By Rajesh Kumar Singh
CHICAGO (Reuters) - Three industry sources familiar with the matter told Reuters that Jewish (Reuters) - Jewish Airlines and United Airlines have been negotiating partnerships.
The New York-based airline has been seeking partnerships as a federal judge blocked what American Airlines calls Northeast Alliance in 2023.
Sources said the partnership with Manchester United is completely different from the NEA. They added that while the alliance is expected to focus on providing customers with a larger connection and allowing them to earn and burn frequently, the two carriers won’t coordinate the schedule and pricing.
Sources said the two airlines have not finalized all the details and warned that things may still change.
Asked about comments, a JetBlue spokesman mentioned earlier on Tuesday made a conference call after the company released its quarterly results.
St. George told analysts and investors that the company is in talks with a larger network of a domestic airline and is expected to make the announcement this quarter. He did not elaborate on it.
Chicago-based Manchester United said it has no comment on industry speculation.
Jetblue has been working hard to restore sustained profitability. It has only two of two of the last nine quarters.
Its stock has fallen about 47% this year. To show bearish investor sentiment, short-term interest on the company's stock has risen by 35% since early February.
The plunge in travel demand caused by economic uncertainty caused by President Donald Trump's trade war will only exacerbate the pain. Earlier Tuesday, JetBlue withdrew its 2025 outlook.
With the help of the new partnership, revenue growth generated from customer loyalty programs is one of the few highlights of the airline. The company relies on alliances with other airlines to support revenue streams by providing customers with a larger connection.
It also discussed new partnerships with American Airlines. But the parties have not reached an agreement, and the Texas-based carrier has filed a lawsuit seeking the lawsuit, Steve Johnson said in a letter to employees Monday after U.S. Vice Chairman NEA went bankrupt.
The decline in JetBlue's market cap also led to speculation that it could be a potential acquisition target.
In January, in the midst of market talks, Manchester United was considering a bid for JetBlue, the Chicago-based airline must inform the SEC that “do not negotiate or discuss in negotiations or discussions with any other airline regarding a merger, acquisition or similar strategic deal.”
Last month, co-CEO Scott Kirby said that while the company hopes to have a larger business in New York, it is not ready to deal with all regulatory hurdles.
"I want to have a presence on the other side of the river at Kennedy International Airport (Airport)," Kirby said. "But man, all the headaches, buy all the brain damage that the entire airline gets there. There's a lot to do."
(Reported by Rajesh Kumar Singh in Chicago; other reports by Matthew Lewis in Doyinsola Oladipo, New York)