By David Shepardson
(Reuters) -JetBlue Airways and United Airlines unveiled on Thursday plans for a consumer collaboration that allows travelers to book flights on both carriers’ websites, while interchangeably earning and using points in their frequent flyer programs.
Under the deal, dubbed “Blue Sky”, which is subject to approval from U.S. regulators, JetBlue will provide United access to slots at New York’s JFK airport for up to seven daily round-trip flights, beginning in 2027.
The airlines will recognise flyers with preferred status on either carrier, granting access to perks such as seat upgrades or switches to another flight.
JetBlue, the sixth largest U.S. carrier, and United will also exchange eight flight timings at Newark – giving JetBlue more flights at the New Jersey airport outside New York – and United will move some holiday and travel services to JetBlue’s Paisly platform, the companies said.
Some aspects of the deal could take effect as early as this fall, if U.S. regulators approve, they added.
“This collaboration with United is a bold step forward … that brings together two customer-focused airlines to deliver more choices for travelers and value across our networks,” JetBlue CEO Joanna Geraghty said in a statement.
Airline loyalty programs are an increasingly profitable business for major carriers.
Reuters first reported the negotiations for a partnership in April. JetBlue has been seeking partnerships after a federal judge blocked its so-called Northeast Alliance with American Airlines in 2023.
JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters.
United has made significant flight cuts at its Newark hub in the face of technology, air traffic staffing and runway construction issues.
The largest global airline by fleet size, United halted its limited service from JFK in 2022 after failing to get FAA approval for more flights.
In March, United CEO Scott Kirby said he wanted a greater presence in New York, but was discouraged by “all the headache” of buying an airline to ensure a presence at JFK.
On Thursday Kirby said the deal gives frequent flyer members “new, unique ways to use their hard-earned miles and find options that fit their schedule.”
The airlines’ collaboration, which is not a merger, includes an interline agreement, rather than a codeshare, meaning that each will continue to independently publish, market, manage and price flights.
(Reporting by David Shepardson; Editing by Clarence Fernandez)
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