Struggling JetBlue in talks on partnership with United Airlines: report

Core Viewpoint - JetBlue Airways is negotiating a partnership with United Airlines following the blockage of its Northeast Alliance with American Airlines, aiming to enhance customer connectivity and loyalty programs without coordinating on schedules and pricing [1][2][4]. Group 1: Partnership Details - The envisioned partnership with United Airlines is distinct from the previous Northeast Alliance, focusing on customer connectivity and frequent-flier mile benefits [2][8]. - JetBlue's president indicated that an announcement regarding the partnership is expected in the current quarter, although details are still being finalized [5][4]. Group 2: Financial Performance - JetBlue has struggled to achieve sustained profitability post-COVID-19, reporting profits in only two of the last nine quarters [5][12]. - The airline's shares have decreased by approximately 47% this year, with a 35% increase in short interest since early February, indicating bearish investor sentiment [6][12]. Group 3: Market Context - The decline in travel demand due to economic uncertainties, including the impact of President Trump's trade war, has worsened JetBlue's financial challenges [8]. - JetBlue has been exploring partnerships to enhance revenue from customer loyalty programs, which is currently one of its few positive aspects [9]. Group 4: Competitive Landscape - JetBlue previously attempted to establish a partnership with American Airlines, but negotiations failed, leading to a lawsuit from American Airlines seeking damages [10]. - United Airlines has expressed interest in expanding its presence in New York but is cautious about the regulatory challenges associated with acquiring another airline [14].