May 29 (Reuters) - JetBlue Airways ( JBLU ) and United Airlines

unveiled on Thursday plans for a consumer collaboration that

allows travelers to book flights on both carriers' websites,

while interchangeably earning and using points in their frequent

flyer programs.

Under the deal, dubbed "Blue Sky", which is subject to

approval from U.S. regulators, JetBlue ( JBLU ) will provide

United access to slots at New York's JFK airport for up

to seven daily round-trip flights, beginning in 2027.

The airlines will recognise flyers with preferred status on

either carrier, granting access to perks such as seat upgrades

or switches to another flight.

JetBlue ( JBLU ), the sixth largest U.S. carrier, and United will

also exchange eight flight timings at Newark - giving JetBlue ( JBLU )

more flights at the New Jersey airport outside New York - and

United will move some holiday and travel services to JetBlue's ( JBLU )

Paisly platform, the companies said.

Some aspects of the deal could take effect as early as this

fall, if U.S. regulators approve, they added.

"This collaboration with United is a bold step forward ...

that brings together two customer-focused airlines to deliver

more choices for travelers and value across our networks,"

JetBlue ( JBLU ) CEO Joanna Geraghty said in a statement.

Airline loyalty programs are an increasingly profitable

business for major carriers.

Reuters first reported the negotiations for a partnership in

April. JetBlue ( JBLU ) has been seeking partnerships after a federal

judge blocked its so-called Northeast Alliance with American

Airlines ( AAL ) in 2023.

JetBlue ( JBLU ) has been struggling to return to sustained

profitability after the COVID-19 pandemic. It has managed to

post a profit in just two of the past nine quarters.

United has made significant flight cuts at its Newark hub in

the face of technology, air traffic staffing and runway

construction issues.

The largest global airline by fleet size, United halted its

limited service from JFK in 2022 after failing to get FAA

approval for more flights.

In March, United CEO Scott Kirby said he wanted a greater

presence in New York, but was discouraged by "all the headache"

of buying an airline to ensure a presence at JFK.

On Thursday Kirby said the deal gives frequent flyer members

"new, unique ways to use their hard-earned miles and find

options that fit their schedule."

The airlines' collaboration, which is not a merger, includes

an interline agreement, rather than a codeshare, meaning that

each will continue to independently publish, market, manage and

price flights.