Spirit Airlines is calling on the U.S. Department of Transportation to block a proposed partnership between JetBlue Airways and United Airlines, warning that the deal is anticompetitive and could trigger a wave of similar tie-ups among major carriers.
In May, JetBlue and United unveiled their proposed “Blue Sky” partnership, which would allow customers to book flights across both carriers’ websites and earn and redeem points across their respective frequent flyer programs. But Spirit argues the alliance would ultimately reduce competition by subordinating JetBlue to its larger partner.
“This anti-competitive tie-up involving a dominant legacy carrier will neutralize the competitive benefit of an existing low-fare competitor,”
— Spirit Airlines said in its filing
The budget airline warned the partnership could set a precedent, prompting other major players like American Airlines and Delta Air Lines to pursue similar deals. That, Spirit said, could lead to “an even more highly concentrated industry” and pressure smaller carriers to fall in line.
The deal would mean the smaller JetBlue “will become a de facto vassal of United,”
— Spirit added
JetBlue pushed back, saying Spirit’s claims distort the nature of the agreement.
“The filing misrepresents Blue Sky and twists the facts about how JetBlue and United plan to deliver for customers,”
— JetBlue said
“The deal does not include schedule coordination or revenue sharing. JetBlue and United will remain competitors as they each will continue to publish, price, and market flights independently under their own brand and flight numbers,”
— JetBlue added
United declined to comment on the filing.
As part of the Blue Sky agreement, JetBlue would give United access to takeoff and landing slots at New York’s JFK Airport, enabling up to seven daily round-trip flights starting in 2027. The airlines also plan to exchange eight flight timings at Newark Airport and coordinate on some services through JetBlue’s Paisley travel platform.
The proposed partnership comes as JetBlue continues to seek growth opportunities after its earlier Northeast Alliance with American Airlines was struck down in court. In March 2024, JetBlue and Spirit were also forced to terminate their $3.8 billion merger deal after a federal judge blocked it on antitrust grounds.
JetBlue, the sixth-largest U.S. airline, has faced headwinds in its post-pandemic recovery. The carrier has posted profits in just two of the past nine quarters and is actively looking for ways to regain sustained profitability.
American and Delta did not immediately respond to requests for comment.