JetBlue Airways Corp (NASDAQ:JBLU) is reportedly in talks with United Airlines Holdings Inc. (NASDAQ:UAL) over a partnership between the two companies.
What Happened: The New York-based airline is seeking partnerships with other airlines in the U.S. after talks of an alliance with American Airlines Group (NASDAQ:AAL) fell through in 2023. However, the partnership with United will be different, sources told Reuters on Wednesday.
Sources in the report suggest the partnership will focus on increased connectivity as well as more opportunities for customers to utilize frequent flier miles, but won't coordinate on schedules and pricing.
Interestingly, JetBlue President Marty St. George shared with investors that the airline was negotiating partnerships with other airlines during the company's earnings call.
"We are looking at and we're talking to multiple airlines about domestic partnerships. I think we're getting very close to making announcement, expect to make the announcement this quarter," St. George said.
Why It Matters: News of the possible negotiations comes in as JetBlue has been battling a difficult quarter, with the airline sharing at the earnings call that its revenue was down 3.1% YoY and capacity fell 4.3% compared to the last quarter.
"We expect softened demand for off-peak travel to continue into the second quarter, where the booking curve is more exposed to macro uncertainty and deteriorating consumer confidence," St. George said in the call.
JetBlue was fined $2 million earlier this year by the U.S. Government's Department of Transportation (DOT) for multiple "chronically delayed flights."
The company was also exploring a possible acquisition of budget air travel company Spirit Airlines (OTC:SAVEQ), but talks fell through between the two companies.
Price Action: JBLU is currently trading at $4.18 on the NASDAQ, according to Benzinga Pro data.
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