Leading passenger airline,
JetBlue Airways Corporation
) has signed an interline agreement with one of Europe's largest
passenger carrier, British Airways (BA). The partnership enhances
the air-travel options for the passengers of both the
JetBlue and British Airways have agreed to connect their
networks on the east coast of America, which includes New York
City, Boston, Washington D.C. and Orlando. The two carriers will
incorporate 18 daily transcontinental BA flights, more than 50
routes within the U.S. and more than 100 BA routes beyond
The interline agreement includes some of the popular BA
intercontinental routes like New York-London, New York-Paris,
Boston-London, Washington-London among others. Additionally,
JetBlue customers will get access to various destinations across
Europe, Africa, Middle East and India. Meanwhile, BA customers
can book tickets for newer destinations like Vermont, Portland
Burlington and others.
Although the agreement marks the first of its kind between
JetBlue and British Airways, it is the 25
interline agreement for JetBlue. The company recently reported
improved traffic across its network for Jul 2013. The carrier
reported airline traffic, measured in revenue passenger miles or
RPMs, of 3.52 billion, up 7.3% year over year.
BA, which is owned by International Airlines Group, is one of
the premium carriers across Europe, while JetBlue is an award
winning budget carrier in the U.S. The alliance will provide
premium flight experience to JetBlue passengers. Such premium
services are offered by BA along with access to the extensive
network of the European carrier.
This partnership could be accretive for JetBlue and boost its
top line, given the current rise in travel demand. However,
rising fuel price, competitive pressures and high aircraft
maintenance expenses is taking a toll on the company's
performance. Recently, the company reported weak financial
results for the second quarter of 2013, where earnings and
revenues failed to beat the Zacks Consensus Estimate.
JetBlue Airways, which operates with the likes of
Delta Air Lines Inc.
United-Continental Holdings Inc.
U.S. Airways Group Inc.
), carries a Zacks Rank #4 (Sell).
DELTA AIR LINES (DAL): Free Stock Analysis
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
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UNITED CONT HLD (UAL): Free Stock Analysis
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