and out of the New Jersey airport. The disruptions, which snarled Newark flights over several days, called new attention to the outdated infrastructure and understaffed controller ranks supporting the nation’s air traffic. 

The US Federal Aviation Administration is limiting flights at the airport to help deal with the issues. 

As part of the alliance, United plans to move its website and mobile app’s sales of hotels, rental cars, cruises and travel insurance to JetBlue’s Paisly platform. 

JetBlue focused on securing a deal with United after American Airlines Group Inc. said in April that it had broken off talks to revive a scuttled partnership with the New York-based carrier, which was now “focused on different business priorities.”  American also sued JetBlue to recover money owed from the breakup of its Northeast Alliance after a federal judge ruled it violated US antitrust laws.  

JetBlue was hurt by a federal court’s 2024 decision to block its pending $3.8 billion merger with Spirit Airlines, also on antitrust grounds, the year after the Northeast Alliance ruling.  

United has had an on-again, off-again relationship with JFK ever since first walking away from the airport in 2015 to consolidate its premium transcontinental flights at Newark. United leased the rights to 40 daily takeoffs and landings at JFK to Delta Air Lines Inc. and has said it has no access to them for the foreseeable future.