JetBlue ( JBLU ) and United Airlines Holdings Inc. ( UAL ) unveiled a wide-ranging partnership on Thursday to expand customer benefits, loyalty rewards, and travel options across both airlines’ networks.

The initiative called “Blue Sky” enables travelers to earn and redeem loyalty points across both airlines, with shared access to preferred seating, standby options, and simplified booking through each carrier’s website and app.

The collaboration signals a notable shift in airline cooperation, focusing on convenience and cross-network integration rather than a traditional codeshare.

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The announcement comes after reports from late April indicated that JetBlue ( JBLU ) was in talks with United following the collapse of its previous alliance with American Airlines Group ( AAL ) in 2023.

JetBlue ( JBLU ) President Marty St. George had confirmed ongoing negotiations with multiple carriers during the company’s earnings call, stating an announcement was expected by the quarter’s end. JetBlue ( JBLU ) was facing financial pressures at the time, including a 3.1% drop in first-quarter revenue and a $2 million DOT fine for chronic flight delays.

Under Blue Sky, United’s MileagePlus members will gain access to JetBlue’s domestic and Caribbean routes. At the same time, JetBlue’s TrueBlue users will be able to tap into United’s expansive international reach, including destinations like Cape Town and Tahiti. Future phases will introduce reciprocal perks such as priority check-in, baggage allowances, and extra legroom seating.

JetBlue ( JBLU ) will grant United access to seven round-trip slots at JFK Airport by 2027 as part of the deal. Additionally, the carriers will exchange eight flight slots at Newark Liberty International, expanding route flexibility.

The agreement also includes tech integration. United will migrate its ancillary travel services, hotels, rental cars, and cruises, onto JetBlue’s Paisly platform, known for its personalized, human-centered design. Meanwhile, JetBlue ( JBLU ) will begin using United’s Kinective Media system to deliver tailored in-flight advertising based on passenger travel patterns.

Although the airlines will continue to manage operations and pricing separately, they may extend select corporate travel benefits across networks. A detailed rollout of the shared loyalty benefits is expected later this year.

Related ETFs: U.S. Global Jets ETF ( JETS ) , iShares Transportation Average ETF .

Price Action: At the last check Thursday, JBLU shares were trading higher by 2.11% to $5.33 and UAL higher by 2.71% to $79.60.

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