JetBlue Airways Corporation announced on Wednesday that it anticipates making a significant announcement regarding a domestic partnership in the weeks to come. This development comes in the wake of ongoing discussions between JetBlue and United Airlines, as reported by Reuters, which cited insights from three sources familiar with the negotiations.

The urgency for JetBlue to establish a new domestic partnership stems from the recent ruling by a federal judge that annulled its Northeast Alliance with American Airlines in 2023. This ruling left the New York-based airline on the lookout for alternative collaborative opportunities within the domestic market.

During a conference call on Tuesday, JetBlue President Marty St. George elaborated on the expectations surrounding the potential partnership. He expressed optimism about the enhanced network connectivity that such an alliance could offer to JetBlue customers. If you are a customer in the Northeast and you love JetBlue for leisure, but twice a year, you have to go to Omaha or Boise, these are places that you can't earn TrueBlue points on now. And when this partnership goes forward, you will be able to, St. George explained, highlighting the added benefits for frequent travelers.

While discussions between JetBlue and United are still in the preliminary stages and details have not been finalized, sources indicated to Reuters that the partnership would enable customers to earn and redeem frequent flyer miles across both airlines' loyalty programs. This move is expected to enhance connectivity for travelers within their respective networks.

However, its important to note that the two airlines will not coordinate schedules or pricing as part of this collaboration, distinguishing it from the previously struck Northeast Alliance with American Airlines.

In a filing submitted to the Securities and Exchange Commission back in January, United Airlines clarified that it is not currently engaged in talks with any other airlines concerning a merger. The airline stated, It has come to the Company's attention that there may be rumors spreading among certain of our investors regarding United's involvement in a potential strategic transaction with another airline. The Company is not in negotiations or discussions with any other airline regarding a merger, acquisition or similar strategic transaction and has not been in any recent discussions with any airlines regarding the same.

Uniteds CEO, Scott Kirby, emphasized during an investor conference in March the potential disruptions mergers can create. At United, when the business plan is working we don't need a deal for sure, he remarked, suggesting that the threshold for pursuing a merger would be significantly higher if their current business strategy remains successful. Nevertheless, he expressed interest in establishing a larger presence at New York's JFK Airport.

JetBlue confirmed to Skift that they are in discussions with multiple airlines regarding new partnerships and expressed optimism about reaching an agreement soon. Weve previously said we are talking to multiple airlines about a new partnership. We have been making good progress and expect to announce a partnership agreement in the second quarter, the airline stated.

A successful partnership could provide a much-needed boost to JetBlues financial position, especially given its struggles to achieve profitability since the dissolution of the Northeast Alliance and the merger talks with Spirit Airlines that ultimately did not materialize. The airline's stock price has experienced a notable decline, further igniting speculation that it could become a target for acquisition.

For United Airlines, establishing a partnership with JetBlue could enhance its operations at key airports, particularly JFK and Boston Logan International Airport. United, which has a hub at Newark Liberty International Airport, previously exited JFK in 2022 citing competitiveness concerns. Its standing in Boston is not as strong compared to JetBlue and Delta Air Lines, both of which operate sizable hubs in the area.

Previously, JetBlue had engaged in negotiations with American Airlines for a partnership; however, those talks fell through when the two carriers could not reach a consensus. Currently, American Airlines is also pursuing legal action against JetBlue regarding the cessation of their Northeast Alliance.

In summary, the airline industry is keenly watching the potential partnership developments between JetBlue and United Airlines, as such collaborations could reshape the competitive landscape of domestic air travel and influence stock performance within the sector.