United and JetBlue have received Transportation Department go-ahead to implement their planned interline and codeshare partnership, the airlines announced Tuesday.
The carriers said they'll share more details about the partnership, which they've named Blue Sky, in the coming weeks as collaboration begins.
What's in it for flyers and the airlines?
Under the arrangement, which was announced in late May, the airlines will link their networks via an interline agreement. They will also offer reciprocal loyalty point accrual and redemption as well as reciprocal loyalty status privileges, such as early boarding, upgrades and free bags.
In addition, flyers will also be able to book United flights through JetBlue channels and vice versa. And JetBlue will trade arrival and departure trade slots at capacity-constrained New York JFK to United in exchange for increased access at Newark Liberty.
United expects to begin flying up to seven daily round trips out of JFK in 2027, ending a hiatus that began in 2015, when United moved its entire New York metroplex long-haul operation to Newark. JetBlue expects to gain eight daily flights at Newark.
Spirit sought to block Blue Sky
Spirit Airlines had sought to block the partnership, arguing in regulatory filings that Blue Sky would diminish competition and raise fares on all routes on which United and JetBlue compete.
United and JetBlue countered that they would remain competitors and continue to be fully independent as it relates to pricing, scheduling and frequent flyer program decisions.
The DOT did not respond to a request for comment.
JetBlue estimated Tuesday that the partnership will contribute $850 million to $950 million to its earnings before interest and taxes by the end of 2027.