Report: JetBlue Eyes Sale to United, Alaska, or Southwest

JetBlue is reportedly exploring a potential sale and has targeted three competitors as prospective buyers: United Airlines, Alaska Airlines, and Southwest Airlines.

According to a report from Semafor, which cited advisors working with JetBlue’s M&A planning team, the airline is engaged in preliminary discussions regarding a possible merger. While JetBlue could still choose to abandon the talks, the report indicates that formal deliberations are underway.

JetBlue and United are already linked through their Blue Sky partnership, an interline agreement that allows passengers to earn and redeem miles through each other’s loyalty programs. According to Semafor, United has long entertained the idea of acquiring JetBlue, though it remains firm on its own price.

Even should a deal get done, significant roadblocks remain in Washington for a carrier the size of United to acquire JetBlue, which is one of only a handful of remaining competitors. The report suggests that a primary focus of the current talks is whether a deal would receive approval from the Department of Justice.

JetBlue tried its hand at a merger a couple of years ago when it attempted to acquire Spirit Airlines. After that merger was blocked by the DOJ in 2024, JetBlue pivoted to focus on high-margin “premium leisure” travelers. The airline also recently opened its first-ever airport lounges, called “BlueHouse.”

JetBlue’s shift toward being a more premium airline may help its case for a merger with United. Part of the reason the Spirit merger was blocked, according to the DOJ, was that it would have eliminated a low-cost disruptor in the space. If JetBlue is no longer a “budget” airline, the argument would be that the DOJ can’t claim that United is “killing a low-cost competitor.” Instead, they are just merging two premium carriers.

For United, a potential deal would help it correct a decade-old strategic misstep in the New York City area. While the carrier maintains a fortress hub at Newark (EWR), it hasn’t had a meaningful presence at New York’s busiest airport, JFK, since its exit in 2015, a move CEO Scott Kirby has labeled a mistake.

If it was to acquire JetBlue, United would instantly secure a footprint at Terminal 5 and the upcoming Terminal 6 in JFK, effectively establishing a second hub in the New York City market, and better positioning it to compete with a carrier like Delta.