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JetBlue (JBLU) & American Airlines (AAL) to Add 33 Routes

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JetBlue Airways Corporation (JBLU - Free Report) and American Airlines Group Inc. (AAL - Free Report) announced the launch of the first phase of their codeshare partnership, which was inked in July 2020. The alliance between the carriers aims to introduce a number of new routes from the New York and Boston areas, thereby boosting connectivity.

 Notably, the Northeast alliance opens up growth opportunities for both carriers by finding ways to better utilize existing gates and slots in congested Northeast airports, while offering customers a seamless travel experience.

As part of the launching process, bookings for nearly 80 codeshare flights are currently available. Moreover, JetBlue announced the launch of 15 new routes, including service from Newark and LaGuardia, and Seasonal Service from John F. Kennedy international Airport (JFK) to two new JetBlue destinations. Similarly, American Airlines intends to introduce 18 new routes, including six new international markets across the Caribbean and South America served from New York-JFK in May and June. Together, the carriers will introduce 33 new routes as part of the first phase of their alliance.

JetBlue’s codeshare with American Airlines starts from Feb 25. Notably, JetBlue will codeshare on more than two dozen American Airlines routes, while American Airlines will codeshare on more than four dozen JetBlue routes. The first routes cover domestic point-to-point markets.

Customers of both JetBlue's TrueBlue and American's AAdvantage programmes will be able to enjoy reciprocal benefits, starting with the ability to earn points or miles on either carrier and enhancing the value of both loyalty programs to all flyers. Over time, the airlines will explore opportunities to recognise JetBlue Mosaic customers and American's AAdvantage elite members across both carriers.

Zacks Rank & Stocks to Consider

JetBlue currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks Transportation sector are Kansas City Southern and Herc Holdings Inc. (HRI - Free Report) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Kansas City and Herc Holdings is pegged at 15% and 12.6%, respectively.

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JetBlue Airways Corporation (JBLU) - free report >>

American Airlines Group Inc. (AAL) - free report >>

Herc Holdings Inc. (HRI) - free report >>

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