Exciting and probably unexpected news for airline stock United Airlines (UAL), as it announced a new partnership with JetBlue (JBLU). The partnership will not only see the duo selling tickets for each other’s flights, but will also combine loyalty programs. It will also mark the return of United Airlines to an airport it has not seen in some time. That combination gave United a boost today, sending shares up nearly 2% in Thursday afternoon’s trading.
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The partnership arrangement, referred to as Blue Sky, will let JetBlue sell tickets for United flights, and vice versa. It also combines loyalty programs, which means flights on JetBlue will offer rewards points for United, and again, vice versa. Though the deal does need to go through the usual regulatory issues, it is much more likely to go through than it was, say, this time last year.
It will also, reports noted, see United return to John F. Kennedy International Airport as soon as 2027. Several parts of the arrangement will actually kick in much sooner, with some parts starting after the summer travel season. Those details, however, were kept comparatively quiet, as were any financial terms connected with the arrangement. But this is welcome news for JetBlue in particular, who has long tried—and often failed—to establish a partnership to let it better compete against larger airlines.
A New and Potentially Hair-Raising Policy Change
United also rolled out a new policy change that will likely leave some travelers scrambling. For those on domestic flights, all travelers who are not checking luggage will need to check in at least 45 minutes before the flight departs. Previously, those passengers could check in with just 30 minutes to go before the flight.
United made the change to provide “…greater consistency for our customers by aligning with our current check baggage deadline and the check-in policies followed by most other airlines.” This rule does not apply to international flights, though, as the same 60 minute deadline is still in place. And those who fail to meet the deadline may miss their flight altogether; while United will “…do our best to find another option,” that may not always happen.
Is United Airlines a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UAL stock based on 14 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 50.95% rally in its share price over the past year, the average UAL price target of $98.71 per share implies 24.49% upside potential.
