United Airlines and JetBlue are teaming up, linking their route networks, frequent flyer programs, and technology stacks. The “Blue Sky*” partnership comes after several weeks of rumors, delivering less than expected in some areas (e.g. JFK slots). Indeed, one of the most significant facets of the deal might be the shift in how United sells its non-air travel offerings.
The deal covers three main areas: flights, loyalty, and technology.
Flights, Routes, and Staying Separate
On the flights side of things the big news is arguably that the limited number of slots being swapped. United will acquire seven slot pairs from JetBlue at JFK, aligned with the opening of the new Terminal 6 expected in 2027. In exchange JetBlue will acquire eight “runway timings” at Newark (the equivalent of slots, but for the slightly different way Newark operates).
United most recently operated with four slot pairs at JFK and found that insufficient to run a meaningful level of operations for its transcon franchise. Seven is better, but still short of the dozen United would need to match its historical p.s. operational schedule from a decade ago. Perhaps it will get the four back it had been using during COVID and combine those with these seven to make it work.
That United will almost certainly use these slots to compete with JetBlue’s Mint transcon offering makes for a very interesting situation. That’s a product that has been very valuable to the JetBlue operation since it launched. Enabling a direct competitor in a lucrative market is a rarity for any industry.
Beyond the slot swap, the airlines will remain mostly separate in their operations. They will establish an interline but not a codeshare. They will sell each others’ flights, but it does not appear there will be preferential pricing.
This is a very, very basic alignment. That is important for regulatory approval, though these days it is less clear how necessary that is. And, of course, they can always expand the relationship if it makes sense later.
Earn and Burn Reciprocity
For many travelers the loyalty alignment will be seen as the biggest win. JetBlue program members will now have access to “a domestic partner who can get our TrueBlue members to Boise or Omaha.” And also a ton of international markets. Until we see the redemption rates, however, I’m withholding judgement on the value of this alignment.
The programs will also align for elite status benefits, including access to extra legroom seats (at check-in), a free checked bag, and other facets of the programs. This mostly worked between JetBlue and American Airlines before the NEA was killed by the courts, so presumably it’ll be fine between JetBlue and United. Implementation timing for these bits remains pending.
I know people want this to be a big thing. And as a frequent user of both programs I hope it offers some value, but I’m skeptical.
Shifting the Tech Stack
JetBlue made a major push in 2021 to shift non-air bookings to an in-house platform, Paisly. United will take advantage of that investment as part of the partnership, shifting all of its hotel, car, and cruise bookings to a white label version of the Paisly platform. It will be branded as United but run on the JetBlue software.
This is, to me, the most interesting of the three parts of the announcement.
United’s customers are sent to third party websites for those offerings today. This move brings them all in-house for both web and app users. It also enables better targeted marketing, integrating the offers with the loyalty platform and other airline CRM solutions. Customer support is also fully integrated.
In the other direction JetBlue will adopt United’s Kinective Media solution to deliver personalized, real-time advertising, content, experiences, and offers. United launched its Kinective Media platform in June 2024 to aggregate customer data in support of marketing relationships across key verticals such as retail, luxury goods, financial services, automotive, media & entertainment and travel. The Blue Sky deal enables JetBlue to offer those ads now as well.
*Not to be confused with the Blue Skies joint venture for Air France, KLM, Delta Air Lines, and Virgin Atlantic. Also not to be confused with Bluesky the social media platform.
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not being able to pick a extra legroom seat at check in even for the highest tier is bizarre