The Scoop
JetBlue has tapped advisers to assess the viability of selling itself to a rival airline, and has specifically scenario-planned how a deal with United Airlines, Alaska Airlines, or Southwest Airlines might fare in Washington, according to people familiar with the matter.
JetBlue has been on a turnaround mission since its deal to acquire Spirit Airlines was blocked on antitrust grounds in 2024. Its shares are down by more than 40% since the beginning of last year. The company, which won fans with perks like free WiFi, has struggled to keep up with higher-end carriers like United and Delta, while losing discount-seeking customers to Spirit and Frontier.
A merger of two of the country’s six biggest airlines would receive close antitrust scrutiny, even in Trump’s Washington, which appears wide open to consolidation. But deals are getting done, often with a boost from MAGA-connected lobbyists whose activities have drawn criticism from progressives and populist Republicans.
JetBlue’s M&A planning is preliminary and the airline could decide not to pursue talks with any of its rivals, the people said. It couldn’t be determined whether JetBlue had held discussions or received indications of interest.
JetBlue declined to comment on internal discussions. “We’ve made meaningful progress on our multi-year JetForward strategy and are focused on executing the plan,” a spokesman said. “We’re confident JetForward is the right strategy to restore profitability and create value for our shareholders and opportunities for our crewmembers.”
United and Southwest declined to comment. Alaska didn’t immediately respond to a request for comment.
United has long entertained the prospect of buying JetBlue, but remains disciplined on price, according to people familiar with the matter. United has been focused on achieving an investment-grade debt rating, which buying heavily indebted JetBlue would complicate. The two airlines already have a partnership that allows JetBlue customers to book some flights directly on United’s app, and vice versa, and redeem each other’s frequent-flier points.
“I think it’s a unique environment where M&A is possible,” United’s Chief Financial Officer Michael Leskinen said at an industry conference last month. “We’ll see how that plays out, but I do think that this industry would benefit from some.”
JetBlue shares rose 12% Wednesday after this story was published.
Know More
JetBlue is the weakest link among the major US airlines. It has lost billions since its last profitable year, in 2019. Its major hubs — New York City’s John F. Kennedy airport and Boston’s Logan airport — are among the most expensive airports to operate in, and JetBlue has struggled to compete with Delta’s deep network and loyal, premium members. Activist investor Carl Icahn, who appears to be underwater on his roughly 10% stake in JetBlue, has been pushing CEO Joanna Geraghty to cut costs.
Notable
- Asked squarely by Stratechery’s Ben Thompson in January about buying JetBlue or buying more airplanes, United CEO Scott Kirby called those “the two interesting possibilities…both have challenges.” (One thing he absolutely wants to buy: Flighty, the flight-tracking app.)