However, despite United and Delta's impressive performance, some of the legacy carriers' smaller, low-cost rivals are struggling.
Ultra-low-cost carrier Spirit Airlines is currently in bankruptcy, and JetBlue has continued to face financial strains. With the exception of Southwest, which reported a modest profit in 2024, budget carriers seem to be facing continued losses.
With this in mind, many have been expecting further consolidation within the industry as airlines come to terms with the new realities of flying.
Frontier just made another bid for Spirit Airlines, further igniting expectations of consolidation. In the past few days, rumors emerged that United was considering an acquisition of New York-based JetBlue. However, the airline has set the record straight regarding its immediate growth plans.
According to Bloomberg, United has set the record straight that it is not considering a merger or asset purchase with JetBlue Airways.
Rumors began circulating on social media, and got as far as some of United Airlines' investors. In response, United released a statement in a regulatory filing to clear the air:
“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."
Though United claims the rumors are false, JetBlue has made it clear that it is looking to work with other carriers in the form of partnerships.
After losing a lawsuit blocking its planned acquisition of Spirit Airlines, the hybrid carrier has struggled to find its way in an increasingly competitive market. A few years ago, JetBlue was forced to end its popular partnership with American Airlines in the Northeast as well.
With JetBlue struggling, a merger seems like a natural step to restoring profitability. As a major disruptor in the airline industry, the carrier once enjoyed massive profits and a loyal customer base.
But in the years following the C.O.V.I.D.-.1.9 pandemic, the airline has been faced with losses and costly operational challenges from the congested airspace around its biggest bases in New York and Boston.
Hypothetically, some elements of a combined carrier could make a merger a good choice for the two airlines. The differences between the two brands have shrunk in recent years:
United has a renewed focus on the onboard passenger experience (something JetBlue is known for), while JetBlue has continued to make its brand more premium through new seating options, credit card deals, and lounges.
A current key battleground in the US airline industry is Boston. JetBlue is currently the city's largest carrier, but faces intense competition from Delta Air Lines.
Aligning with United would give JetBlue more firepower, and the ability to compete in more long-haul markets thanks to United's extensive fleet of long-range jets.
Meanwhile, United would gain major access to New York's John F. Kennedy International Airport through the deal.
The airline does not serve the airport (despite a recent attempt to return to the gateway), due in part to the airline's hub at nearby Newark Liberty International Airport and a lack of available space at JFK for significant operations.
However, JetBlue is the New York airport's largest carrier, and would give United massive operations from JFK instantly.
