United Airlines has been on a growth kick lately, the airline recently took delivery of its 1,000th mainline aircraft, and it is reportedly interested in purchasing some, or all, of JetBlue.
The news of the reported interested from United was first shared by xJonNYC on January 29, 2025, though that was quickly overshadowed by the tragic events in Washington D.C. However, there seems to be a great deal of smoke here for this to be an unsubstantiated rumor.
I have sources telling me UA is heavily looking at B6 — merger or buying assets or something else I’m not remotely sure at the moment.
— JonNYC (@xJonNYC) January 29, 2025
While the previous administration did not take kindly to airline consolidation, suing to block the Northeast Alliance between JetBlue and American Airlines as well as blocking the proposed Spirit and JetBlue merger, times have changes along with the M&A landscape.
Prior to the current administration taking office, the Biden administration appears to have backed off its stance slightly as the Alaska/Hawaiian merger went through without a second glance. Now, with Donald Trump in the White House, I’d imagine airline consolidation is squarely back on the table and United seems hungry.
There are multiple scenarios where United purchasing some, or all, of JetBlue makes perfect sense and I’ll dive into those below.
JetBlue’s Ft. Lauderdale Hub Can Plug a Hole in United’s Network
There are three major, international, carriers in the United States and I believe that all of them have a hole in their respective networks. American Airlines lacks a hub in the Pacific Northwest, Delta Air Lines is missing a hub in Texas and the central United States (though it has been expanding in Austin), and United lacks a meaningful presence in the Southeastern U.S.
Rumors have been swirling for some time that United was looking to establish a greater foothold in Florida, something that could enable it to better compete with Delta’s Atlanta (ATL) fortress hub and American’s hubs in Charlotte (CLT) and Miami (MIA).
By acquiring JetBlue, or even some of its assets in Fort Lauderdale, the carrier could plug the hole in its network overnight, without having to organically build up its own hub at one of the other, highly competitive airports in the region.
JetBlue Gives United a Way Back Into New York’s John F. Kennedy International Airport
New York City is served by three major commercial airports. The primary international airport is John F. Kennedy International Airport (JFK) while LaGuardia Airport serves as the main domestic airport. Newark Liberty International Airport (EWR) serves as a mixture of both and is one of United’s primary hubs.
United chose to cease all operations at JFK in 2015 and focus on its hub operation at Newark Liberty in New Jersey. The airline appears to have regretted this decision as it attempted a return to JFK in 2021 before suspending operations once again in 2022.
Many of United’s Star Alliance partners serve JFK rather than Newark , though a few carriers serve both, which makes it difficult to fill those flights with connecting traffic stateside. JetBlue has its primary hub at JFK and, while United is unlikely to abandon its Newark hub, a purchase could give United control of some very lucrative slots.
Even under the Trump administration, United would likely have to agree to some major concessions in the New York area but, it could likely get enough slots to allow it to return to JFK with sustainable service.
JetBlue is Searching for a Return to Profitability
After it’s failed merger with Spirit and the demise of the Northeast Alliance with American, JetBlue unveiled a plan to focus more on its role as a leisure carrier relying on VFR (visiting friends and relatives) traffic.
While there are some positive reports coming out of JetBlue, the airline did defer deliveries of some aircraft in an effort to free up capital. It is also making sweeping changes to its business model by adding more premium seats onboard. The carrier is also reportedly looking at adding domestic First Class on its non-Mint equipped aircraft.
An acquisition offer from United may be warmly received by shareholders after years of struggles. Regardless of what happens, this will be an interesting development to watch over the coming months.
Summary
United Airlines is reportedly looking at acquiring some or all of JetBlue airways. While the news may seem like it is coming out of left field, I see multiple scenarios that could make this worthwhile for both carriers. I’m curious to hear what others thoughts on this possibility are. Am i crazy (probably) or does this acquisition make sense?