United Airlines and JetBlue Airways have recently announced that they will be signing a cooperation agreement to establish a partnership that will expand JetBlue Airways’ route network while paving the way for United Airlines to resume flights at John F. Kennedy International Airport (JFK).
According to the agreement known as “Blue Sky” that the two companies are about to reach, they will provide flight information on each other’s websites, recognize each other’s frequent-flier program members, and allow members to enjoy benefits and accumulate or use flight miles on each other’s flights.
United Airlines will also utilize JetBlue’s Paisley platform to enhance its hotel, car rental, cruise, and travel insurance booking services.
However, the two airlines will not coordinate flight schedules or share revenue.
Importantly, under the agreement, JetBlue Airways will start opening up landing slots at John F. Kennedy Airport to United Airlines from 2027, allowing them to operate up to 7 round-trip flights per day, while JetBlue Airways will also operate more flights at Newark Airport.
Both airlines have stated that certain aspects of this cooperation agreement will come into effect starting this fall, pending approval from regulatory authorities.
JetBlue Airways CEO Joanna Geraghty commented that the agreement provides passengers with more choices, proving to be a “win-win” situation.
United Airlines has mentioned that their customers in Boston and New York will also have more choices, helping the company alleviate the challenges it currently faces at Newark Airport.
United Airlines left John F. Kennedy Airport in 2015 and moved to Newark because their market share at JFK was smaller, making it difficult for them to compete on high-end interstate routes with other airlines. Delta Air Lines then took over United Airlines’ flight slots at JFK according to a long-term lease agreement.
Due to some major corporate clients unwilling to follow United Airlines to Newark, the airline suffered significant losses.
Currently, most of United Airlines’ flights are concentrated at Newark Airport.
United Airlines has been searching for ways to return to John F. Kennedy Airport for years. During the pandemic, United Airlines tried to regain a foothold at JFK but ultimately gave up in 2022 due to not securing a strong permanent position.
Despite the risks posed by air traffic control and technical issues at Newark Airport recently, United Airlines has stated that after reducing flights, the airport is on the right path and flight operations will be smoother once the daily runway construction is completed in mid-June.
While the “Blue Sky” plan is pending approval from regulatory authorities, the market has responded enthusiastically. In early Thursday trading, both JetBlue and United Airlines’ stock prices rose by over 2%.