JetBlue Airways has engaged financial advisers to examine the potential viability of a sale to a competing carrier, according to a report that cited people familiar with the matter. The news sent shares of the low-cost carrier higher by 14% in a single trading session.
According to the report, JetBlue has developed scenarios assessing how combinations with United Airlines, Alaska Airlines, or Southwest Airlines could be viewed by Washington policy makers. The company’s market capitalization was roughly $1.55 billion as of Tuesday’s close, based on LSEG data referenced in the report.
The report noted that the airline is at an early, exploratory stage and may ultimately choose not to enter negotiations with any potential partners. It also said that it was unclear whether JetBlue had engaged in direct talks or received concrete expressions of interest from those carriers.
JetBlue provided a statement noting progress on its multi-year JetForward strategy and saying the airline is focused on executing that plan. The company emphasized confidence that JetForward will restore profitability, create shareholder value, and provide opportunities for its crewmembers.
Earlier this month JetBlue estimated that the JetForward initiative is on track to deliver $850 million to $950 million in incremental operating profit by 2027. The program aims to lower costs, expand the airline’s network and improve service for travelers over the long term.
In 2024, the carrier abandoned a planned $3.8 billion merger with Spirit Airlines after a U.S. judge blocked the deal on antitrust grounds, the report recalled. Last year JetBlue also announced a commercial partnership with United that allows customers to book flights on both carriers’ websites and to earn and redeem points across their frequent flyer programs interchangeably.
Under that arrangement, JetBlue agreed to provide United access to slots at New York’s congested John F. Kennedy International Airport for up to seven daily round-trip flights beginning in 2027, the report added.
The report also stated that an independent verification of the account was not available. Reuters said it could not independently confirm Semafor’s reporting.
Market commentary embedded in the original item included a reference to valuation tools for the carrier’s shares, noting investor interest in assessing whether JetBlue’s stock represents a bargain. That material encouraged use of a Fair Value calculator methodology but did not change the factual account of JetBlue’s adviser engagement and corporate plans.
Summary
JetBlue has brought advisers on to evaluate a possible sale to another U.S. airline, with the company also affirming progress on its JetForward turnaround plan and projecting significant incremental operating profit by 2027. The airline remains in preliminary stages and could decide not to pursue a transaction.