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02 May
Why JetBlue Airways Stock Was Climbing High This Week

Airline partnerships can be beneficial if done correctly, particularly for the smaller party in the arrangement. Speculation about one in the works has benefited the shares of veteran carrier JetBlue (NASDAQ: JBLU) across the past few trading sessions despite the company reporting a loss-making quarter on Wednesday.

Investors decided they liked what they heard, on balance. As of late Thursday night, the company's stock price was climbing nearly 13% higher week to date, according to data compiled by S&P Global Market Intelligence.

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A busy news week for the carrier

JetBlue's first-quarter revenue totaled $2.14 billion, representing a 3% decline from the same period in 2024. On the bottom line, the company managed to narrow its GAAP (generally accepted accounting principles) net loss to $208 million ($0.59 per share) from the year-ago deficit of $716 million. On average, the pundits tracking JetBlue stock were anticipating $2.16 billion for revenue and a slightly deeper net loss of $0.61 per share.

Yet, to many investors, that wasn't the crucial news about JetBlue. A Reuters report published Thursday morning, quoting a trio of "industry sources familiar with the matter," stated that JetBlue and larger peer United Airlines are discussing a partnership.

This would supplant the attempted tie-up between JetBlue and American Airlines Group on busy routes in the northeastern U.S. The effort was quashed in 2023 in an antitrust case brought by the government's Department of Justice (DOJ) two years earlier.

Legal eagles in the sky

If Reuters's sources for the story are accurate, it seems JetBlue is treading more carefully this time. According to the news agency, the potential United Airlines partnership will center on connectivity for fliers and their opportunities to earn frequent-flier miles rather than coordination on scheduling and pricing.

As the smaller of the two companies apparently engaged in the partnership talks, JetBlue likely has more to gain from a collaboration. Yet, government antitrust officials are a wary bunch and might get litigious about this effort, too. Care is warranted here.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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