US regulators approve JetBlue and United ‘Blue Sky’ tie-up
July 31, 2025
JetBlue Airways and United Airlines have received the green light from the US Department of Transportation (DOT) to proceed with their planned ‘Blue Sky’ partnership.
The DOT’s approval allows both airlines to move forward with implementation of the agreement in the coming months.
“JetBlue and United appreciate Secretary Duffy, Assistant Secretary Edwards, and the entire team at the DOT for their review of Blue Sky,” the airlines said in a statement.
“JetBlue and United will share more details in the coming weeks as implementation of the Blue Sky collaboration begins.”
The partnership is set to begin from the autumn with the carriers enabling use of MileagePlus miles and TrueBlue points across both airlines.
What is Blue Sky?
Blue Sky will see both carriers link their loyalty programmes and offer access to each other’s networks under an interline agreement.
JetBlue will also provide United access to slots at JFK International Airport for up to seven daily round-trip flights out of JFK Terminal 6 to begin as early as 2027.
As part of a “net-neutral exchange”, JetBlue and United will exchange eight flight timings at Newark.
United will also use JetBlue’s Paisly platform when selling hotels, rental cars, cruises and travel insurance through its website and mobile app.
Were there objections to the alliance?
Rival budget carrier Spirit Airlines had raised objections, urging regulators to block the collaboration on competition grounds.
Spirit likened Blue Sky to the now-defunct Northeast Alliance between JetBlue and American Airlines, which was ruled unlawful by a federal judge in 2023 due to its anti-competitive effects.
The complaint alleged that JetBlue would become a “vassal” of United.
“In short, this anti-competitive tie-up involving a dominant legacy carrier will neutralise the competitive benefit of an existing low-fare competitor (JetBlue), will raise fares, and will tend to weaken other value airlines, such as Spirit and others, by siphoning off customers attracted by access to the United loyalty programme,” it had said.
In March 2024, JetBlue and Spirit had to scrap a merger agreement after a judge blocked the deal on anti-competition grounds.
A Democratic senator, Richard Blumenthal, also said the proposed partnership between JetBlue and United could reduce competition, “harm full and fair airline competition and lead to fewer and more expensive options for travelers, particularly in the New York City area”.
But JetBlue is keen to find a partner. The carrier is struggling financially, posting a $795 million loss in 2024, and a further $208 million loss in the first quarter of 2025.
New York’s ‘hometown airline’ will be hoping that the interline agreement with United will bring benefits that will put it on a firmer financial footing.
A spokesperson for the USDOT told US news networks that the agency “does not approve or disapprove the agreements,” but rather “reviews the agreements to ensure that they would not harm the public and are not anti-competitive.”
