United and JetBlue Launch Partnership: 'Blue Sky' to Link Loyalty Programs, Network

United Airlines and JetBlue announced Thursday that they are launching a domestic partnership, called "Blue Sky," which will include network and loyalty benefits.

The arrangement will allow customers from both carriers to earn and burn frequent-flier miles on most flights. Customers will also be able to access the benefits of each carriers' loyalty programs such as priority check-in or extra legroom seats.

As part of the deal, JetBlue will provide United access to slots at New York JFK for up to seven daily round-trip flights. These will operate from Terminal 6 and start “as early as 2027.”

In what the companies describe as a “net-neutral exchange,” JetBlue and United will trade eight flight timings at Newark.

United and JetBlue will offer flights on each others' websites, but will also continue to publish and market their flights independently, as part of their interline agreement.

JetBlue had been eyeing a new domestic partnership with a major airline after a federal judge struck down its Northeast Alliance with American Airlines. President Marty St. George said during an earnings call in April that one of the biggest benefits of such a partnership was network connectivity.

It was widely speculated that JetBlue would partner with United, after Reuters previously reported that the two carriers were in negotiations.

The two airlines won’t coordinate schedules or pricing, a key difference from the Northeast Alliance.

Previously, United had denied that it was in talks with other airlines about a merger or a “strategic transaction.” But United CEO Scott Kirby said during an investor conference in March that he was interested in reviving United’s presence at JFK. United pulled out of JFK for a second time in 2022 due to concerns it wasn’t competitive at the airport.

“At United, when the business plan is working — we don't need a deal for sure,” Kirby said. “The hurdle to go do a deal gets a whole lot higher. That said, at least at United, I would like to have a bigger — I'd like to have a presence on the other side of the river at JFK.”

Many elements of the proposed deal remain subject to regulatory review.

In a statement, United CEO Scott Kirby said: "The JetBlue brand is tied to a great product and under Joanna's leadership the airline continues to deliver for customers.

"Our employees are really excited about United's return to JFK for the longer-term and we're all looking forward to starting up flights very soon," Kirby said.

“This collaboration with United is a bold step forward for the industry — one that brings together two customer-focused airlines to deliver more choices for travelers and value across our networks,” added JetBlue CEO Joanna Geraghty.

“United’s global reach perfectly complements JetBlue’s East Coast leisure network, and significantly expands the options and benefits for TrueBlue members, no matter where in the world they are traveling. This is a clear win for our customers and crewmembers, and supports our JetForward strategy.”

The partnership could be a major boon for JetBlue, which has struggled to maintain profitability since the collapse of both the Northeast Alliance and the merger with Spirit Airlines. Through this alliance, JetBlue could gain access to United’s customer base and sprawling international network.

United now gets access to JFK, something Kirby has long eyed for the Chicago-based carrier, along with the Boston and south Florida markets, where it has previously not been a major player.

"This finally gets United back into New York JFK, which it previously abandoned," Jay Shabat, Airline Weekly senior analyst. "That's a major strategic victory in its own right."

The JetBlue-United tie-up is also a blow for American, which had previously been in talks with JetBlue about reviving a partnership. American ended those talks with JetBlue, saying that the two airlines could not reach an agreement. American is also suing JetBlue over the collapse of the Northeast Alliance.

American has struggled to gain a strong foothold in the New York area, and the Northeast Alliance allowed the carrier to increase daily flights out of Boston and New York. Once the alliance was struck down, American had to pull back capacity from the two cities, and has instead focused efforts on its Philadelphia hub.

This is a breaking story that will be updated.

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